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The purpose of this paper is to examine the impact of a loss of face on the psychological well-being of frontline employees (FLEs) in an Eastern cultural context (Thailand) when subjected to customer aggression. Importantly, it adopts a contingency approach and examines moderating effects by which social status, a “customer is always right” organisational philosophy and a public/private context impact the nature of the association between customer aggression and loss of face. Finally, it examines the moderating effect of regulation of emotion on the association between loss of face on psychological well-being.

A survey, administered to 319 FLEs in retail stores in Thailand, asked them to recall a recent experience dealing with customer aggression. The data were analysed using structural equation modelling and a moderator regression.

Customer aggression expressions are associated with FLEs’ loss of face, which in turn affects FLEs’ emotional exhaustion and anxiety. FLEs social status and a “customer is always right” organisational philosophy moderate the association between customer aggression and loss of face, and FLEs’ loss of face is greater when their physical well-being is threatened publicly rather than in private. In addition, regulation of emotion was found to increase the negative impact of loss of face on emotional exhaustion.

The way FLEs respond to customer aggression during service encounters, as well as the FLEs’ status and the context, can intensify their loss of face and psychological well-being. This has implications for the extent to which organisations impose a “customer is always right” dictum on FLE, as well as the need for counselling and peer support immediately following customer aggression incidents.

This study is the first to investigate the moderating effects of social status, a “customer is always right” philosophy and public/private context on the expression of customer aggression and FLEs’ accompanying loss of face. In other words, rather than simply examining what causes face loss, the authors shift the focus from the “Is” question to “When” – i.e., under what contingency condition is there more or less face loss?

This research aims to examine the cognitive appraisals of frontline employees (FLEs) when dealing with aggressive customers and the impact on their well-being, as well as several moderator effects, in a collectivist, Eastern culture.

A critical incident technique reveals the cognitive appraisal of FLEs who had recently experienced customer aggression. Data were collected through qualitative, in-depth interviews with 35 FLEs in customer-facing roles in Thailand.

The FLEs perceived threats to self-esteem, physical well-being, goal completion at work, fairness or equity and sense of control when dealing with customer aggression. These cognitive appraisals affected their psychological well-being in the form of negative affectivity, anxiety, depression and stress. Importantly, factors that moderate (exacerbate or weaken) the impact of customer aggression on cognitive appraisal, and cognitive appraisal on psychological well-being were revealed, including “customer is always right” philosophy, social status, public versus private context and social support.

Organisations should pay more attention to FLEs’ psychological well-being and how they interpret and deal with customers’ misbehaviour and aggression. The research identifies factors that moderate the impact of customer aggression on psychological well-being.

This is the first empirical paper that has examined how FLEs cope with customer aggression in a collectivist, south-east Asian context where social norms calibrate FLEs’ responses to customer aggression. It is also the first research that adopts a contingency approach to understanding how FLEs cope with customer aggression – i.e. when faced with customer aggression, under what contingency conditions do FLEs cognitive appraisals have a stronger or weaker impact on their psychological well-being?