The authentic service employee: Service employees' language use for authentic service experiences

This study analyzes how service employees' language use influences the authenticity of a service. The extant service literature on language use remains exclusively focused on the customer's perceptions of first language use in direct communication. Shifting the focus to the service employee, this paper posits that language could exert a wider influence, contributing both to how customers perceive the authenticity of the service and the entire service experience. Analyzing language use in service encounters, the paper addresses this research gap in the literature from the perspective of the service employee. In many service settings, authenticity is an important part in customers' construal of their experience. The study analyzes how service employees in British pubs outside the UK may use English with local customers who frequent these pubs to get a taste of Britain and British culture, contributing to the service literature by introducing a typology to align the service employees' language use with authenticity to strengthen the customer experience. The paper further contributes to service theory by extending the understanding of service sabotage by showing how, why, and in which circumstances service employees may use a language switch to sabotage the customer experience. Finally, the study extends the extant human resources literature on the effects of allowing service employees to be themselves to show that this managerial practice not only benefits the service employees also results in a more authentic customer experience.     

Online service quality: Content and process of analysis

Abstract

The purpose of this paper is to build a comprehensive model of online service quality that confirms both the content of, and process of measuring, this higher-order construct. While the past decade has seen the Internet become a key channel for service delivery, there remains uncertainty around many aspects of both the content of, and process of how to measure, online service quality. We use a large sample of European consumers (n = 3399) of four companies (two pure play and two multichannel) to develop a new nine-dimension model of online service quality. We validate importance as a disconfirmation standard. We find trust in the company to be the most important dimension of online service quality, with customer service also highly rated. Issues of personalisation/customisation were very low rated. We find the online pure-play companies in the sample delivering better performance than multichannel retailers, despite having customers who are actually more demanding. We discuss the practical and research implications of these findings.     

Planning and implementing effective service guarantee programs

This article highlights different types of service guarantees, explains the benefits of service guarantees to consumers and service providers, examines why service guarantees are so rarely used, and describes the characteristics of effective service guarantee programs. We seek to motivate additional service providers into offering service guarantees (when appropriate), to improve the effectiveness of service guarantee programs, and to spur additional research that can reduce the gap between academic research and industry practices relating to service guarantees. Properly planned, implemented, and controlled service guarantees can benefit service providers by serving as a signal of quality to customers, focusing on consumer expectations, developing specific performance standards, providing reliable data on service failures, determining weak points in the service-delivery process, and regaining customers who would otherwise be lost. Despite these benefits, service guarantees are not commonly used by service providers for a variety of reasons. We study and evaluate these impediments as well as describe characteristics of effective service guarantee programs from both the consumer's and service provider's perspectives.     

Brand defection in a business-to-business financial service

This research examines the reasons for brand defection in a business-to-business financial service. Three cross-sectional studies examine customers who ceased using a brand in the previous month. The research shows that about 60% of brand defection occurs for reasons that brand managers cannot influence, such as business closure or head office decisions. Hence, retention strategies can have a maximum success rate of 40%. Furthermore, most defection within this 40% relates to dissatisfaction with fees and charges, or the attractiveness of competitors' offers. These reasons limit what brand managers can do to retain these customers other than just matching competitors' offers. On the other hand, most customers who defect because of price issues or reasons beyond management control still have a positive attitude towards their former brand and are likely to consider this brand for future purchases. Only 4% of lapsed customers defect because of service service-related issues. These customers are less positive about their former brand, compared to other lapsed customers. The research provides implications for investments in customer acquisition versus customer retention.     

Process completeness: Strategies for aligning service systems with customers’ service needs

Increasingly, customers are expecting more and better service. As such, enterprises need guidelines and frameworks for addressing these expanding requirements. The concept of process completeness helps us to consider service from the customer's viewpoint; arguably, the only perspective to take. Process completeness is achieved when a firm's service delivery system matches the typical customer's breadth of expectations. While customers think in sets of services (e.g., I need a flight, a hotel, airport parking, wireless Internet), firms think in terms of single services (e.g., we can provide a flight). There are four basic service systems: (1) transaction—execute a basic request and nothing else, (2) process—handling all firm-related service requests through one touch point, (3) alliance—handling service requests through a single touch point via stitching together a static firm-selected alliance of service partners, and (4) agility—handling service requests through a single touch point via stitching together a dynamic customer-selected alliance of service partners. In addition to exploring the four service systems, this article guides executives regarding the selection and implementation of the appropriate service strategy that meets their typical customer's process completeness expectations.     

Can economic bonus programs jeopardize service relationships?

Research findings on the impact of economic bonus programs on service relationships are contradictory. While some studies find positive effects of economic bonus programs on customer’s relational behavior, other studies demonstrate negative effects. Building on self-determination theory, Dholakia (J Market Res 43(2):109–120, 2006) points at a possible explanation for these conflicting results, arguing that economic marketing programs have negative effects on self-determined customers when the program is perceived as controlling by them. By testing the effect of four different kinds of economic bonus programs on loyalty in an experimental setting using a nationwide representative sample of 768 participants, this research is the first that provides empirical evidence that economic bonus programs can indeed endanger service relationships by reducing customer’s self-determination. Implications of our findings for the abundance of economic bonus programs offered to service customers these days are highlighted.     

Happiness as a predictor of service quality and commitment for utilitarian and hedonic services

In services research, little attention has been devoted to long‐term intrinsic personality traits. Long‐term personality traits predict short‐term affective states and thus understanding them is important from a service standpoint. Further, identifying long‐term personality traits facilitates the targeting of customers who are predisposed to evaluate services in a positive manner. This study focuses on one long‐term affective trait, happiness, and examines its impact on service evaluation and commitment, as it has been shown that the level of happiness affects whether people perceive life events, both great and small, in a positive or negative manner. Three studies were conducted to research the issue. The first study shows that customers who are happier evaluate service quality in utilitarian services in a more positive manner than do customers who are less happy. The second study shows that for hedonic services, involvement serves as an antecedent to perceived service quality; happier customers are also more involved in hedonic services, and thus perceive service quality in a more positive manner. Study 3 examines the link between happiness and commitment and shows that customers who are happier are also more prone to be committed to hedonic services. These results contribute to the marketing literature by showing that customers are predisposed to evaluate service quality in line with their level of happiness in the case of both utilitarian and hedonic services. Thus, marketing scholars and practitioners ought to recognize that service quality and commitment are partially predetermined by the personality of the customer and that some customers are more difficult to please than others. © 2011 Wiley Periodicals, Inc.     

Public service quality and customer satisfaction: exploring the attributes of service quality in the public sector

Beyond the existing SERVQUAL-based research, the authors develop an alternative model of public service quality. The various sources of public service quality are explored and a new classification scheme formulated by using critical incidents technique. Four main qualities of public service are identified: process quality, outcome quality, design quality, and relationship quality. The findings suggest that the critical attributes of public service quality for customer satisfaction differ according to the types of customers in the public sector. Final customers (beneficiaries) give priority to the process and outcome qualities, whereas intermediary customers (social workers) have high regard for the design and relationship qualities.     

Retail service quality as a key activator of grocery store loyalty

This paper demonstrates the crucial role of retail service quality as a key activator in the formation of customer loyalty to the store; the latter is understood in a conative and action sense. Applying a modified version of the RSQS scale, a model is tested by administering a questionnaire to 450 customers in an under-investigated retail setting, i.e. supermarkets, within the Italian context. Structural equation modelling was employed. The results prove that customers consider retail service quality as a second-order dimension and recognize the main contribution of physical aspects and reliability first-order dimensions. Findings corroborate the crucial role played by perceived service quality and the mediating role of customer satisfaction and conative loyalty within the relationship between service quality and action loyalty.     

Customer reactions to self-checkout discontinuance

Self-service technologies (SSTs) increasingly permeate retail space. Yet, sometimes retailers decide to revert to human-delivered service mode by discontinuing their incumbent SST. In this study, we examine how self-checkout (SCO) discontinuance affects customers’ perceptions of SCO technology and purchase behavior. We conduct a natural field experiment by surveying two groups of customers pre- and post- SCO discontinuance: treatment group (who experience discontinuance) and control group (who do not experience discontinuance). Leveraging difference-in-differences analyses, we find that SCO discontinuance results in decreases in customers’ satisfaction with technology, intentions to use technology, perceived simplicity of technology, and basket size. Our results inform managers of the potential downsides of discontinuing SST and provide corroborating evidence of the technology’s benefits.     

Customer participation in service recovery: a meta-analysis

Research on customer participation in service recovery is surging, yet empirical examinations provide mixed results. A meta-analysis of 30 independent samples reported in 21 studies (N?=?7872) shows that the effect sizes for the relationships between customer participation in service recovery and customer outcomes are rather weak. We also find that customer participation in service recovery has an indirect effect on satisfaction with service recovery via distributive justice and procedural justice, but not via interactional justice. Conversely, customer participation in service recovery has an indirect effect on overall satisfaction via distributive justice and interactional justice, but not via procedural justice. Finally, the effectiveness of customer participation in service recovery is stronger when customers participate in the outcome of the recovery and for customers with an Eastern cultural background, but weaker when additional compensation is offered and in online settings.     

The influence of emotions on customer's cognitive evaluations and satisfaction in a service failure and recovery context

The aim of this paper is to explore the relationship between customers' negative emotions after a failure, their cognitive evaluations of the recovery process, and the overall or cumulative satisfaction in a service context. Two different constructs measure a customer's cognitive evaluations of the recovery process: disconfirmation of expectations and perceived justice. The proposed model is tested on a sample of financial service customers who suffered some type of failure. The results indicate that emotions have an indirect effect on overall or cumulative satisfaction through cognitive evaluations.     

Understanding the causes of defection among satisfied B2B service customers

Abstract

Many research studies conclude that satisfaction is strongly and positively related to repurchase intentions and loyalty behaviour. However, companies are often faced with the perplexing question of why some customers, who are satisfied, still switch suppliers given the right circumstances. To answer this question, an exploratory research study was conducted in the facilities-management industry with business-to-business service customers. The study was conducted in two stages: an exploratory stage that focused on the industry as a whole, and a confirmatory stage that focused on lost customers from one specific company. It was found that switching motives and actual reasons for switching are quite different. Customers, despite being satisfied, are more likely to switch suppliers for price reasons than they originally stated.     

Modelling consumers’ acceptance for the click and collect service

This study investigates possibilities for developing a click and collect service in the context of e-commerce and attempts to identify the consumer characteristics that determine the acceptance of this service. Data of 285 e-commerce consumers were collected through an online questionnaire using banners uploaded in seven online retailers' sites. Binary logit models are developed to analyze the data and relate consumer characteristics to their intention to use and pay for the click and collect service. Perceived environmental contribution of the click and collect service, perceived time pressure, car use in the city center and frequency of online shopping significantly affect consumers’ intention to use the service. The model results provide information that can be used to choose location points and design marketing and pricing policies that will make the click and collect service attractive to customers.     

How context interferes with similarity-attraction between customers and service providers

According to the similarity-attraction effect, customers should prefer service providers who are perceived to be similar; yet cosmetic features such as visible tattoos are often prohibited in professional settings, suggesting that they do not provide an advantage for service providers. This research explores the extent to which contextual factors interfere with the similarity-attraction effect for any particular cosmetic feature. The findings of three experimental studies demonstrate that sharing a cosmetic feature with a customer is not enough to elicit the similarity-attraction effect; a shared cosmetic feature must also be (1) salient, (2) unique among a set of service providers, and (3) the only salient shared cosmetic feature. The implication is that the similarity-attraction effect will be over-estimated in controlled experiments that do not account for contextual information.     

Spillovers through backward linkages and the export performance of business services. Evidence from a sample of Italian firms

We provide evidence on the role of spillovers through vertical linkages in service firms’ internationalisation process. We combine input–output coefficients with region-level information on downstream manufacturing sector exports to build a measure of spillovers through backward linkages, which we assess as a systematic determinant of Italian BS firms’ export status. Once considered firm and sector specificities, export spillovers especially matter for exporting to high-income economies outside Europe. This finding originates from higher sunk costs stemming from greater distance to the destination market and tougher competition within the destination market. Furthermore, the spillovers’ geographical scope is mainly local. We thus contribute to international business theory by generalising existing evidence from case studies on the importance of buyer–supplier relationships for service firms’ internationalisation across several BS sectors. Our research carries important implications for international business practices as well, as joining networks with internationalised customers may play an important role in enhancing BS firms’ exports, regardless of the BS supplied.     

The effects of relationship quality on customer retaliation

This research examines the effects of relationship quality (RQ) on customers' desires to retaliate after service failures. We posit that the effects of RQ are contingent upon the attributions customers make about the firm’s controllability over a service failure. Two competing hypotheses are examined and reconciled. The “love is blind” hypothesis posits that when low controllability is inferred, high RQ customers experience a lesser desire for retaliation than low RQ customers. On the other hand, the “love becomes hate” hypothesis specifies that when high controllability is inferred, high RQ customers experience a greater desire for retaliation than low RQ customers. The hypotheses are tested with a survey-based design and a partial least squares (PLS) model that incorporates a multiplicative latent construct.     

Dynamic internet pricing with service level agreements for multihomed clients

With the increase in internet coverage and the decrease in internet access price, the demand for good internet service has grown. Clients expect a guarantee in the quality of service (QoS) during internet access. In this paper, we present a model in which clients are given assurances by service providers to be able to connect to the internet and to get the bandwidth requested, and, if clients do not get the services they request, the service provider pays penalties to the clients. We consider internet clients that can dynamically connect to a number of internet service providers (ISP). When a client arrives at an ISP, he has to decide whether to accept the client, and then the price to charge from the client for the duration of its connection. Rejection of a client results in a penalty and delay in getting the requested bandwidth also incurs a penalty. We assume a Poisson arrival process with the rate of arrival sensitive to the price being charged. A client requests bandwidth for a time that is exponentially distributed, then the client is idle for a time that is also exponentially distributed; and then either the client departs or requests bandwidth again after the idle period is over. A service provider tries to maximize its income by charging appropriate prices based on its current state and deciding whether to accept more clients or not. Since penalties are imposed, such solutions also automatically balance load among service providers, and so the QoS to clients improves. We present solutions that maximize the income of service providers. The solutions are then compared using simulation. Simulation results show that our solutions significantly improve QoS of clients and increase the income of service providers as compared to a simple heuristic based solution that could otherwise be used.     

Managing service shutdowns: Cash refunds or vouchers?

Service shutdowns—extended disruptions of operations—caused by exogenous events are on the rise. Such shutdowns pose major challenges for service providers, customers, and regulators. Providers prefer vouchers as a means of service recovery to limit bankruptcy risk, whereas customers demand cash refunds or vouchers that include a generous bonus. Regulators, on the other hand, insist that customers must be granted the right to be reimbursed in cash. This paper shows that a zero bonus is optimal under the voucher-only strategy, whereas the provider should always include a positive bonus with the voucher under the hybrid strategy that allows customers to choose between the cash refund and voucher options. Surprisingly, despite its higher flexibility in service recovery design, the hybrid strategy can be dominated by the voucher-only strategy in terms of profit and welfare. Moreover, we show that the ranking of strategies differs across the two important dimensions of expected profit and survival under shutdown. Finally, we study competition among providers and show that a high-quality provider is more likely to use cash-back as the service recovery strategy than its low-quality competitor.     

The competitive impact of service process improvement: Examining customers’ waiting experiences in retail markets

In this paper, we investigate the impact of a service process improvement in front-end retail operations on the waiting experiences of shared customers, that is, those customers who patronize a retailer as well as its competitors. Our findings from two studies—a field study and a controlled laboratory experiment—suggest that while customers’ waiting time perceptions are independent across competing firms, their waiting time satisfaction is interdependent. As a result, the impact of a retailer's service improvement initiative that reduces waiting times is not merely local to the retailer but propagates to its competitors through its shared customers. Specifically, such an improvement not only raises shared customers’ satisfaction with the focal retailer, it also concurrently lowers their satisfaction with the retailer's competitors. By implication, current approaches that assess the impact of a service process improvement by just measuring the difference in customer satisfaction before and after the improvement may be underestimating the true impact of such improvements.