Beyond close vs. distant ties: Understanding post-service sharing of information with close,exchange, and hybrid ties

Customers' post-service sharing of information (PSSI) occurs with a range of social ties typically conceptualized in terms of closeness/tie strength. We extend this research by orthogonally crossing the dimension of closeness with exchange to define close, exchange, and hybrid ties. Study 1, a survey of actual PSSI behavior, supports our conceptualization regarding the dimensions of closeness and exchange defining audiences for PSSI. Study 2, a survey of PSSI intentions, further supports the significance of this extended conceptualization by showing that a model with close, exchange, and hybrid ties has a significantly better fit than a model with only close ties. We provide further evidence of the significance of these three ties by showing that service outcome and process have distinct effects on PSSI to each social tie. Satisfaction has a non-linear effect on PSSI to close ties, and positive and negative linear effects on exchange and hybrid ties respectively. Further, satisfaction is the sole predictor of PSSI to close ties, whereas satisfaction, provider status and customer power interactively drive PSSI to exchange and hybrid ties. Thus, considering close, exchange, and hybrid ties enables a more comprehensive understanding of PSSI.     

Discovering the “customer annoyance iceberg” through evidence controlling

There is no doubt about the relevance of complaint management for customer retention. But complaint management-objectives can only be achieved if complaints registered by the firm give a comprehensive view of the annoyances perceived by customers. In fact, a considerable share of annoyed customers do not complain and many complaint articulations are not registered. Because of these “unvoiced” and “hidden” complaints, registered complaints show only the tip of the “annoyance iceberg” leading to misinterpretations and wrong allocation decisions. As a countermeasure, the concept of evidence-controlling is developed in this paper. Relevant key figures are identified, effective information gathering is demonstrated and managerial implications and open research questions are discussed.     

Determinants of public reactions to Concorde test flights at the John F. Kennedy International Airport

Detailed noise measurements from early Concorde test flights together with community characteristics data from the US Census Bureau were used to explain monthly complaint patterns arising from neighborhoods surrounding the John F. Kennedy International Airport. Consistent with an earlier study, the number of complaints per aircraft movement positively varied with average loudness of the flights. Complaints were more common during the summer months. Additional neighborhood characteristics also determined the frequency of Concorde-specific complaints; e.g. communities with longer median homeowner tenure were more likely to be prolific complainers, all else being equal.     

Customer Complaints and Switching Behavior—A Study of Relationship Dynamics in a Telecommunication Company

Abstract

Data on customer complaints and switching behavior provide us with important information about customer relationship dynamics. Studying customer complaints and switching behavior, i.e., crossroads in a relationship, will help us better understand the consequences of customer dissatisfaction and what erodes loyalty and has a negative impact on profitability. This understanding will help manage complaints proactively rather than reactively and help prevent switching. It will also improve quality and support service development.     

Fraudulent Return Proclivity: An Empirical Analysis

While many frameworks of service dynamics assume that consumers will not intentionally disrupt service encounters, a growing body of studies argues that dysfunctional customer behaviors are far from rare. Although a number of studies have explored such behaviors, deliberate fraudulent returning by consumers is relatively under-researched. Fraudulent returning refers to consumers taking back goods to a retailer knowing that such a return is contrary to the firm or legal rules and regulations governing such returns (including returning functional but used or consumer-damaged goods). This article is structured in the following way. First, in order to clarify the nature of demographic control factors, we briefly outline existing research into the demographic characteristics of complainers and fraudulent returners. Thereafter, we present the findings of a study designed to identify which demographic factors are linked to fraudulent returning. Second, we present a conceptual model of the psychographic antecedents of fraudulent returning proclivity. After describing the research design, methodology, and the approach adopted to test this model, we present the results of a second study developed to model the predictors of fraudulent proclivity that also controls for the demographic factors identified in Study 1. We conclude with a discussion of the contributions and limitations of these studies.     

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.     

Matching service failures and recovery options toward satisfaction

Service failures are inevitable in any service delivery process that establishes the need for a good service recovery. This study aims to investigate the relationships among service recovery variables to develop appropriate recovery options considering different levels of failure severity and satisfaction. Using a scenario-based survey approach and structural equation modeling, the results are failure severity negatively relates to satisfaction; recovery justices positively relates to satisfaction regardless of the level of failure severity; complaining behavior strengthens (weakens) the relationship between the failure severity (recovery justices) and satisfaction; and relationship quality is a stronger predictor of post-purchase behavioral intentions than satisfaction. A service recovery matrix is proposed to depict appropriate recovery options for different situations.     

Passenger complaints under irregular airline conditions – cross-cultural study

Punctuality is seen as key component of airline service quality. This paper examines cross-cultural differences in passenger complaints regarding irregular airline conditions. Analysis of four clusters of air travelers in South Korea – from South Korea, Japan, China, and America – exhibit significantly differences in their attitudes suggestion important cultural variations.     

Customer opportunistic complaints management: A critical incident approach

Although customer complaints are valued in the hospitality industry in order to create service recovery opportunities and improve service quality, there are occasions when customers knowingly and incorrectly report service failures or make illegitimate complaints. The purpose of this study is to investigate how service employees handle opportunistic customer complaints in service encounters. By using the critical incident technique, we classify 346 incidents from hotel and restaurant services based on complaint source, evidence, compensation, handling, follow-up, and customer return. Managerial implications for these challenging situations are discussed and suggestions are made for improvement.     

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.