Examining the impact of service robot communication styles on customer intimacy following service failure

With the growing use of robots in the service industry, service failures have increased. This study applies the Communication Accommodation Theory to examine how robot employees' communication style can foster perceived intimacy, reducing customer anger and negative word-of-mouth. The study also tests if this relationship varies based on failure severity. Results show that an informal communication style significantly reduces negative word-of-mouth through intimacy, but only for low severity failures. These findings offer valuable insights for service providers using robots, emphasizing the need to adapt communication styles based on failure severity to effectively manage negative customer experiences.     

The effect of incentives on customer evaluations of service bundles

Effects of service bundle incentives on perceived value, search intentions, and switching intentions are assessed in two independent studies. The first study demonstrates that service bundling influences switching and search intentions through perceived value. Results related to bundle incentives support the salience of the convenience associated with consolidating charges onto one bill. Further analysis reveals that explicit valuation of savings creates higher perceived value than convenience alone; however, search and switching intentions are unaffected by incentives or valuation thereof beyond the convenience effect. A second study replicates key parts of these results. Research and practical implications are discussed.     

The influences of cooperative climate,competitive climate and customer empowerment on service creativity

To extend the relationship between customer empowerment and creativity, this study explores the mediating effects of intrinsic and extrinsic motivations (individual level). The study aims to clarify whether cooperative and competitive climates influence service creativity through intrinsic and extrinsic motivations (across level). A matching sample of 333 coaches and customers from 30 stores in the fitness industry was used to examine the study hypotheses by employing Mplus 8.3 statistical software. The results show that (1) customer empowerment and cooperative climate have significant positive effects on service creativity (that is, the service creativity of coaches); (2) the intrinsic motivation of coaches mediates the relationship between customer empowerment and service creativity; and (3) the intrinsic motivation of coaches mediates the relationship between cooperative climate and service creativity, but the mediating mechanism of extrinsic motivation does not exist in the relationship between competitive climate and service creativity.     

Perceived controllability and service expectations: Influences on customer reactions following service failure

Endeavors to address issues surrounding service failure have centered mainly on the topic of service recovery. In particular, perceived fairness and organizational responses to service failures are highly popular topics in the literature. Yet the vast majority of customers fail to voice their dissatisfaction to the firm. Consequently, it is important to understand how consumers process service failures regardless of the recovery outcome. This study examines the impact of perceived controllability over service failures and service quality expectations on customer reactions to those failures. Findings indicate that customers react quite negatively when they believe the service firm could have easily prevented the failure. Conversely, when customers feel partly responsible for the failure or are ambiguous about its cause, the negative effects of poor performance are somewhat mitigated. Finally, high service quality expectations also buffer the firm from the negativity effect. Managerial implications of these findings are briefly discussed.     

The impact of ethical cues on customer satisfaction with service

This study examines the effects of ethical and unethical cues on customers’ evaluations of the ethics of a service provider and their subsequent satisfaction with the service. The results of a disguised, laboratory experiment are used to suggest that customers respond to unethical cues in the environment through lower ethical assessments and satisfaction ratings, but that ethical cues may not necessarily increase satisfaction scores when compared to a neutral situation. The implications suggest that ethical cues and an honest service provider may be the expected norm, and thus will lead to (or maintain) satisfaction with the service encounter, while unethical cues will create dissatisfaction.     

The effect of service failure types and service recovery on customer satisfaction: a mental accounting perspective

Service failure recoveries play an important role in the service process. Previous research on service recovery has focused on the development of classification schemes, such as service failure types (e.g. outcome- or process-related failure), service recovery attributes (e.g. psychological or tangible recovery), and failure magnitude. Few studies in the literature have developed a theory-driven model of customer satisfaction that considers whether different types of service failure warrant different types of service recovery. This article, which reports the results of two studies, draws on mental accounting theory to examine the effect of the relationship between service failure and service recovery on customer satisfaction. The results of Study 1 show that customer satisfaction is greater when service recovery efforts truly make up for what customers have lost and that prior experience of service failure has a significant influence on the effectiveness of those efforts. The results of Study 2 indicate that the magnitude of a service failure also has an impact on the effectiveness of service recovery efforts.     

Boundary conditions of the effect of customer coproduction: the case of service failure

Research on the relationship between customer coproduction and satisfaction has produced mixed results even after accounting for the role of attribution. This paper extends prior research on boundary conditions and examines the role of customer participation readiness (PR) during encounters that end with service failure. Based on congruence and zone-of-tolerance theories, the two empirical studies suggest that (a) increasing levels of coproduction combined with increasing levels of PR escalates dissatisfaction and weakens attitudinal loyalty; (b) psychological reactance and expectancy disconfirmation mediate these relationships; (c) increasing levels of coproduction combined with increasing levels of external attribution reduce dissatisfaction and mitigate the adverse effect on attitudinal loyalty; and (d) PR interacts with customer coproduction to influence how customers make attributions. Future research should consider the role of PR in service failures. Where feasible, managers should gather and utilise individual-level PR data in order to predict customer attributions and dissatisfaction.     

The impact of offshored and outsourced call service centers on customer appraisals

Firms are increasingly relying upon offshored and/or outsourced call centers to provide post-sales assistance to their customers. Although the motivation to engage in these practices is efficiency gains, the possibility exists that offshored and outsourced call centers may have a detrimental impact on customer appraisals. The aim of this research is to posit the conceptual reasons as to why differences may arise in customer evaluations from these practices. To this end, we rely on the homophily principle and hybrid organization theory to provide conceptual grounding, and utilize a company dataset of customer post-call evaluations to offer an initial test of the hypotheses.

The relative impact of advertising and referral reward programs on the post-consumption evaluations in the context of service failure

This study investigates the differences in the post-consumption evaluations of customers acquired through advertising and RRPs in the context of service failure. The three laboratory experiments demonstrated that when a service failure happens, customers acquired through RRPs will have more positive post-consumption evaluations than those acquired through advertising. This effect is mediated by customers’ attribution the failure as a one-time event. In addition, this study revealed that the buffering effect of RRPs relative to advertising only exists when the tie strength between the referrer and the referred is strong or the failure severity is low. This research not only extends the literature on the service failure and the comparative effects of different marketing methods, but also provides feasible suggestions for the enterprises to design marketing activities and do more effective failure recovery.     

The impact of service failure on brand credibility

Recent studies have examined the consequences of brand credibility, with the majority of works embedded in physical goods. Despite the growing attention service branding receives, little is known about how service failure and recovery efforts impact on brand credibility in service organisations. The purpose of this study is to examine how brand credibility is affected by service failure and an organisations recovery efforts. An online self-completion survey of airline consumers (n=875) was employed to test the relationships between the focal constructs. The results show that a service firm’s effective complaint handling positively impacts satisfaction with complaining, overall satisfaction and service brand credibility. The study also finds that the higher the perceived magnitude of failure, the more difficult it is to satisfy a customer. These results demonstrate that it is possible to maintain service brand credibility during a service failure, provided brand managers develop and implement effective complain handling procedures.     

The impact of implicit and explicit communications on frontline service delivery staff

Using structural equation modelling employing partial least-squares estimation, data from staff in the consumer transport industry were analysed to explore the role of implicit and explicit communications on their service delivery behaviour. Both implicit and explicit communications were found to impact service delivery. Explicit communications had a direct impact on service delivery, whilst implicit communications (in the form of internal market orientation) operated through affective commitment and customer orientation. This study provides quantitative evidence of the roles of implicit and explicit communications on staff attitudes and behaviours, and offers insights into the management of communications with employees to ensure effective service delivery.     

The happy versus unhappy service worker in the service encounter:Assessing the impact on customer satisfaction

This paper assesses the impact of the service worker's display of emotions (i.e., one aspect of functional service quality) on customer satisfaction under the conditions of different levels of technical service quality by means of an experimental approach (N=600), in which display of emotions (unhappiness vs. happiness) and technical service quality (poor vs. good) were manipulated. The results indicate that the impact of the service worker's emotional display behavior on customer satisfaction is contingent on the level of technical service quality, in the sense that customer satisfaction is affected only when technical service quality is good rather than poor. Encouraging a positive display (e.g., by a smile policy), which many service firms do, is thus not a panacea for improved customer satisfaction. The moderating effect is explained in terms of service encounter congruency, which influences the mediated process by which emotional displays by service workers come to affect customer satisfaction.     

Airline customer satisfaction and loyalty: impact of in-flight service quality

The purpose of this study was to investigate the impact of the in-flight service quality on airline customer satisfaction and loyalty. This study analyzed the data from passengers of two classes: prestige (business) and economy. The results suggest that there are different factors of in-flight service quality that are important according to the customer seat class. In the case of the prestige class, there were six service quality factors of importance: alcoholic and non-alcoholic beverage, responsiveness and empathy, reliability, assurance, presentation style of food, and food quality; while the economy class showed five important service quality factors: responsiveness and empathy, food quality, alcoholic beverage, non-alcoholic beverage, and reliability. These findings imply that airline companies’ in-flight service should have different delivery strategies based on the customer seat class.     

The impact of technology on the Arab communication style and culture: Implications for marketing

‘Culture is communication and communication is culture,’ as Hall (1976, Beyond culture, Garden City, NY: Anchor Books, Doubleday) reminds us. The main purpose of this paper was to assess the impact of technology on the Arab communication style. The Internet is a unique environment with particular characteristics that might cause shifts in people's communication styles. The setting/context of online communication is very different from face-to-face communication and thus assumptions about communication styles need to be reexamined. The data analysis indicates that significant changes to the Arab culture are taking place and these changes are likely to have an impact on marketing practices in the region.     

The journey from customer participation in service failure to co-creation in service recovery

Customer participation is growing into a widespread phenomenon in the service context. Despite the inherent significance of customer expectations to service failures in the high-participation service context, scant research exists on studying the links among customer participation, customer expectation of service recovery, and service outcomes (e.g., word-of-mouth or WOM). Even more pressing is the lack of research on the type of service recovery that can countervail the inflated customer expectation of service recovery and restore service outcomes. This research demonstrates that high contribution of customers in the beginning of service provision procedure leads to high recovery expectations and low satisfaction. The results also support that co-created service recovery (CCS-R), as contrasted to firm and customer recoveries, has a greater positive effect on satisfaction. Further, the contrasting impacts of each service recovery type on positive and negative WOM are presented. An experiment was conducted using service failure and recovery scenarios. Regression analysis was used to test the hypotheses. The current research has some important implications for scholars and managers who wish to effectively recover failed high-participation service encounters.     

The impact of customer cognitive competence on online service decision-making: an event-related potentials perspective

Customer service online decision-making is subject to the perception of service value based on the interaction between customer cognition and emotion. The study reported in this paper examines the impact of customer cognitive competence on the online service perceived value. Thirty participants were divided into high- and low-cognitive-competence groups based on their responses on the service value perception survey. During the experiment, both groups were shown services that were available for online purchase. Changes in cognitive and emotional late positive potential (LPP) in the occipital and central–parietal region were recorded. In comparison with the customer sacrifice and customer benefit, the service value may elicit greater emotional LPP components in the central–parietal region and shorter cognitive LPPs in the occipital region in the group with high cognitive competence. Our findings present a potential neural mechanism for the impact of consumer cognitive competence on service value perception and decision-making, which may encourage the managers to improve service quality and guide the research of customer behavior and marketing.     

The effect of customer empowerment on adherence to expert advice

Customers often receive expert advice related to their health, finances, taxes or legal procedures, to name just a few. A noble stance taken by some is that experts should empower customers to make their own decisions. In this article, we distinguish informational from decisional empowerment and study whether empowerment leads customers to adhere more or less to expert advice. We empirically test our model by using a unique dataset involving 11,735 respondents in 17 countries on four continents. In the context of consumer adherence to doctors' therapy advice (patient non-adherence to doctor advice may cost about $564 billion globally to the pharmaceutical industry every year), we find that decisional empowerment lowers adherence to expert advice. The effect of informational empowerment varies predictably across cultures and is only universally beneficial when initiated by the customer. These findings have important implications for professional service providers.     

Chatbots and service failure: When does it lead to customer aggression

Artificial intelligence technology is changing the way services are delivered and introducing opportunities for new sources of service failure. The purpose of this paper is to examine how customers might respond (emotion- or problem-focused coping) to service failure of a chatbot when there is an option to interact with a human employee. Using data from 145 participants, we found that in a chatbot service failure context, telling a customer late in the service interaction that a human employee is available to help leads customers to engage in emotion-focused coping, resulting in customer aggression. The positive relationship between late disclosure and emotion-focused coping occurs with those who perceive low customer participation whereby they do not believe they are overly involved in co-producing and co-delivering the service. This research demonstrates how chatbot service failure in a service encounter can produce different effects on customers’ intention to engage in aggression.     

The happy virtual agent and its impact on the human customer in the service encounter

Few existing virtual agents (VAs) that customers interact with in service encounters can experience emotions, but they can be (and often are) designed so that they appear to have this capability. The purpose of this study was to assess VAs' display of happiness in service encounters when the only means they have to express themselves is the text that they transmit. Linguistic elements that influence the perceived happiness of a (human) sender of text messages were identified in a pilot study, and they were used to manipulate VA display of happiness in two experiments. In addition, a field study was carried out to capitalize on customers’ existing experience of service encounters with VAs in bona fide commercial settings. The experiments showed that VA text manipulated to signal VA happiness boosts overall VA evaluations, and the field study showed that perceived VA happiness is positively associated with overall VA evaluations. Taken together, the findings indicate that we humans are so hardwired for interactions with other humans that we react to VA display of happiness in ways that resemble our reactions when we are exposed to happy humans. The findings also provide designers of VAs and service marketers with a set of easily implemented linguistic elements that can be employed to make VAs appear happy in service encounters.