Waiting for service: modelling the effectiveness of service interventions

Most service businesses tend to experience unwelcome delays in service delivery that often generate strong negative impacts from customers. In response, managers develop and implement service intervention strategies, such as providing length and reason of a delay, both of which have been reported to have positive impacts on customers. However, the results from studies investigating such interventions are mixed. Accordingly, it is hypothesised that these effects may be contingent upon certain situations. This research project has investigated the wait situation using an experimental design. A 2 × 2 × 2 factorial design was first created using a restaurant scenario for the stimulus material and an online web site was used to collect data from 130 respondents. Our findings indicate a significant moderating effect of level of service use and degree of goal attractiveness on the effectiveness of providing duration and cause information. More importantly, we found that under certain conditions a service intervention may be counterproductive to the intended strategy. This finding suggests that managers need to be wary of developing and executing expensive service recovery strategies without due regard to the customer segment being targeted.