Between a rock and a hard place: Seizing the opportunity of demanding customers by means of frontline service behaviors

Service businesses are increasingly facing more demanding customers as a result of a shift in power from the service providers' side to the customers' side. Related literature predominantly examines the negative side of this ongoing trend, while overlooking the positive side. The major aim of this paper is to examine how frontline employees — investment account managers — deal with the ongoing increase in customer demandingness. To address this, we draw on adaptability performance theory to test the facilitating effect of frontline employees' post-transaction service behaviors (SBs) — diligence, inducements, information communication, sportsmanship, and empathy — as a means of adaptation to higher levels of customer demand. Findings indicate that frontline employees adapt most of their SBs' intensities to match customers' demands. The results show that some SBs actually increase the effectiveness and efficiency of frontline employees' service performance, leading to an increase in customer value and satisfaction. Customer value is found as a mediator in some of the relationships between SBs and customer satisfaction. Contrary to the conception of the negative outcomes of customer demandingness, service firms need to consider taking advantage of customer demandingness by stressing the role of frontline employees in adapting to customers’ demands.     

LOGISTICS SERVICE PERFORMANCE: ESTIMATING ITS INFLUENCE ON MARKET SHARE

The research examines the relationships among three dimensions of logistics service performance (operational, relational, and cost performance), customer satisfaction, customer loyalty, and market share. Perceptions of customers of third party logistics (3PL) providers are used to assess 3PL performance constructs. Of the three dimensions of service performance, relational performance is the single most important factor in engendering customer satisfaction. The research supports the strong relationship between customer satisfaction and loyalty identified in previous studies. It also establishes an empirical link between customer loyalty and a measure of market share that is anchored by objective, secondary data.     

Customer orientation,engagement, and developing positive emotional labor

Frontline employees must deal on a daily basis with emotionally demanding customer interactions. Such interactions, when coupled with organizational directives to focus upon exemplary customer service, can prompt employees to express feelings and emotions that are not genuine. Such ‘surface acting' has been found to create stress in frontline personnel, but an understanding of how this negative aspect of emotional labor may be minimized is lacking in the services literature. How a frontline employee's individual attributes might interact with a service work context to build deep, as opposed to surface, acting is the current focus. Applying job demands–resources theory, this study investigates how a frontline employee's customer orientation helps to develop positive work engagement, even in the face of contextual demands. Engagement is then linked positively to the beneficial behavior of deep acting which, in contrast to surface acting, has been identified as a less stressful form of emotional labor.     

Climate perceptions and the customer orientation of frontline service employees

Satisfaction of customers' needs is particularly dependent upon the customer orientation of frontline employees. Understanding the drivers of such orientation is, therefore, a key issue in current research. Research relating perceptions of organisational values with the customer orientation of employees is rather sparse. This topic is approached by investigating the role of selected dimensions of psychological climate in promoting the customer orientation of frontline service employees. A structural equations model is developed and empirically tested, indicating that perceptions of customer, ethical, and innovation climates exert an indirect effect on the adoption of customer-oriented behaviours by frontline employees.     

The golden mean: Research on the mechanism of customer participation in employee service innovation

Service innovation is of importance in achieving business success. This study aims to understand how customer participation affects employees' service innovation through zhongyong thinking and verify the moderating role of leadership empowerment in the service section. Data were collected through a paired questionnaire survey with 352 valid frontline employees and their superiors in the starred hotel industry. Multiple linear regressions and bootstrap analysis were performed to examine the hypotheses. The results indicate that customer participation is positively related to zhongyong thinking and service innovation, and zhongyong thinking partially mediates the main effect. In addition, service innovation is more substantial when leadership empowerment is high, and customer participation has a weaker impact on zhongyong thinking when leadership empowerment is low. This study contributes to the employee service innovation literature by confirming that customer participation and employees' zhongyong thinking play vital roles in the Chinese service context. This study also helps service managers understand that empowering their subordinates can facilitate employees' service innovation.     

How situational circumstances modify the effects of frontline employees’ competences on customer satisfaction with the store

This article aims to analyze whether the effectiveness of frontline employees' competences (task and interaction) at managing customer satisfaction with the store differ depending on situational circumstances, specifically, on type of query (consultation vs. assistance) and store crowding. A qualitative study was used to investigate the importance of these two situational circumstances in sales encounters. Subsequently, the hypotheses were tested by a quantitative study based on a survey of 575 customers about their shopping experience. The findings indicate that the effect of frontline employees’ task competence on customer satisfaction increases when the store is crowded, while the effect of interaction competence is stronger in relation to consultation queries than to assistance queries. Important theoretical and practical implications for frontline employees and store managers are outlined.     

Organizational intellectual capital and its relation to frontline service employee innovative behavior: consumer value co-creation behavior as a moderator

Frontline service employee innovative behavior is “the moment of truth” that significantly affects organizational performance. Yet, little research has investigated the effect of organizational intellectual capital on frontline service employee innovative behavior. This study used SPSS 24.0 and AMOS 20.0 to examine the structural model and the hypothetical effects of (1) different dimensions of organizational intellectual capital on frontline service employee innovative behavior and (2) consumer value co-creation on frontline service employee innovative behavior along the dimensions of organizational intellectual capital. A total of 282 valid questionnaires were collected from frontline service employees working at a travel agency located in Taipei, Taiwan. Human capital and customer capital were found to positively affect frontline service employee innovative behavior. The interactions between consumer value co-creation and human and customer capital had a significant moderating effect on frontline service employee innovative behavior.     

It takes two to interact – Service orientation,negative emotions and customer phubbing in retail service work

The purpose of this paper is to empirically explore the relationship between frontline employees' service orientation, negative emotions and handling strategies during situations of customer incivility involving phubbing. In such situations, the logic and the practical implications of service orientation are challenged. Drawing on a survey of 2,940 employees in the Swedish retail sector, the paper shows that service orientation impacts upon how situations involving difficult customers are handled, and that this impact is mediated by employees’ negative emotional reactions. The paper contributes to retail management by pointing to the limitations of solely relying on service orientation and similar ideals in situations of customer incivility.     

ANTECEDENTS AND DIMENSIONS OF CUSTOMER PARTNERING BEHAVIOR IN LOGISTICS OUTSOURCING RELATIONSHIPS

In order to be successful in today's competitive environment, third‐party logistics providers (3PLs) increasingly strive to develop close, mutually beneficial long‐term relationships with customers. The current study identifies inter‐organizational conditions and firm‐specific factors that influence a firm's partnering behavior with its 3PL. A model of the antecedents and dimensions of partnering behavior is developed and tested with a diverse set of relationships between a focal 3PL and members of its customer base.     

Leveraging employee emotional intelligence in casino profitability

Drawing on the link between service quality and casino profitability, this paper describes the roles of frontline employees in delivering casino service quality and analyses how management can nurture employee emotional intelligence's (EEI) contribution to casino revenue growth. This study is conceptual in nature. The analysis builds from identifying the emotional contents embracing service encounter involving casino frontline employees and customers. The identification area approaches from emotional work performed by employees, referred to as emotional labor, the emotional service delivered by casinos, customer attributed emotions and emotional contagion. The study comprehensively analyses how EEI can manage and regulate emotionally charged service encounters which subsequently affect customers’ perception of employee behaviours and service performance over service encounters. These encounter performance forms customers’ perception of casino service quality which leads to customer loyalty and ultimately casino profitability. This theory-focused study presents an additional venue with great potential for casinos to enhance business performance and financial growth, as well as providing new insights into the role of EEI in organizations for researchers in the relevant field.     

谈服务业顾客忠诚及其培养

随着我国服务市场竞争日益激烈,顾客忠诚对服务业的生存与发展意义重大。影响服务业顾客忠诚的因素是多方面的,包括服务质量、顾客满意、转换成本以及顾客价值等;服务业要培养顾客忠诚,必须有效管理顾客期望,提供超越顾客期望的价值,提高顾客满意度,培养品牌忠诚度,稳定员工队伍。     

Service quality and the congruency of employee perceptions and customer expectations: The case of an electric utility

Understanding how the quality of customer service is impacted by employees is essential to managing and improving customer service quality. This article develops a model that looks at the relationship between a series of two important customer service gaps. The first series of gaps (service provider gaps) is a result of the difference between consumers' and employees' expectations based on various dimensions of the customer service encounter. The second series of gaps (service quality gaps) occur when a difference exists between consumer expectations and the service they actually receive based on specific aspects of the customer service encounter. This study found a positive significant relationship between these two series of gaps. This significant relationship provides empirical evidence as to the importance of keeping employees informed about the expectations of consumers. © 1995 John Wiley & Sons, Inc.     

Genetically Modified Foods

ABSTRACT

This study outlines the controversy surrounding genetically modified organisms (GMOs) and how it impacts North American based food service companies' marketing policies. Recent developments have made foods derived from GMOs a strategic marketing challenge for food service franchise and chain operations. Headlines such as “Why McDonalds Pulled Frankenfries from Menus” have unwittingly put restaurants on the frontline of the battle over foods made from GMOs (Martin, 2000). A survey method was used to explore food service operations' views regarding consumer acceptance of GMOs, right to know issues (labeling) and the benefits of GMOs, as well as food service companies' strategic response to this emerging technology. Findings indicate that food service establishments were generally concerned about customer opinions and tend to prefer government mandated labeling of GMOs. They also tend to feel that GMOs offer potential benefits to their industry and that customer concerns may fade over time.     

Managing service employees: literature review,expert opinions,and research directions

This article reviews the service management and marketing literature on managing people with a particular emphasis on managerial relevance. This review explores the market and financial results of managing people effectively, emphasizing that it is probably harder to duplicate high-performing human assets than any other corporate resource. The challenges inherent in boundary-spanning frontline jobs are discussed, including role conflict and emotional labor. Next, recommended human resources (HR) strategies and practices related to recruitment, training, empowerment, service delivery teams, and employee motivation are reviewed. The literature review concludes with a section on service culture, climate, and leadership. Each section is complemented with further research suggestions that emerged from interviews with eight academic and practitioner experts. The last section outlines six themes for new research opportunities with high potential managerial relevance; they relate to (1) the financial impact of HR practices and strategies, (2) motivating service employees, (3) training, (4) emotional labor, (5) dealing with rude customers, and (6) the impact of technology on managing service employees.     

Effects of face masks and photo tags on nonverbal communication in service encounters

Facial expressions convey critical information for customers to evaluate a service encounter. Widespread mask-wearing since the pandemic began has brought challenges in decoding individuals' facial expressions. This study investigates the effects of face masks on customers' interpretations of frontline employees’ facial expressions across retailing and healthcare service contexts. The findings show that mask-wearing improves customer perception of service employees and behavioral intention when the employees display neutral or negative emotions. Photo tags, as an additional nonverbal signal, can enhance the positive perceptions of masked employees. This research suggests that service companies could incorporate face masks and photo tags as a cost-effective practice to improve service encounters beyond the current pandemic.     

Pleasantly Plump: Offsetting Negative Obesity Stereotypes for Frontline Service Employees

Obesity is described as the fastest growing public health challenge facing developed nations (Prentice, 2006). This research introduces the topic of obesity to the retailing literature by examining the interplay between obesity in frontline employees and customer evaluations of service transactions. Baseline effects are established that show customers evaluate employees and firms more negatively if the frontline worker is obese compared to average weight. Two follow-up studies identify means by which firms may offset the negative obesity effects. Specifically, signaling theory is drawn upon in Study 1 to justify the introduction of observable quality cues as a means to offset negative stereotypes. Results indicate that the presence of unambiguous quality cues attenuate unfavorable judgments of the obese employee and the affiliated retail store. In Study 2, a countervailing, jovial stereotype is primed as a means to offset the more prominent negative ones. Retail managers can use this research as a means to understand an important caveat to frontline service evaluations and as the basis for managing a prominent negative stereotype.     

The effect of customer-initiated justice on customer-oriented behaviors

Researchers have been thorough in their examination of the influence of organizational factors (e.g., supervisors, climate) on employees' perceptions of justice in the workplace. However, much less effort has been directed toward understanding how factors external to the organization – namely, customers – influence perceived justice. This represents an important omission because frontline employees are often held accountable for customer satisfaction which, ultimately, may depend on customers' initial treatment of frontline employees. The research reported herein explores this possibility by proposing that (1) customer interpersonal justice enhances employee-customer fit, (2) customer informational justice increases both employee-customer fit and self-efficacy, and (3) employee-customer fit and self-efficacy interact in prediction of frontline employee customer-oriented behaviors. The results affirm the proposed relationships and thus provide initial evidence that employee-customer fit and self-efficacy mediate the effects of perceived customer-justice on customer-oriented behaviors; the implications of these findings for theory and practice are discussed.     

I don't want to be a rule enforcer during the COVID-19 pandemic: Frontline employees' plight

This research explores the pandemic-related experiences of frontline employees (FLEs) relative to customer rule-enforcement interactions within retail and service industries. Using a survey, incorporating closed-ended and CIT questions, we investigated, from the FLEs' perspectives, the occupational stress of rule-enforcement, company expectations of FLEs regarding rule enforcement, and the emotional impact of customer interactions on FLEs. Results indicate that several customer misbehaviors, such as not following rules and being rude, produce significant occupational stress. Further, based on our CIT assessments, many of the FLEs’ recounted rule-enforcement incidents involved negative customer reactions, translating to heightened negativity for FLEs due to emotional contagion.     

Competitiveness vis-à-vis service quality as drivers of customer loyalty mediated by perceptions of regulation and stability in steady and volatile markets

The purpose of this research is to investigate predictors of customer loyalty in order to identify alternatives to customer satisfaction with service quality, which has been traditionally accepted as the primary predictor of customer loyalty, particularly for services. A stratified sample of bank customers was surveyed to collect information on customer perceptions and behaviors in relation to satisfaction with service quality, competitiveness, risk, regulation, stability and loyalty. Partial least squares path modelling (PLSPM) was applied to develop loyalty models for a steady market (Australia) and a volatile market (Greece). This study's empirical findings support theoretical arguments for the inclusion of customer perceptions of competitiveness in loyalty modelling. Perceptions of regulation and stability intervene in the relationship between drivers of loyalty and loyalty itself. For bankers, the study emphasizes the need to move away from customer satisfaction with service quality to explain customer loyalty, towards focusing efforts on achieving relative superiority in competitiveness, namely competitive productivity and products. Profiling customers based on their perceptions of a bank's competitiveness can provide additional explanatory power beyond traditional satisfaction based loyalty models. Services marketing has focused on the service components, and there is no doubt about its crucial role. But given this focus, other factors, such as the actual product component, have been somewhat overlooked in services research. The study makes a unique contribution to understanding and modelling customer loyalty by demonstrating the importance of the inclusion of customer perceptions of other factors as appropriate to market conditions.     

(Im)Balanced customer-oriented behaviors and AI chatbots' Efficiency–Flexibility performance: The moderating role of customers’ rational choices

Artificial intelligence (AI) based chatbots are increasingly deployed in frontline encounters, because they combine frontline service efficiency and flexibility. Using a large-scale data set with more than 130,000 man–machine dialogues from an e-bike sharing platform, Study 1 reveals a complex relationship between chatbots' customer-oriented behaviors and their efficiency–flexibility ambidexterity. Chatbots' level of efficiency–flexibility ambidexterity is higher when their functional and relational customer-oriented behaviors are balanced rather than imbalanced (i.e., a negative imbalance effect) and when they are balanced at a higher rather than a lower level (i.e., a positive balance effect). A follow-up experiment, Study 2, and online survey, Study 3, consistently show that the negative imbalance effect is stronger as customers' perceptions of non-personalization costs decrease and privacy concerns increase, while opportunity cost has no significant influence on the negative imbalance effect. However, consistent with rational choice theory, the positive balance effect is stronger as non-personalization costs increase, privacy concerns decrease, and opportunity cost decreases. In addition, Study 1 and 3 consistently show that in alignment with the stimulus–organism–response framework, efficiency–flexibility ambidexterity partially mediates the relationship between chatbots’ (im)balanced customer-oriented behaviors and customer patronage. This study contributes to the literature on frontline ambidexterity by introducing an AI application context and a more nuanced nonlinear view of the antecedents and consequences of frontline ambidexterity.