The effects of employee burnout on customers: An experimental approach

ABSTRACT

This study investigated the different effects of employee burnout dimensions (depersonalisation and emotional exhaustion) on customer service perceptions. We hypothesised that customers who interact with depersonalising employees will feel angry and hostile, which, in turn, should be related to low service perceptions. Emotional exhaustion was hypothesised to attenuate this effect because customers might perceive exhaustion as a reason for the depersonalising behaviour and may be affected less negatively. Each of the 156 study participants read 12 vignettes in which university employees displayed depersonalisation and emotional exhaustion symptoms. Multilevel analysis showed that employee depersonalisation negatively affected customer perceptions towards employee service and organisation service. Customer anger and hostility mediated this effect. Employee emotional exhaustion moderated the indirect effect such that depersonalisation had the strongest effect on customer service perceptions via anger and hostility when the employee did not display emotional exhaustion. Findings highlight the importance of studying the effects of depersonalisation and emotional exhaustion separately, and taking into account customer affective processes.     

Customer negative events and employee service sabotage: The roles of employee hostility,personality and group affective tone

Abstract

In the service industries, customer negative events towards a service provider, such as unreasonable demands or low-quality interpersonal treatment, might trigger service sabotage behaviours by the employee in response. Mitigating the problems associated with customer negative events is therefore an important issue for both practitioners and researchers. In the present study, we incorporate the perspectives of affective events theory into our research framework to clarify the mechanisms and boundary conditions of the customer negative event–service sabotage relationship in the context of face-to-face service. Specifically, we theorize and examine whether customer negative events lead to employee service sabotage through emotional reactions of the service worker (i.e. state hostility) and whether their personality traits (i.e. extraversion and neuroticism) and the work unit context (i.e. group affective tone) moderate this process. The sample was composed of 195 hairstylists and 61 managers from 61 hair salons in Taiwan. The results of hierarchical linear modelling showed that hairstylists' state hostility mediated the negative event–sabotage relationship. In addition, hairstylists' neuroticism and the affective tone of the unit moderated the relationship between negative events and state hostility, which in turn predicted service sabotage. The theoretical and practical implications of the findings are also discussed.     

Ability of Experience Design Elements to Elicit Emotions and Loyalty Behaviors

Experience design, an approach to create emotional connection with guests or customers through careful planning of tangible and intangible service elements, has gained popularity in many hospitality and retail businesses. With ever‐increasing competition, service providers seek to develop loyalty by aggressively designing, continuously innovating, and managing their customer experiences. This article explores the relationship between different service elements designed to create enhanced experience and customer loyalty. In addition, it looks at emotional responses as mediating factors between the physical and relational elements and loyalty behaviors. A model is proposed and tested with a VIP hospitality tent for an internationally renowned touring circus. Results of the study indicate that while a few design elements directly affect loyalty behavior, the relationship between most design elements and loyalty behavior is strongly mediated by eliciting certain types of emotional behavior. This connection has implications for the focus of service managers' efforts in different environments.     

Customer service competencies: a global look

The purpose of the study was to identify competencies needed by those providing service to today's customers. A total of 460 service providers were interviewed from thirty-two different organizations in North America and twenty-six organizations in Asia and Europe. Based on 2.825 critical incidents, five major factors were identified to create the SERVE model: See the ‘big picture’ and how customer service fits into it; Establish an authentic human connection with each customer; Render timely, accurate and thorough service; Value and respond to unique customer needs; and Extend a hand to repair and strengthen relationships with customers who are upset or angry. Similarities and differences among the different geographic regions and among the different respondent types were noted. Implications for HRD practice and future research were discussed.     

Customer integration,fairness perceptions,and silent endurance in digital versus human service interactions

Growing digitization is accompanied by a concomitant increase in customer integration, making the customer an even more integral part of service settings, to the extent that customers even may replace employee labor. Customer integration can have positive effects for service firms and customers, but it also threatens some negative effects that have not been studied closely. This study proposes silent endurance as a neglected outcome of customer integration, caused by violations of customer fairness perceptions. In line with fairness heuristic theory, providing more input for the same output may reduce perceptions of distributive fairness. Four studies test this theorizing (one critical incident study and three experiments) to investigate the effect of being integrated on customers’ distributive fairness and silent endurance. Stable results across studies show that distributive fairness mediates the link between customer integration and silent endurance; offering monetary advantages can offset integration-induced losses of fairness perceptions. These findings thus have both theoretical and managerial implications.     

It takes three to tango: Leadership and hostility in the service encounter

Leadership effectiveness is contingent on the ability to affect followers' emotions. This paper explores a model suggesting that the quality of the relationships between leaders and their followers (LMX) relates negatively to a display of negative emotions by employees during their interactions with customers, and subsequently relates to employees' performance and customers' emotions. The model was tested on a sample of 95 service employees and on 485 interactions between these employees and their customers. The findings show that LMX was negatively related to the display of hostility by employees towards their customers. Employee hostility was negatively related to employees' ability to provide a solution to customers' problems, which was further related to customers' hostility towards employees. We discuss the implications of these findings for both theory and practice.     

Product and service innovation with customer recognition

Product and service innovation is important for brands to succeed in a competitive marketplace. As information technology advances, customer recognition becomes a growing industry trend; that is, brands track customers' purchase history, recognize and price discriminate between repeat and new customers.The trend of customer recognition has changed the nature and intensity of competition between brands. In this article, we examine how customer recognition and the associated changes in competition affect brands' incentives to invest in product and service innovation. We find that when brands have similar equity, customer recognition increases brands' incentives to invest in product and service innovation. However, when brands have sufficiently different equity, customer recognition leads the stronger brand to invest more and the weaker brand to invest less in product and service innovation. In addition, extant literature suggests that customer recognition reduces brand profits. In contrast, we find that customer recognition can increase the weaker brand's profit but decreases it more for the stronger brand. Thus, collecting customers' purchase history data for customer recognition can be beneficial for weaker brands but detrimental for stronger brands.     

基于顾客自我调整导向的差异化服务补救策略研究

已有的服务补救研究认为服务补救应该和服务失败匹配,没有深入探讨顾客心理差异对补救效果的影响。本文提出服务补救应和顾客特征相匹配,从"自我调整导向"角度区分顾客的心理特征,研究顾客的个体差异对服务补救效果的影响。服务补救方式被区分为"多获利"型和"少损失"型两类;顾客的自我调整导向有"趋利"和"避害"之分。本文选取餐馆行业,采用实验方法考察顾客的自我调整导向与补救努力的交互作用对顾客感知的补救绩效和补救满意的影响。通过多因素协方差分析研究发现,当补救努力与顾客的自我调整导向一致时,顾客的感知补救绩效更高,对补救更加满意;对于"趋利"导向的顾客,"多获利"型补救方式效果更好;对于"避害"导向的顾客,"少损失"型补救方式更加有效。     

服务质量决定要因顾客满足和行动意图的影响--在中国服务产业的应用

为维持现有顾客和创造新顾客,服务企业必须知道怎样实施服务质量战略来增加顾客满足和行动意图,因为服务质量、顾客满足和顾客行动意图之间存在着因果关系.本研究把整体服务质量分解为相互作用质量、物理环境质量、结果质量三个决定要因,并对服务质量决定要因对顾客满足和行动意图的影响进行了研究,实证检验在中国服务产业中进行.对研究模型的验证结果支持本研究提出的所有因果假设,即构成整体服务质量的三个决定要因对顾客满足具有显著的正向影响,顾客满足对行动意图具有显著的正向影响.而且,对于中国顾客来说,服务质量决定要因对顾客满足的相对影响力依次为"结果质量"＞"相互作用质量"＞"物理环境质量".     

Self‐Service Operations at Retail Stores: The Role of Inter‐Customer Interactions

Inter‐customer interactions are important to the operation of self‐services in retail settings. More specifically, when self‐service terminals are used as part of customers’ checkout processes in retail operations without the explicit involvement of retailers as the direct service providers, inter‐customer interactions become a significant managerial issue. In this article, we examine the impact of inter‐customer interactions at retail self‐service terminals on customers’ service quality perceptions and repeat purchase intentions at retail stores. We conduct a scenario‐based experimental design (N = 674) using a 2 × 2 factorial design in which inter‐customer interactions are divided into “positive” vs. “negative” and occur during the “waiting” or during the actual “transaction” stages of self‐services at a retail store. We use attribution theory to develop the hypotheses. The results demonstrate that, through their interactions, fellow customers can exert influences on a focal customer's quality perceptions and repeat purchasing intentions toward a retail store. Furthermore, these influences were impacted by how customers attribute blame or assign responsibility toward the retail store. Service operations managers should leverage these interactions by designing into self‐service settings the capacities and interfaces that are best suited for customers’ co‐production of their self‐service experiences.     

An Exploratory Study of the Impact of e‐Service Process on Online Customer Satisfaction

Although extensive academic research has examined the dynamics of interpersonal interactions between service providers and customers, much less research has investigated customer service encounters through technological interfaces such as the Web in electronic commerce transactions. Corporate websites have become an important point of contact with customers for many companies. Service has been described as one of the most important attributes for online business to influence traffic and sales. However, more research is needed to understand how Web‐based technological capabilities of services affect customer satisfaction. In this paper, we propose viewing the interface between online buyers and sellers through the lens of service management to identify possible determinants of online customer satisfaction. A company's website is considered its electronic service delivery system. We look at this electronic service delivery system from its process point of view. Our findings indicate that as the electronic service delivery system process improves, a customer's perception of the website's ease of use increases, leading to increased service value and perceived control over the process, which increases customer satisfaction. The research provides evidence that the technological capabilities embedded in the website processes are an important factor in determining service quality and ultimately online customer satisfaction.     

Social model of emotional labour and client satisfaction: exploring inter- and intrapersonal characteristics of the client−provider encounter

As part of healthcare organisations’ efforts to improve client satisfaction, special attention is directed to care providers’ expression of authenticity through genuine emotional displays in care encounters. The study’s aim was to test a mediating–moderating model for predicting clients’ satisfaction. The model combined intrapersonal forces (the healthcare provider’s level of caring and emotional load) and interpersonal forces (meeting the client in a team of professionals or alone, and client?provider similarity), as predictors of emotional labour strategies, and subsequent client satisfaction. Clients’ evaluation of whether or not the emotional displays were authentic was intended to moderate the link between emotional labour and client satisfaction. The sample consisted of 103 healthcare providers’ encounters with clients’ family members, randomly selected from five nursing homes. Data were collected by validated questionnaires at three time points. Mixed linear model analyses generally supported the proposed model. Meeting a client’s family in teams, ethnic similarity, and providers’ caring and emotional load stimulated higher levels of deep acting. Meeting clients alone and less emotional load involved more surface acting. These findings offer empirical support for the social interaction explanation of emotional labour, pointing to the importance of social characteristics of the service encounter in shaping emotional labour strategies and maintaining client satisfaction.     

Satisfying and Retaining Customers through Independent Service Representatives

The degree of leverage possessed by manufacturers who outsource their customer service function to channel partners over customer satisfaction and loyalty is assessed empirically. Data provided by independent service representatives are linked with data from their customers. Results indicate that a manufacturer's support of its representatives increases their job satisfaction which, in turn, is indirectly linked to the customer satisfaction through shared perceptions of service performance and quality. However, the strength of the effects is modest, suggesting that manufacturers may need to consider direct customer contact strategies or contractual means of assuring customer satisfaction when independent service representatives “own the customer.” Conceptually, the hypothesized shared mindset model is tested against the competing affect transfer model, resulting in support for the former. Job satisfaction moderates the degree of agreement between representatives' and customers' perceptions of service performance and quality such that greater agreement occurs when job satisfaction is high.     

Does a Supplier's Operational Competence Translate into Financial Performance? An Empirical Analysis of Supplier–Customer Relationships

We conduct an empirical investigation of how a supplier's operational competence, as reflected by outcomes in the areas of quality, cost, delivery, flexibility, and new product development, translates into financial gains from a key customer. In contrast to previous research directed at the firm level, this study focuses on the supplier–customer relationship level. Using survey data from 158 suppliers in the manufacturing industry, we perform structural equation modeling to map out the paths from operational competence to financial performance—via dependencies and cooperative behaviors between suppliers and their customers. This study is the first scholarly attempt to examine the link between suppliers’ operational competencies and financial performance in interorganizational relationships. It is also an early investigation into operational competence as a source of bi‐lateral dependence. Our findings show that the supplier's operational competences increase its customer's dependence by enhancing the value of its products/services. However, the resulting increase in the supplier's power is not leveraged to shape relationship behaviors or capture value from its customer. In contrast, the customer's existing power as a major buyer plays an important role in shaping cooperative behaviors and affecting the supplier's financial performance from the customer relationship.     

Are Self‐Service Customers Satisfied or Stuck?

This paper investigates the impact of self‐service technology (SST) usage on customer satisfaction and retention. Specifically, we disentangle the distinct effects of satisfaction and switching costs as drivers of retention among self‐service customers. Our empirical analysis examines 26,924 multi‐channel customers of a nationwide retail bank. We track each customer's channel usage, overall satisfaction, and retention over a 1‐year period. We find that, relative to face‐to‐face service, customers who use self‐service channels for a greater proportion of their transactions are either no more satisfied, or less satisfied with the service they receive, depending on the channel. However, we also find that these same customers are predictably less likely to defect to a competitor if they are heavily reliant on self‐service channels characterized by high switching costs. Through a mediation model, we demonstrate that, when self‐service usage promotes retention, it does so in a way that is consistent with switching costs. As a robustness check, we examine the behavior of channel enthusiasts, who concentrate transactions among specific channels. Relative to more diversified customers, we find that self‐service enthusiasts in low switching cost channels defect with greater frequency, while self‐service enthusiasts in high switching cost channels are retained with greater frequency.     

Revenue Management of Reusable Resources with Advanced Reservations

We consider a revenue management problem wherein the seller is endowed with a single type resource with a finite capacity and the resource can be repeatedly used to serve customers. There are multiple classes of customers arriving according to a multi‐class Poisson process. Each customer, upon arrival, submits a service request that specifies his service start time and end time. Our model allows customer advanced reservation times and services times in each class to be arbitrarily distributed and correlated. Upon arrival of each customer, the seller must instantaneously decide whether to accept this customer's service request. A customer whose request is denied leaves the system. A customer whose request is accepted is allocated with a specific item of the resource at his service start time. The resource unit occupied by a customer becomes available to other customers after serving this customer. The seller aims to design an admission control policy that maximizes her expected long‐run average revenue. We propose a policy called the ε‐perturbation class selection policy (ε‐CSP), based on the optimal solution in the fluid setting wherein customers are infinitesimal and customer arrival processes are deterministic, under the restriction that the seller can utilize at most (1 − ε) of her capacity for any ε ∈ (0, 1). We prove that the ε‐CSP is near‐optimal. More precisely, we develop an upper bound of the performance loss of the ε‐CSP relative to the seller's optimal revenue, and show that it converges to zero with a square‐root convergence rate in the asymptotic regime wherein the arrival rates and the capacity grow up proportionally and the capacity buffer level ε decays to zero.     

基于顾客不公平规避的服务定价研究

设计合理的服务机制和定价策略对于企业运营至关重要。由于顾客异质性（等待时间成本不同）企业通常对顾客进行分类服务,然而分类服务会引发顾客的不公平心理,并带来负效用,从而引起顾客流动与转移,进而影响企业收益与社会成本。本文针对垄断型服务系统中,顾客不公平规避心理（用参数α表示）对于企业优化目标的影响进行分析,在此基础之上,研究企业是否对顾客采取分类服务以及如何合理定价。结果表明,当顾客不公平规避偏好心理较弱时,从社会成本最小化和企业收益最大化的角度都应该对顾客进行分类服务并收取优先服务费用。当顾客不公规避心理较强时,从企业收益最大化的角度应仅保留优先权顾客并收取优先服务费用,从社会成本最小化的角度则应取消优先服务费用仅保留普通顾客。最后,通过数值模拟和理论分析对上述结论进行验证。     

Do emotionally perceptive leaders motivate higher employee performance? The moderating role of task interdependence and power distance

Extant emotional intelligence research has examined the relationship between employees' emotional intelligence and their job performance. We developed theory to extend this line of research to the domain of leader–employee relationships. Integrating emotional intelligence research with social exchange theory, we contended that leaders' emotion perceptions enhance employees' job performance. Drawing from social impact theory, we further argued that the strength of this relationship depends upon two contextual variables: within-group task interdependence and power distance. We tested our hypotheses using a sample of 350 employee nested in 74 workgroups. Hierarchical linear modeling results supported the hypothesized relationships between leaders' emotion perceptions and employees' job performance, and revealed that this relationship was strengthened by task interdependence and attenuated by power distance.     

Analysing and reducing customer defections

Firms can grow businesses by attracting new customers, losing fewer customers and doing more business with existing customers. Keeping your present customers and doing more business with them is generally a more efficient way of using resources. It requires a detailed analysis of customer defections to assess the effects of losing customers on long-term profitability and growth. This article provides some simple but powerful graphical analysis tools to use in customer defections analysis. The tools are initially described using the simple case of a service firm to show how managers can examine the probability of defections and the resulting need to attract new customers. Then the techniques are illustrated graphically using data from a UK subsidiary of an American concern which supplies equipment to large organizations. The analysis of customer defections is summarized in a sixstage process.     

Transaction‐Specific Investments,Relational Norms,and ERP Customer Satisfaction: A Mediation Analysis*

Integrating the perspectives of transaction cost economics, the resource‐based view, and resource dependency theory, this study analyzes the institutional settings of enterprise resource planning (ERP) implementations in China. Specifically, it examines how bilateral transaction‐specific investments (TSIs) and relational governance mechanisms influence customer satisfaction with ERP implementations. The model is empirically tested using data from on‐site interviews with 208 ERP customers in China. The results demonstrate that the effects of vendors’ and customers’ TSIs on customer satisfaction are facilitated by multiple‐stage micromediational chains. The influence of TSIs on customer satisfaction is mediated by relational norms, and the impact of relational norms on customer satisfaction is bridged by perceived service quality and customer trust. Furthermore, the influence of vendors’ TSIs is stronger than the influence of customers’ TSIs. The findings contribute to business research and practice by providing valuable insights into how ERP vendors and customers should strategize TSIs to enhance relationship performance.