Interactive Services: A Framework,Synthesis and Research Directions

This article briefly reviews marketers' current knowledge about interactive services. It defines interactive services as services that have some form of customer–firm interaction in an environment characterized by any level of technology (i.e., a high or low technology environment). Customers may interact with the firm's physical elements (including technology), processes and people in both service creation and delivery. Consequently, customer participation directly influences service quality and behavioral outcomes (e.g., service usage, repeat purchase behavior and word-of-mouth) — as well as firm outcomes (efficiency, revenues and profits). Hence, a recurring theme throughout our article is that the nature of customer participation is critically important for the effective creation and delivery of interactive services. The article identifies key research areas and their relevance to managerial practice. This analysis yields a set of research questions that provides an agenda for future research.     

What drives customer engagement after a service failure? The moderating role of customer trust

This study investigated the relationships between complaint handling, customer experience, and customer engagement, as well as the moderating effect of customer trust prior to a service failure. The results were obtained from 320 Indonesian consumers of courier, express, and parcel services. Favourable employee behaviour was found to be the most effective complaint handling effort that influenced customer experience, followed by organizational procedures and then compensation, indicating that positive customer experience led to customer engagement. Additionally, this study revealed that higher levels of customer trust prior to a service failure reduced the positive effects of complaint handling efforts on customer experience. This finding suggests that customers with higher levels of trust in a firm are less sensitive to that firm's complaint handling and recovery efforts. This article contributes to the literature on customer engagement in the service failure and recovery contexts, especially in developing countries. It examines the most influential complaint handling dimensions for predicting customer engagement following service failures. Furthermore, this study is one of the first to explore the moderating role of customer trust in service failure and recovery literature.     

Understanding the user satisfaction and loyalty of customer service chatbots

The artificial intelligence (AI) chatbot is emerging as a significant corporate customer-facing application, potentially increasin customer service efficiency while reducing costs. However, little work has sought to assess the quality of service they provide consumers. This study applies the e-service quality by incorporating conversational AI quality to predict users' satisfaction and loyalty to customer service chatbots. The proposed model was empirically evaluated using survey data collected from 219 users responding about their perceptions of customer service chatbots. The findings indicate that AI chatbot service recovery quality and AI chatbot conversational quality significantly influence user satisfaction. On the other hand, core AI chatbot service quality and satisfaction significantly influenced chatbot user loyalty. This study contributes to researchers and practitioners by proposing and evaluating a more comprehensive chatbot e-service quality that combines both fundamental (core service and service recovery qualities) and human-like (conversational quality) aspects of e-service. The results are of value in devising future AI chatbot services and related strategies.     

Hotel Service Recovery and Service Quality: Influences of Corporate Image and Generational Differences in the Relationship between Customer Satisfaction and Loyalty

ABSTRACT

As the number of tourists continues to grow globally, the hospitality industry players inevitably face more challenges. High competition among the competitors and the emergence of new technologies such as online booking platforms make the competition more intense among players in the hospitality sector. The quality of services provided is undoubtedly crucial to the success of the hotel. Hence, any service failure has to be addressed appropriately in order to maintain a high level of customer satisfaction and to keep the image of the hotel intact. It is therefore vital that service recovery programs are carefully planned to meet various types of service failures which may inevitably occur. In this study, questionnaires were distributed to customers who had experienced service failures. The aim was to investigate the influence of service quality and service recovery on satisfaction and, ultimately, the effect on customer loyalty. The research also tested the mediating effect of corporate image between the relationship of customer satisfaction and customer loyalty. The findings showed that both service recovery and service quality had a significant impact on customer satisfaction. Similarly, it was found that customer satisfaction induced customer loyalty towards the hotel operator. The result also showed that corporate image mediated partially between the relationship of customer satisfaction and customer loyalty.     

Language use in services: Recent advances and directions for future research

While many service management and marketing concepts stress the importance of the interaction between a customer and a service provider, prior research devotes relatively little attention to the role of language use in services. This article describes the importance of broadening understanding of this issue and reviews prior research in this area. Next, this article introduces the articles in this special section. Although these articles individually and collectively contribute to a better understanding of the role of language use in services, we contend that much still needs to be learned. In order to assist researchers in their exploration of this topic, this article ends with a future research agenda that might inspire researchers to expand on the boundaries of knowledge on language use in services.     

The Language of Marketplace Rituals: Implications for Customer Experience Management

The domain of customer experience management (hereafter, CEM) includes every point of customer contact with products, services or businesses (Grewal, Levy, and Kumar 2009). In a recent special issue of the Journal of Retailing, Puccinelli et al. (2009) assert that a key atmospheric element of CEM that can shape customer satisfaction within the retail setting is the “interaction between the customer and employee” (p. 24). In this paper, we delve further into the social-interaction aspects of retail atmospherics, by focusing on how retailers and service providers use language to facilitate a specific type of provider/customer experience that we label the “marketplace ritual.” We use depth interviews and participant observation to: (1) analyze the structure and function of the specific utterances providers identify as salient when creating and executing marketplace rituals; (2) discuss the ways language contributes to perceived strategic CEM-related outcomes; and (3) examine providers’ perceptions of the potentially negative consequences of ritual language for CEM.     

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.     

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.     

Is “proof” the Eighth “P” of Service? A Conceptual Model and Propositions

The article aims at making a conceptual contribution to services marketing literature by proposing an eighth “P” called “proof.” Proof is a simple operational measure or an intuitive indicator that helps the customer quickly assess the efficacy of a service. The article discusses services marketing literature and develops propositions that underscore the importance of proof as the eighth P. When proof is provided about a service to the customer, it affects all service outcomes (i.e., service evaluation, purchase intent, customer satisfaction, and repurchase intent). Though conceptual, the article provides practical implications as well.     

Services advertising: showcase the customer!

The research presented in this article focuses on the effectiveness of advertising strategies used in services communication. For this purpose, a quantitative study of 50 magazine advertisements for services in tourism and banking/insurance was conducted with a sample of 249 respondents. This research shows that, for both sectors, certain advertising strategies are more effective than others, and that the most effective advertising strategy is one that showcases the service customer. This strategy is more effective than those highlighting competitive advantage, contact staff, a physical representation of the service or the company’s brand image.     

An Exploratory Study of the Critical Success Factors of One-to-One Web-Marketing: User Perspectives

ABSTRACT

Dell provides personalized marketing services through the Internet (Fischer et al., 2000). This type of application of the Internet is referred to as One-to-One Web-marketing. A review of the current literature relevant to information management and marketing revealed that, relative to other topics, research into this area is lacking. This study addresses this by exploring the Critical Success Factors (CSF) of One- to-One Web-marketing from the user's perspective. It employed a triangulation method of integrating qualitative and quantitative designs in a three-stage research process. The research results revealed that there are five Critical Success Factors of One-to-One Web-marketing from the user perspectives: (1) the satisfaction of customer requirements, (2) the identification of customer differentiation, (3) the design of a quality user interface, (4) the establishment of customer recognition, and (5) the provision of customized services.     

Service Recovery,Justice Perception,and Forgiveness: The “Other Customers” Perspectives

ABSTRACT

While extant research has examined the effects of service recovery on customer attitude and behavior, little is known about whether customers react differently to the same recovery depending on whether they are victims or observers of a service failure. Adopting the “other customers” perspectives, this study used a quasiexperimental design using scenarios in a professional services context with 267 U.S. respondents recruited from Qualtrics national online panel. We found that when compensation is offered, victims will perceive a higher level of distributive justice than observers. However, the effects of service recovery on forgiveness intention is stronger among observers than victims.     

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.     

Approach to service design based on customer behavior data: a case study on eco-driving service design using bus drivers’ behavior data

Various types and massive amounts of customer behavior data are collected in various industries, such as transportation, healthcare, hospitality, and logistics. The use of customer behavior data can improve the design activities of service firms. Despite the applicability of customer behavior data to service design, only a few studies have examined an approach to utilize customer behavior data in service design. This study proposes an approach for designing services with customer behavior data. The approach is based on a case study on eco-driving service design with the behavior data of bus drivers. This study extends the research on service design by demonstrating how customer behavior data are utilized for service design and assisting service designers in designing services with customer behavior data.     

How to create a realistic customer journey map

Although many articles discuss customer journey mapping (CJM), both academics and practitioners still question the best ways to model the consumer decision journey. We contend that most customer journey maps are critically flawed. They assume all customers of a particular organization experience the same organizational touchpoints and view these touchpoints as equally important. Furthermore, management lacks an understanding of how to use CJM as a cross-functional, strategic tool that promotes service innovation. This article proposes a solution to the unwieldy complexity of CJM by linking customer research to the CJM process and by showing managers how to develop a customer journey map that improves a customer's experience at each touchpoint. Using the case of an actual retail mall, we show that common CJM assumptions about the equal importance of all touchpoints are fundamentally wrong, and how easy it is for retail managers and strategic planners to make incorrect judgements about customer experience. This article demonstrates through a case study how customer research helped a mall's strategic management team understand which touchpoints were more or less critical to customer experience. It also shows key strategic initiatives at each touchpoint, resulting in cross-functional input aimed to advance service innovation at the mall.     

Investigating the service brand: A customer value perspective

Despite considerable interest in the nature and role of marketing using a service perspective [Vargo S., Lusch R. Evolving to a new dominant logic for marketing. J Mark 2004; 68 (1): 1-17] there is limited research about branding. Research to date tends to be qualitative [e.g., Berry L. Cultivating service brand equity. J Acad Mark Sci 2000; 28: 128-137; de Chernatony L., Segal-Horn S. The criteria for successful services brands. Eur J Mark 2003; 37 (7/8): 1095-1118] rather than quantitative. This research closes this gap by developing and testing a theory of the influence of the service brand on the customer value-loyalty process. The model includes the traditional influence of brand image plus three additional influences that more fully reflect the broader service perspective (company image, employee trust, and company trust). Using survey data of a sample of 552 airline customers, the analysis shows there is a direct influence of all the aspects of the brand on customers' perceptions of value. In addition brand image, company image and employee trust have a mediated influence on customer value through customers' perceptions of service quality. Finally the analysis shows that a service brand does not have a direct influence on customer loyalty but rather its influence is mediated through customer value. This paper concludes with a discussion of the managerial and research implications.     

Competitiveness vis-à-vis service quality as drivers of customer loyalty mediated by perceptions of regulation and stability in steady and volatile markets

The purpose of this research is to investigate predictors of customer loyalty in order to identify alternatives to customer satisfaction with service quality, which has been traditionally accepted as the primary predictor of customer loyalty, particularly for services. A stratified sample of bank customers was surveyed to collect information on customer perceptions and behaviors in relation to satisfaction with service quality, competitiveness, risk, regulation, stability and loyalty. Partial least squares path modelling (PLSPM) was applied to develop loyalty models for a steady market (Australia) and a volatile market (Greece). This study's empirical findings support theoretical arguments for the inclusion of customer perceptions of competitiveness in loyalty modelling. Perceptions of regulation and stability intervene in the relationship between drivers of loyalty and loyalty itself. For bankers, the study emphasizes the need to move away from customer satisfaction with service quality to explain customer loyalty, towards focusing efforts on achieving relative superiority in competitiveness, namely competitive productivity and products. Profiling customers based on their perceptions of a bank's competitiveness can provide additional explanatory power beyond traditional satisfaction based loyalty models. Services marketing has focused on the service components, and there is no doubt about its crucial role. But given this focus, other factors, such as the actual product component, have been somewhat overlooked in services research. The study makes a unique contribution to understanding and modelling customer loyalty by demonstrating the importance of the inclusion of customer perceptions of other factors as appropriate to market conditions.     

The study of service innovation for digiservice on loyalty

Advocates of management of service innovation see this area as a new and promising research field. As services are increasingly becoming driving forces of economies, the introduction of new services to satisfy customer needs is becoming a critical issue for managers. This research attempts to address the consumer issue of service innovation. The research entails a comprehensive study of the impacts of service innovation on consumer loyalty in the digiservice context. The study examines service innovation loyalty from the consumer perspective; namely, technology leadership, service leadership, switching cost, brand equity, and customization. Personal interview data from 475 consumers provides the data for empirical hypothesis testing of the relationships between variables. The conceptual model investigates the relevant relationships among the constructs by using confirmatory factor analysis (CFA) and structural equation modeling (SEM). Findings from the research sample support the argument that technology leadership, service leadership, brand equity, and customization are the key determinants of loyalty. The paper also includes a discussion on the theoretical and managerial implications of the research findings.     

A field study of customers’ switching behavior for bank services

This research paper makes three important contributions with managerial implications concerning the issue of bank service switching behavior. First, it identifies four overall dimensions of customer satisfaction with bank services. These are personnel related considerations, financial considerations (interest earnings and interest payments), environment related considerations (atmospherics), and convenience related considerations (ATM and hours). Next, we develop and test some hypotheses pertaining to the relationship between customer satisfaction and bank service switching behavior as it is mediated by the importance of a particular bank service to a particular customer and by the nature of competitive offerings for different types of banking services available from other banks. Based on the empirical results of a large scale field study, we provide several theoretical and managerial implications.