THE IMPACT OF COMPARATIVE PRICE ON CONSUMER TOLERANCE FOR SERVICE FAILURE

2018 ◽  
Vol 2018 ◽  
pp. 572-572
Author(s):  
Hailong Yang ◽  
◽  
Yuanyu Zhang ◽  
Liangjing Che
Keyword(s):  
Service Failure ◽  
The Impact

When service providers fail: outsourcing help and consumer attitudes

2018 ◽  
Vol 39 (5) ◽  
pp. 22-30
Author(s):  
Aaron Gazley ◽  
Hamish Simmonds
Keyword(s):  
Design Methodology ◽  
Service Providers ◽  
Home Country ◽  
Service Failure ◽  
Service Recovery ◽  
Content Type ◽  
Consumer Ethnocentrism ◽  
The Impact ◽  
Practical Implications ◽  
Delivery Channel

Purpose The purpose of this paper is to investigate the effect of outsourcing and offshoring on brand loyalty in a service recovery context. In addition, the effect that consumer ethnocentrism has on these relationships is examined. Design/methodology/approach An experiment was designed using a series of service recovery scenarios that manipulated whether the recovery effort was conducted by an in-house/outsourced or local/offshored party. Findings The study shows that while outsourcing service recovery within the home country has no effect on loyalty, outsourcing to an offshore location does. In addition, the effect of offshoring of loyalty is greater for consumers who hold ethnocentric tendencies. Practical implications This research suggests the need to consider the delivery channel of service recovery to recover a service failure and retain customer loyalty. The results show that outsourcing within a local country may be effective, but the risks associated with offshoring are much greater. Originality/value Despite previous attempts to understand outsourcing and offshoring in a range of service scenarios, their role in service recovery is not well understood. Similarly, the impact that ethnocentrism might have on this process is overlooked. This paper therefore responds to calls within business theory, practice and consults for further study in this under-researched area.

Empowerment in service recovery: the role of self-regulation process of frontline employee

2019 ◽  
Vol 58 (5) ◽  
pp. 828-843 ◽  
Author(s):  
Mo Zhang ◽  
Ruoqi Geng
Keyword(s):  
Emotional Exhaustion ◽  
Positive Impact ◽  
Service Failure ◽  
Self Regulation ◽  
Service Recovery ◽  
Job Engagement ◽  
Content Type ◽  
Regulation Process ◽  
Recovery Satisfaction ◽  
The Impact

Purpose In accordance with the commitment–trust theory, employee attitudes and behaviours mediate the impact of empowerment on service recovery performance. The purpose of this paper is to extend the self-regulating process model and develop a structural framework that combines empowerment, self-regulation mechanisms (service recovery awareness, job engagement and emotional exhaustion) and post-recovery satisfaction. This framework explores how empowerment can lead to action of frontline employees (FLEs) in service recovery. Design/methodology/approach The authors test the hypotheses by investigating 290 pairs of FLEs and customers, who have service failure experience in the express mail industry, using structure equation modelling. Findings The findings show that empowerment enhances both service recovery awareness and job engagement. On the one hand, service recovery awareness has a positive impact on emotional exhaustion, which has a negative impact on post-recovery satisfaction. On the other hand, job engagement has a positive impact on performance. These results provide the whole picture of the double-edged effects of empowerment on FLEs in service recovery. Practical implications This paper indicates that managers should re-consider approaches to empowerment based on self-regulation process to enhance performance following service failure. Originality/value This study explores the dark side of empowerment in service recovery from a self-regulation perspective.

Are tattoos still a taboo?

2019 ◽  
Vol 31 (2) ◽  
pp. 874-889 ◽  
Author(s):  
Marie Ozanne ◽  
Michael J. Tews ◽  
Anna S. Mattila
Keyword(s):  
Customer Service ◽  
Service Failure ◽  
Mediation Process ◽  
Content Type ◽  
Customer Perceptions ◽  
Service Failures ◽  
Aesthetic Labor ◽  
Agency And Communion ◽  
Failure Scenario ◽  
The Impact

PurposeAs tattoos increase in popularity, questions persist regarding their impact on customer perceptions. To help shed light into this issue, this paper aims to explore the impact of tattooed restaurant servers in the context of service failures. Through the agency and communion theory, the authors propose that a female server with tattoos induces higher levels of negative word of mouth (WOM) intention than her male counterpart. Furthermore, the authors propose that perceived competence mediates this effect.Design/methodology/approachThrough a 2 (tattoos status: yes, no) × 2 (server’s gender: male, female) experimental design, a panel of consumers were exposed to a restaurant service failure scenario with a photograph of a server. Depending on the condition, the server was either a male or female and had (or not) a tattoo on their left arm and neck. The same tattoo design was used for both genders.FindingsThe findings indicate that, in a service failure context, customers’ propensity to generate negative WOM does not differ across tattooed (vs non-tattooed) servers. However, contrary to the expectations of the authors, people tend to react more negatively to a male (vs female) server with tattoos.Originality/valueResearch on tattoos in the customer service context is scant, especially in hospitality. Furthermore, no previous study on tattoos has empirically tested a mediation process explaining differences in customer perceptions. Contrary to previous findings, this study demonstrates that an exposure to male (vs female) tattooed servers increases customers’ propensity to generate negative WOM. In other words, the type of profession coupled with the employees’ gender might influence customer perceptions. Furthermore, as customers’ propensity to generate negative WOM did not increase when served by a tattooed (vs non-tattooed) employee, managers in aesthetic labor industries, such as the foodservice business, can be more accepting of employees with tattoos.

Complainers' resource investment and mobilization in digital environments using Conservation of Resources theory

2020 ◽  
Vol 31 (3) ◽  
pp. 509-534
Author(s):  
Yean Shan Beh ◽  
Laszlo Sajtos ◽  
Joanne T. Cao
Keyword(s):  
Service Failure ◽  
Energy Resources ◽  
Survey Study ◽  
Conservation Of Resources ◽  
External Energy ◽  
Content Type ◽  
Positive Effects ◽  
Conceptual Background ◽  
Digital Environments ◽  
The Impact

PurposeThe purpose of this paper is to consider whether consumers can recover from a service failure by utilizing internal and external energy resources that are available to them at the time of an online complaint. Based on the Conservation of Resources (COR) theory, this research conceptualizes the complainers' act of complaining through internal and external energy resources. By investing (direct utilization of resources) and mobilizing (utilizing resources to change the trajectory of a loss) these resources, this study aims to understand which resources (internal or external) and what strategies (investment or mobilization) are effective in the face of a resource loss.Design//methodology/approachStudy 1 aimed to test the impact of energy resources (motivation and affordance) on consumers' negative emotions and satisfaction with their complaints through an online panel survey. Study 2 was a between-subjects design experiment aimed to overcome the diversity of the circumstances around a service failure, complaint motivation and complaints that were captured in Study 1.FindingsThis study provides evidence of the negative and positive effects of internal and external energy resources, respectively, in altering the consumer's emotions and behavioral intentions. The findings of this study underline the role of affordances of features, specifically perceived conversationality of digital features, in improving consumers' relationship with the defaulting firm.Practical implicationsBased on the findings related to the perceived conversationality of digital features, managers are urged to explore the affordances of online features that consumers use for communications, in general, or for complaints, in particular.Originality/valueTo our understanding, this paper is the first study to employ COR theory as a conceptual background, and in turn, the first to conceptualize complaint motivations and online complaint features as internal and external resources, respectively. As such, this study is the first of its kind to examine complaint media systematically.

The Impact of Service Failure and Recovery on Target and Observing Customers: A Comparative Study

2017 ◽  
Vol 26 (8) ◽  
pp. 889-910 ◽  
Author(s):  
Seyed Shahin Sharifi ◽  
Mauricio Palmeira ◽  
Junzhao Ma ◽  
Gerri Spassova
Keyword(s):  
Comparative Study ◽  
Service Failure ◽  
Service Failure And Recovery ◽  
The Impact

Events and placemaking: the case of the Festival Internacional Cervantino in Guanajuato, Mexico

2017 ◽  
Vol 8 (1) ◽  
pp. 24-38 ◽  
Author(s):  
Daniel Barrera-Fernández ◽  
Marco Hernández-Escampa
Keyword(s):  
Service Failure ◽  
Field Work ◽  
Point Of View ◽  
Urban Spaces ◽  
Content Type ◽  
Local Perception ◽  
Intangible Heritage ◽  
New Policies ◽  
The Impact ◽  
The City

Purpose The purpose of this paper is to focus on the Festival Internacional Cervantino, which represents one of the major cultural events in Latin America. Based on theoretical propositions regarding tourism as an experience, perception of visitors was studied focussing on emotional factors. Urban perception was also addressed, especially where public service failure affected the experience and therefore, the placemaking. Design/methodology/approach A mixed methodology was applied. First, the event experience scale (EES) methodology for visitors’ perception was performed in order to collect data directly from tourists. The relationship between the festival and the visit to heritage resources and attractions was especially highlighted and analysed. Urban field work focussed on expressing the location of the most visited areas during festival days. Public services were also assessed where perception was affected negatively. Interviews were applied to public administration officials and public policy-related documents were collected in order to understand the expectation of visitors, previous to the experience itself. Local perception was also contrasted with the rest of the data. Findings Attracted by information about the historic and colonial nature of the city, tourists gather massively in Guanajuato during the festival. This event in particular yields in some aspects to a transient placemaking, mainly related to inner perception and the event as such is highly appreciated. It was also found that the foreign figure of Cervantes was incorporated into the intangible heritage discourse of the city and linked to the event itself. However, some urban spaces and services need improvement to consolidate a positive experience of visitors who complain about specific factors such as traffic, accessibility, waste disposal and environmental noise. Social implications The fact that the event has caused some problems in a number of urban aspects suggests that new policies might be proposed in order to fill these gaps, especially by the corresponding government agencies. Another issue relates to the concentration of the economic profits and its lack of distribution, which right now does not contribute to social sustainability, yet the event demands high actions and costs to the city and local people. Originality/value The research has been useful to give another point of view to existing surveys and conclusions of the impact of the festival. The application of EES has yielded some improvements that could be made in further applications of the same methodology. Application of EES to assess the impact of events in urban spaces and services can be applied to many other cities that host festivals in their city centres.

The impact of switching costs on customer complaint behavior and service recovery evaluation

2018 ◽  
Vol 28 (4) ◽  
pp. 458-483 ◽  
Author(s):  
Maxi Bergel ◽  
Christian Brock
Keyword(s):  
Switching Costs ◽  
Service Failure ◽  
Service Recovery ◽  
Control Variable ◽  
Response Styles ◽  
Content Type ◽  
Complaint Handling ◽  
Customer Dissatisfaction ◽  
Complaint Behavior ◽  
The Impact

PurposeThe purpose of this paper is to examine the impact of three different dimensions of switching costs on customer dissatisfaction response styles as well as on the evaluation of service recovery.Design/methodology/approachStudy 1 is a scenario-based experiment and Study 2 uses a critical incident technique combined with survey-based measures of switching costs, dissatisfaction responses and perceived complaint handling.FindingsThe results of these studies highlight the need to consider the different effects of switching costs. Not only do different switching costs lead to varying customer dissatisfaction responses, they also have differential moderator effects on the interrelationships between customer-perceived recovery justice and service recovery satisfaction.Research limitations/implicationsService failure severity was an influential control variable. Future studies should investigate how the type, context and severity of service failure influence customers’ complaint behavior. Furthermore, participants had trouble differentiating between their relations toward their service provider in general and one particular employee. Hence, further research should explore the relationship between customers and frontline employees.Practical implicationsThe authors encourage managers to take a closer look at the switching cost dimensions of their service industry. This may lead practitioners to promote differentiated strategies for complaint stimulation and complaint handling.Originality/valueThis is the first study to simultaneously explore all three dimensions of switching costs when examining their impact on customers’ dissatisfaction response styles as well as the moderating effects in the recovery process. In doing so, this study reveals some hitherto uncovered effects.

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