scholarly journals Bad Intentions: Customers’ Negative Reactions to Intentional Failures and Mitigating Conditions

2021 ◽  
pp. 004728752110442
Author(s):  
Amin Nazifi ◽  
Holger Roschk ◽  
Francisco Villarroel Ordenes ◽  
Ben Marder
Keyword(s):  
Attribution Theory ◽  
Word Of Mouth ◽  
Online Reviews ◽  
Negative Word ◽  
Firm Level ◽  
Service Failures ◽  
Monetary Compensation ◽  
Multi Method Approach ◽  
Method Approach

Intentional service failures (e.g., overbooking or overcharging) have received little scholarly attention, despite their regular occurrence and immense costs. Using a multi-method approach combining experimental and field data from online reviews, it was found that intentional (vs. unintentional) failures lead to greater negative word of mouth (nWOM) and patronage reduction. This research extends these findings by demonstrating that intentional failures are less harmful when the failure is reversible (vs. irreversible) and occurs at an employee (vs. firm) level. Further, while either psychological (e.g., apology) or monetary compensation is effective in mitigating the consequences of intentional failures at an employee level, a combined service recovery (psychological and monetary) is the best solution when the failure is at a firm level. Drawing on attribution theory, the article unveils the key role of trust (as opposed to justice) as the mechanism to explain the effects of intentionality on customers’ nWOM and patronage reduction.

EXPRESS: Religious Belief, Religious Priming, and Negative Word-of-Mouth in Everyday Service Failure Encounters

2021 ◽  
pp. 002224372110111
Author(s):  
Riza Casidy ◽  
Adam Duhachek ◽  
Vishal Singh ◽  
Ali Tamaddoni
Keyword(s):  
Social Exchange ◽  
Religious Belief ◽  
Word Of Mouth ◽  
Service Failure ◽  
Online Reviews ◽  
Negative Word ◽  
Mediating Role ◽  
Fairness Norms ◽  
Strategic Variable

This research examines the effects of religious belief and religious priming on negative word-of-mouth (NWOM) behavior. Drawing on social exchange and norm paradigms, we theorize and find evidence of the unique effects of religious belief and religious priming on NWOM in everyday service failure encounters. Specifically, we find that religious belief is associated with higher NWOM, driven by a greater sensitivity to violations of fairness norms, which in turn reduces forgiveness. However, exposure to religious priming attenuates NWOM among more religious consumers by reducing sensitivity to violations of fairness norms, which in turn enhances forgiveness. A field study involving over 1.2 million online reviews of actual restaurant experiences, in addition to four lab studies, provides support for our theorized effects. Our study sheds light on the religion–forgiveness discrepancy by establishing the mediating role of sensitivity to fairness violations on the relationship between religion and forgiveness in the NWOM context. Further, our results demonstrate the importance of religion as a strategic variable in the management of service failure experiences, providing theoretical implications for the literature on the effects of religion on consumer behavior.

EXPRESS: How Physical Stores Enhance Customer Value: The Importance of Product Inspection Depth

2021 ◽  
pp. 002224292110121
Author(s):  
Jonathan Z. Zhang ◽  
Chun-Wei Chang ◽  
Scott A. Neslin
Keyword(s):  
Customer Value ◽  
Experiential Learning Theory ◽  
Transaction Data ◽  
Online Purchases ◽  
Serial Mediation ◽  
Multi Method Approach ◽  
Product Strategies ◽  
Method Approach ◽  
Customer Development

We investigate the role of the physical store in today’s multichannel environment. We posit that one benefit of the store to the retailer is to enhance customer value by providing the physical engagement needed to purchase deep products – products that require ample inspection in order for customers to make an informed decision. Using a multi-method approach involving a Hidden Markov Model (HMM) of transaction data and two experiments, we find that buying deep products in the physical store transitions customers to the high-value state more than other product/channel combinations. Findings confirm the hypotheses derived from experiential learning theory (ELT). A moderated serial mediation test supports the ELT-based mechanism for translating physical engagement into customer value: Customers purchase a deep product from the physical store. They reflect on this physical engagement experience, which, because it is tangible, concrete, and multi-sensory, enables them to develop strong learnings about the retailer. This experiential knowledge precipitates repatronage and generalizes to future online purchases online in the same category and in adjacent categories, thus contributing to higher customer value. This research suggests multichannel retailers use a combination of right-channel and right-product strategies for customer development and provides implications for experiential retail designs.

scholarly journals Do patients value a hospital’s innovativeness reputation? A multi-method approach to assess the relative importance of innovativeness reputation in patients’ hospital choice

2017 ◽  
Vol 31 (3) ◽  
pp. 138-153 ◽  
Author(s):  
Sebastian Gurtner ◽  
Nadine Hietschold ◽  
María Vaquero Martín
Keyword(s):  
Value Added ◽  
Patient Choice ◽  
Relative Importance ◽  
Hospital Choice ◽  
Patient Decision ◽  
Technical Innovations ◽  
Multi Method Approach ◽  
Method Approach

Innovations in health care are costly and risky, but they also provide the opportunity for hospitals to increase quality of care, to distinguish themselves from competitors and to attract patients. While numerous hospitals strive to increase their innovativeness by adopting a costly innovation leader strategy, the question of whether this actually influences the patient’s choice remains unanswered. To understand the role of innovativeness from the patient perspective, this study conceptualizes the construct of innovativeness reputation of hospitals and determines its relevance in patients’ hospital choice decisions. In the pretest, we identified six dimensions of innovativeness reputation such as progressive work procedures and value added services. We then used three different quantitative multi-criteria decision-making methods to evaluate the relative importance of innovativeness reputation in patient choice. We collected data from 355 former German patients who had undergone elective non-emergency surgery. Overall, innovativeness reputation accounts for 11.6%–16.8% of the patient decision. Innovativeness reputation has a moderate influence on hospital choice and should be taken into account by managers. Since technical innovations are costly, hospitals should use other means to enhance their innovative image. Strategies such as emphasizing value added services can enable hospitals to increase their innovativeness reputation efficiently.

Consumers' Responses to Negative Word-of-Mouth Communication: An Attribution Theory Perspective

2001 ◽  
Vol 11 (1) ◽  
pp. 57-73 ◽  
Author(s):  
Russell N. Laczniak ◽  
Thomas E. DeCarlo ◽  
Sridhar N. Ramaswami
Keyword(s):  
Attribution Theory ◽  
Word Of Mouth ◽  
Negative Word ◽  
Word Of Mouth Communication

Consumers’ Responses to Negative Word-of-Mouth Communication: An Attribution Theory Perspective

2001 ◽  
Vol 11 (1) ◽  
pp. 57-73 ◽  
Author(s):  
Russell N. Laczniak ◽  
Thomas E. DeCarlo ◽  
Sridhar N. Ramaswami
Keyword(s):  
Attribution Theory ◽  
Word Of Mouth ◽  
Negative Word ◽  
Word Of Mouth Communication

A Room of One’s Own: Need for Uniqueness Counters Online WoM

2018 ◽  
Vol 60 (3) ◽  
pp. 216-232 ◽  
Author(s):  
Robin Chark ◽  
Lawrence Hoc Nang Fong ◽  
Candy Mei Fung Tang
Keyword(s):  
Hospitality Industry ◽  
Choice Behavior ◽  
Word Of Mouth ◽  
Online Reviews ◽  
Attitude Formation ◽  
Extant Literature ◽  
Need For Uniqueness ◽  
Room Of One's Own

We examine how consumers’ desire to be different reduces their reliance on others’ suggestions and thus increases their tendency to diverge from the average opinion. While the extant literature focuses on the role of need for uniqueness in attitude formation and choice behavior, not much has been done to test the effect of uniqueness seeking on reactions to persuasive, word of mouth (WoM) messages. In four studies, we find converging evidence for a uniqueness effect. Specifically, the uniqueness motivation interacts with the valence of the average opinion such that when uniqueness motivation is low, consumers follow others’ advice and thus their attitudes depend primarily on the valence of the average opinion; meanwhile, the uniqueness seekers rely less on the valence and are more likely to form less favorable attitudes after reading positive reviews and to hold less unfavorable ones when the reviews are negative. These effects are found when trait need for uniqueness is measured as well as when situational need for uniqueness is manipulated. We further examine the process through which uniqueness motivation results in nonconformist attitudes. Uniqueness seekers perceive minority opinions as more diagnostic. Thus, these minority opinions are disproportionately represented in uniqueness seekers’ nonconformist views. These findings are important to the hospitality industry as consumers often rely on others’ experiences by reading online reviews to help make decisions concerning their own hospitality needs, which are highly experiential in nature.

scholarly journals Exploring the Role of Culture in Determining Boycotting Behaviour after a Negative Word of Mouth

2016 ◽  
pp. 1-16
Author(s):  
Amira Trabelsi-Zoghlami ◽  
Karim Ben Yahia ◽  
Soukeina Touiti ◽  
Mourad Touzani
Keyword(s):  
Word Of Mouth ◽  
Negative Word

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.

No Man is an Island: the Effect of Social Presence on Negative Word of Mouth Intention in Service Failures

2017 ◽  
Vol 4 (4) ◽  
pp. 56-67 ◽  
Author(s):  
Yi He ◽  
Miao Hu ◽  
Qimei Chen ◽  
Dana L. Alden ◽  
Wei He
Keyword(s):  
Social Presence ◽  
Word Of Mouth ◽  
Negative Word ◽  
Service Failures
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