Proceedings of 8th Annual London Business Research Conference
Imperial College, London, UK, 8 - 9 July, 2013, ISBN: 978-1-922069-28-3
Satisfaction in the Unwanted Services Industry: The
Special Case of Funeral Services
Edwin Theron
The topic of death is considered morbid by most and fascinating by a selected few.
However, the funeral services industry is a multi-million euro industry, and it is
surprising that this significant industry is not often the subject of scientific research.
The aim of the current study was to identify antecedents of satisfaction within an
unwanted services environment, with specific reference to funeral services. Six
possible antecedents of satisfaction were identified through the literature. These
were empirically tested amongst 175 students at a leading South African
university. Three antecedents were found to be driving forces behind satisfaction
in the funeral services industry: trust, empathy and tangibles. This study makes a
valuable contribution to the marketing literature, since it provides a platform from
where satisfaction in the funeral services industry can be managed and further
researched.
Field of Research: Marketing
JEL Codes: M3; M31 and L84
1. Introduction
Satisfaction is an important element of any service delivery process, and is regarded
as a significant building block of repeat purchasing (White & Yu, 2005). Repeat
purchasing is in turn a basic premise for relationship marketing (Snehota &
Söderlund, 1998). Since the concept of wantedness of a relationship appears to be
taken for granted by marketing academics and practitioners, very little research was
found in which the concept of satisfaction was investigated within an unwanted
services environment.
This study investigated the management of satisfaction within situations where the
wantedness of the service cannot be assumed. Typical examples of such situations
are funeral services, medical rescue services, pest control, plumbing, and personal
treatment services (such as Alcoholics Anonymous). Although the degree of
unwantedness is dependent on the customer‟s specific situation (such as his/her
emotional state), these industries appear to comply with requirements that are often
used to classify the unwanted services industry.
This study takes the funeral services industry as point of departure, since this
industry complies with the requirements to be classified as an unwanted service.
______________
Dr Edwin Theron, Department of Business Management, University of Stellenbosch, South Africa,
Email: et3@sun.ac.za
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Proceedings of 8th Annual London Business Research Conference
Imperial College, London, UK, 8 - 9 July, 2013, ISBN: 978-1-922069-28-3
2. Definition and Scope of Unwanted Services
Literature on the unwanted services industry is scarce, with only a limited number of
studies focusing on this subfield of marketing. This scarcity almost creates the
impression that unwanted services are overlooked in terms of their existence as a
unique type of service.
„Unwanted services‟ refer to services that could evoke strong, negative emotions,
which could result in an unreceptive buying situation (Xu, Summers & Belleau,
2004). This is in sharp contrast to services that provoke little more response from
customers than the decision to purchase or reject a service. Wilson and West (1981)
refer to the concept „unmentionables‟, Fam, Waller and Erdogan (2004) refer to
„controversial products/services‟, while Waller (1999) uses the word „offensive
services‟ when referring to unwanted services. Fam et al. (2004) describe
controversial products and services as those products and services that, for reasons
of delicacy, decency, morality or even fear, tend to elicit reactions of distaste,
disgust, offence or outrage when mentioned or when openly presented.
In an early classification of unwanted services, Wilson and West (1981) argue that a
distinction should be made between those services that appeal to a quite small
market segment (such as pornography) and those unwanted services that are
accepted by the broader public, but not preferred (such as funeral services). This
situation led Badger (2008) to argue that marketers of unwanted services have the
challenging task of attracting customers that do not want to be attracted by the
services.
According to Schwartz, Jolson and Lee (1986), three broad aspects characterise
unwanted services: Firstly, unwanted services are confronted by a negative demand,
since the purchaser of the services has not, prior to the situation, went through a
process of information search, mainly due to the fact that the market segment
dislikes the service. Secondly, since extreme time pressures prevail, the purchase
cannot be avoided. The third and final characteristic of an unwanted service is that
the emotional state of the buyer has a strong impact on the rational decision-making
process.
Based on the above characteristics, it could be possible to identify funeral services,
medical services, pest control and abortion services as examples of unwanted
services. However, the unwantedness of a specific service is predominantly
dependent on the characteristics of the individual buyer as well as the buying
situation. It could therefore be difficult to provide exact examples of the unwanted
services industry.
3. The Funeral Services Industry
Although some literature on the funeral services industry exists, it remains underresearched. This scarcity could be attributed to the fact that the study of funeral
services could be regarded as a “dismal science” (Banks, 1998), as well as to the
debate whether money should be made out of death at all (De Witte, 2003). Price,
Arnould and Tierney (1995) argue that funeral services are unique, dramatic,
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Proceedings of 8th Annual London Business Research Conference
Imperial College, London, UK, 8 - 9 July, 2013, ISBN: 978-1-922069-28-3
emotional and even bewildering to customers. This is similar to a finding by Xu et al.
(2004) that the negative emotions that are associated with this type of service could
give rise to a hostile business environment. Due to the time constraints placed on
funeral services, purchase decisions need to be made quickly and often under great
emotional duress (Bertrand, Mullainathan & Shafir, 2006). In addition, Berry (2002)
argues that funeral services is a typical example of a service where there is no
ongoing or periodic desire for the service on the part of the customer.
Due to the unwanted nature of funeral services, customers appear to avoid this type
of service and they are unlikely to be motivated to buy such a service on account of
being exposed to an advertisement, simply because the service is associated with
death and grief (Lynch, 2004). Furthermore, Kopp and Kemp (2007) argue that,
despite the fact that virtually every person will purchase or consume a funeral-related
service at some point or another, little is understood about the making of decisions
under these stressful circumstances.
The United States (US) funeral services industry is worth $15 billion (in terms of
annual revenue) with 24 881 funeral homes that provide employment to more than
115 000 individuals (Funeral homes in the US market research, 2012). In the United
Kingdom (UK), it is estimated that the annual funeral market is worth £1 billion with
600 000 funerals taking place each year, and the services are being delivered by an
estimated 4 000 funeral directors (The UK Funeral Industry, 2013). However, if
compared to the Chinese funeral industry, both the US and UK appears to be small
since the Chinese funeral industry is worth an estimated at $25.5 billion in terms of
annual turnover (Funeral industry: China a huge market to be developed, 2013).
The value of the South African funeral services industry (which formed the
background to this study) is estimated at about 5 billion ZAR (about £0.4 billion)
(Bester, Chamberlain, Short & Walker, 2005). Although numerous factors could
influence the South African mortality rate, the prevailing HIV/AIDS pandemic appears
to have a magnifying effect on the local funeral services industry (Geffen, 2010).
However, the South African funeral industry is unregulated, which implies that the
actual value of the industry could be considerably higher (Molyneux, 2001).
4. Satisfaction and Its Antecedents
The importance of customer satisfaction within a services environment is well
documented (Bogomolova, 2011; Pham, Goukens, Lehmann & Stuart, 2010).
Satisfaction can be described as an emotional response to the experiences provided
by and associated with particular products or services purchased (Alkilani, Ling &
Abzakh, 2013). It is therefore not unexpected to find ample empirical evidence for
the positive influence that customer satisfaction has on any service provider (Chrzan
& Kemery, 2012; Kumar, Sharma, Shah & Rajan, 2013).
Satisfaction can only be managed if service providers are certain as regards the
drivers (or antecedents) of the construct. Although the antecedents of satisfaction
have often been the subject of study, it is notable that so far, the unwanted services
industry has not been included in such studies. Therefore, it is necessary to draw
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Proceedings of 8th Annual London Business Research Conference
Imperial College, London, UK, 8 - 9 July, 2013, ISBN: 978-1-922069-28-3
from the broader marketing literature to identify the antecedents of satisfaction within
the unwanted services industry.
Trust is not only accepted as a substantial part of a business relationship (Jiang,
Henneberg & Naudé, 2011), but it also appears to be a well-documented antecedent
of satisfaction (Jin, Park & Kim, 2008). It is thus evident that a client‟s satisfaction
with a service provider could increase through higher levels of trust.
Communication, which can be defined as the formal as well as informal sharing of
meaningful and timely information between firms (Anderson & Narus, 1990) is a
further important driver of customer satisfaction (Bendall-Lyon & Powers, 2003). The
basic premises of this argument is that service providers should communicate
effectively with clients, so that the consumer will be correctly informed about the
service and the service delivery process (Sirdeshmukh, Singh & Sabol, 2002).
Satisfaction could further be enhanced through customisation (Coelho & Henseler,
2012; Thirumalai & Sinha, 2011). Once service providers realise the importance of
delivering customised service, improved levels of customer satisfaction could be
expected. Due to the nature of the funeral service act, it is expected that the more
service providers are willing and able to customise services to individual needs and
preferences, the more satisfied customers will become.
Once a service provider could manage empathy with its clients, the service provider
could expect to see an increase in satisfaction levels (Kumar, Mani, Mahalingam &
Vanjikovan, 2010; Lai, 2004). In this study, empathy was defined as the caring and
individualised attention that firms provide for its customers and clients (Wilson,
Zeithaml, Bitner & Gremler, 2012). From an unwanted services perspective, and
more specifically the funeral services industry (the backdrop against which the
empirical section of this study was conducted), it is envisaged that empathy will have
a significant influence on satisfaction. Funerals are often associated with intense
grief, which could be alleviated through empathic service.
The final antecedent that was hypothesised relative to satisfaction was that of
tangibles. Tangibles, represent the physical aspects of the service (Wilson et al.,
2012), and the literature supports the relationship between tangibles and customer
satisfaction (Kumar et al., 2010; Lai, 2004; Ping, Tan, Suki & Suki, 2012).
Competence, which is defined by Perry, Cavaye and Coote (2002) as the degree to
which business transactions meet performance expectations, appears to be
positively correlated to customer satisfaction (Delcourt, Gremler, Van Riel & Van
Birgelen, 2013). Thus, if the firm is competent in the service that it renders, the
consumers‟ satisfaction levels will increase.
Based on the above literature review, it was hypothesised that the following
antecedents are positively related to satisfaction within an unwanted services
environment: trust (H1), communication (H2), customisation (H3), empathy (H4),
tangibles (H5) and competence (H6). These hypothesis relationships are summarised
in Figure 1.
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Proceedings of 8th Annual London Business Research Conference
Imperial College, London, UK, 8 - 9 July, 2013, ISBN: 978-1-922069-28-3
Figure 1:Hypothesised relationships
Trust
H
1
Communication
H
2
H
3
Customisation
H
4
H
5
H
6
Satisfaction
Empathy
Tangibles
Competence
5. Research Methodology
The empirical research was performed amongst students at a leading South African
university.
Sampling procedure: A non-probability method was used in this study, and
convenience sampling was used as sampling procedure. The research was
conducted among 175 respondents who could be challenged.
Measurement instrument: The data were collected by using a 35-item
questionnaire. All items were sourced from a variety of established scales that were
found in the marketing literature and that have demonstrated evidence of reliability
and validity. None of the items was self-generated.
Data collection and data analysis: Respondents provided information during
personal interviews. Cronbach alphas were used to assess the reliability of the
scores obtained for each construct, while the empirical relationships in the theoretical
model were analysed by means of regression analysis.
Data analysis: SPSS version 20.0 was used to analyse the data, and the reliability
of the measurement instrument was measured through Cronbach alphas.
6. Empirical Results
A total of 175 respondents participated in the study. An exploratory factor analysis
was conducted in which principal components was used as the extraction method
and direct oblimin as rotation method. A 0.5 level was used to indicate significant
coefficients. The factor analysis was repeated until a clear 3-factor structure
emerged. The first factor comprised of five items (including four of the original five
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Proceedings of 8th Annual London Business Research Conference
Imperial College, London, UK, 8 - 9 July, 2013, ISBN: 978-1-922069-28-3
tangibles items, and one competence item) – it was therefore decided to retain the
tangibles label. Similarly, factor two consisted predominantly of empathy items, and
the empathy label was also retained. The third factor consisted mainly of trust items,
and once again, the original label (trust) remained.
The reliability of the new factors ranged between 0.661 and 0.730; therefore,
illustrating sufficient evidence of reliability. The results of the regression analysis are
presented in Table 1.
Table 1: Results of regression analysis
Independent
variables
Tangibles
Empathy
Trust
R2 = 0.564
Beta
coefficients
0.212
0.158
0.568
t-values
3.881
2.802
10.022
Level of
significance
0.000
0.006
0.000
VIF
level
1.174
1.243
1.258
Tolerance
level
0.852
0.805
0.795
Remarks
*
**
*
Remarks: ** = p < 0.05; * = p < 0.01
Based on the significance levels and the β-values indicated in Table 1, all three the
hypothesised relationships were found to be significant and positively related to
satisfaction. In this way, support was found for the relationship between tangibles
and satisfaction, between empathy and satisfaction, as well as between trust and
satisfaction within a funeral services environment. Multicollinearity amongst the
independent variables did not appear to be a problem since all the VIF index and
tolerance levels were within the generally accepted margins.
A considerable amount of the variance in satisfaction (R2 value of 56.4%) was
explained by the independent variables. Although this figure might appear to be low,
it must be kept in mind that literature on the funeral services industry is limited, and
against this background, the R2 value appears to be encouraging.
7. Managerial Implications
Global media often refer to the uniqueness of the South African population, with
descriptions such as “culturally diverse” and “rainbow nation” that are frequently
used. The results of this study appeared to underline this viewpoint. Based on the
results of the factor analysis, it could be argued that the process of managing
satisfaction in the funeral services industry is somewhat different to the way in which
satisfaction is being managed in other industries. It seems as if South Africans apply
a heuristic approach, where individual dimensions are regrouped to simplify the
decision-making process (Jordan & Kaas, 2002). The heuristic approach appears to
be of specific value in situations where consumers are faced with complex decisionmaking situations (and/or when they are under time pressure, such as in the case of
funeral services), in an attempt to reduce the mental effort in decision-making (Van
Bruggen, Smidts & Wierenga, 1998).
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Proceedings of 8th Annual London Business Research Conference
Imperial College, London, UK, 8 - 9 July, 2013, ISBN: 978-1-922069-28-3
Since the South African funeral services industry is largely unregulated (and in many
cases underdeveloped), it is comprehensible that distrust could exist in the local
industry. It is therefore not surprising to find that customers regard trust as an
important antecedent of satisfaction. With the South African funeral services industry
that is often characterised by “fly-by-night” opportunists, it is critical for all role
players within the industry to focus on regaining the trust of their customers.
Both empathy and tangibles were found to be important drivers of satisfaction in the
funeral services industry. The significance of empathy is comprehensible, since
funeral services are generally regarded as being rendered under highly emotional
and grieving circumstances. Funeral services are therefore not an “average” service,
and great care should be taken to understand clients‟ feelings.
Tangibles were found to be a further significant antecedent of satisfaction. This
finding re-emphasised the role that tangible elements (or so-called “evidences of
service”) play in creating satisfaction. Funeral services are highly intangible, and
customers are in search of a tangible component (such as the infrastructure,
vehicles and printed documentation) to make the service more “visible”.
8. Conclusion and Limitations
There is a well-known saying that only two things in life are certain: paying taxes and
death (which, interestingly enough, can both be classified as of an unwanted nature).
Although some might argue that taxes can be avoided, death is inevitable, which
explains the need for funeral services.
Unwanted services differ from other services since within the unwanted services
environment, customers may not want to acknowledge their needs for the particular
service. This situation could result in customers being hesitant to use the service.
This hesitance is almost mirrored in the marketing literature with very few studies
focusing on the unwanted services industry, even more so the funeral services
industry. It was the purpose of this study to contribute to the body of knowledge on
the unwanted services industry, and more specifically the way in which satisfaction
could be managed in the funeral services industry.
The findings of the current study provide valuable insights into managing satisfaction
within an unwanted services environment. Firstly, the findings provide marketing
academics with the opportunity to develop a better understanding of the nature and
management of unwanted services, and more specifically, funeral services.
Secondly, marketing practitioners can use the results of this study to adapt service
offerings to clients, which in turn could result in increased profitability.
No study is without its limitations, and especially two aspects should be addressed in
order to improve the use and practicality of the study. Firstly, it should be kept in
mind that the theoretical base for the study was somewhat limited, due to the
scarcity of resources regarding the management of satisfaction from a funeral
services perspective. Secondly, the empirical section of this study was conducted
amongst students at a tertiary institution, which implies that it could be challenging to
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Proceedings of 8th Annual London Business Research Conference
Imperial College, London, UK, 8 - 9 July, 2013, ISBN: 978-1-922069-28-3
generalise the results of this study. Both these limitations necessitate the need for
continued research within the field of both funeral services and unwanted services.
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