Customer preference for decision authority in credence services

2014 ◽  
Vol 24 (3) ◽  
pp. 274-299 ◽  
Author(s):  
Anothai Ngamvichaikit ◽  
Rian Beise-Zee
Keyword(s):  
Customer Satisfaction ◽  
Service Provider ◽  
Service Providers ◽  
Source Credibility ◽  
Service Encounters ◽  
Persuasion Knowledge ◽  
Communication Behaviors ◽  
Content Type ◽  
Decision Authority ◽  
Credence Services

Purpose – The purpose of this paper is to examine the effects of offering customer decision authority on customer satisfaction in credence services, and the moderating effects of customer persuasion knowledge and service provider credibility. Design/methodology/approach – A video-based experiment is conducted to achieve high similarity to real service encounters. The video comprises three levels of customer authority while service provider credibility is manipulated. In a subsequent questionnaire, customer response and customer persuasion knowledge are measured. Findings – Results suggest that greater decision authority increases customer satisfaction. However, customer persuasion knowledge and provider credibility together were found to moderate these effects. Offering decision autonomy is most important when source credibility is low and persuasion knowledge is high. Research limitations/implications – The study setting is an initial healthcare encounter. Other service settings and service provider communication behaviors, such as empathy, responding to customer queries, and length of encounter are not considered in this study but should be further studied. Practical implications – The study confirms that offering decision authority to customers increases satisfaction only under certain circumstances. Customers are willing to relinquish authority to credible service providers who then direct customer decisions in order to maintain service quality. Offering decision autonomy to customers is suggested when provider credibility is low and customer persuasion knowledge is high. Originality/value – Analysis of credence service encounters is based on agency theory. Specifically, this study highlights the role of customer (principal) persuasion knowledge, which acts as a qualifier for the principal-agent problem because it alerts the customer to possible persuasion attempts by the service provider, whereas agent credibility eases customer suspicion.

Perceived cultural distance in intercultural service encounters: does customer participation matter?

2018 ◽  
Vol 32 (5) ◽  
pp. 547-558 ◽  
Author(s):  
Tyson Ang ◽  
Ru-Shiun Liou ◽  
Shuqin Wei
Keyword(s):  
Weight Loss ◽  
Customer Satisfaction ◽  
Service Quality ◽  
Service Providers ◽  
Cultural Distance ◽  
Customer Participation ◽  
Future Research ◽  
Service Encounters ◽  
Content Type ◽  
Perceived Cultural Distance

PurposeThis paper aims to investigate if perceived cultural distance (PCD) negatively affects service quality and customer satisfaction through customers’ social judgements of the service providers’ warmth and competence in intercultural service encounters (ICSE), and if this negative effect can be mitigated through customer participation (CP).Design/methodology/approachA 2 × 2 between-subjects experimental design with an online consumer panel was conducted using a series of intercultural service encounter scenarios (in the weight loss service context) to manipulate CP (high vs low) and pictures of service providers to induce PCD (high vs low).FindingsAs hypothesized, in the context of ICSE, PCD negatively impacts customers’ social judgements of the service providers’ warmth and competence, which in turn influence service quality and customer satisfaction. However, the negative impact of PCD is alleviated when the level of CP is high.Research limitations/implicationsUsing a single service context (weight loss services) may restrict the generalizability of findings. Future research may explore other service contexts.Practical implicationsTo improve customers’ experience, managers in service firms with multicultural customers may create more engagement opportunities by designing the service delivery process in ways in which more CP and involvement is allowed.Originality/valueThis research is among the first to highlight the importance of consumers’ social judgements about culturally dissimilar service providers, which at baseline come with disadvantages but that can be altered through marketing actions (e.g. enhanced CP).

Interactive gaps and cause-effect-outcomes in processes and interfaces of teleological service encounters

2016 ◽  
Vol 10 (3) ◽  
pp. 261-271
Author(s):  
Göran Svensson ◽  
Carmen Padin
Keyword(s):  
Service Provider ◽  
Critical Incidents ◽  
Service Providers ◽  
Learning Curves ◽  
Service Encounters ◽  
Content Type ◽  
Interactive Interface ◽  
Complaint Handling ◽  
Practical Implications ◽  
Outcome Sequence

Purpose The study aims to describe the interactive gaps between service receiver learning curves and service provider adaptive curves, as well as the cause-effect-outcome in processes and interfaces of service encounters, through the perspective of teleological actions. Design/methodology/approach This paper includes a qualitative study based on non-probability sampling of informants (air passengers). Findings The empirical findings indicate interactive gaps in teleological service encounters and a cause-effect-outcome sequence in the associated processes and interfaces. Research limitations/implications The study provides knowledge on how to manage the interactive interface between a service provider and a service receiver and a foundation for enhancing complaint handling in service encounters after critical incidents have occurred. Practical implications Service providers need to balance their teleological actions in relation to the service receivers’ teleological actions when critical incidents occur. Originality/value The paper takes into account service receiver teleological learning curves in relation to service provider teleological adaptive curves in an interactive transformative service encounter (TSE)-model that provides multiple opportunities for further research.

scholarly journals An analysis of the interaction effect between employee technical and emotional competencies in emotionally charged service encounters

2017 ◽  
Vol 28 (1) ◽  
pp. 85-106 ◽  
Author(s):  
Cécile Delcourt ◽  
Dwayne D. Gremler ◽  
Fabrice De Zanet ◽  
Allard C.R. van Riel
Keyword(s):  
Customer Satisfaction ◽  
Service Provider ◽  
Bad News ◽  
Analysis Of Covariance ◽  
Appraisal Theory ◽  
Service Encounters ◽  
Emotional Competencies ◽  
Content Type ◽  
Key Aspects ◽  
Employee Response

Purpose Customers often experience negative emotions during service experiences. The ways that employees manage customers’ emotions and impressions about whether the service provider is concerned for them in such emotionally charged service encounters (ECSEs) is crucial, considering the criticality of the encounter. Drawing on cognitive appraisal theory, this study proposes that two key competencies – employee emotional competence (EEC) and employee technical competence (ETC) – affect negative customer emotions and customer satisfaction with employee response in ECSEs. Design/methodology/approach This study relies on a video-based experiment that depicts a customer involved in an ECSE as a service provider delivers bad news to him. The hypothesis tests use a two-way independent analysis of covariance. Findings Both emotional and technical competencies must be displayed to improve the customer experience in an ECSE. When EEC is low, ETC does not decrease negative customer emotions or increase customer satisfaction with employee response. When EEC is high, ETC instead has a significant impact on both customer outcomes. Practical implications Managers must train employees to develop both technical and emotional competencies. Employees who demonstrate only one type cannot temper customers’ emotions or enhance their perceptions of the employees’ response as well as can those strong in both competencies. Originality/value Using a video-based experiment, this study examines the moderating role of EEC in the relationship between ETC and two key aspects of the customers’ experience in an ECSE (negative customer emotions and customer satisfaction with employee responses) following the delivery of bad news.

New aspects of research to assess and manage critical incidents in service encounters

2015 ◽  
Vol 27 (1) ◽  
pp. 27-51 ◽  
Author(s):  
Carmen Padin ◽  
Göran Svensson ◽  
Carmen Otero-Neira ◽  
Nils Høgevold
Keyword(s):  
Service Provider ◽  
Critical Incident ◽  
Critical Incidents ◽  
Service Providers ◽  
Negative Emotions ◽  
Service Encounter ◽  
Service Encounters ◽  
Two Phase ◽  
Content Type ◽  
Interactive Interface

Purpose – The objective of this paper is to describe the teleological actions needed to assess and manage critical incidents that cause negative emotions in service encounters. Teleological actions are movements into the future that are believed to be move either towards a predictable/known or unpredictable/unknown state or condition. The authors distinguish between, define and apply three categories: transformative – ad hoc and present-based actions; formative – pre-determined and past-based actions; and rationalist – goal-directed and future-based actions. Design/methodology/approach – A qualitative study, based upon a two-phase approach applying convenience and judgemental sampling, was used. Focussing on one teleological theory, a process of abductive matching was applied throughout the study. Abductive matching refers to recurring themes, patterns and categories that are uncovered through the iterative processes of analysis. The teleological framework structured and guided the data collection and empirical observations. Findings – Seen through the perspective of teleological actions, the study enhances our understanding of the manner in which critical incidents generate negative emotions in service encounters. Through the same perspective, the investigation also reveals that the outcome of a negative service encounter depends upon the interactive interface between service provider and service receiver. Research limitations/implications – The teleological actions between service providers and service receivers in negative service encounters appear to be mediators between cause-and-effect on the one hand (critical incident and negative emotions) and a perceptual gap on the other (outcome of negative service encounter). The teleological perspective also provides numerous opportunities for further research in this area. Practical implications – Managers should strive to understand the teleological actions potentially undertaken by service receivers, so that they can deal with the teleological actions of their front-line staff accordingly. The interactive interface between a service provider and a service receiver is crucial in assessing and managing critical incidents. Originality/value – Based on teleological actions, the investigation provides both a valuable and complementary contribution on assessing and managing critical incidents and the negative emotions that are often triggered in the service-encounter interface between a service provider and a service receiver. Providers also need to educate their staff on what can occur and on how to react appropriately.

Understanding negative emotions in services through teleological actions

2017 ◽  
Vol 9 (1) ◽  
pp. 67-84 ◽  
Author(s):  
Carmen Padin ◽  
Göran Svensson
Keyword(s):  
Service Provider ◽  
Design Methodology ◽  
Critical Incidents ◽  
Ad Hoc ◽  
Service Providers ◽  
Negative Emotions ◽  
Service Encounters ◽  
Content Type ◽  
Practical Implications

Purpose The purpose of this paper is to conceptualize and describe how service providers’ and service receivers’ teleological actions relate to negative emotions after critical incidents in service encounters have occurred. Design/methodology/approach Three categories of teleological actions are used: transformative – ad hoc and present-based actions, formative – pre-determined and past-based actions and rationalist – goal-directed and future-based actions. Findings The empirical findings indicate that airline ground staff should interact differently with air passengers based on the negative emotions involved and the teleological actions undertaken after critical incidents in service encounters have occurred. Research limitations/implications The current research improves the interactive and sequential understanding of how to manage negative emotions through teleological actions in service encounters between a service provider and a service receiver after critical incidents have occurred, as well as providing numerous opportunities for further research in services. Practical implications It is an important and relevant insight that it is necessary to understand both the initial and derived causes of negative emotions and the subsequent effects and outcomes occurring in service encounters after critical incidents have arisen. Originality/value This current study provides theoretical and managerial contributions to manage negative emotions after critical incidents have occurred in service encounters.

Customer delight during a crisis: understanding delight through the lens of transformative service research

2020 ◽  
Vol 32 (1) ◽  
pp. 129-141 ◽  
Author(s):  
Donald C. Barnes ◽  
Jessica Mesmer-Magnus ◽  
Lisa L. Scribner ◽  
Alexandra Krallman ◽  
Rebecca M. Guidice
Keyword(s):  
Critical Incident ◽  
Service Providers ◽  
Psychological Theory ◽  
Well Being ◽  
Service Research ◽  
Service Encounters ◽  
Need Fulfillment ◽  
Content Type ◽  
Customer Delight ◽  
Service Experiences

PurposeThe unprecedented dynamics of the COVID-19 pandemic has forced firms to re-envision the customer experience and find new ways to ensure positive service encounters. This context has underscored the reality that drivers of customer delight in a “traditional” context are not the same in a crisis context. While research has tended to identify hedonic need fulfillment as key to customer well-being and, ultimately, to invoking customer delight, the majority of studies were conducted in inherently positive contexts, which may limit generalizability to more challenging contexts. Through the combined lens of transformative service research (TSR) and psychological theory on hedonic and eudaimonic human needs, we evaluate the extent to which need fulfillment is the root of customer well-being and that meeting well-being needs ultimately promotes delight. We argue that in crisis contexts, the salience of needs shifts from hedonic to eudaimonic and the extent to which service experiences fulfill eudaimonic needs determines the experience and meaning of delight.Design/methodology/approachUtilizing the critical incident technique, this research surveyed 240 respondents who were asked to explain in detail a time they experienced customer delight during the COVID-19 pandemic. We analyzed their responses according to whether these incidents reflected the salience of hedonic versus eudaimonic need fulfillment.FindingsThe results support the notion that the salience of eudaimonic needs become more pronounced during times of crisis and that service providers are more likely to elicit perceptions of delight when they leverage meeting eudaimonic needs over the hedonic needs that are typically emphasized in traditional service encounters.Originality/valueWe discuss the implications of these findings for integrating the TSR and customer delight literatures to better understand how service experiences that meet salient needs produce customer well-being and delight. Ultimately, we find customer delight can benefit well-being across individual, collective and societal levels.

A model for managing service encounters for neo-luxury consumers

2016 ◽  
Vol 8 (1) ◽  
pp. 41-52 ◽  
Author(s):  
Bonnie Canziani ◽  
Kittichai Watchravesringkan ◽  
Jennifer Yurchisin
Keyword(s):  
Social Class ◽  
Brand Management ◽  
Service Providers ◽  
Future Research ◽  
Service Encounters ◽  
Theoretic Model ◽  
Luxury Brands ◽  
Content Type ◽  
Consumer Markets ◽  
Future Research Directions

Purpose – This paper aims to explore a theoretical relationship among perceptions of consumer social class, the perceived legitimacy of customer requests for service and the delivery of intangible services. It focuses the discussion on service firm encounters with non-traditional consumers seeking to purchase from luxury brands. Design/methodology/approach – The paper reviews the literature for current trends in strategies of luxury brands and characteristics of evolving global and Asian consumer markets for luxury and neo-luxury goods and draws a theoretic model with propositions. Findings – Evidence suggests that service providers can improve efforts to expand services to the newly rich and trading-up neo-luxury consumer markets by focusing on the intangible elements of the service delivery system. Particular emphasis is placed on enhancing employee treatment of neo-luxury customers during service encounters by understanding the influence of employee perceptions of consumer social class and evaluations of the perceived legitimacy of customer requests for service. Originality/value – The paper contributes to the theoretical discussion in luxury brand management by suggesting that employees are influenced by impressions of customer worth and other attributes when determining responses to customers during service encounters. Implications for practitioners and future research directions for academics based on the framework are presented.

“Can I go or should I stay?” A theoretical framework of social lock-in during unsatisfactory service encounters

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Maarten Volkers
Keyword(s):  
Social Norms ◽  
Service Providers ◽  
Sunk Costs ◽  
Service Encounter ◽  
Service Encounters ◽  
Intention To Stay ◽  
Content Type ◽  
Quantitative Evidence ◽  
Decision To Stay ◽  
Lock In

PurposeThis article demonstrates that the type of service setting and the first interaction with an employee influences the customers' intention to stay or leave during an unsatisfactory service encounter, and that these effects are mediated by social lock-in, which describes the perception of a customer that exiting a service encounter early violates social norms.Design/methodology/approachThe hypotheses are tested with two scenario-based experiments using a collective (theater) and high-contact service (restaurant) (N = 1143; 1485).FindingsThe results suggest that social lock-in and the intention to stay are higher in a closed as opposed to an open setting and that the type of setting is, in fact, more important for the decision to stay than sunk costs. Moreover, customers are more likely to stay after an interaction with an employee.Research limitations/implicationsThis article contributes to the research aimed at explaining customers' decisions to stay or leave during an unsatisfactory service encounter. In doing so, the study highlights the constraining power of social norms in service encounters, which contributes to the research on the relationship between the social context and customers' behavior.Practical implicationsThis study suggests that service providers can manage servicescape cues and employee behavior to influence customers' social lock-in perceptions and their decision to stay on or to leave early.Originality/valueThis is the first study to provide quantitative evidence for social lock-in and its determinants in service encounters.

Accommodating ethnic minority consumers during service encounters: the fine line

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Sarah Mady ◽  
John B. Ford ◽  
Tarek Mady
Keyword(s):  
Service Quality ◽  
Ethnic Minority ◽  
Service Providers ◽  
Service Encounter ◽  
Service Encounters ◽  
Service Firms ◽  
Content Type ◽  
Quality Perceptions ◽  
Language And Ethnicity ◽  
The Impact

Purpose This paper aims to examine the effect of intercultural accommodation efforts on service quality perceptions among ethnic minority consumers. Specifically, the paper postulates that during an intercultural service encounter, the impact of the service provider’s language and ethnicity on the consumer’s service quality perceptions is moderated by the level of service involvement, consumer acculturation and perceived discrimination, which, in turn, influence purchase intent. Design/methodology/approach A 2 × 2 between-subjects experimental design with an online nationwide consumer panel of Hispanic consumers was conducted where 377 participants were randomly assigned to a series of service encounter scenarios in the banking service context to manipulate accommodation efforts (yes vs no) and the level of involvement with the service (high vs low). Findings When such language and ethnicity accommodations were offered, highly acculturated minority consumers regarded the service encounter less favorably than low acculturated minority consumers. Moreover, during low-involvement service encounters, intercultural accommodations positively impacted consumer’s service quality perceptions compared to situations involving high-involvement services. Also, minority consumers with perceptions of past discrimination had less favorable evaluations of the service quality than when such perceptions were nonexistent when intercultural accommodation efforts were made by the service provider. Research limitations/implications The findings add to the sparse literature that examines the effectiveness of intercultural accommodation and focuses on the combined use of service provider’s language and ethnicity as a means to enhance service quality. Practical implications The study delivers cautions for service firms not to generalize the receptivity of intercultural accommodation efforts. Given the increasingly sizable segments of minority customers, this study offers insights for service providers to develop suitable recruitment strategies and training programs when devising effective ethnic targeting strategies. Originality/value This research is among the first to explain why the effect of target marketing is not homogenous by expanding the research on intercultural accommodations toward a new context considering service involvement levels among varied minority consumer groups.

scholarly journals Understanding technology mediation and new service provider roles in health care

2019 ◽  
Vol 33 (2) ◽  
pp. 245-254 ◽  
Author(s):  
Athanasia Daskalopoulou ◽  
Kathy Keeling ◽  
Rowan Pritchard Jones
Keyword(s):  
Health Care ◽  
Service Provider ◽  
Service Providers ◽  
Care Service ◽  
Health Care Service ◽  
Empirical Support ◽  
Organizational Level ◽  
Advance Technology ◽  
Content Type ◽  
Health Care Service Providers

PurposeService research holds that as services become more technology dominated, new service provider roles emerge. On a conceptual level, the potential impact of different roles has been discussed with regard to service provider readiness, job performance and overall experience. However, as yet, there is sparse empirical support for these conceptual interpretations. The purpose of this paper is to provide an understanding of the new service provider roles that emerge due to the increase of technology mediation in services.Design/methodology/approachThis study follows a qualitative methodology. Insights are drawn from in-depth interviews with 32 junior and senior health-care service providers (across 12 specialties) and 5 information governance/management staff.FindingsThis analysis illustrates that new service provider roles include those of the enabler, differentiator, innovator, coordinator and sense-giver. By adopting these roles, health-care service providers reveal that they can encourage, support and advance technology mediation in services across different groups/audiences within their organizations (e.g. service delivery level, peer-to-peer level, organizational level). This paper further shows the relationships between these new service provider roles.Originality/valueThis study contributes to theory in technology-mediated services by illustrating empirically the range of activities that constitute each role. It also complements prior work by identifying that service providers adopt the additional role of sense-giver. Finally, this paper provides an understanding of how by taking on these roles service providers can encourage, support and advance technology mediation in services across different groups/audiences in their organization.

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