“My bad”: investigating service failure effects in self-service and full-service settings

2019 ◽  
Vol 33 (2) ◽  
pp. 181-191 ◽  
Author(s):  
Sören Köcher ◽  
Stefanie Paluch

PurposeCompanies in diverse branches offer a variety of service alternatives that typically differ in terms of the degree to which customers are actively involved in service delivery processes. The purpose of this paper is to explore potential differences in consumers’ reactions to service failures across services provided by a service employee (i.e. full-services) and services that require customers’ active involvement (i.e. self-services).Design/methodology/approachTwo 2 (full-service vs self-service) × 2 (no service failure vs service failure) scenario-based experiments in technological and non-technological contexts (i.e. ticket purchase and furniture assembly) were conducted.FindingsStudy results reveal that although service failures have a similar negative impact on satisfaction across both full-services and self-services, in the self-service context, the negative effect on the willingness to use the same service delivery mode again is attenuated.Research limitations/implicationsBy emphasizing the role of customers’ active involvement in the service delivery process, the study extends previous knowledge regarding customer response to service failures in different service settings.Practical implicationsBy highlighting that self-service customers’ future behavioral intentions are less severely affected by service failures, the authors present an additional feature of customer involvement in service delivery processes that goes beyond the previously recognized advantages.Originality/valueDespite the abundance of research on the effects of failure attributions, previous studies have predominantly examined main effects of attributions on customer responses, such that insights into potential moderating effects of failure attributions on established relationships – as investigated in this study – are still scarce.

2018 ◽  
Vol 29 (2) ◽  
pp. 253-276 ◽  
Author(s):  
Khadija Ali Vakeel ◽  
K. Sivakumar ◽  
K.R. Jayasimha ◽  
Shubhamoy Dey

Purpose The purpose of this paper is to focus on failures in online flash sales (OFS) and to explore why consumers participate in an OFS even after experiencing service failure. It also examines the role of deal proneness, attribution, and emotions. Design/methodology/approach Using a mixed method approach to gain insights into this relatively unexplored phenomenon of OFS, this research uses netnography followed by a survey study. Findings The findings show that deal-prone customers tend to ignore service failures during OFS and re-participate in the future. In the context of OFS, failures attributed to internal locus of attribution (LOA) also have a negative effect on re-participation compared with failures attributed to external LOA. Furthermore, there is a three-way interaction among deal proneness, LOA, and past emotions. The results show that negative past emotions further exacerbate the impact of attribution on the link between deal proneness and re-participation. Originality/value In contrast with prior research, the paper shows that consumers participate even after service failure. The proposed difference is between customers who experience different LOA and past emotions offers insights into their behavior after service failure in a new context of an online/electronic commerce event – flash sales. This paper specifically explores the role of internal LOA and finds that it has a more negative impact than external LOA on re-participation.


2016 ◽  
Vol 30 (7) ◽  
pp. 713-723 ◽  
Author(s):  
Alei Fan ◽  
Luorong (Laurie) Wu ◽  
Anna S. Mattila

Purpose To enhance customer experiences, firms are increasingly adding human-like features to their self-service technology (SST) machines. To that end, the purpose of the present study is to examine customer interactions with an anthropomorphic machine in a service failure context. Specifically, the authors investigate the joint effects of machine voice, an individual’s sense of power and the presence of other customers in influencing customers’ switching intentions following an SST failure. Design/methodology/approach In this study, the authors used a quasi-experimental design in which they manipulated voice type (anthropomorphic vs robotic) and the presence of other customers (present vs absent) in video-based scenarios while measuring customers’ sense of power. The scenarios reflected a service failure experience with a self-service kiosk at an airport. The authors tested the hypotheses using PROCESS analyses with the Johnson–Neyman technique. Findings Consumer reactions to SST failures vary depending on the degree of anthropomorphism associated with an SST machine, an individual’s sense of power and the presence of other customers. Research limitations/implications Field inquiry and an investigation in other SST contexts or of other anthropomorphic features are needed to generalize the findings. Practical implications Service providers targeting powerful consumers should consider the social presence of others when incorporating anthropomorphic features into their SST facilities. Originality/value This study is the first to examine consumer responses to service failures in an anthropomorphic SST context.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Xianchun Zhang ◽  
Zhu Yao ◽  
Wan Qunchao ◽  
Fu-Sheng Tsai

Purpose Time pressure is the most common kind of work pressure that employees face in the workplace; the existing research results on the effect of time pressure are highly controversial (positive, negative, inverted U-shaped). Especially in the era of knowledge economy, there remains a research gap in the impact of time pressure on individual knowledge hiding. The purpose of this paper is to explore the impact of different time pressure (challenge and hindrance) on knowledge hiding and to explain why there is controversy about the effect of time pressure in the academics. Design/methodology/approach The authors collected two waves of data and surveyed 341 R&D employees in China. Moreover, they used regression analysis, bootstrapping and Johnson–Neyman statistical technique to verify research hypotheses. Findings The results show that challenge time pressure (CTP) has a significant negative effect on knowledge hiding, whereas hindrance time pressure (HTP) has a significant positive effect on knowledge hiding; job security mediates the relationship between time pressure and knowledge hiding; temporal leadership strengthen the positive impact of CTP on job security; temporal leadership can mitigate the negative impact of HTP on job security. Originality/value The findings not only respond to the academic debate about the effect of time pressure and point out the reasons for the controversy but also enhance the scholars’ attention and understanding of the internal mechanism between time pressure and knowledge hiding.


Author(s):  
Ilias Vlachos ◽  
Evangelia Siachou

Purpose The purpose of this paper is to identify workplace factors with an impact on lean performance (LP). This can lead to better LP outcomes, thus facilitating organizations to smoothly move from the conventional to lean management. Design/methodology/approach The direct effects of training, knowledge acquisition and organizational culture are empirically investigated using data from 126 managers employed at a global company, which recently has improved its LP. Study’s hypotheses were analyzed with hierarchical regression models. Findings The findings suggest that not all of the aforementioned workplace factors holistically affect LP. Only organizational culture is associated to the four LP variables (i.e. continuous improvement, waste, ergonomy and product quality). Training and knowledge acquisition offer partially effects on LP with training to contribute mostly to predicting continuous improvements. Knowledge acquisition alone, has significant yet negative impact on both continuous improvement and ergonomy. Even more, when training is combined with knowledge acquisition the results are different. Originality/value As this study highlights the impact of workplace practices on LP, attributes mainly importance to the distinct effects that each of the aforementioned factors has on the four distinct LP variables. Although the study results reflect a particular case, its recommendations could facilitate practitioners to achieve better lean outcomes.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rui Wang ◽  
Liqiong Liu ◽  
Yu Feng

PurposeThe mechanism of marketing strategy style and its impact on firms are research issues received wide attention. In particular, the aggressive style of marketing strategy has been chosen by many companies, but recent studies have shown that it has a negative effect on corporate performance. This leads to the core issue of this paper – does the aggressive style of marketing strategy always had a negative impact on corporate performance? Are there any factors that can alleviate this negative impact?Design/methodology/approachBased on the resource-based theory and agency theory, this paper takes the Growth Enterprise Market (GEM) listed companies as the research objects, collects secondary data and conducts the research by regression model.FindingsThe empirical research shows that: (1) the aggressive style of marketing strategy significantly and negatively affects the performance of firm; (2) the resource constraint can moderate the main effect and resource control play a weak adjustment role.Practical implicationsIn practice, this paper confirms the adverse impact of aggressive style of marketing strategy on the performance of listed companies on GEM and inspires the industry to strengthen the control and supervision of marketing resources.Originality/valueThis paper makes up for the research gap in the field of cross-research in finance and marketing theoretically.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Elizabeth H. Manser Payne ◽  
James Peltier ◽  
Victor A. Barger

Purpose The purpose of this study is to investigate the relationships that influence the value co-creation process and lead to consumer comfort with artificial intelligence (AI) and mobile banking (AIMB) service platforms. Design/methodology/approach A conceptual model was developed to investigate the value-in-use perceptions of AI-based mobile banking applications via five antecedents: baseline perceptions of current bank service delivery; service delivery configuration benefits; general data security; safety perceptions of specific mobile banking services; and perceptions of AI service delivery. Data were collected from 218 respondents and analyzed using structural equation modeling. Findings This study highlights the role and importance of the sequential relationships that impact the assessment of AIMB. The findings suggest that service delivery and the customer’s role in value co-creation change as AI is introduced into a digital self-service technology channel. Furthermore, AIMB offers transaction-oriented (utilitarian) value propositions more so than relationship-oriented (hedonic) value propositions. Research limitations/implications The sample consisted on digital natives. Additional age cohorts are needed. Practical implications As financial institutions redirect their business models toward digital self-service technology channels, the need for customers to feel comfortable while interacting with an AI agent will be critical for enhancing the customer experience and firm performance. Originality/value The authors extend the service-dominant logic (SDL) literature by showing that value co-creation is a function of both firms’ technologies and consumers’ value-in-use, a finding that appears to be unique in the literature. The authors advance the digital transformation literature by evaluating AIMB as an interactive process that requires an understanding of key technology constructs, including perceptions of baseline service relationships, desired service configurations, security and safety issues and whether AI is useful for value co-creation. To the best of the authors’ knowledge, this is the first SDL framework that investigates interactive and structural relationships to explain value-in-use perceptions of AIMB.


2020 ◽  
Vol 19 (2) ◽  
pp. 135-145
Author(s):  
Jing Chen ◽  
David G. McMillan

Purpose This study aims to examine the relation between illiquidity, feedback trading and stock returns for several European markets, using panel regression methods, during the financial and the sovereign debt crises. The authors’ interest here lies twofold. First, the authors seek to compare the results obtained here under crisis conditions with those in the existing literature. Second, and of greater importance, the authors wish to examine the interaction between liquidity and feedback trading and their effect on stock returns. Design/methodology/approach The authors jointly model both feedback trading and illiquidity, which are typically considered in isolation. The authors use panel estimation methods to examine the relations across the European markets as a whole. Findings The key results suggest that in common with the literature, illiquidity has a negative impact upon contemporaneous stock returns, while supportive evidence of positive feedback trading is reported. However, in contrast to the existing literature, lagged illiquidity is not a priced risk, while negative shocks do not lead to greater feedback trading behaviour. Regarding the interaction between illiquidity and feedback trading, the study results support the view that greater illiquidity is associated with stronger positive feedback. Originality/value The study results suggest that when price changes are more observable, due to low liquidity, then feedback trading increases. Therefore, during the crisis periods that afflicted European markets, the lower levels of liquidity prevalent led to an increase in feedback trading. Thus, negative liquidity shocks that led to a fall in stock prices were exacerbated by feedback trading.


2019 ◽  
Vol 31 (4) ◽  
pp. 1567-1587 ◽  
Author(s):  
JungYun (Christine) Hur ◽  
SooCheong (Shawn) Jang

PurposeThis study aims to investigate how consumer forgiveness is formed by examining rumination and distraction by consumers in hotel service failures.Design/methodology/approachData were collected using a self-administered questionnaire in the USA. A total of 371 usable responses were obtained. Anderson and Gerbing’s two-step approach was used to assess the measurement and structural models.FindingsThis study suggests that rumination and distraction play significant roles in processing consumer forgiveness. Self-focused rumination and distraction increase consumer forgiveness, whereas provocation-focused rumination exacerbates the negative effects of service failure severity on consumer forgiveness. This study also shows that gender differences exist. Men were more likely than women to link self-focused rumination and distraction to their intentions to forgive a service provider.Practical implicationsThis study is helpful for hotel managers to understand the mechanisms of consumer forgiveness in service failures and develop effective recovery strategies. Managers should aim to lessen consumers’ provocation-focused rumination while encouraging self-focused rumination and distraction. In addition, because of the differences in the process of consumer forgiveness between men and women, it is critical to differentiate the two groups in designing targeted recovery strategies for service failures.Originality/valueThis study investigates consumer forgiveness as a behavioral outcome following service failures that may help consumers achieve psychological balance and allow service providers a chance to restore the broken relationship. This study adds new information for understanding consumer responses and provides a basis for effective service management strategies.


2019 ◽  
Vol 53 (12) ◽  
pp. 2604-2628 ◽  
Author(s):  
Manveer K. Mann ◽  
Yuping Liu-Thompkins

Purpose This study aims to examine gender differences in the impact of imagining product use on purchase decisions. The authors argue that while imagination can enhance purchase intention for female consumers, it can be detrimental to male consumers. This study explores the conditions under which imagination can be turned into a positive device for male consumers. Design/methodology/approach Three experimental studies were conducted. The first two studies illustrate the differential effects of imagination on males vs females. Given the negative effect found among males, the third study focused exclusively on male consumers to identify conditions under which the negative impact of imagination on these consumers can be alleviated. Findings Studies 1 and 2 show that while an imagination tactic has positive or no effect on female consumers, a generic imagination request lowers male consumers’ purchase intention. Focusing on potential ways of alleviating this negative effect, Study 3 shows that for males without prior brand ownership experience, imagining product use in a less-typical context can increase purchase intention. Research limitations/implications The results provide evidence that gender impacts the effectiveness of imagination in improving product evaluation. Furthermore, the context of imagination and previous brand experience can be used together to determine how male consumers respond to imagination. Practical implications The study’s findings warn against the blind use of imagination tactics. Instead, retailers need to customize imagination tactics based on gender, previous brand experience and product usage context. Originality/value To the best of the authors’ knowledge, this is one of the first papers to examine the impact of gender on the influence of imagination on product evaluation.


2020 ◽  
Vol 11 (2) ◽  
pp. 299-315 ◽  
Author(s):  
Yanyu Chen ◽  
Wenzhe Zheng ◽  
Yimiao Huang

Purpose The purpose of this paper is to use difference-in-difference method (DID) to study the influences of independent directors’ political connection on firm value. Design/methodology/approach File No. 18 by the Organization Department of the Communist Party of China Central Committee requires that the leading cadres in party and government offices are not allowed to act as independent directors; this restriction applies to retired officials as well. As a result, many listed companies lose the political connections of officers as independent directors. This paper takes it as an exogenous shock to evaluate the influence of the political connection of independent directors on firm value, effectively alleviating the endogeneity problem existing in previous studies. Findings The research finds the following: under the policy of compelled resignation, the loss of political connection of independent directors has a prominent negative impact on firm value; and compared to state-owned enterprises, the firm value of private enterprises receives a greater negative impact. However, the political advantage of state-owned enterprises is not obviously influenced. In the regions with worse external market environments, due to a greater reliance on resources brought about by political connection, the policy has a much greater influence on their listed companies. Research limitations/implications The study faces several limitations, each of which represents a potential research direction. First, our analysis is based on the policy effects on the firm’s current Tobin’s Q and finds a negative effect of losing political connections. However, the long-term effects are still unclear, as some studies find a negative effect of political connections. Second, the paper focuses on one channel in which political connections may affect firm value. Other channels, such as subsidies and loans from state-owned banks, which need more granular data, should be explored in the future. Practical implications The use of DID model can better objectively evaluate the implementation effects of ban policies and alleviate endogenous problems, which is also enlightening for further perfection of the system of independent directors in the A-share market. Social implications It enriches existing researches of the value of independent directors from the perspective of political connection, which is conducive to understanding the influence and channel on the firm value after the loss of political connection and the value of independent directors in the corporate governance in a more comprehensive and accurate manner. Originality/value This paper extends the relevant research on the value of the political connection of independent directors from the perspective of political connection and enlightens the evaluation of the effect of ban policies.


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