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RELATIONSHIP BETWEEN SUGGEST SUPERIOR FEATURES AND CCB 1 Summary This report discusses about customer citizenship behavior (CCB) and its importance because it resembles the work performed by the service provider or the organization itself. This report examines the eight types of customer citizenship behaviors and also relates CCB with other important variables. The nature of this report was descriptive and we used 407 respondents information to perform multivariate and Bi-variate analysis. In this report, the Correlation table shows the variables that are highly correlated, marginally correlated and variables that are not correlated, the Anova table shows whether the regression model is acceptable or not and the coefficient table expresses the linear relationship between the independent variables and the dependent variables. It also examines the implementation of these variables in real life situations. Importance In recent years, there has been found a stream of study which is concerned about Customer Citizenship Behavior (CCB) which indicates customers extra role behavior toward any
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Research Paper on Customer Citizenship Behavior

Aug 08, 2015

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Faculty: AKAREEM

Institute: BRAC University

Subject & Year: Principles of Marketing (2012)
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Page 1: Research Paper on Customer Citizenship Behavior

RELATIONSHIP BETWEEN SUGGEST SUPERIOR FEATURES AND CCB 1

Summary

This report discusses about customer citizenship behavior (CCB) and its importance

because it resembles the work performed by the service provider or the organization itself. This

report examines the eight types of customer citizenship behaviors and also relates CCB with

other important variables. The nature of this report was descriptive and we used 407 respondents

information to perform multivariate and Bi-variate analysis. In this report, the Correlation table

shows the variables that are highly correlated, marginally correlated and variables that are not

correlated, the Anova table shows whether the regression model is acceptable or not and the

coefficient table expresses the linear relationship between the independent variables and the

dependent variables. It also examines the implementation of these variables in real life situations.

Importance

In recent years, there has been found a stream of study which is concerned about

Customer Citizenship Behavior (CCB) which indicates customers extra role behavior toward any

organization which is like the employees, customers may show some voluntary or discretionary

behavior that is not required to perform, but nevertheless helps the organization to improve their

quality or service. It is a very important issue as CCB simultaneously occurs in service

encounter. As the concept of CCB says that like other organizational employees, customers may

engage in a variety of citizenship behavior directed toward a specific organization’s welfare.

CCB has become a very much important issue for an organization because it resembles the work

performed by the service provider or organization itself. Practicing CCB can also inform the

service provider about the quality of the service or how the quality of the service can be

improved or how the customer wants it. It is also having a remarkable effect on new product

development because the customers who are aware about their own self they search for new

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RELATIONSHIP BETWEEN SUGGEST SUPERIOR FEATURES AND CCB 2

products in the market which helps marketers to understand the need of the customer and helps

to design the product line for further. The CCB practicing customers are very much concerned

about the service place, time and other additional superior features of their preferred organization

which make the organization or service provider more active and motivated. Again the term

CCB is also important for customer relationship management (CRM) because customers

practicing CCB becomes more loyal to their organization which helps the management to

capture customer values as well as to satisfy the customers. Except all these factors the CCB is

leading the service marketing, product marketing and customer buying behavior in a new

dimension. In marketing literature, CCB is getting more important day by day as it enhance the

customer willingness to participate in organizational events including survey, research and other

sponsored activities (Gruen, 1995). The customer who shows CCB there is a huge possibility that

they would promote the particular organization to others if they are satisfied. While practicing

CCB, customer may voice their opinion (Bove, et al., 2003; Singh, 1988), highlight to

management when good service is provided (Bove and Garma, 2006). In other words we can say

that CCB is a way of communication by the customer to others of their relationship with an

organization.

Literature Review

Customer Citizenship Behavior (CCB) is based on the theory of social exchange (Blau,

1964) where customers respond positive behavior from a sense of personal obligation or

gratitude. Customer citizenship behaviors may be described as helping behaviors directed

towards the service organization or other individuals, such as service employees or fellow

customers. According to the definition of Groth (2005), CCB is a informal behavior in terms of

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enhancing organizational productivity but it has a great importance on improving overall service

quality of that particular organization.

Eight types of customer citizenship behaviors were extracted from the existing marketing

literature. These are:

1. Positive word of mouth behavior:

Harrison & Walker (2001) claimed that favorable, informal, person-to-person

communication between a perceived non-commercial communicator and a receiver

regarding a brand, a product, an organization or a service.

2. Suggestions for service improvements:

Bettencourt (1997) said that customer provision, to the service organization, of

ideas and suggestions, which do not derive from specific instances of consumption

dissatisfaction, which may aid in the organization’s improvement.

3. Participation in organization events/activities:

Gruen (1995) believed that customer willingness to participate in organizational

events, including research, and other sponsored activities.

4. Benevolent acts of service facilitation:

Kind, charitable acts on the part of the customer, within the immediate service

exchange.

5. Policing of other customers:

According to Bettencourt (1997), the observation of other customers to ensure

their appropriate behaviors.

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6. Flexibility:

Bettencourt (1997) assumed that customer willingness to adapt to situations

beyond their control.

7. Voice:

Singh (1988) claimed that customer directing his or her complaint to the service

provider in the instance of a service failure, so as to give them the opportunity to rectify

the problem, retain their reputation and maintain the relationship.

8. Displays of relationship affiliation:

Gruen (1995) said that communication by the customer to others, of their

relationship with an organization, through tangible displays on their person or their

personal items.

In our research we have found some of these behaviors similar to positive word of mouth,

participation, service improvement suggestion, benevolent acts, voice and displays of affiliation

and flexibility which may help a parlor or saloon to gain profits as well as customer satisfaction

and loyalty.

Researchers’ View:

Researchers have related many variables with CCB by considering different types of

CCB. Some the variables are given below:

1. CCB and Role overload of service employees:

Service employees in service organizations spend most of their time in interacting

with customers. While providing service, they often face role overload. Fogarty et al. (as

cited in Garma, Bove and Bratton (2007)) defined that role overload arises when an

inappropriate heavy amount of role requirement is expected of an employee. So, role

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overload occurs when a service employee face too much demands from the customer.

Cordes and Dougherty (as cited in Grma, Bove and Bratton (2007)) claimed that extreme

role overload can be emotionally draining on service workers as they attempt to manage

their excessive workload. Fogarty et al. (as cited in Garma, Bove and Bratton (2007))

described that in such cases role overload results in burnout. Burnout describes a specific

psychological condition in which people suffer emotional exhaustion, experience a lack

of personal accomplishment, and tend to depersonalize others in progressive stages.

Customers can have a positive influence in reducing the role overload and burnout of the

employees by performing CCB. They can decrease employee’s burden through

performing some voluntary jobs like showing their participating and flexibility behavior

on that time which make the service employees jobs easier, faster and smoother.

2. CCB and Customer Company Identification:

A research on CCB had shown the relationship among the customer company

identification and customer citizenship behavior. Although, CCB plays an important role

in service organizations, most of the researches have exclusively on employees rather

than on customers. Recently a change has altered the thoughts of researchers. The

framework of the Organizational Citizenship Behavior (OCB) has been extended to the

customer content by considering that customers may display Customer Citizenship

Behavior when they purchase product or service (Bettencourt, 1997; Gruen et al.2002,

Groth, 2005; Rossenbaum and Massiah, 2007). Word of mouth, product improvement

suggestion, recruiting other customers and productive communication of anticipated

problems are the types of CCBs. Bowen (as cited in Tuzun and Devrani (2010)) when

customers consider themselves as partners, they contribute to the development and

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delivery of an organization’s service quality similar to an organization’s employees.

Bhattacharya and Sen (as cited in Tuzun and Devrani (2010)) identification is primarily a

psychological substrate for deep, committed and meaningful relationship with the

company. Ahearne et al. (as cited in Tuzun and Devrani (2010)) defined customer

company identification as the degree to which customers feel a sense of connection to a

company and suggest that within the customer content, customer who identify with the

organization expend more effort on voluntarily behavior. Bhattacharya and Sen (as cited

in Tuzun and Devrani (2010)) claimed that identified customers support the company’s

goals, recruit new customers, encourage and advice others to purchase from the company

and build flexibility.

3. CCB and Customer’s justice perception:

Another research has been conducted on CCB which had shown the effects of

customer’s justice perception on the CCB. According to the Yi and Gong (2008) these

kinds of justice can be divided into three parts- distributive justice, procedural justice and

interactional justice, which have both positive and negative influences on CCB.

Distributive justice refers to the degree to which customers feel they have been treated

fairly with respect to the outcome of the service encounter. On the other procedural

justice means the perceived fairness of the policing and procedures by the organization,

while interactional justice refers to the extent to which customers are treated fairly in

their communications with service employees. As customers have expectations focused

on both the promised benefits and how these benefits are delivered so, an organization

should maintain these perceptions carefully.

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4. CCB and Customer Co-value creation:

According to the Yi and Gong (2008), in the case of co-value creation CCB is

done through the four dimensions and they are feedback, advocacy, helping and

tolerance. Here, feedback means seek and unwanted information that customers provide

to the employee, which helps employees and the firm to improve the service creation

process in the long run. Advocacy refers to recommending the business whether the firm

or the employee to others such as friends or family. Advocacy through positive word-of

mouth is often an indicator of customer loyalty, and it contributes greatly to the

development of a positive firm reputation, promotion of the firm's products and services,

higher service quality evaluations, and increase in the customer base size (Bettencourt,

1997; Groth et al., 2004).On the other hand, helping and tolerance deals with the

customer’s helping behavior and the willingness to be patient during service

consumption.

Methodology

Nature of the study:

Our nature of the study was descriptive study which means a statistical study to

identify patterns or trends in a situation but not the causal linkages among its different

elements. Descriptive studies (such as a cross-sectional study) help in generating

hypothesis on which further research may be based.

Questionnaire Design:

We designed a close questionnaire which means there were some fixed questions

and the respondent had to answer form those questions rather than adding any other ideas

from him or herself. There were some negative questions to test the validity of a

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particular questionnaire. The negative questions were removed from the questionnaire

while creating the final analysis.

Sample:

We have collected 407 near about valid information and for collecting these

samples we have applied convenience sampling method which means a sampling method

(a way of gathering participants for a study) used where you select a naturally-occurring

group of people within the population you want to study.

Analysis:

Basically we have done two types of analysis. Firstly we have done Multivariate

analysis which means a generic term for any statistical technique used to analyze data

from more than one variable and secondly we have done Bi-variate analysis which means

a simultaneous analysis of two variables or attributes. The regression table is done by

using multivariate analysis and the co-relationship table is done by using bi-variate

analysis.

Analysis

We have divided our analysis into three parts. The first part or table is the correlation

table which shows us the variables that are highly correlated, marginally correlated and those

that are not correlated at all. The second part or table is the Anova table which shows us whether

our regression model is acceptable or not and finally in the last part or table which is coefficient

table which expresses the linear relationship between the independent variables and the

dependent variables.

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Part: 01

Correlations

customized_service share_idea suggest_superior_features delivery_time fill_up_survey inform_employee

Customized _service

Pearson Correlation

1          

Sig. (2-tailed)

          

N 407          

share_idea Pearson Correlation

.234** 1        

Sig. (2-tailed)

.000 

       

N 407 407        

suggest_superior_features

Pearson Correlation

.270** .356** 1      

Sig. (2-tailed)

.000 .000 

     

N 407 407 407      

delivery_time Pearson Correlation

.359** .232** .300** 1    

Sig. (2-tailed)

.000 .000 .000 

   

N 407 407 407 407    

fill_up_survey Pearson Correlation

.221** .302** .150** .177** 1  

Sig. (2-tailed)

.000 .000 .002 .000 

 

N 407 407 407 407 407  

inform_employee Pearson Correlation

.194** .291** .073 .080 .255** 1

Sig. (2-tailed)

.000 .000 .144 .108 .000 

N 407 407 407 407 407 407

Table: Correlations

This tables shows us which variables are highly correlated, marginally correlated and

which are not correlated at all. In this table, we can see that the rate of correlation is fluctuating

when the variables are judged on one on one situation (Such as share idea and customized

service). So, the variables that contain the value of .000 can be called as highly correlated,

variables that have the value of less than .05 but greater than .000 (such as .002) can be called as

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marginally correlated and the variables that contain the value of more than .05 (such as .144)

have no correlation.

Firstly, there are multiple variables which are highly correlated in this table. The name of

those variables and the reason behind their high correlation is given below:

1. Customized service and Share idea:

As we can see from the table, there is a high correlation between customized

service and share idea and the reason behind this correlation can be employee motivation.

For an example, after consuming a particular desired hair cut when a customer shares his

feelings with persuasive words, it might motivate the service provider to improve his

service quality even more.

2. Customized service and Suggest superior features:

As per our survey result, we have found these two variables highly correlated.

The reason behind could be avoiding the cognitive dissonance. For example, when a

customer wants a better service, he or she suggests customization of that particular

feature to the provider so that he or she does not feel any post purchase dissatisfaction.

3. Customized service and Delivery time:

These two variables are highly correlated and the reason behind it could be

customer satisfaction. For example, when a customer receives a particular service the

way he or she wanted on his or her desired time, it makes the customer highly satisfied.

4. Customized service and Fill up survey:

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According to our survey, we have found a very high correlation between these

two variables. The reason behind this can be service improvement. For example, when a

customer is not receiving a particular service the way he or she wanted, the customer fill

up the surveys to inform the management which helps the organization to improve their

service quality.

5. Customized service and Inform employee:

As we have found in our survey, most of the respondent agreed that if they want

any kind of customization or if they face any problem regarding customization of a

particular service, they inform it to the service provider or to the management of that

parlor or salon. Which indicates that they aware the management about their problems

and services. That is why we found a high correlation among the customized service and

inform employees.

6. Share idea and Suggest superior features:

As we have surveyed over the Dhaka city, we think most of the city dwellers are

highly beauty conscious because most of the respondent likes to take services from a

parlor or salon according to their age, gender, style etc. which shows that they focus on

the demographic segmentation of a particular service or among the features and for this

reason these two variables have high correlation.

7. Share idea and delivery time:

As time is one of the most important resources of human being, they do not prefer

to waste it. So, according to our responses, there is a strong correlation between share

idea and delivery time because most of the customers are willing to provide a time limit

to the service provider.

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8. Share idea and Fill up survey:

We found that customers of a particular parlor or salon share their ideas with the

employees or the service provider by filling up the surveys which shows that those

customers are loyal and wants that parlor or saloon to improve their quality of service. So

for this, these variables have high correlation.

9. Share idea and inform employee:

We found that when a particular CCB practicing customer share his valuable

ideas (such as effective utilization of resources or beauty products etc.) with the service

provider or employees, it leads the parlor or salon to improve their performance and that

is why there is a high correlation between share ideas and inform employees.

10. Suggesting superior features and delivery time:

There is a significant correlation between the variables suggesting superior

features to the provider and delivery time of that particular feature. Our assumption is

that when a customer gets their desired superior feature (Such as Eid special haircut,

baishakhi special makeover or bridal makeover etc.) on time according to their

expectations, it creates customer satisfaction.

11. Delivery time and fill up survey:

There is a positive association between the delivery time and fill up survey. The

customers who consumes the service repeatedly in a scheduled time; it exhibits personal

loyalty toward the service provider and the organization and helps to evaluate the overall

improvement by filling up the survey paper.

12. Fill up survey and inform employee:

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In our survey, we found that there is a correlation between fill up survey and

informing the employees according to the result of the report. It indicates that the

customer who informs the employees about their needs, demands or problems by filling

up the survey, it signifies that they expect more from their chosen parlor or saloon. As it

shows that they are highly brand loyal and good motivators, their positive or negative

comments will help that particular parlor or salon to evaluate their overall presentation

and will try to improve their service quality even more which eventually has an impact on

organization’s growth.

Secondly, we found a variable in our analysis which is more or less correlated. That

variable and the reason behind its less correlation is given below:

1. Suggesting superior features and fill up survey:

While doing the survey we have found that there is a correlation of .002 which

shows more or less high correlation between the variables suggesting superior features

and fill up survey but we found some respondents who does not practice these two

variables together for which lack of time and enough patience can be highlighted. In our

survey 11.1% of respondent was from business background, generally they do not have

enough time to spend in parlor or saloon. Many business people take their appointments

to take service of a particular feature few days before and after consuming the service

they do not stay longer and do not feel the necessity of feeling any survey paper, so in a

few aspects these two are sometimes not related.

Finally, there are some variables in our survey which are not correlated at all. The names

of those variables and the reason behind their lack of correlation are given below:

1. Suggesting superior features and inform employee:

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In our survey we found that there is lack of correlation between suggesting

superior features and informing the employees. Many times it happens that there could be

lack of knowledge among the customers about superior features of their parlor or salon,

so they cannot inform the service provider about actually what they want or cannot share

their post purchase feelings. While doing the survey we also found that there are many

short term customers who are not loyal to their particular parlor or saloon and keep

switching from one to another, these customers actually do not inform their service

provider after the consumption of a service.

2. Delivery time and inform employee:

As per our survey, most of the respondents were students which is about 48.4%.

Usually these students visit the parlor or saloon every now and then and they do not

really feel the necessity of taking appointments, so they do not inform the service

provider about their service time and service. Such as, men usually goes for shaving in

saloon without informing the provider when they want it, they just go and consume the

service as it is. So we found no relation between the variables delivery time and inform

employee.

Part: 02

ANOVAb

ModelSum of

Squares DfMean

Square F Sig.1 Regression 331.518 6 55.253 7.280 .000a

Residual 3035.947

400 7.590    

Total 3367.464

406      

Table: Anova

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This particular table shows us whether our regression model is acceptable or not. As we

can see from the table that the significant value of our model is .000 which means that this model

is quite fine.

Part: 03

Coefficientsa

Model

Unstandardized Coefficients

Standardized

Coefficients

T Sig.BStd. Error Beta

1 (Constant) 8.172 .701   11.663 .000

customized_service -.111 .121 -.049 -.916 .360

share_idea .066 .120 .030 .547 .584

suggest_superior_features

-.158 .106 -.079 -1.495 .136

delivery_time .511 .117 .229 4.356 .000

fill_up_survey .476 .118 .206 4.022 .000

inform_employee -.032 .141 -.011 -.224 .823

Table: Coefficients

This table expresses the linear relationship between the independent variables and the

dependent variables. Here the independent variables are customized service, share idea, suggest

superior features, delivery time, fill up survey, inform employees and the dependent variable is

service quality which includes service excellence, service superiority and high standard. Here we

can see that among the six variables, the linear relationship can be established within two

variables (Delivery time and Fill up survey) as their significant value is .000 and among the rest

of the variables, we cannot establish any linear relationship as their significant value is greater

than .05.

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Firstly, we will discuss about the variables where we can establish the linear relationship.

The name of the variables and the reason behind their linear relationship is given below:

1. Delivery time and Service quality:

We found a linear relationship between delivery time and service quality and

according to our assumption the customers who take the appointments of a specific

provider for a particular service, do so for a better service quality which relates these two

variables together.

2. Fill up survey and Service quality:

As the significant value of these variables is .000 so it is highly favorable by the

customers and there is a linear relationship among these variables. If the service quality is

superior and standard, the customers will feel motivated to fill up the survey and vice

versa.

Secondly, we will discuss about the variables where we could not establish any linear

relationship. These are:

1. Customized service and Service quality:

We think that when a customer suggests customizing a service to the provider, he

or she really does not know about the service quality because the overall quality of

service depends on the provider which the customers will get to know after consuming

the service. That is why there is no relationship between these variables.

2. Share idea and Service quality:

Normally, a person consumes the service first and then shares the valuable ideas

with the provider. Unless or until the service has been provided, the customer cannot

measure the quality of service. That is why these variables are not related.

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3. Suggest superior features and Service quality:

A particular features quality varies from person to person. A customer might like

a particular feature of a parlor or salon very much and he or she can suggest that feature

to others but it really does not mean that other customers will like it too. So, we cannot

see any relationship among these two variables.

4. Inform employee and Service quality:

After analyzing our survey, we found no linear relationship between these two

variables and we think a large portion of the respondents are satisfied enough with their

providers, so they do not feel the necessity of informing the employees about the

problems they face.

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Conclusion

This study takes a further step in defining and measuring the different types of customer

citizenship behaviors in a service context. Customer citizenship behaviors are extremely

valued by organizations, particularly in the current environment where there is a push to

encourage greater customer participation in service delivery to reduce organizational labor

costs and increase productivity. In this analysis, firstly we have found out which variables are

highly correlated, which are marginally correlated and which are not correlated at all. By

analyzing the overall situation, a manager of a particular parlor or saloon can identify the

variables which need further attention. The variables which are highly correlated, a manager

do not need to improve anything rather maintaining those variables the way it is. Moreover,

variables which are marginally correlated, a manager should focus on them more to improve

their relationship by creating online survey forms; improving customer care support;

releasing exclusive packages to attract new customers; giving the employees proper training

to make customers satisfied and so on. The coefficient table articulates the linear relationship

between the independent variables and the dependent variables. Here, we have found that

delivery time and fill up survey have the linear relationship with the service quality of a

particular parlor or saloon. This relationship will help that parlor or saloon to get customer

satisfaction and also the employee satisfaction. On the other hand, there are some variables

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among which no linear relationship exist. For instance, customized service, share idea,

suggest superior features and inform employee have no linear connection with the service

quality. So, a manager should give more emphasis on these variables. Manager can establish

relationship by having own websites where each and every detail of every specific service

can be given. If this can be done the customers can have all the information about any

particular service. So that the customers can have ideas about a specific service and if they

want to consume services, they can do it by visiting the websites containing detailed

information where the consumers can also share their opinions for improvement. If the

consumers get the chance to share their ideas they think themselves as valuable people.

Furthermore they become more loyal and spread positive words of mouth to other. In brief

we can conclude that Customer Citizenship behavior is very important for an organization for

retaining the loyal customers as well as having new potential consumers.

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