Voicing out or switching away? A psychological climate perspective on customers’ intentional responses to service failure

This research explores why customers who experience service failure are willing to complain directly to service providers but unlikely to switch to other service providers. We bring in the concept of psychological climate for communication safety (PCCS) to the service failure context and explore how customers’ perception of the social environment as open and supportive for communication affects their complaint and service switching intentions and behaviors. We further identify customer harmony enhancement as an important personality trait predictor of PCCS. Based on two field studies and one scenario-based experimental study, our findings consistently show that PCCS mediates the positive effect of customer harmony enhancement on customer complaint intentions. Customer harmony enhancement exerts a positive indirect effect on customer complaint behavior serially through PCCS and customer complaint intentions. However, our findings relating to customer service switching intentions are inconsistent across the three studies. Theoretical and practical implications are discussed.     

Effectiveness of recovery actions on deviant customer behavior—The moderating role of gender

This paper aims to examine how gender interacts with various recovery actions on perceived employee effort, complaint handling satisfaction, and behavioral intention in the case of deviant customer behavior in an East-Asian context. Study 1, a qualitative study, reveals that consumers expect companies to take appropriate remedial actions when a service consumption experience is affected by deviant customer behaviors (e.g., smoking in non designated area). Study 2 employed a 2 (gender) × 6(recovery actions) between subject design in a restaurant setting. Results show that confronting the deviant customer received the highest customer ratings in terms of perceived employee effort, complaint handling satisfaction, and behavioral intention. However, gender moderated the relative effectiveness of recovery actions. Relocating the focal customer was equally good as compensation for women while men were less appreciative of relocation than compensation. In sum, service providers are advised to initiate some form of recovery action in response to deviant customer behaviors.     

The influence of guarantees,active requests to voice and failure severity on customer complaint behavior

Anecdotal evidence suggests that service guarantees and requests by service workers to complain encourage customers to voice following failure, while holding negative word of mouth and exit at bay. However, empirical support for these tactics is limited. To address this deficiency, we conducted an experiment examining the influence of these devices on customer complaint behavior (CCB) across restaurant failures of varying severity. Findings suggest that offering a guarantee, regardless of it being unconditional or combined, encourages voice. Failure severity had the strongest influence on CCB, and it interacted with both active request and guarantee type in influencing exit. Theoretical and managerial implications of the findings are discussed.     

The impact of information technology on hotel operations,service management and transaction costs: A conceptual framework for full-service hotel firms

This paper develops a conceptual framework that describes the impact of information technology (IT) on service management and transaction costs in full service hotel firms. It details how IT would help such firms to lower operations-related transaction costs. Further, the underpinnings of how IT would impact service management in full service hotel firms is discussed more specifically from a customer satisfaction point of view while focusing on two aspects, i.e. managing customer delight and the customer's role as a co-producer. Propositions are developed and a discussion on the impact of IT on firm profitability from a transaction cost perspective ensues while concluding with managerial implications.     

How should I respond to a complaining customer? A model of Cognitive-Emotive-Behavioral from the perspective of restaurant service employees

Many studies on coping have been conducted in diverse industries but within the hospitality industry, studies on how employees cope with customer complaints have only just begun, despite the task being one of the most significant stressors amongst service employees. The aim of this paper was to explore the cognitive appraisals, emotional elicitations, emotional coping behavior and complaint handling behavior of service employees. In-depth interviews were conducted with a total of 26 frontline restaurant employees. The results show that service employees engaged in different cognitive appraisals and emotional reactions in response to different customer complaints. Subsequently, they engaged in different emotional coping behaviors including both positive and negative of avoidance and approach. Theoretically, a model was developed to depict a holistic picture of Cognitive-Emotive-Behavioral in a complaint-handling context. The findings might assist industry practitioners to devise better complaint handling and coping strategies to enhance both customer and employee satisfaction.     

Negative affect,deep acting,and customer compensation as responses to customer mistreatment: The effect of customer-based perspective-taking

Customer service employees often deal with customer mistreatment, eliciting negative affect, which subsequently influences service performance. Using affective events theory (Weiss & Cropanzano, 1996) as the theoretical framework, perspective taking was examined as an intervention to influence negative affect elicited from customer mistreatment in two experiments. Study 1 examined and found that customer perspective taking led to less negative affect, and subsequently more customer compensation and more deep acting through serial mediation effects. Study 2 tested the moderating effect of the service failure locus of causality (i.e., hotel or customer). The most important theoretical contribution is understanding how having employees shift the focus away from their own emotions, towards why a customer is being rude or difficult, influences deep acting and customer compensation via reduced negative affect. This paper provides a promising intervention and training tool that hospitality organizations can use to influence employee service recovery strategies and customer service.     

Listen to their heart: Why does active listening enhance customer satisfaction after a service failure?

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.     

Human staff vs. service robot vs. fellow customer: Does it matter who helps your customer following a service failure incident?

The key to excellent service delivery is to ensure harmonious interactions between service actors. Therefore, in the event of service failure incidents, an understanding of the roles and interactions of these service actors is critical to achieving positive service outcomes. This research addresses the question: How do interactions between customers and these service actors (human staff/automated technological interface/fellow customer) influence their service experience following a service failure? We draw on role theory and answer this question via three experimental studies. Findings show that customers evaluate their service experience less favourably when receiving service recovery from fellow customers rather than firms (human staff and service robots). Furthermore, a firm’s instrumental recovery, rather than informational recovery, leads to a more favourable service evaluation, although this effect is absent when service recovery was given by fellow customers. Findings provide insights into the role of each actor in determining customer service evaluation.     

Relationship quality matters: How restaurant businesses can optimize complaint management

This research investigates the effectiveness of complaint management according to company–client relationship quality (RQ). Interactional recovery efforts are critical for efficient complaint management in the hospitality management (restaurant) context; this study addresses the potential compensatory interaction effects of interactional recovery efforts (personal apology vs. impersonal apology via email) and two types of compensatory recovery efforts (voucher vs. refund), as well as their intensity (full vs. partial). A robust cut-off effect emerges, such that a minimum level of interactional effort influences the effectiveness of compensation efforts. Furthermore, RQ influences complaint management effectiveness: For loyal, high-RQ customers, interactional recovery effort (personal apologies) is more important, regardless of compensation intensity (full vs. partial) or type (voucher vs. refund). High- (low) RQ customers are more (less) likely to accept vouchers than refunds; vouchers symbolize their willingness to continue relationships. Thus, interactional effort allows firms to decrease the intensity of customer compensation required.     

Classification of Asian Complainers in Restaurant Services

In restaurant businesses, customer dissatisfaction must be accounted for and thus avoided in order to generate revenue. In the literature, researchers have confirmed a positive relationship between complaint behaviour and consumer dissatisfaction. Three types of complaint behaviour have been discussed in previous studies: voice response, private response and third-party response. This study targeted Asian consumers (n = 300) and segmented them based on their complaint behaviour. These results signify that Asian internationals' complaint behaviour is not homogenous and can therefore be segmented in terms of their complaint behaviour. Personal characteristics as well as socio-demographics were also investigated with consumer complaint behaviour of research participants.     

Determinants of sustainable behavior of firms and the consequences for customer satisfaction in hospitality

The literature on determinants of firm sustainable behavior and its effects on firm performance is rich. However, there are still important questions that lack definitive conclusions. One revolves around factors mediating the link between organizational determinants and firm sustainable behavior, which may still be regarded as a black box. Another stresses the impact of sustainable behavior on customer satisfaction. Using a sample of survey data from 974 small and medium-sized German hotels and 62,766 independent reviews, this paper examines the links between innovativeness, managers’ sustainability attitudes and firm sustainable behavior while taking into account perceived advantages of sustainable behavior as a mediator. Furthermore, the relationship between sustainable behavior and customer satisfaction is examined. A model is proposed and tested using structural equation modeling. The results confirm innovativeness and sustainability attitudes as determinants of sustainable behavior and perceived advantage as a mediator. Sustainable behavior shows a positive relation to customer satisfaction.     

Unraveling the dynamic and contingency mechanism between service experience and customer engagement with luxury hotel brands

This study unravels the dynamic and contingency mechanism between service experience and customer engagement with luxury hotel brands by investigating a multi-step model linking these two variables, in which emotional attachment and relational quality constructs (i.e., brand satisfaction, brand trust, and brand commitment) act as a bridge, while customer involvement acts as a moderator. Based on a self-administered survey dataset of 249 international tourists who are customers of luxury hotel brands, partial least square structural equation modeling (PLS-SEM) is used to test the hypotheses. The results indicate that all proposed hypotheses are supported. As such, this study discovers and clarifies the nature and dynamic mechanism underpinning the co-creation and reciprocation process of customer engagement with luxury hotels. In particular, the positive service experience is found to contribute to customer engagement via emotional attachment and relational marketing. Furthermore, the moderating role of customer involvement in the luxury hotel setting is confirmed.     

Becoming an ambidextrous hotel: The role of customer orientation

Because competitive pressure in the hotel industry continues to increase, hotels have to develop service innovation (i.e., exploration) and service improvement (i.e., exploitation) capacities to become ambidextrous for continually creating customer value. In this study, a theory of the effect of customer orientation on service innovation and service improvement, which facilitates service quality and results in better market performance, was developed and investigated. By analyzing the data provided by senior executives and department managers from 126 hotels in Taiwan, both service innovation and service improvement were revealed to partially mediate the relationship between customer orientation and market performance. The results imply that customer orientation affects the market performance of a hotel through the development of service capabilities, and that customer orientation can transform a hotel into an ambidextrous hotel by concurrently developing service innovation and service improvement capacities.     

Sources of satisfaction with luxury hotels for new,repeat, and frequent travelers: A PLS impact-asymmetry analysis

There are differences in service expectations according to travelers' experiences. This study aims to identify the structure of service quality factors with regard to satisfaction with luxury hotels concerned with new, repeat, and frequent travelers to Macau. The data are analyzed by a partial least squares (PLS) impact-asymmetry analysis in order to explain how the structure of factors can influence the behaviors of three visitor segments. The results of this study explore the transformation of the factor structure of customer satisfaction across different experiences encountered. This study contributes to the knowledge of life cycle theories using three-factor theories that position most of the quality attributes in the introduction stage as excitement factors; they show various types of factors in a growth stage, and they unify to performance factors when the products and services mature. Thus, asymmetrical analyses are highly appropriate for studying customer behavior throughout the customer life cycle.     

Do personal values affect perceptions of the hospitality performance?

With the sharing economy and the mainstream hotel industry battling it out to deliver authentic experiences, there is a renewed emphasis on the concept of hospitality, and how it should be integral to both product strategy and marketing communications. A key facet of this this study examines the relationships between personal values and two measures of service evaluation namely, hospitality performance (HOSPERF) and customer satisfaction. Findings show that personal values have distinctive relationships with HOSPERF and customer satisfaction. Also, HOSPERF adds significant variance to the model and confirms its role as a strong antecedent of customer satisfaction. Findings present a compelling case for the inclusion of HOSPERF as a measure of service evaluation in addition to customer satisfaction in hospitality-based experiences. Theoretical and practical implications are discussed.     

How and when servant leadership promotes service innovation: A moderated mediation model

Based on social learning theory, the current study examined how and when servant leadership could promote employee service innovative behavior (SIB) in the hospitality setting. Survey data collected from 1021 service employees and their 229 direct supervisors at 54 hotels showed that servant leadership was positively related to employee SIB, and employee customer orientation mediated such effect. Results also showed that employee age moderated the effect of servant leadership on customer orientation, as well as the indirect effect of servant leadership on SIB via customer orientation, such that these effects were stronger for younger employees. Theoretical and practical implications are discussed.     

Quality function deployment: An extended framework for service quality and customer satisfaction in the hospitality industry

Research on service quality and customer satisfaction has become significant in the hospitality industry. Nonetheless, most previously proposed or introduced research paradigms have focused exclusively on customers without equally emphasizing the intra-organizational service generation and delivery processes. In contrast, this study considers both external and internal service management issues and subsequent service innovations based on the framework of Quality Function Deployment (QFD). QFD and its relationship to similar concepts are explained. Next, this study provides an overview of the QFD process and develops a hypothetical application in the lodging industry in order to illustrate future application and analysis strategies. Some benefits and disadvantages of the QFD process are discussed as compared to extant service quality and customer satisfaction paradigms. Finally, suggestions and directions are offered for future applications, with particular interest in hospitality-specific service management issues.     

Managing customer citizenship behaviour: The moderating roles of employee responsiveness and organizational reassurance

This study examines the influence of employee responsiveness and organizational reassurance towards customer citizenship behaviour (CCB) on building guest satisfaction, loyalty, and perceived value. The study considers insights from concepts in psychology including attachment theory, self-congruity theory, affect infusion model, and social exchange theory which are relevant to the problematics of CCB. The scenario-based experimental design used in this study focuses on one aspect of CCB identified in extant literature: the policing of other customers. In a hospitality context, guests voluntarily participate in safeguarding an organization's quality when they identify areas that may be impacted by opportunistic behaviours of fellow guests. This context is highly relevant in hospitality and tourism settings where the behaviour of one individual may directly impact the experience of another given the co-creation of experience in a shared environment. Both employee responsiveness and organizational reassurance were found to significantly moderate guest satisfaction, loyalty and perceived value.     

The Role of Service Quality,Perceived Value,and Relationship Quality in Enhancing Customer Loyalty in the Travel Agency Sector

Relationship quality is crucial to enhancing a tourist’s loyalty. Little empirical research has been conducted to link service quality, perceived value, and relationship quality to customer loyalty in the travel agency sector. This study attempts to investigate the role of service quality, perceived value, and relationship quality on customer loyalty among tourists. Relationship quality consists of three components: customer satisfaction, customer trust, and customer commitment. Structural equation modeling is used to test the linkages between the six variables that have been identified. Findings reveal that service quality and perceived value of a travel package are antecedent factors to the relationship quality with a travel agency; three components of relationship quality significantly influence a customer’s loyalty to a travel agency.     

Linking AI quality performance and customer engagement: The moderating effect of AI preference

Drawing upon affordance theory, this study positions artificial intelligence (AI) as a commercial service in examining its influence on customer engagement in the hotel context. In particular, we seek to understand linkages between customer perceptions of AI service quality, AI customer satisfaction and engagement. Given the multiplicity of services offered by service organisations, customers’ preference for AI service is modelled as a moderator of customer perceptions and attitudes towards AI. Data was collected from a sample of hotel customers in Australia who had previously used AI tools or services. Our results reveal a significant chain effect between AI service indicators, service quality perceptions, AI satisfaction and customer engagement. AI preference has a significant moderation effect on information quality and satisfaction. These findings provide new insights into the consumer services literature and have important implications for marketing practitioners.