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.     

THE IMPACT OF INTERNAL MARKETING EFFORTS IN DISTRIBUTION SERVICE OPERATIONS

Marketing efforts can offer firms a greater competitive advantage by overtly stimulating the impact of frontline logistics employees on customer value creation. In such a situation, internal marketing becomes the strategy of choice in both service and product support contexts. A broad marketing mix framework is introduced shifting the traditional application from marketing products to marketing the workplace to logistics distribution employees. Research findings support a multidimensional operationalization of internal marketing. Holistic tests indicate that internal marketing on an interpersonal level is associated with satisfied and higher performing distribution center employees and increased interdepartmental customer orientation.     

Internal Marketing at Continental Airlines: Convincing Employees that Management Knows Best

Maintaining a high level of customer service quality is necessary for success, particularly for firms in service industries, but employees need to be motivated to provide it. Management can provide the motivation through the use of compensation schemes and internal marketing. In this paper we examine profit sharing compensation schemes that reward employees for achieving customer service objectives. We discuss how such schemes should be implemented, and explain why management needs to convince employees through internal marketing programs about the benefits of its scheme. We obtain the optimal amount of profit that the firm should share with employees, and the optimal effort it should spend on internal marketing. Finally, we relate the analysis to a successful scheme implemented by Continental Airlines.     

Research on satisfaction recovery from service failure due to attitude defect and unfair price: A dynamic and longitudinal evaluation model based on customer win-back management

Customer win-back is a cognitive process of satisfaction changing from a low level to a high level with service recovery strategies as the stimulus. Because prior research tends to view service recovery strategies as a static antecedent, it is difficult to analyze and observe how the recovery strategies affect satisfaction and repurchase intention dynamically. Moreover, not enough attention has been directed to the relationship between reasons of customer loss and recovery strategies. This research conducted a field experiment involving a 2 × 2 between-subjects design (defects of service attitude and unfair price × tangible recovery and intangible recovery strategies). From a longitudinal and dynamic perspective, this study has produced the following key results: First, there are significant differences in satisfaction and purchase intention between the four groups categorized by specific reasons of customer loss. Second, recovery strategies may have non-linear effects on customer’s satisfaction. Lastly, based on the prospect theory and disappointment theory, we discuss important managerial implications of the function curves fitted between customer satisfactory (before customer loss and after implementation of customer winback strategy) and purchase intention.     

Customer Preferences for Frontline Employee Traits: Homophily and Heterophily Effects

Although previous research has underscored the significance of the personality traits of frontline employees (FLEs) in employee service behaviors, knowledge about customer preferences for FLE personality traits is lacking. This study responds to this gap in the literature, empirically assessing customers’ preferences for FLE personality traits. The main research objective is to investigate whether and how these preferences vary with the customer's own personality. The study proposes and tests a conceptual framework that reconciles two opposing theoretical perspectives—homophily and heterophily. The existing research in interpersonal psychology has only given limited support to the heterophily effect, whereas it has consistently evidenced the homophily effect. Moderator analyses indicate these effects are largely invariant across customer and service characteristics. Notwithstanding this, post hoc tests show that the level of preferred FLE traits is positively related to the level of customer traits. Equity theory helps explain these seemingly conflicting results.     

顾客应对倾向、服务失败程度与服务补救策略

服务补救是企业挽回顾客信心的关键,补救策略的效果与失败情境和顾客特质密切相关。本文以关键事件法和访谈法对过程补救策略进行划分,并与结果补救策略形成有效组合,通过实验法考察顾客应对倾向与服务失败程度对补救策略的影响。结果表明：结果补救策略与问题应对顾客之间存在匹配效应,且失败程度越高,匹配性越强;过程补救策略与情绪应对顾客之间的匹配效应在服务失败程度严重时得以体现。     

Service recovery expectation model – from the perspectives of consumers

This paper explores the influence of the major attributes of consumers, such as personality traits, gender, number of consumptions, and levels of involvement, on service recovery expectations. A combination of linear multivariate statistical analysis and nonlinear fuzzy neural network models is further used to analyse data and validate hypotheses. Consumers of middle-to-high-end Chinese restaurant chains are sampled as the interactions between these restaurants and consumers are frequent. The empirical research finds that old customers have lower expectations of service recovery than new ones and male consumers have lower expectations than female consumers. Extrovert-type consumers have lower expectations of service recovery than introvert-type consumers. There is a positive correlation between consumers' involvement and service recovery expectation. As this paper examines the expectations of service recovery from the perspectives of consumers, it aims to help companies use pre-processing of service recovery as a precautionary measure, rather than as a remedial measure as mostly seen. Different from the vast majority of literature that deals with the issue by focusing on western enterprises, this paper uses small-and-medium enterprises in Taiwan and constructs management implications accordingly.     

Service recovery model: the integrated view

Through the integrated analytical view of overall cultural values and individual emotional intelligence (EI), psychological empowerment and management involvement, this research explores influences on service recovery. It combines the methods of linear multivariate data analysis and nonlinear fuzzy neural network methods to analyze data and verify the hypotheses. Through an investigation on the subsidiaries of financial groups in Taiwan and Hong Kong, the empirical results showed that the employees with lower EI would be affected by the involvement of management and adopt different service recovery measures; for the employees having traditional eastern cultural values, because of the involvement of management, they would adopt different service recovery measures; when the employees' perceived psychological empowerment level was higher, they were more likely to manage active recovery measures. The characteristic of this research combines the empirical methods of linear multivariate data analysis and the nonlinear fuzzy neural network model. There were rare related studies in the past and in addition, in the comparative studies of the related issues in the past, there were rare focuses on enterprises with different nationalities but sharing the same specific language, which was worthy of further exploration.     

Employee emotional response toward healthcare organization’s service recovery efforts and its influences on service recovery performance

Previous studies on service recovery performance of frontline employees have focused primarily on the direct relationship with the organizational efforts for service recovery. However, based on the reformulation of attitude theory (appraisal-emotional response-behaviour), we believe that the emotional responses (work engagement and burnout) toward organizational efforts for service recovery of frontline employees mediate the relationship. Thus, the purpose of this study is to examine how healthcare frontline employees show their emotional response toward the organizational efforts for service recovery and it influence on actual recovery performance. This study uses two conflicting emotional responses, burnout and work engagement, to examine how employees react toward organizational efforts, helping better understand employees?? evaluations of the efforts. Research model and hypothesis were tested using a sample of frontline employees who perform none-clinical activities in hospitals. The results showed that teamwork and empowerment have positive effects on work engagement. In addition, customer complaint management, empowerment, and teamwork influenced negatively on burnout. Lastly, work engagement and burnout showed statistically significant impact of service recovery performance of frontline employees. Among the organizational efforts for service recovery, teamwork was the most important factor in improving frontline employees?? work engagement and lessened their burnout, respectively. Interestingly, customer service training had a negative effect on burnout. Besides, by comparing our research model to two alternative models, we confirmed the validity of the research model.     

Communicating Services Brands' Values Internally and Externally

This paper explores the ways that services brand values are communicated to both staff and customers. Values are communicated to employees via overt internal communications, the ripple effect, senior management example/involvement, HR activities and external communications. A number of failure factors which could hinder the communication of values to employees are identified. For consumers, values are communicated via their holistic experiences of the brand, interactions with employees, external brand communications and the tangible elements of the service offering. The results highlight the need for consistency in all brand value communications.     

Combined effects of franchise management strategies and employee service performance on customer loyalty: a multilevel perspective

Although franchisee performance is likely to be influenced by franchisors’ management strategies, little is known about whether and how franchisors’ strategies affect franchisee employees’ performance. This study examines the combined effects of three franchisor management strategies, namely innovative culture, support services and autonomy on service performance of the franchisee store employees and the loyalty of their customers. Data were collected from a total of 38 employees and 679 customers of 25 franchisee stores. The study employs multilevel analysis on a nested data-set created by matching customer data with employee data for each store. The results reveal that customer loyalty of a franchisee store is positively influenced by the service performance of its employees and the support services received by the employees of the store from its franchisor. On the other hand, it has been found that franchisor management strategy such as innovative culture and autonomy negatively influence customer loyalty of the franchisee store. The paper discusses relevant theoretical and managerial implications of the findings.     

The Impact of Service Characteristics on the Switching Costs–Customer Loyalty Link

This research investigates the interrelationship between service characteristics and switching costs and makes two contributions to the service retailing literature: (1) As a means of better understanding the effectiveness of switching costs, the study suggests a two-dimensional typology of switching costs, including internal and external switching costs and (2) it reveals that the effect of these switching costs on customer loyalty is contingent upon four service characteristics (the IHIP characteristics of service). We carried out a meta-analytic review of the literature on the switching costs–customer loyalty link and created a hierarchical linear model using a sample of 1,694 customers from 51 service industries. Results reveal that external switching costs have a stronger average effect on customer loyalty than do internal switching costs. Moreover, we find that IHIP characteristics moderate the links between switching costs and customer loyalty. Thus, the link between external switching costs and customer loyalty is weaker in industries higher in the four service characteristics (as compared to industries lower in these characteristics), while the opposite moderating effect of service characteristics for the internal switching costs–loyalty link is noted.     

Factors Contributing to Internal Customer Satisfaction and Commitment in Quick Service Restaurants

Abstract

The fast-paced, highly competitive nature of quick service restaurants (QSRs) has motivated members of the industry to develop creative ways to optimize customer satisfaction. This search for competitive advantage has fueled an increased interest in employees as “internal customers” who are primarily responsible for external customer satisfaction. The hospitality industry is unique in that employees are part of the product; they directly provide the service component. This project surveyed over 900 hourly and salaried employees at 61 QSRs. The results indicate strategies and tactics to maintain satisfied and “actively” as well as “passively” committed employees. In turn these employees may be an employer's greatest marketing tool.     

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.     

Linkage between perceived external prestige and emotional labor: Mediation effect of organizational identification among pharmaceutical representatives in India

With the increasing importance of customer service in sustaining competitive advantage, one of the challenges before the organizations is how to motivate their employees to perform desired emotional labor during customer interactions. The present study examines the linkage between perceived external prestige and emotional labor strategies among the pharmaceutical representatives in India. Drawing from the social comparison theory and social identity theory, the study shows that perceived external prestige influences employees’ emotional labor strategies directly as well as through organizational identification. Contributions of the study to theory and to human resource management practices are discussed.     

The role of customer contact employees as external customers: A conceptual framework for marketing strategy and future research

Existing streams of literature in marketing, management, and organizational behavior are integrated to propose a conceptual framework that highlights the customer contact employee's dual role as employee and external customer of the organization. Several iterative “cycles of success” are proposed whereby job satisfaction, the employee's patronage of the company's products (i.e., goods or services), and job performance (as customer contact employees) are all enhanced, ultimately leading to long-term relationships (with customers and employees) and profits for the organization. The framework highlights the role of internal marketing as a tool for enhancing the competitive advantage gained by strategically considering the customer contact employee's role as external customer.     

THE EMPOWERMENT OF FRONTLINE SERVICE STAFF IN 3PL COMPANIES

Research on third‐party logistics (3PL) service providers has focused more on managing customer relationships than on managing the frontline personnel who interact with customers on a daily basis. Thus, even though the overall need for 3PL's to be market‐oriented is well‐recognized, relatively little is known about how 3PL companies support and develop frontline service staff to provide better service. This study draws on 3PL company site managers' responses to a postal survey that examines the influences of internal communication, customer service training and managerial coaching for customer contact employees on the relationship between market orientation and frontline service recovery empowerment.     

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.     

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.