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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.

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.

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.

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.

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.

The growing service sector has experienced several revolutions that have transformed the way services are created and delivered. In parallel, services increasingly pique the interest of scholars, resulting in an expanding body of knowledge. Accordingly, it is time to reflect on extant service research, assess its boundaries, and think about its future. This paper aims to consider three research questions: How has service research evolved over the past 27 years? Which articles have most influenced the evolution of service research in the past 27 years? What are the most promising research themes for the future?

To answer these questions, the authors analyze the contents of 3,177 service research articles published in ten major academic journals between 1993 and August 2019. Multiple correspondence analysis reveals the evolution of key service research themes and their underlying relationships.

The research themes are organized in a growth–share matrix with four quadrants (stars, question marks, cash cows and pets) and also combine into four research clusters (human resource management, organizational behavior and strategy, technology, and operations and customer behavior and marketing). Together with a specified list of influential articles that have shaped the evolution of service research, these insights suggest an agenda for research.

Acknowledging the vast growth of service research, this study presents an up-to-date picture of the discipline and an agenda to stimulate continued research.

Organizations increasingly develop and offer sharing services enabled by means of product-service systems (PSS). However, organizations offering sharing-based PSS face a unique set of design challenges and operational risks. The purpose of this paper is to provide researchers and practitioners with customer-based insights into service delivery system design and risk management for sharing-based PSS operational success.

This qualitative study combines in-depth interviews with supplementary, multidisciplinary literature and secondary firm data. In total, the authors conducted 56 semi-structured interviews with diverse customers across different business-to-customer (B2C) PSS settings.

First, the authors develop an integrative conceptual framework that reveals what structural and infrastructural design choices customer expect organizations to make for mitigating risks and enhancing customer-perceived value in the sharing economy. These design choices may influence customers' trust and control perceptions in all actors involved in the service delivery system. Second, the results suggest that sharing value proposition, customer-perceived level of consequentiality and level of customer-supplied resources are contingency factors that need to be considered when making design decisions for risk management in the sharing economy.

This study extends Sampson's Unified Service Theory by proposing that, with sharing-based PSS, production flows from customers to customers. This situation creates unique challenges for operations management. This paper extends current understanding of the role, characteristics and contingencies of service delivery system design for risk management in the sharing economy. In doing so, authors challenge common wisdom and suggest understanding both the organizational and customers' individual contexts is critical for (contingency) theory and practice.

During service encounters, it has been suggested that emotionally competent employees are likely to succeed in building rapport with their customers, which in turn often leads to customer satisfaction and loyalty. However, these relationships have not been empirically examined. The purpose of the present study is to investigate the effects of customer perceived employee emotional competence (EEC) on satisfaction and loyalty. The paper also examines how and to what extent rapport mediates these effects.

Drawing on the theory of affect‐as‐information, suggesting that emotions inform human behavior, the paper develops a structural model and tests it on a sample of 247 customers in a personal service setting.

Customer perceptions of EEC positively influence customer satisfaction and loyalty. Rapport partially mediates both effects.

The extent to which customers perceive employees as emotionally competent is related to the development of rapport, customer satisfaction, and loyalty. Managers of high‐contact services should therefore pay attention to emotional competence when hiring new employees, and/or encourage and train existing employees to develop this type of competence.

Previous studies have used employee self‐reports or supervisor reports of EEC, both of which have significant limitations when used in service encounters to predict customer outcomes. Furthermore, they essentially capture an employee's potential to behave in an emotionally competent way while service managers are interested in the actual display of emotionally competent behaviors as perceived by customers. Accordingly, to overcome these issues, this study adopts a customer perspective of EEC and uses customer perceptions of EEC to predict customer outcome.