How small service failures drive customer defection: Introducing the concept of microfailures

Service that falls below customer expectations is framed as a service failure. While many researchers have investigated service failures, they have tended to focus on large service failures. This is likely because large failures are more noticeable by firms and more likely to prompt customer complaints than small failures. However, we argue that smaller service failures can cause as much damage as larger failures, and in some cases even more. We introduce the concept of service microfailures, which we define as instances when a customer’s expectations go unmet in some small way. While minor in isolation, repeated service microfailures that go unnoticed and unrecovered can compound in effect and drive customer defection. For this reason, we propose that service microfailures are a potentially much larger managerial problem than they may appear on the surface. In this article, we conceptualize microfailures as a distinct form of service failure and outline the mechanism through which they cause damage. We then develop a multifaceted approach through which managers can detect, repair, and prevent service microfailures.     

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.     

Service quality dimensions and superior customer perceived value in retail banks: An empirical study on Mexican consumers

This study concerns the service quality topic in the retail bank sector. A sample of 209 retail bank clients was taken, measuring the performance of service quality attributes of their principle retail bank. Behavioral performance variables such as satisfaction, loyalty and customer perceived value were also measured. In a factor analyses the attributes were separated into three factors. These three independent factors explain a considerable amount of variability of a satisfaction–loyalty factor. On the other hand, they could not explain the superior perceived value; and no differences between the service quality performances of the bank brands were found. In conclusion, regardless of the degree of satisfaction and loyalty, the customer is not willing to pay more for banking services at his regular bank than he would at other brands. This implies that superior perceived value is not being achieved via service quality, which suggests a lack of differentiation between brands in this sector.     

Exploring the relationship of perceived automotive salesperson attributes, customer satisfaction and intentions to automotive service department patronage: The moderating role of customer gender

This study examines the relationship of perceived automotive salesperson attributes and customer satisfaction behavior in the purchase experience leading to the patronage of a service department in an automotive dealership. Logistic regression analyses indicate that gender moderates the relationship of the perceived salesperson attributes and customer satisfaction as well as intentions for service department patronage. The model distinguishes users from non-users of the service department and does this better for females than for males. Finally, the paper concludes with a discussion of the managerial implications and directions for future research.     

Memorable customer experiences and autobiographical memories: From service experience to word of mouth

The aim of this paper is to study the relationship between customer experience and word of mouth (WOM) through two mediating variables: customer satisfaction and memorable characteristics of service experience (MCSE). Memory theory is adopted as a theoretical background, with emphasis on the key role of episodic or autobiographical memory. Memorable customer experience (MCE) is defined from this perspective, thereby enabling the connection between human memory theory and service-dominant (S-D) logic. As for the impact of the internet on WOM, two types of WOM behaviours are examined: positive WOM (pWOM) and eWOM. A methodology was designed from a survey that used a questionnaire based on measurement scales validated by the literature. The sample is of 1476 tourists who visited seven Spanish tourism destinations. The results show service experience precedes customer satisfaction and MCSE. Both pWOM and eWOM are significantly influenced by customer satisfaction and MCSE. Various scenarios are put forward in which several combinations of customer satisfaction and MCSE give rise to different intensities and valence of pWOM and eWOM.     

Weathering consumer pricing sensitivity: The importance of customer contact and personalized services in the financial services industry

In a low-cost switching environment, certain firm actions undertaken by service employees can improve consumer loyalty, satisfaction and reduce price sensitivity. Interestingly, consumers' satisfaction levels can actually increase when experiencing a price increase. Counterintuitively, when consumers experience a price decrease, their loyalty decreases, suggesting that it might be in the firm's best interest to not offer such pricing discounts as these customers may be hypersensitive to price. Overall, it appears much easier for service employees to positively influence customer satisfaction than customer loyalty; satisfied consumers do not necessarily become loyal consumers.     

The effects of service quality,perceived value and trust in home delivery service personnel on customer satisfaction: Evidence from a developing country

The rapid growth of online purchasing in recent years has emphasized the accompanying role of home delivery service provided by delivery personnel in ensuring customer satisfaction. On-time delivery, better service, generating positive customer perceived value, and trust towards service providers are influential factors that contribute to customer satisfaction. The aim of the study was to investigate the effects of service quality of home delivery personnel and perceived value on customer satisfaction, with trust playing an intervening role. It was conducted in Dhaka, Bangladesh, a less developed country with a new but rapidly growing digital sector. Data was collected from 259 respondents who received home delivery service, using a structured questionnaire. The conceptual model was analysed using partial least square structural equation modelling (PLS-SEM) with SmartPLS tool. The findings revealed that service quality, customer perceived value, and trust influenced customer satisfaction. The relationship between service quality and customer satisfaction and the relationship between customer perceived value and satisfaction were both partially mediated by trust. The findings contribute to the development and validation of a trust-based satisfaction model by extending the SERVQUAL model to incorporate perceived value in the presence of trust, while complying with expectation disconfirmation theory This study provides insights for managers to develop reliability and build trust in their service delivery personnel.     

Non-immersive virtual reality technologies in real estate: How customer experience drives attitudes toward properties and the service provider

Although previous research has highlighted that virtual reality (VR) technologies can enhance customer experience, the efficacy of VR technologies in real estate remains unclear. Therefore, this study examines the effects of offering consumers a non-immersive VR experience via a widely available technology, that allows them to view real estate products. Participants accessed the website of a real estate agency that presented apartments through either static photos or interactive 360° visits. The latter condition was associated with better “visiting” experiences and more positive attitudes toward both the products and the agency. This study highlights the advantages of such technologies in enhancing customer experience and attitudes, particularly in the highly competitive real estate industry.     

售后服务质量、顾客满意度及其行为意愿——基于“家电下乡”政策背景下农村顾客的实证分析

在对售后服务质量和顾客行为意愿进行维度划分的基础上,本文以我国"家电下乡"政策背景下购买过家电产品的农村顾客为研究对象对上述问题进行了深入分析。结果发现,送货质量与安装质量对顾客满意度的积极影响显著;顾客满意度高对保持关系意愿有着积极影响;保持关系意愿对顾客重购意愿和推荐意愿有着积极影响;顾客重购意愿对推荐意愿的积极影响不显著。最后,对本文的研究结论、启示与不足进行了阐述。     

Unraveling customer repurchase intention in OFDL context: An investigation using a hybrid technique of SEM and fsQCA

This research proposes a conceptual model based on the stimulus-organism-response (S–O-R) theoretical framework which links perceived website/app quality and image (stimuli) to satisfaction and trust (organism) which in turn influence customer repurchase intention (response). The data was collected from 680 consumers via Amazon MTurk. Following Covariance based Structural Equation Modeling (CB-SEM) analysis to validate the proposed model, fuzzy set/Qualitative Comparative Analysis (fsQCA) technique was also performed. According to the findings, perceived website/app quality has a direct impact on both satisfaction and trust in online food delivery services. Additionally, customer familiarity moderates the relationship between website/app quality and repurchase intention. Next, customer reviews moderate the association between repurchase intention and trust. Holistically, this study offers significant implications for academicians, managers and policymakers. Academically, this study contributes to online food delivery literature. Practically, the results provide guidelines to marketers, managers and policymakers interested in devising marketing strategies to promote customer's repurchase intention in online food delivery context.     

The impact of salespeople's relational behaviors and organizational fairness on customer loyalty: An empirical study in B-to-B relationships

Although customer loyalty has proved to be a powerful determinant of firms' profits, the drivers of loyalty in B-to-B relationships are still unclear. Recognizing that both interpersonal and interorganizational level variables are needed to predict customer loyalty, the aim of this study is to investigate the combined effects of salespersons' relational behavior and organizational fairness in predicting customer satisfaction and loyalty. Results from a field survey in a B-to-B setting show that buyer loyalty is largely determined by the quality of the interpersonal relationship with the seller. Perceived fairness is central for building overall customer satisfaction and loyalty toward the supplier.     

The effects of distributive,procedural, and interactional justice on customer retention: An empirical investigation in the mobile telecom industry in Tunisia

The framework offered in this study provides empirical evidence concerning the interaction between distributive, procedural and interactional perceived justice and loyalty program satisfaction on relational satisfaction in the mobile telecommunication context. Firms that rely on justice perception for strategy implementation are able to attain customer retention. This study suggests a theoretical model of customer retention that aims at investigating the role of satisfaction with loyalty program on relationship marketing. The structural equation modeling was used to test the hypothetical relationships. A self-administrated questionnaire was distributed to a total of a convenience sample of 520 customers of multiple mobile phone companies. The target population includes customers who have subscribed to a loyalty program. Results show that distributive justice moderates the relationship between satisfaction with the loyalty program and relational satisfaction. The results highlight the need to focus on distributive justice in order to nurture satisfaction and loyalty. Satisfaction with the loyalty program is a key predictor of a satisfactory relationship with the operator and customer retention.     

The effect of signage and emotions on satisfaction with the servicescape: An empirical investigation in a healthcare service setting

Marketing and environmental psychology studies have long emphasized the importance of signage in large and dispersive service settings but have focused little on utilitarian service contexts. Previous studies have also analyzed the role of emotions in customer satisfaction with the servicescape, particularly in hedonic service environments such as malls, hotels, and restaurants, but a limited research has been conducted on the role of emotions in utilitarian service settings such as healthcare services. This study draws from the environmental psychology and service marketing literature to investigate the effects of signage and emotions on satisfaction with the servicescape in the hospital setting. In addition, it explores the moderating effect of emotions on the relationship between signage and satisfaction with the servicescape. The findings show that signage has a positive and significant effect on satisfaction with the servicescape. Negative emotions have a significant negative effect on satisfaction, while positive emotions have no significant effect. Differently from what was expected, emotions do not moderate the relationship between signage and satisfaction. Managerial implications are provided for service managers who wish to design a utilitarian service setting to effectively increase user satisfaction with the servicescape.