Listen to their heart: Why does active listening enhance customer satisfaction after a service failure? |
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| Institution: | 1. College of Business Administration, University of New Orleans, USA;2. College of Business Administration, California State Polytechnic University-Pomona, USA;3. College of Hospitality & Tourism Management, Sejong University, South Korea;1. School of Management, Harbin Institute of Technology, 92 West Dazhi Street, Harbin, China;2. Howard Feiertag Department of Hospitality and Tourism Management, Pamplin College of Business, Virginia Tech, Blacksburg, VA 24061, USA;1. Montpellier Business School, France, and Lancaster University Management School, UK;2. Isenberg School of Management, University of Massachusetts-Amherst, 121 President Dr, Amherst, MA 01003, USA;1. The School of Hospitality Business, Broad College of Business, Michigan State University, 667 N. Shaw Lane, East Lansing, MI 48825, USA;2. Rosen College of Hospitality Management, University of Central Florida, 9907 Universal Boulevard, Orlando, FL 32819, USA;3. Dedman School of Hospitality, Florida State University, B4113 University Center, 288 Champions Way, Tallahassee, FL 32306, USA;1. Department of Psychiatry and Psychotherapy, University of Regensburg, Germany;2. University Research Priority Program ‘Dynamics of Healthy Aging’, University of Zurich, Switzerland;3. Institute for Computer Music and Sound Technology (ICST), University of Arts Zurich, Switzerland;4. Department of Otorhinolaryngology, University Hospital of Zurich, Switzerland;5. Department of Psychiatry and Psychotherapy, University Hospital of Zurich, Switzerland;6. Department of Neuropsychology, University of Zurich, Switzerland;7. Cognitive Psychology Unit (CPU), University of Klagenfurt, Austria;8. Tinnitus-Zentrum, Charité – Universitätsmedizin Berlin, Germany;1. Northern Illinois University, NIU College of Business, 740 Garden Road DeKalb, IL 60115, USA;2. Louisiana State University, 2219 Business Education Complex South, 501 South Quad Drive, Baton Rouge, LA 70803, USA;3. University of Pavia, Via San Felice 5, 27100 Pavia, PV, Italy;4. Ming Chuan University, 5 De Ming Road, Gui Shan District, Taoyuan County 333, Taiwan;1. I-Shou University No. 1, Section, 1, Xuecheng Road, Dashu District, 84001, Kaohsiung, Taiwan;2. Griffith University, Department of Tourism, Sport & Hotel Management, Griffith Business School, 170, Kessels Road, Nathan, QLD, 4111, Australia;3. Singapore Institute of Technology, Design and Specialised Business Cluster, 10 Dover Drive, Singapore, 138683, Singapore |
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| Abstract: | A service employee’s active listening plays a crucial role in restoring a damaged customer relationship. However, previous studies reveal little about how listening to customer complaints operates in recovering a service failure. The purpose of this research is to explore when and why the employee’s active listening has a positive influence on customer response. We define active listening as (1) listening to customers’ concerns before apologizing and (2) verbally acknowledging them. Using scenario-based experiments, we demonstrate that active listening improves customer satisfaction, which in turn increases tip size (Study 1). Moreover, we find that active listening fosters customers’ perceptions of preferential treatment, which lead to greater customer satisfaction (Study 2). Yet, such positive effects of active listening diminish when customers are unexpectedly offered a complimentary service such as a room upgrade. The implications for academic researchers and marketing managers are discussed. |
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| Keywords: | Hotel Service failure and recovery Active listening Preferential treatment Satisfaction Tip size |
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