The effect of complete versus partial observations on service evaluations

2020 ◽  
Vol 54 (4) ◽  
pp. 935-954 ◽  
Author(s):  
Marjan Abbasi
Keyword(s):  
Service Provider ◽  
Service Failure ◽  
Future Research ◽  
Partial Observation ◽  
Partial Observations ◽  
Cognitive Closure ◽  
Content Type ◽  
Need For Cognitive Closure ◽  
Monetary Compensation ◽  
Complete Observation

Purpose The purpose of this paper is to investigate the effect of complete versus partial observations of service failure and recovery. This study also aims at investigating the effect of observing customers’ need for cognitive closure and types of compensation that a service provider offers. Design/methodology/approach Two experiments are conducted to test the research hypotheses. The authors use scenarios describing failure and recovery encounters that occur to a target customer at restaurant settings, and through manipulation of complete versus partial observations, they investigate observers’ attitudes and behavioral intentions. Findings The results suggest that customers with a partial observation are less forgiving than those with a complete observation. In particular, the former sympathized more with a target customer, blamed a service provider more and a target customer less and had lower repurchase intentions than the latter. The authors find that the need for cognitive closure heightens this tendency following a partial observation of service failure. They also find that following a complete (versus partial) observation, observers reacted more favorably to service recovery when it included (versus did not include) monetary compensation. Research limitations/implications This research studies the effect of locus of causality following a partial versus complete observation. Future research could further examine the effect of stability and controllability. Also, the authors examined the effect of the need for cognitive closure on evaluations of service failure following a partial versus complete observation. Future research could examine the effect of some other individual difference variables. Practical implications The results offer some measures to be taken by practitioners. In particular, practitioners are advised to not offer monetary compensation when majority of observers have had a partial observation. Moreover, they are advised to offer some explanation in a timely and effective manner to ensure observers who are under the negative impact of a partial observation have some information so that they revisit their service evaluations. Originality/value The literature assumes that in failure and recovery incidents, all observing customers would know the entire story. This research challenges this assumption and highlights the key role of observation type (partial versus complete observation). Further, this research examines the effect of the need for cognitive closure on service evaluations following a partial versus complete observation. The current research finds that supposedly favorable measures by a firm (i.e. monetary compensation) may in fact backfire when a partial observation is at play.

The effect of consumer emotions on outcome behaviors following service failure

2019 ◽  
Vol 33 (3) ◽  
pp. 285-302 ◽  
Author(s):  
L. Jean Harrison-Walker
Keyword(s):  
Service Failure ◽  
Negative Emotions ◽  
Behavioral Outcomes ◽  
Experience Sampling ◽  
Future Research ◽  
Systematic Research ◽  
Content Type ◽  
Complaining Behavior ◽  
Managerial Implications ◽  
Outcome Behaviors

Purpose The purpose of this paper is to explore the role of emotions that consumers experience following service failures and to assess the effects of each of these emotions on important behavioral outcomes. Design/methodology/approach This paper extends the work of Wetzer et al. (2007) and draws upon the existing literature to test a series of research hypotheses tying emotions to four important behavioral outcomes primarily using stepwise regression. Findings When a service failure occurs, customers experience any of a variety of negative emotions. The effect on behavioral outcomes depends on the specific emotion experienced by the consumer. The current research, which benefits by using retrospective experience sampling, finds that frustration is the predominant emotion experienced by customers following service failure, but that anger, regret and frustration affect behavioral outcomes. Uncertainty also plays a role. Research limitations/implications Future research should investigate the antecedents of propensity for emotions and predisposition toward industries, as well as the consequences of word-of-mouth (WOM) praise and WOM activity. Additionally, emotions could be examined by service stage. Several other moderators could be investigated, including severity, complaining behavior, repeat occurrence, service importance, remedies and forgiveness, product vs process failures, tenure, gender and age. Practical implications The current research emphasizes the importance of understanding which emotion is being experienced by a customer following service failure to identify the behavioral outcomes that will be most impacted. The specific managerial implications depend upon the specific emotional response experienced by the customer and are discussed separately for anger, regret and frustration. Service personnel must be trained to recognize and address specific customer emotions rather than to provide a canned or generalized response. Originality/value To date, there has been little, if any, systematic research into the effects of multiple discrete negative emotions on multiple desirable behavioral outcomes. The current study examines six discrete emotions. Predominant emotions are differentiated from emotional intensity. The behavioral outcomes of reconciliation and reduced share-of-wallet are added to the traditional outcomes of repatronage intentions and negative WOM. While existing research tends to rely on a scenario approach, this study uses the retrospective experience sampling method. The authors distinguish between mixed emotions and multiple emotions. The relative effects of disappointment and regret are examined for each of the four outcomes. Finally, importance-performance map analysis was applied to the findings to prioritize managerial attention. Numerous managerial and research implications are identified.

Employing proactive interaction for service failure prevention to improve customer service experiences

2017 ◽  
Vol 27 (1) ◽  
pp. 164-186 ◽  
Author(s):  
Hyunju Shin ◽  
Alexander E. Ellinger ◽  
David L. Mothersbaugh ◽  
Kristy E. Reynolds
Keyword(s):  
Customer Service ◽  
Service Provision ◽  
Service Providers ◽  
Service Failure ◽  
Marketing Research ◽  
Theory And Practice ◽  
Future Research ◽  
Content Type ◽  
Failure Prevention ◽  
Patronage Behavior

Purpose Services marketing research continues to be largely focused on firms’ reactive interactions for recovering from service failure rather than on proactive customer interactions that may prevent service failure from occurring in the first place. Building on previous studies that assess the efficacy of implementing proactive interaction in service provision contexts, the purpose of this paper is to compare the influences of proactive interaction to prevent service failure and reactive interaction to correct service failure on customer emotion and patronage behavior. Since proactive interaction for service failure prevention is a relatively underexplored and resource-intensive approach, the authors also assess the moderating influences of customer and firm-related characteristics. Design/methodology/approach The study hypotheses are tested with survey data from two scenario-based experiments conducted in a retail setting. Findings The findings reveal that customers prefer service providers that take the initiative to get to them before they have to initiate contact for themselves. The findings also identify the moderating influences of relationship quality, situational involvement, and contact person status and motive. Originality/value The research contributes to the development of service provision theory and practice by expanding on previous studies which report that proactive efforts to prepare customers for the adverse effects of service failure are favorably received. The results also shed light on moderating factors that may further inform the exploitation of resource-intensive proactive interaction for service failure prevention. An agenda is proposed to stimulate future research on proactive customer interaction to prevent service failure in service provision contexts.

The service recovery paradox in B2B relationships

2018 ◽  
Vol 33 (3) ◽  
pp. 291-302 ◽  
Author(s):  
Denis Hübner ◽  
Stephan M. Wagner ◽  
Stefan Kurpjuweit
Keyword(s):  
Service Providers ◽  
Service Failure ◽  
Service Recovery ◽  
Future Research ◽  
Content Type ◽  
Subjective Perceptions ◽  
Service Recovery Paradox ◽  
Operating Level ◽  
B2b Relationships ◽  
Exploratory Model

Purpose This study aims to explore the service recovery paradox (SRP) in business to business (B2B) relationships. Previously, this phenomenon has been identified in consumer-facing industries. The research advances the marketing literature by highlighting the ways in which the antecedents of the service recovery paradox differ between B2B and consumer markets. Design/methodology/approach This research draws upon findings on the SRP in the consumer setting and service failure literature in business to consumer and B2B contexts. For the analysis, interview data were collected from 43 informants among clients and service providers in the aftermath of a service failure. Findings The authors propose an exploratory model of the SRP for B2B relationships. In the B2B setting the propensity of eliciting the SRP depends on (1) the characteristics of the service failure, (2) the attributes of the service recovery and (3) the shared subjective perceptions among boundary spanners. Practical implications Empowered operating-level employees, straightforward communication, immediate responses and action plans that ensure future conformance are the key factors to turn service failures into increased customer satisfaction. Originality/value This study is the first to transfer the SRP from consumer marketing into the B2B domain. Moreover, it derives an exploratory model of the SRP, which can be refined by future research.

Audit management, need for closure and detection of misstatements

2019 ◽  
Vol 9 (2) ◽  
pp. 237-250
Author(s):  
Mojtaba Safipour Afshar ◽  
Omid Pourheidari ◽  
Bakr Al-Gamrh ◽  
Asghar Afshar Jahanshahi
Keyword(s):  
Financial Statements ◽  
Mediating Effect ◽  
Financial Statement ◽  
Need For Closure ◽  
Certified Public Accountants ◽  
Cognitive Closure ◽  
Content Type ◽  
Need For Cognitive Closure ◽  
Audit Firms ◽  
Audit Management

Purpose The purpose of this paper is to study whether diverting auditors to erroneous accounts leads to higher effectiveness and detection of errors. Also, this paper investigates the effect of the need for cognitive closure of auditors on audit effectiveness and detection of errors in the presence of audit management. Design/methodology/approach The authors used a financial statement containing a diverting statement and several errors for measuring audit management and used a survey to measure auditors’ need for closure. Research sample consisted of 79 independent auditors having above three years of audit experience. The set of financial statement and questionnaire (measuring the need for closure of auditors) was given to auditors and they had enough time to fill them. Findings Results show that diverting auditors to accounts containing error does not lead to higher effectiveness and detection of errors. Also, auditors need for closure character does not affect their effectiveness and detection of errors in the financial statements. Practical implications Diverting auditors to erroneous accounts leads to higher detection of earning management. With this regard, the results increase the awareness of auditors that diverting auditors away from important errors to easy-to-detect erroneous accounts leads to their belief of achieving the audit objectives by detecting phony errors and misstatements. In other words, the results alert auditors of managers’ techniques of audit management. Originality/value This study contributes to the literature on audit management and need for cognitive closure of auditors in Iran’s audit environment and introduces these concepts to this environment. The paper will be of value to Association of Iranian Certified Public accountants to include stricter measure in appraisal of audit firms’ quality and educate its participants about audit management and mediating effect of the need for closure of auditors on the detection of errors and misstatements in financial statements.

Reasons to switch: empowered vs less powerful bank customers

2019 ◽  
Vol 37 (6) ◽  
pp. 1441-1461 ◽  
Author(s):  
Jeanette Carlsson Hauff
Keyword(s):  
Service Provider ◽  
Financial Services ◽  
Online Survey ◽  
Financial Institution ◽  
Service Failure ◽  
Survey Methods ◽  
Mediating Effect ◽  
Switching Behavior ◽  
Content Type ◽  
Consumer Switching

Purpose The purpose of this paper is to contribute to the existing literature of driving and impeding switching factors by operationalizing the catalyst factor of perceived power among customers. Acknowledging the importance of trust in a financial context, a trust-based framework for the analysis is used. The study explicitly analyzes factors of importance for subsequent switching of banks for empowered customers (i.e. savers) and low-on-power customers (i.e. borrowers). Design/methodology/approach The study measures factors driving or impeding switch of service provider, together with measures of trust and power using online survey methods. The sample is intended to focus on savers and borrowers, defined quantitatively as well as perception wise. Through a multi-group SEM analysis, differences between the samples of savers and borrowers are analyzed. The dependent variable was in both cases inclination to switch. Findings The paper manages to define differences between empowered and less empowered customers, such as borrowers and savers. The mediating effect of trust prevails only for borrowers: here, the only effect on switching behavior stems from a full mediation of stability through trust. For savers, direct influences of both service failure and lack of involvement on trust are of major importance. The importance of trust, however, is lacking; for the sample of savers, the link between trust and switching behavior is insignificant. Practical implications The results may be used as a tool box in order to address consumer switching behavior and mobility in the financial services market. The biggest obstacle for switching banks among savers is the low level of involvement. This has clear implications regarding how to increase switching, e.g., by raising interest. Focusing instead on borrowers, stability of the chosen financial institution turned out to be the most important factor. Originality/value This paper introduces a view on consumer switching behavior, taking into account differences regarding service provider relations (empowered savers vs less empowered borrowers) and the importance of trust in these two settings. The paper introduces trust as a mediator between switching behavior and four determinants: stability, personal relations, service failure and internet-related issues, and involvement.

Moral judgment and perceived justice in service recovery

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ke Ma ◽  
Xin Zhong
Keyword(s):  
Moral Judgment ◽  
Word Of Mouth ◽  
Service Failure ◽  
Service Recovery ◽  
Negative Word ◽  
Mediation Effects ◽  
Content Type ◽  
Perceived Justice ◽  
Study Approach ◽  
Monetary Compensation

PurposeThe purpose of this study is to examine the effect of perceived justice and consumer's moral judgment of a service failure on recovery outcomes.Design/methodology/approachThe research model is examined by adopting a field study approach followed by an experiment. The SPSS program with the PROCESS tool was used to analyze the simple moderation and moderated mediation effects.FindingsThe research findings show that consumer's moral judgment of a service failure moderates the relationship between service recovery (psychological compensation vs monetary compensation) and recovery outcomes (recovery satisfaction, negative word of mouth and repurchase intention). Moreover, the conditional indirect effect of service recovery on recovery outcomes through perceived justice is significant when service failure is seen as less moral. Specifically, consumers report lower perceived justice and react negatively to recovery measures when service failure is seen as less moral. In contrast, when consumers perceive a service failure as moral, a psychological compensation outperforms a monetary compensation, lessening negative word of mouth (NWOM).Originality/valueThese findings provide important insights into recovery measure development when considering consumer moral perspectives.

Passive innovation resistance – a conservative consumer perspective

2017 ◽  
Vol 29 (6) ◽  
pp. 642-663 ◽  
Author(s):  
Estelle Van Tonder
Keyword(s):  
Social Dominance Orientation ◽  
Cognitive Closure ◽  
Content Type ◽  
Political Sciences ◽  
Need For Cognitive Closure ◽  
Starting Point ◽  
The Status ◽  
Consumer Perspective ◽  
Research Findings ◽  
Hedonic Approach

Purpose More research is required into the underlying reasons for passive innovation resistance. This paper aims to propose that consumers who passively resist innovation may merely be conservative in nature and explore a conceptual framework that could explain and predict such behaviour. Design/methodology/approach Theories from the political sciences, social psychology and marketing were studied in trying to understand why some consumers are more conservative in nature and how their attitudes may affect their thoughts, feelings and actions in the marketplace. Findings Consumers may develop conservative attitudes, such as a need for cognitive closure, nostalgia, authoritarianism, a social dominance orientation, ethnocentrism and an anti-hedonic approach towards life to combat their fear of ambiguous situations and chaos associated with deviance from in-group values. Ultimately, these attitudes may influence consumer behaviour, such as being brand loyal, unwilling to try new options and preferring nostalgic products that would lead to lower levels of ambiguity and less disruption of the status quo. Conservative consumers may also act as authoritarian parents, prefer to purchase durable materialistic products, support locally manufactured goods and refrain from purchasing products for purely hedonic pleasure in an attempt to preserve their in-group values. Originality/value The proposed framework offers more insight into the nature and consequences of passive innovation resistance and may serve as a starting point for further exploration on the fundamental characteristics of conservative consumers. The research findings may also assist marketers in managing their new product innovations strategies more successfully.

scholarly journals Handling conflict at work

2015 ◽  
Vol 26 (1) ◽  
pp. 25-43 ◽  
Author(s):  
Jocelyn J Bélanger ◽  
Antonio Pierro ◽  
Barbara Barbieri ◽  
Nicola A De Carlo ◽  
Alessandra Falco ◽  
...  
Keyword(s):  
Conflict Management ◽  
Soft Power ◽  
Design Methodology ◽  
Management Strategies ◽  
Need For Closure ◽  
Organizational Setting ◽  
Cognitive Closure ◽  
Content Type ◽  
Constructive Solution ◽  
Need For Cognitive Closure

Purpose – This research aims to explore the notion of fit between subordinates’ need for cognitive closure and supervisors’ power tactics on organizational conflict management. Design/methodology/approach – Two-hundred and ninety employees drawn from six different Italian organizations were recruited for the purpose of this study. Findings – Results indicated that high-need-for-closure subordinates utilized more constructive (solution-oriented) conflict management strategies when their supervisors relied on harsh power tactics, whereas low-need-for-closure subordinates were more inclined to use solution-oriented conflict management strategies when their supervisors relied on soft power tactics. Additionally, results indicated that, overall, supervisors’ use of harsh power tactics increased subordinates reliance on maladapted (control-oriented) conflict management strategies, but even more so for subordinates with low need for cognitive closure. Originality/value – This study highlights the importance of supervisor–subordinate fit to understand conflict management in organizational setting.

Religious affiliation: buffering negative reactions to service failures

2014 ◽  
Vol 28 (1) ◽  
pp. 1-9 ◽  
Author(s):  
Kelly O. Cowart ◽  
Edward Ramirez ◽  
Michael K. Brady
Keyword(s):  
Service Failure ◽  
Religious Affiliation ◽  
Future Research ◽  
Service Encounters ◽  
Student Sample ◽  
Content Type ◽  
Customer Perceptions ◽  
Service Failures ◽  
Group A ◽  
Religious Reasons

Purpose – This research aims to examine the buffering effect of a firm's religious association on customer reactions to a service failure. Design/methodology/approach – Two scenario-driven studies containing religious and non-religious reasons for a store closing were conducted. Findings – The results from Study 1 suggest that a religious affiliation safeguards against negative reactions to failures related to store policies (see Hoffman et al., 2003). Customers are more likely to forgive transgressing firms when service failures are associated with religion, regardless of attitudes toward the religious group. A follow up study supports the first, even when no specific religion was identified in the scenario, the service failure involved a firm that closed weekly, and a non-student sample was used. Research limitations/implications – While the results provide support for the buffering effects of a religious affiliation against a particular type of service failure – temporary service interruptions due to the observance of religious holidays and celebrations, future research should test the robustness of this effect on technology failures and rude treatment by employees. Originality/value – This paper is the first, to the authors' knowledge, to test the effect of a firm's religious affiliation on customer perceptions of frontline service encounters in general and service failures in particular.

LGBTQ and religious identity conflict in service settings

2017 ◽  
Vol 31 (4/5) ◽  
pp. 351-361 ◽  
Author(s):  
Elizabeth A. Minton ◽  
Frank Cabano ◽  
Meryl Gardner ◽  
Daniele Mathras ◽  
Esi Elliot ◽  
...  
Keyword(s):  
Public Policy ◽  
Service Provider ◽  
Religious Identity ◽  
Religious Freedom ◽  
Service Providers ◽  
Social Groups ◽  
Future Research ◽  
Identity Conflict ◽  
Content Type ◽  
The Usa

Purpose The USA is witnessing a conflict between LGBTQ (lesbian, gay, bisexual, transgender and queer) consumers/supporters and Christian fundamentalist service providers/opponents regarding whether service can be denied based on religious values. The purpose of this paper is to make a timely investigation into this conflict between marketplace inclusion (for LGBTQ consumers) and freedom of religion (for religious service providers). Design/methodology/approach The intersection of marketplace inclusion for LGBTQ consumers and religious freedom for service providers is examined by identifying appropriate strategies that address this conflict and reviewing how differing religious perspectives influence perceptions of LGBTQ consumer rights, all building off the social identity threat literature. Findings LGBTQ and religious identities often conflict to influence consumer behavior and service provider interactions. Such conflict is heightened when there is a lack of substitutes (i.e. only one service provider in an area for a specific service). Common LGBTQ consumer responses include changing service providers, providing justification for the provision of services and pursing legal recourse. Suggested strategies to address this conflict include highlighting common social identities and using two-sided messages for service providers, using in-group interventions for social groups and using government interventions for public policy. Originality/value Research has yet to examine the conflict between marketplace inclusion and religious freedom, particularly for the inclusion of LGBTQ consumers. Thus, this paper provides a novel conceptual model detailing these relationships to stimulate discussion among consumers, service providers, social groups and public policy in addition to serving as a foundation for future research.

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