Does service failure influence customer loyalty?

There is a general consensus that customer loyalty to service providers is not solely dependent upon their level of satisfaction or dissatisfaction. However, the identified antecedents of loyalty remain, at best, highly speculative. The aim of this extensive literature review is to give some understanding of the nature of customer loyalty and the antecedent effects of service dissatisfaction. The research reviewed suggests that customer loyalty is an attitudinal state, reflecting value, trust and commitment within supplier–customer relationships. Satisfaction is one of several antecedents of loyalty. A key influence on loyalty is the offer of unique value‐delivering advantages not provided by competitors. Thus firms need to develop positive value‐based exit barriers to achieve loyalty. When service failures occur, the recovery process is likely to have a greater impact on loyalty than the original service failure. The key to successful recoveries was found to be the customer's perception of ‘fairness’. Recovery programmes must get it right first time. Customers who remain dissatisfied after a complaint has been handled are more dissatisfied than if no recovery attempt had been made. Dissatisfaction and customer satiation are major causes of a customer's exit. The solution to customer satiation is dynamic value creation. Collection and monitoring of customer data is needed for success and two‐way communication is vital. Copyright © 2002 Henry Stewart Publications.     

Do you really want to understand your customer?

On the surface, ‘consumer understanding’ seems like a Motherhood and Apple Pie ‘good’ that no one could sensibly object to. In fact, our whole approach to consumer understanding – how we go about achieving it, for what purposes – masks a seller‐centric, command and control ideology of marketing. Successful companies are breaking free of this ideology, and reinventing market research in the process. Copyright © 2002 Henry Stewart Publications Ltd.     

Complaint or recommendation? The impact of customers' state and trait goal orientations on customer engagement behaviors

The importance of customer engagement behaviors (CEBs) has been widely acknowledged in marketing. CEB encompasses an interactive relationship with the engaged object. A customer's personality characteristics play an important role in the interactive process. So it is necessary to examine how customer's personality characteristics influence customer engagement behaviors. However, there has been relatively less empirical research examining the impact of a customer's personality characteristics on CEBs. Customer goal orientation (promotion orientation vs. prevention orientation) is one such important personality characteristic. This research examined how customer goal orientation influenced CEBs. We used a priming technique to examine the relationships between the customer's state goal orientation and the customer's recommendations and complaints in study 1. The results showed that customers with state promotion‐focused goal orientations initiated more recommendations than the customers with state prevention‐focused goal orientations. For complaints, the difference between these two groups was not significant. Study 2 investigated the impact of trait goal orientation on the customer's recommendations and complaints. The results showed that the trait promotion‐focused goal orientation customers were more likely to initiate both recommendations and complaints behaviors than the trait prevention‐focused goal orientation customers. The findings of the research demonstrate that customer goal orientation is an important influence on positive and negative CEBs, and state and trait goal orientations have different impacts on CEBs. This research helps companies aiming to improve their customers' CEBs by suggesting which type of customers (in terms of goal orientation) are more likely to engage. Copyright © 2016 John Wiley & Sons, Ltd.     

Does customer aggression more strongly affect happy employees? The moderating role of positive affectivity and extraversion

Customer abusive behavior has been found to be a major source of stress for service workers. The main purpose of the present research was to investigate the moderating role of positive affectivity (PA) on the relationship between customer verbal aggression and organizational outcomes. Three studies, based on three separate samples of service employees (Study 1: N = 187; Study 2: N = 422, Study 3: N = 156) demonstrated that frequency of customer aggression was a strong predictor of job-induced tension, job-related attitudes and emotional dissonance even after controlling for negative affectivity. A primary finding of this research was that positive disposition of employees did not reduce the negative consequences of interactions with aggressive customers, but rather increased them. The research provides additional support for the notion that positive disposition can be associated with unfavorable organizational outcomes in certain situation. The results also point out that those who are more likely to be negatively affected by frequent interactions with aggressive customers, are the very service workers that organizations tend to value most. Implications for management and future research are discussed.     

How do friendship artificial intelligence chatbots (FAIC) benefit the continuance using intention and customer engagement?

Although there have been many AI chatbots in industry service, social media, and e-commerce platforms, research on AI chatbots such as Replika, neglected the effects of human-like traits on users' continuance using intention. This article aims to explore the main effects of human-like traits (perceived warmth vs. perceived competence) of friendship AI chatbots (FAIC) on continuance using intention and customer engagement, and the moderating effects of the need to belong and information sensitivity. Three studies are conducted to collect data (N_total = 1420). Our findings of Study 1 demonstrate that perceived warmth and perceived competence can increase the continuance using intention to FAIC and customer engagement, and perceived usefulness plays a mediating role in our conceptual model. Additionally, consumers' need to belong (high vs. low) (Study 2) and information sensitivity (high vs. low) (Study 3) related to chat contents moderate the main effects significantly. This article contributes to the literature on the relationship between FAIC and consumers by presenting the influence of perceived warmth and perceived competence and establishing the underlying process. Analogously, the findings can be beneficial for marketers and firms in designing and developing the coding program of FAIC to promote consumers' continuance using intention and customer engagement.     

There is more than obeying display rules: Service employees’ motives for emotion regulation in customer interactions

Although research has focused on how service employees regulate their emotions, few studies have explored why they do so. In this article, we first described which kinds of motives for emotion regulation exist in customer interactions. Second, we investigated how the motives are related to four emotion regulation strategies. The application of an explorative approach resulted in a list of 10 motives, which could be classified into the three motive categories: pleasure, prevention, and instrumental. Hierarchical linear modelling of 421 reported service interactions from a diary study revealed that the motive categories were differently related to the emotion regulation strategies. Motives of the instrumental category were only significantly positively related to surface acting. Motives of the pleasure category were positively related to deep acting and automatic regulation as well as negatively related to surface acting and emotional deviance. Motives of the prevention category were positively related to deep acting, surface acting, and emotional deviance as well as negatively related to automatic regulation. These results can be used by organizations not only to enhance the motivation of employees towards emotion regulation, but also towards more authentic emotional expressions.     

Optimizing the digital customer journey—Improving user experience by exploiting emotions,personas and situations for individualized user interface adaptations

This paper discusses a novel approach for exploiting emotions and situation-aware software adaptation methods for individualizing some of the touch points of the digital customer journey and thereby optimizing customer experience and effectiveness of e-commerce applications. Our approach uses emotion recognition, eye-tracking, and other individual tracking methods as well as customer personas for adapting interactive web applications by accessing a flexible adaptation framework at runtime. The framework allows for individualization at runtime by applying situation-aware adaptations. Two experimental customer studies were carried out in the e-commerce domain in order to provide a basis for exploitable emotion- and persona-related situational changes. The results of the studies were used to demonstrate the potential of our situation analytic adaptation approach with examples from a commercial beauty-products e-business portal.     

Manager–salesperson congruence in customer orientation and job outcomes: The bright and dark sides of leadership in aligning values

To create customer-oriented organizations, managers are often asked to promote a values-based vision. Yet, many managers struggle with transferring their values to employees making strategic value changes difficult. Despite this challenge, research has yet to demonstrate how managers effectively align values within the sales force, or the impact alignment has on job outcomes. Therefore, we develop and empirically test a conceptual framework to examine the role of transformational leadership in aligning salesperson customer orientation (CO) values. We find that transformational leadership is a strong mechanism in creating perceived value congruence, yet may have a surprising dark side. Results suggest that transformational managers achieve congruence by raising or, contrary to conventional wisdom, lowering salesperson CO values to meet the perceived values of the manager. Response surface modelling results support the importance of perceived manager values. Customer-oriented salespeople have higher job satisfaction and sales performance when they perceive their manager to also have high CO. When values are misaligned, job satisfaction increases more for low CO salespeople as perceptions of manager CO increase. Exploratory findings show that performance was higher under situations of perfect alignment but also under severe misalignment suggesting that values generate performance under complementary or supplementary conditions.     

What to diffuse in a gender‐specific store? The effect of male and female perfumes on customer value and behaviour

Sensory marketing can be an efficient way to involve consumers in the store environment. Diffusing a pleasant ambient scent that matches with the store setting is often used to create pleasant shopping experiences. The aim of this study is to extend scent marketing research: (i) by examining the effect of pleasant ambient scent on the different dimensions of customer value; and (ii) by exploring whether product‐scent incongruity can have a positive effect on consumer evaluations. A field experiment with 182 participants showed that a pleasant gender‐incongruent ambient perfume positively influences different dimensions of customer value as compared to the absence of a perfume. Moreover, a gender‐incongruent perfume also leads to a more positive evaluation of the play, product excellence, and social dimension of customer value as compared to a gender‐congruent perfume. A pleasant gender‐congruent ambient perfume, on the other hand, only has a positive effect on the aesthetic dimension of customer value as compared to the absence of a perfume. The observed ambient scent effects do not differ between men and women. These results are in contrast with existing literature. However, an explanation for this undocumented effect can be found in the mate attraction theory. Copyright © 2015 John Wiley & Sons, Ltd.     

Psychological ethical climate,leader–member exchange and commitment to superior customer value: influencing salespeople’s unethical intent and sales performance

In today’s competitive environment, salespeople are challenged with creating customer value in an ethical manner while meeting performance goals. Sales supervisors play a critical role in ensuring that this challenge is met. This research examines the roles of psychological ethical climate and leader–member exchange (LMX) in encouraging salespeople’s commitment to providing superior customer value, reducing their unethical intentions and improving sales performance. Results indicate that business-to-business salespeople’s psychological ethical climate perceptions influence their perceived relationship with their sales supervisor (i.e. LMX relationship) as well as their commitment to providing superior customer value. LMX also directly influences commitment to providing superior customer value, which in turn affects salespeople’s unethical intent and quota performance. Theoretical and managerial implications based on the study’s findings are provided, as well as directions for future research.     

To empower or not to empower your sales force? An empirical examination of the influence of leadership empowerment behavior on customer satisfaction and performance

This research focuses on the impact of leadership empowerment behavior (LEB) on customer service satisfaction and sales performance, as mediated by salespeople's self-efficacy and adaptability. Moreover, the authors propose an interactive relationship whereby LEB will be differentially effective as a function of employees' empowerment readiness. The authors' hypotheses are tested using survey data from a sample of 231 salespeople in the pharmaceutical field, along with external ratings of satisfaction from 864 customers and archival sales performance information. Results indicated that contrary to popular belief, employees with low levels of product/industry knowledge and low experience benefit the most from leadership behaviors that are empowering, whereas high-knowledge and experienced employees reap no clear benefit. The authors conclude with directions for future research and application.     

Salespersons’ empathy as a missing link in the customer orientation–loyalty chain: an investigation of drivers and age differences as a contingency

Salespersons’ customer orientation has attracted considerable attention from practitioners and researchers. By distinguishing customer-oriented attitude from behavior, this study sheds light on customers’ perceptions of salespersons’ empathy, as a missing link between customer orientation and customer-related outcomes. Noting the increasing age diversity among salespersons and customers, this study also investigates whether age differences in salesperson–customer dyads moderate the relationships of salespersons’ customer-oriented attitude and behavior with customer outcomes. Finally, this study examines salespersons’ climate perceptions as antecedents of their customer-oriented attitudes. Results of multilevel modeling with data from 164 salespersons and 405 customers reveal that salesperson empathy, as perceived by customers, is an important facilitator of the customer orientation–satisfaction relationship. When there are large age differences, salespersons’ customer-oriented attitude becomes more important for making customers feel understood by salespersons. Regarding antecedents, salespersons’ customer-oriented attitude is influenced by their perceptions of team-member exchange and age-inclusive climate.     

Does a customer by any other name tip the same?: The effect of forms of address and customers' age on gratuities given to food servers in the United States

This study examined whether different forms of address used by food servers were related to customers' tipping behavior. Food servers addressed diners who paid with credit cards by their first names, titles plus last names, sir/ma'am, or no address. Results indicated that when food servers personalized their service by addressing their customers by name, they earned significantly higher tips than when they used less immediate forms of address, although customers' estimated age mediated these results.