Influence of Operations-Marketing Integration on Negative Critical Incidents

Abstract

Negative critical incidents (NCIs) originating from dissatisfaction with product or services brings the relationship between the firm and its customer into focus. Some firms utilize this opportunity to strengthen the bond with loyal customers, yet it should be in the benefit of the firm to manage the number of NCIs. We investigate, through theoretical analysis and exploratory empirical research, specific triggers of NCIs and study the role of marketing-operations interface in minimizing their frequency. It was found that firms that are part of industry where new products/services are introduced more frequently are expected to experience more frequent NCIs. A strong intra-organization interface between marketing and operations functions has a moderating effect on this adverse relationship. One counter intuitive insight obtained was that the complexity of processes delivering product/service may not be a cause of NCIs, but the reverse can be true in some cases. The sample investigated had representation from service and manufacturing sectors as well as important industries within them. The results however, could be specific to India. We discuss the managerial implications of these results.

Keywords: Operations-marketing interface, Critical incidents, Consumer satisfaction, Cross-functional integration.

JEL Classification: D29, M11