Antecedents to customer expectations for service recovery

Selected antecedents of customers’ service recovery expectations are considered in this study. A conceptual model is proposed in which customer perceptions of service quality, customer satisfaction, and customer organizational commitment function as antecedents to service recovery expectations. The proposed model was tested with covariance structure analysis. The results support the hypothesized relationships, suggesting that service quality and customer organizational commitment have direct effects on customer service recovery expectations and that customer satisfaction has an indirect effect on service recovery expectations. He received his doctorate in marketing from the University of Kentucky. His research interests include services marketing and ethics. His research has been published in theJournal of the Academy of Marketing Science, Journal of Retailing, and theJournal of Business Research. He received his doctorate in industrial and organizational psychology from Virginia Tech University. His research interests include service quality with a focus on health care settings. His research has been published in theJournal of Management, Organizational Behavior and Human Decision Processes, andMedical Care Review.     

The effects of customer participation in co-created service recovery

The benefits of customer co-creation of value in the service context are well recognized. However, little is known about service failures in a co-creation context and the consequent roles of both firms and customers in the advent of service recovery. In conceptualizing a new construct, “customer participation in service recovery,” this study proposes a theoretical framework that delineates the consequences of the construct and empirically tests the proposed framework using role-playing experiments. The results indicate that, when customers participate in the service recovery process in self-service technology contexts, they are more likely to report higher levels of role clarity, perceived value of future co-creation, satisfaction with the service recovery, and intention to co-create value in the future. Theoretical and managerial implications of the findings are discussed. Authors are listed alphabetically.     

The role of customer service in determining customer satisfaction

Most consumer satisfaction/dissatisfaction research is focussed either on identifying product classes and personal/usage characteristics associated with dissatisfaction, or is focussed on modelling the psychological processes underlying the phenomenon. Most retailers, on the other hand, focus only on handling customer complaints. This paper focuses on retailer controllable sources of customer dissatisfaction. Findings from a large scale Canadian survey of 982 cases of recent automobile buyers show that while there are some differences in the determinants of consumer satisfaction among four different car models, it is the dealer-related factors that exert the greatest effects. Specific implications are highlighted for the retailer’s attention and possible retail responses are discussed.     

Developing customer orientation among service employees

A conceptual framework is proposed that considers the customer orientation of service employees and its relationship with their perceived level of organizational socialization and perceptions of the organizational climate for service, motivational effort and direction, and organizational commitment. Structural equation modeling techniques are applied to data collected from employees in the financial services industry to test the framework. The results of this study indicate higher levels of customer orientation result from favorable perceptions of the organizational climate for service and higher levels of motivational direction and organizational commitment. In addition, organizational socialization was found to have a positive impact on perceptions of climate, levels of motivation, and organizational commitment.     

The nature and determinants of customer expectations of service

A conceptual model articulating the nature and determinants of customer expectations of service is proposed and discussed. The model specifies three different types of service expectations: desired service, adequate service, and predicted service. Seventeen propositions about service expectations and their antecedents are provided. Discussion centers on the research implications of the model and its propositions. Her research interests include services marketing and consumer perceptions of price and quality. Her articles have appeared in theJournal of Consumer Research, Journal of Marketing, Journal of Marketing Research, Journal of Consumer Affairs, Journal of Retailing, andManagement Accounting. She is co-author (with Len Berry and Parsu Parasurman) ofDelivering Quality Service: Balancing Customer Perceptions and Expectations (The Free Press, 1990). Leonard L. Berry holds the J. C. Penney Chair of Retailing Studies, is Professor of Marketing, and is director of the Center for Retailing Studies at Texas A&M University. He is a former national president of the American Marketing Association. His research interests are services marketing, service quality, and retailing strategy. He is the author of numerous journal articles and books, includingMarketing Services: Competing Through Quality (The Free Press, 1991), which he wrote with A. Parasuraman. His research interests include services marketing, sales management, and marketing strategy. He has written numerous articles in journals such as theJournal of Marketing, Journal of Marketing Research, Journal of Business Research, Sloan Management Review, andBusiness Horizons. He is the author ofMarketing Research (Addison-Wesley, 1991) and coauthor (with Leonard L. Berry and Valarie A. Zeithaml) ofDelivering Quality Service: Balancing Customer Perceptions and Expectations (The Free Press, 1990).     

A three-component model of customer commitment to service providers

Although research into the determinants of service provider switching has grown in recent years, the focus has been predominantly on transactional, not relational, variables. In this research, the authors address the role of consumer commitment on consumers’ intentions to switch. Drawing from the organizational behavior literature, they build on previous service switching research by developing a switching model that includes a three-component conceptualization of customer commitment. Structural equation modeling is used to test the model based on data from a survey of 356 auto repair service customers. The authors’ results support the notion that customer commitment affects intentions to switch service providers and that the psychological states underlying that commitment may differ. As such, future marketing research should consider these different forms of commitment in understanding customer retention. The implications of this model for theory and practice are discussed. Havir S. Bansal (hbansal@wlu.ca) is an associate professor of marketing at Wilfrid Laurier University. He earned his Ph.D. from Queen’s University in 1997. His research interests are focused in the area of services marketing with emphasis on cuctomer switching behavior, word-of-mouth processes in services, and tourism. His research has been published in theJournal of Service Research, theJournal of Quality Management, andPsychology and Marketing and has publications forthcoming in theJournal of Services Marketing andTouris Management. He has also presented at and published articles in the proceedings of various national and international conferences. P. Gregory Irving (girving@wlu.ca) is an associate professor of organizational behavior at Wilfrid Laurier University. He received his Ph.D. in industrial/organizational psychology from the University of Western Ontario. His research interests included commitment and work-related attitudes, psychological contracts, and organizational recruitment and socialization. His research has appeared in a variety of journal including theJournal of Applied Psychology, Personnel Psychology, theJournal of Organizational Behavior, theJournal of Management, Human Performance, andBasic and Applied Social Psychology. Shirley F. Taylor (Ph.D., University of British Columbia) (staylor@business.queensu.ca) is an associate professor in the School of Business at Queen’s University, where she teaches and conducts research in the area of services marketing. Her research interests include service provider loyalty and switching, customer commitment, and perceptions management of service delays. Her work has been published in theJournal of the Academy of Marketing Science, theJournal of Marketing, Psychology & Marketing, theJournal of Service Research, theInternational Journal of Research in Marketing, and theJournal of Public Policy and Marketing. She currently serves on the editorial boards of theJournal of the Academy of Marketing Science, theJournal of Business Research, and theCanadian Journal of Administrative Sciences.     

The role of climate: implications for service employee engagement and customer service performance

This research attempts to challenge the resource–engagement and engagement–performance linkage of the job demands–resources model by testing these links under the moderating role of two climates: performance-focused and service failure recovery. Two studies test a model on the boundary conditions of the linkages across four service industries. The results suggest that whether a resource (i.e., self-efficacy and job autonomy) positively or negatively affects engagement depends on whether (1) a climate is appraised as a challenge or hindrance demand and (2) a climate is deemed a complementary or compensatory resource. Using multi-respondent data from customer service employees and their supervisors in the health care industry, Study 1 conceptualizes climate as organizational climate and finds that performance-focused climate strengthens (weakens) the positive effect of self-efficacy (job autonomy) on engagement while service failure recovery climate weakens the positive impact of self-efficacy on engagement. Study 2 generalizes the findings from Study 1 and provides broad support by testing the model using psychological climate in the financial services, tourism and hospitality, and retailing industries. This study closes with a configuration approach to climate research by discussing when multiple climates can co-exist under different types of resources.     

基于顾客期望与感知的服务营销战略研究

本文以顾客期望和感知相关理论研究成果为基础,结合服务营销的特殊性分析服务企业的营销战略问题,提出了基于顾客期望和感知的服务营销战略模型。根据该模型,服务企业确定自己的营销战略,必须明确锁定自己的服务对象,在理解顾客服务期望的基础上区别对待顾客期望并合理控制顾客期望,同时按照顾客期望设计并提供服务,才能实现顾客满意的目标。在顾客满意的基础上,服务企业可以通过有保留地承诺、突出服务传递维度的重点、利用服务补救的机会等策略超越顾客的服务期望,使顾客惊喜或感动以留住顾客,实现顾客的忠诚。     

Service failure and recovery: The impact of relationship factors on customer satisfaction

This research investigated how customers' relationships with a service organization affect their reactions to service failure and recovery. Our conceptual model proposed that customer-organizational relationships help to shape customers' attributions and expectations when service failures occur. The empirical results showed that customers with higher expectations of relationship continuity had lower service recovery expectations after a service failure and also attributed that failure to a less stable cause. Both the lower recovery expectations and the lower stability attributions were associated with greater satisfaction with the service performance after the recovery. These effects appeared to be key processes by which relationships buffer service organizations when service failures occur. Ronald L. Hess Jr. (ron. hess@business.wm.edu) (Ph.D., Virginia Tech) is currently an assistant professor of marketing at the College of William & Mary. His research interests include customer responses to service and product failures; organizational complaint handling; and customer assessments of satisfaction, loyalty, and service quality. He has published his research inMarketing Letters and several conference proceedings. Shankar Ganesan (sganesan @bpa.arizona.edu) (Ph.D., University of Florida) is an associate professor of marketing and Lisle and Rosslyn Payne Fellow in Marketing at the Eller College of Business and Public Administration, University of Arizona. His research interests focus on the areas of interorganizational relationships, buyer-seller negotiations, service failure and recovery, new product innovation, and E-marketing. He is the author of several articles that have appeared in leading academic journals, including theJournal of Marketing Research, theJournal of Marketing, theJournal of Retailing, theJournal of Personal Selling and Sales Management, theJournal of the Academy of Marketing Science, and theJournal of Applied Psychology. He currently serves on the editorial review board of theJournal of Marketing Research and theJournal of Marketing. Noreen M. Klein (nklein@vt.edu) (Ph.D., Pennsylvania State University) is currently an associate professor of marketing at Virginia Polytechnic Institute and State University. Her research interests include consumer decision making and the behavioral aspects of pricing, and her research has been published in the theJournal of Consumer Research, Organizational Behavior and Human Decision Making, and theJournal of the Academy of Marketing Science.     

Implications of loyalty program membership and service experiences for customer retention and value

Companies that offer loyalty reward programs believe that their programs have a long-run positive effect on customer evaluations and behavior. However, if loyalty rewards programs increase relationship durations and usage levels, customers will be increasingly exposed to the complete spectrum of service experiences, including experiences that may cause customers to switch to another service provider. Using cross-sectional, time-series data from a worldwide financial services company that offers a loyalty reward program, this article investigates the conditions under which a loyalty rewards program will have a positive effect on customer evaluations, behavior, and repeat purchase intentions. The results show that members in the loyalty reward program overlook or discount negative evaluations of the company vis-à-vis competion. One possible reason could be that members of the loyalty rewards program perceive that they are getting better quality and service for their price or, in other words, “good value.” Ruth N. Bolton is Ruby K. Powell Professor of Marketing in the Michael F. Price College of Business at the University of Oklahoma. Her current research is concerned with high-technology services sold to business-to-business customers. Her most recent work in this area studies how organizations can grow the value of their customer base through customer service and support. She previously held positions at the University of Maryland, GTE Laboratories Incorporated, the University of Alberta, Carnegie-Mellon University, and the University of British Columbia. Her business experience involves a variety of consulting projects addressing services marketing, customer satisfaction, and quality management issues in the telecommunications and information services industries. Her earlier published research investigates how organizations' customer service and pricing strategies influence customer satisfaction and loyalty. She received her B.Comm. with honors from Queen's University at Kingston and her M.Sc. and Ph.D. from Carnegie-Mellon University. She currently serves on the editorial boards of theJournal of Retailing, theJournal of Marketing, Marketing Science, Marketing Letters, theJournal of Marketing Research, and theJournal of Service Research. She has published articles in these and other journals. P. K. Kannan is Safeway Fellow and Associate Professor of Marketing in the Smith School of Business at the University of Maryland. He received his Ph.D. from Purdue University. His research and teaching interests are in electronic commerce, and marketing research and modeling. His research on competitive market structures, consumers' loyalty, variety seeking, and reinforcement behaviors, and the effects of promotions on competition have appeared inMarketing Science, Management Science, Journal of Business Research, andInternational Journal of Research in Marketing. His current interests center on the marketing of information products such as market research, software, and data products using electronic channels such as the Internet covering issues of strategy, pricing, and product reliability. Articles focusing on these issues have appeared or are forthcoming inCommunications of the ACM, International Journal of Electronic Commerce, and theHandbook of Electronic Commerce. He is a member of the American Marketing Association, the Institute of Management Science, and the American Statistical Association. He has corporate experience with Tata Engineering and Ingersoll-Rand and has consulted for companies such as Frito-Lay, Pepsi Co, SAIC, and Fannie Mae. Prior to joining the University of Maryland, he was on the faculty of the University of Arizona, Tucson. Matthew D. Bramlett is a doctoral candidate in the Department of Sociology and a faculty research assistant in the Department of Marketing at the University of Maryland, College Park. His dissertation is an event history analysis of the effects of children on the stability of marriages and cohabitations. His current research focuses on high-technology services sold to business-to-business customers. His other research interests include the commodification of sports and the exploitation of the consumer in professional sports, and the fertility effects of family planning programs in developing countries over time. He is a member of the Population Association of America and a member of the Family, Sociology of Population, and Race, Gender, and Class sections of the American Sociological Association. His work on the exploitation of the consumer in the National Football League will be published as a chapter in the forthcoming bookConsumers, Commodification and Media Culture: Perspectives on the New Forms of Consumption, edited by Mark Gottdiener, University of New York at Buffalo.     

Furthering the integration of marketing and logistics through customer service in the channel

Recent emphasis on customer service in both the academic and trade literature reveals a growing but confusing body of knowledge. Both the marketing and logistics disciplines have offered varying definitions of customer service, but have failed to offer a comprehensive framework which represents customer service and its related marketing and logistics issues. This article offers the viewpoint that customer service is a conceptual unifying factor for integrating marketing and logistics. The channel system is introduced as the vehicle by which buyer/seller relationships must be analyzed to understand formation of buyer expectations, interaction of marketing and logistics activities, and subsequent customer service performance. The institutional, behavioral, and physical dimensions of channel activity influence many of the marketing and logistics decisions made by management. The framework offered in this article differs from previous efforts in that customer service is the output of the unified activities of marketing and logistics. It considers marketing and logistics decisions jointly, re-evaluates and expands the production function in logistics, and ties customer service to customer satisfaction or dissatisfaction.     

Unveiling the recovery time zone of tolerance: when time matters in service recovery

This article examines the link between recovery time and customer compensation expectations for service failures that cannot be immediately redressed. First, we show that the relationship between recovery time and compensation expectations is nonlinear. Initially, in a recovery time zone of tolerance, compensation expectations do not increase. Beyond this zone, the relationship follows an inverted U-shape, such that compensation expectations first increase but decrease in the long run. Second, our results show that long recovery times are accompanied by additional negative effects, including lower satisfaction with the recovery and negative word of mouth, so postponing service recovery represents a poor option. Third, relationship strength functions as a moderator. First-time customers expect higher compensation earlier; relational customers display a recovery time zone of tolerance but claim considerably higher compensations afterwards. Fourth, communication initiatives like the separate provision of status updates or an explanation may limit increases in compensation expectations over time. Still, their joint usage creates a “too-much-of-a-good-thing” effect, suggesting that if the usage of communication initiatives is taken too far it may lead to negative outcomes such as increasing compensation expectations.     

An RSM investigation of the profit potential of customer service variables in physical distribution

This paper presents a methodology for examining the profit-generating potential of customer service variables. Through the use of a case study, the proposed methodology is shown to provide a means for estimating the optimum customer service mix and assessing the sensitivity of the profit-customer service relationship. Results of the investigation indicate that service levels can be adjusted so as to enhance the profit performance of the firm.     

Better him than me: social comparison theory and service recovery

We conduct two studies to examine if, when, and why communication strategies using social comparisons can effectively restore emotional equilibrium after a service failure, and thus aid recovery efforts. In our first study, we find that after a service failure, like compensation, downward social comparisons reduce anger and improve post-purchase behavioral intentions (including exiting, complaining to management, engaging in negative word-of-mouth, and complaining to a third party). However, when two recovery tools, compensation and downward social comparisons are used together they do not have an additive effect. Additionally, we show that anger mediates the social comparison effect. In a second study, we further explore the social comparison effect and the financial compensation effect using complete and incomplete downward social comparisons and multiple levels of financial compensation. Our findings indicate that complete downward social comparisons are particularly effective at improving all four types of post-purchase behavioral intentions when financial compensation is non-existent or relatively low. Finally, we discuss implications for theory and practice. The authors would like to thank Irwin Levin, Jim Sinkula, the anonymous reviewers, and David Stewart for their insightful comments and invaluable guidance related to this article.     

Alternative indexes for monitoring customer perceptions of service quality: A comparative evaluation in a retail context

Customer satisfaction and service quality measures obtained through consumer surveys invariably have skewed distributions. As such, researchers have questioned the appropriateness of the popular approach of using the mean rating to summarize such data. However, no detailed study on this topic has yet been conducted. In two independent studies, the relative validity of the various indexes that can be used to summarize consumer’s service quality ratings (e.g., mean, median, mode, kurtosis, skewness, top/bottom-tail percentiles) are examined. In Study 1, using typical commercial survey data from a fast-food/convenience retail chain, both the mean and top-box percentiles are found to be the best indicators of service quality, based on their correlation with customer-driven business performance measures. In Study 2, the results are further confirmed by an extensive simulation that varies factors such as the shape of the underlying distribution of customer ratings and the strength of the relationship between customer ratings and business performance measures. The article concludes with a discussion of the findings and implications for future research. Robert F. Hurley is an assistant professor of marketing at Fordham University. He received his M.B.A. from the University of Pennsylvania and his Ph.D. from Columbia University. His research has been published in theJournal of Marketing, theJournal of the Academy of Marketing Science, Advances in Services Marketing and Management, theJournal of Business Research, California Management Review, theJournal of Applied Social Psychology, theJournal of Marketing Theory and Practice, and theJournal of Engineering and Technology Management. Hooman Estelami is an assistant professor of marketing at Fordham University. He received his M.B.A. from McGill University and his Ph.D. from Columbia University. His research has been published in theJournal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, Pricing Strategy and Practice, Middle East Insight, Advances in Consumer Research, theJournal of Professional Services Marketing, and theJournal of Business in Developing Nations.     

Improving customer profit predictions with customer mindset metrics through multiple overimputation

Journal of the Academy of Marketing Science - Research and practice have called for the incorporation of customer mindset metrics (CMMs) to improve the accuracy of models that predict individual...     

The chain from customer satisfaction via word-of-mouth referrals to new customer acquisition

It has often been argued that word-of-mouth (WOM) can contribute significantly to a firm’s success in a variety of ways. Here, we analyze the functional linkage between customer satisfaction, WOM, and new customer acquisition. Using data from two empirical studies we conceptualize and test the direct, non-linear, and moderated relationship between satisfaction and WOM. We further explore the circumstances under which WOM leads to new customer acquisition using a logistic regression model. We do so for two groups (new customers and long-term customers) from the customer base of a large energy provider (n = 688), and for a random sample of B2B customers (n = 416) in the same market. Results indicate that the satisfaction-WOM link is non-linear and is moderated by several customer involvement dimensions. Based on our results, we demonstrate how the satisfaction-WOM-new customer acquisition link can enrich return on quality and satisfaction models. Further, we draw conclusions about how companies can make use of both the satisfaction-WOM and the WOM-new customer acquisition link for better allocating their marketing resources.

When does salespeople’s customer orientation lead to customer loyalty? The differential effects of relational and functional customer orientation

Is a customer orientation universally effective for salespeople? Or does its effectiveness depend on the selling situation? While previous research has largely neglected this question, this study investigates contextual influences on the link between customer-oriented behaviors and customer loyalty. To do so, it takes a role theory perspective on salesperson customer orientation by distinguishing functional customer orientation and relational customer orientation. It then investigates which type of customer orientation is more effective with regard to establishing and maintaining customer loyalty, given the specific situation. Here, the authors analyze the moderating impact of a customer’s communication style (task orientation and interaction orientation) and specific characteristics of a supplier’s products (product individuality, importance, complexity, and brand strength). Multilevel analysis of triadic data from a cross-industry survey of 56 sales managers, 195 sales representatives, and 538 customers provides empirical support for positive, non significant, and even adverse effects of salespeople’s customer-oriented behaviors on customer loyalty, depending on contextual variables.