Investigating the Effect of Employee Empathy on Service Loyalty: The Mediating Role of Trust in and Satisfaction with a Service Employee

Abstract

This study examines the indirect effect of employee empathy on service loyalty through the intervening effect of trust in and satisfaction with service employees during service interactions. Data were obtained through a self-administered questionnaire from university students. A total of 410 useable responses were used to perform data analysis. Confirmatory factor analysis, structural equation modeling, and bootstrapping for indirect effects were conducted to test the hypotheses. The results show a significant effect of employee empathy on trust in service employee and satisfaction with service employee during customer–employee interactions. Also, satisfaction with a service employee showed a significant effect on service loyalty during service interactions. The study enhances the understanding of empathy within banking services during interactions between service employees and customers. It also provides insights for service managers and frontline service employees on how empathy develops customer’s trust and satisfaction with service employee.     

The Importance of Hotel Employee Service Attitude and the Satisfaction of International Tourists

Although there have been numerous studies dealing with service attitude and customer satisfaction, they have not specifically addressed international hotel customers. Moreover, most of them have discussed the subject from the viewpoint of the employee. This study takes a customer perception approach and emphasises critical factors (elements) of service attitude affecting the satisfaction of international tourists. It has been found that the importance of employee attitudes to service and the level of satisfaction with the service vary significantly among customers of different nationalities. For example, American travellers emphasise elements such as employees being able to solve their problems, and so are dissatisfied with the service when employees lack an adequate command of English. Taiwanese customers stress the importance of employees treating customers politely regardless of their attire. They feel that they are treated unfairly because of employee expectations of tips from well-dressed customers. These findings could furnish managers with useful information for planning marketing and personnel training.     

How online service recovery approaches bolster recovery performance? A multi-level perspective

Employees are often sandwiched between understandable customer grievances and unchangeable organizational policies: only when employees feel fairly treated will they treat customers fairly. Most previous studies focused on external service recovery systems for customers, but neglected internal service recovery systems for frontline employees. By extending Homburg and Fürst’s research, this study adopts a multi-level perspective to explore the influences of the mechanistic approach (process guidelines, behaviour guidelines, and compensation guidelines) and the organic approach of service recovery (empowerment and recovery culture) on frontline employees’ responses (recovery efficacy, accountability, and performance) towards implementing a service recovery within an online auction context.     

When can interaction orientation create more service value? The moderating role of frontline employees' trust in managers and employee deep acting

Despite the well-recognized importance of interaction orientation, limited studies have investigated its boundary conditions from the frontline employees' perspective. To address this issue, this study investigates the effect of interaction orientation in service value creation and identifies hierarchical trust and deep acting of frontline employees as two moderators. This study conducts a moderated regression analysis for hypotheses testing using a triadic data set of 2090 responses from managers, frontline employees, and customers of 209 firms. The findings show that interaction orientation has no effect on service value. Rather, interaction orientation contributes to perceived service value only when frontline employees have higher trust in their managers or when employee deep acting is high. The value of this study is in revealing the contingencies of interaction orientation on service value. It offers managerial implications that firms should build high trust in managers and encourage deep acting among frontline employees when implementing an interaction orientation strategy.     

Exploring the relationship between individual values and the customer orientation of front-line employees

Abstract

Because of the nature of services, namely the inseparability of production and consumption, employee behaviours influence customer perceptions of service quality and satisfaction with the service provider. In particular, customer-oriented employees seek to help customers by addressing their needs, and this contributes to the building of customer satisfaction and the development of a relationship. Not surprisingly, research has been investigating the drivers of employees’ customer orientation. This paper examines how individual values influence the customer orientation of front-line service employees, a topic that has been unexplored in extant literature, and this is useful for the selection of employees who match the firm’s service strategy. To accomplish this, the study relies on the Schwartz value theory, which is applied to front-line employees in banking. The findings indicate that both resultant conservation and resultant self-enhancement affect the customer orientation of employees, and that these effects are moderated by job satisfaction and autonomy.     

Factors affecting employee willingness to report customer feedback

Effectively capturing consumer feedback can help organizations swiftly react and improve the quality of their service processes and delivery systems. In most organizations, frontline employees are a vital source of customer feedback as they interact with customers frequently and intimately. Thus, the current paper seeks to understand the factors influencing employee willingness to report customer feedback up the organizational channels of communication. The conceptual model was tested empirically using data collected from major chain restaurants in Taiwan involving 332 frontline employees. A hierarchical regression analysis was used to test the hypothesized model. The obtained results demonstrate the impact of service climate, perceived organizational support, and internal locus of control on frontline employees’ willingness to report customer feedback.     

Employee training and service quality in the hospitality industry

ABSTRACT

This study examines the relationship between employee training and service quality in the hospitality industry. The study tested the impacts of perceived access to training, perceived benefits of training and perceived support for training on service quality in the hospitality sector. Survey technique was used for the data collection. The research participants were frontline employees and their customers. The frontline employees responded to the training dimensions, while the customers’ completed the questions on service quality. One hundred and twenty useable surveys were included in this study. This study reveals a significant relationship between the employees’ perception of the benefits of training, support for training and service quality. This study offers some important management and theoretical implications.     

When customers want to become frontline employees: an exploratory study of decision factors and motivation types

Labor shortages have long been an issue in the service industry. One pool of potential dedicated and skilled employees that has remained untapped is customers. This study explores the customer to frontline employee (CtFE) phenomenon: customers becoming frontline employees after consumption experience. Through one-on-one, in-depth interviews, we identify factors related to job choice and service experience influencing customers’ CtFE decisions. We also develop propositions and a conceptual framework to describe CtFE choices. Finally, we categorize potential CtFEs as idealist, dream-catcher, approval-seeker, and pragmatist. Our findings suggest that CtFEs can be a critical labor source in the service sector.     

Exploiting consumer–employee–retailer interactions in technology-enriched retail environments through a relational lens

The aim of this paper is to explore the relationships between consumer, frontline employees and retailer (organization) subjected to the disruptive force prompted by the adoption of innovative technologies in retail settings. Starting from qualitative data involving 43 frontline employees with different experiences, our analysis revealed that the way for building and maintaining organizational relationships changes differently considering consumer–employee and employee–retailer perspective. In particular, the emergent computer-mediated relationships seem to produce beneficial effects, while combining employees׳ existing capabilities with new competencies, thus resulting in an improvement of the entire retail process. Similarly, they are more satisfied and appreciated organization effort in supporting their jobs through the innovative technologies. Hence, the study provides an empirical contribution to the emerging literature on consumer–employee–retailer (organization) relationships in the innovative scenario through the in-depth investigation of these relationships of four case firms.     

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.     

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.     

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.     

Service Orientation: Its Impact on Business Performance in the Medical Service Industry

From the viewpoint of internal marketing, employees who are content in their job may be motivated to satisfy their customers better than ones who are not content. Another relevant premise is that the content employees, because of their work motivation, would eventually help improve the performance of their firm. To verify these relationships, some previous studies looked into the effects of organisational service orientation on employee's satisfaction. But only few of them investigated the mediating effects of variables such as service value and customer orientation for their role in linking service orientation to business performance. This study examines how an organisation's service orientation had an effect on its performance at hospitals. For this purpose, verification of the mediating role of service value perceived by employees as well as the role of customer orientation on the firm's performance was attempted. For this study, a total of 292 usable questionnaires were collected from hospital staffs located in metropolitan cities of Korea. The hypotheses concerning relationships among service orientation, service value, employee satisfaction and customer orientation were verified by covariance structural modelling, using SPSS 10.0 and AMOS 4.0 programs. The result is as follows. First, organisational service orientation had a positive effect on both employee satisfaction and service value perceived by hospital staff. Second, employee satisfaction had a positive impact on service value and customer orientation. Finally, service value as well as employee's customer orientation were found to exert positive influence on the medical firm's performance.     

The Effect of Requests for Positive Evaluations on Customer Satisfaction Ratings

In order to focus service employees’ attention on delivering high levels of customer satisfaction, many companies directly reward (or punish) employees who deliver high (low) levels of satisfaction as reported in companies’ formalized satisfaction measurement processes. As a result, many frontline service employees attempt to influence their customers’ satisfaction evaluation by specifically asking them for positive ratings on surveys completed after the service encounter. Using psychological reactance theory, this research considers the impact of requests for positive evaluations on customers’ satisfaction and future intentions. The results indicate that customers who were asked to provide a positive evaluation actually report lower levels of satisfaction compared to customers who were not asked. The results also indicate that the request for positive evaluation has a negative influence on customers’ repurchase intentions and positive word‐of‐mouth intentions, but only for customers who had a more internal locus of control compared to those with a more external locus of control.     

Demystifying the impact of self-indulgence and self-control on customer-employee rapport and customer happiness

Past research mostly ignores the link between customers' purchase orientations and their engagement with frontline service employees. This paper addresses this gap by using socio-emotional selectivity theory to investigate the effects of customers’ self-indulgence/control on their rapport building efforts with frontline service employees and on their own happiness. It also explores the moderating effects of age, gender and shopping day on the impact of self-indulgence/control on happiness. Data from 252 Australian customers shows that self-control has no significant influence on rapport or happiness while rapport and self-indulgence positively affect happiness. Finally, all the moderating effects only find partial support.     

Feeling Good by Doing Good: Employee CSR-Induced Attributions, Job Satisfaction, and the Role of Charismatic Leadership

Interest in corporate social responsibility (CSR) is gaining momentum in academic and managerial circles. However, prior work in the area has paid little attention to how CSR initiatives should be implemented inside the organization. Against this backdrop, this study examines the impact of CSR initiatives on an important stakeholder group—employees. We build and test a comprehensive multilevel framework that focuses on whether employees derive job satisfaction from CSR programs. The proposed model predicts that a manager’s charismatic leadership influences employees’ interpretations about the motives underlying their companies’ engagement in CSR initiatives (intrinsic and extrinsic CSR-induced attributions) which, in turn, influence employee job satisfaction. Hierarchical linear modeling of data from 47 organizational units comprising 438 employees from three world-leading manufacturing organizations shows that when employees think that their manager possesses charismatic leadership qualities, they tend to attribute the organization’s motives for engaging in CSR activities to intrinsic values, which, in turn, are positively associated with job satisfaction. Also, the extent to which managers are perceived as charismatic leaders relates positively to job satisfaction. Interestingly, CSR-induced extrinsic attributions are neither explained by charismatic leadership nor do they predict job satisfaction. Implications for both theory and practice are discussed.     

It takes two to tango: The role of customer empathy and resources to improve the efficacy of frontline employee empathy

This study investigates the link between employee empathy and customer satisfaction. Building on social exchange theory, we develop a model of employee-customer empathy. We focus on the central role of customer-oriented behaviour in explaining the empathy-satisfaction relationship, predicting that employee empathy positively influences customer-oriented behaviour, which in turn enhances customer-satisfaction. We also examine the moderating roles of customer empathy, as well as of customer resources. Results of a dyadic-survey study of 211 pairs of frontline employees and their customers support the proposed moderated -mediation model. Theoretical and practical implications are discussed.     

Public sector corporate branding and customer orientation

The objectives of branding and marketing in the public sector can differ in nature from those in the private sector, to include an improved responsiveness to public needs, rather than an increase in customer numbers. In addition, the customer orientation (a disposition that will influence brand perception) of public services is often questioned. Drawing from prior work in the private sector on the relationships expected between employee and organization customer orientation (hereafter referred to as CO), corporate brand personality, and both employee and customer satisfaction, the authors propose a number of models. These models are tested using structural equation modeling on data from a study of the employees (n = 302) and customers (n = 200) of a public hospital. Corporate brand personality mediates the positive links between employee customer orientation (hereafter referred to as ECO) and satisfaction; ECO influences brand personality, which in turn influences satisfaction. However, while both the needs and enjoyment dimensions of ECO improve customer satisfaction, the former has an unexpected, negative effect on employees. Organization customer orientation (hereafter referred to as OCO) influences customer, but not employee, satisfaction. The paper discusses the implications for managing and researching corporate branding in the public sector.     

Customer perceptions of frontline employee service delivery: A study of Russian bank customer satisfaction and behavioural intentions

This study examines the nature of relationships between customer perceptions of frontline employee service delivery (core and relational), satisfaction and selected behavioural intentions by using customers of a commercial retail bank in Russia as its setting. Contrary to findings from North American-Western research, the study findings show that relational service delivery only significantly impacts customer satisfaction for Russian males whereas core service delivery only impacts this affective outcome for Russian female customers. Implications of the results are discussed and future research avenues are offered.     

内部营销与顾客满意关系的实证研究(英文)

为了确定内部营销、员工满意、服务质量和顾客满意之间的因果关系,本文在文献研究的基础上构建了内部营销—员工满意—服务质量—顾客满意关系模型,并以35家商业银行的员工和顾客为实证样本,采用因子分析、回归分析检验了模型的假设关系。