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The authors' research examines how negative electronic word-of-mouth (e-WOM) alters focal customers' post-recovery justice perceptions and attitudes to determine their future behavior with the service provider. Specifically, this paper develops and tests a conceptual model to investigate how negative e-WOM alters focal customers' perceptual and attitudinal outcomes after the service recovery experience. It also examines the post-recovery effect of negative e-WOM on focal customers’ willingness to patronize the service after their recovery experience.

To test the hypotheses, two pretests and two experimental studies with created scenarios in the retail context were conducted.

The authors' findings reveal that services are judged during and well beyond failure and recovery occurrences. To maintain a loyal customer base, service managers should develop processes that address service complaints both within and beyond the service consumption stage. The authors also find that despite a favorable recovery, focal customers gravitate toward the failure experience and develop unfavorable attitudes toward the service provider, leading to likely defections.

The authors' research demonstrates the persuasive power of negative e-WOM at the post-service recovery stage, making a unique contribution to the service recovery literature. This research also contributes to the persuasive effect of negative e-WOM, demonstrating message context as a boundary condition of negative e-WOM effects. In general, the authors' work highlights the importance of understanding the psychological processes involved in eliciting the persuasive influence of negative e-WOM in the post-service recovery stage that may lead to the defection of “so-called” successfully recovered customers.

This study investigates two moderators of the effects of manufacturers' recovery efforts following a product defect on customers' perceptions of product quality: the severity of the product defect and whether the recovery efforts were covered under warranty or not.

A total of 478 USA customers who purchased a new car from a cooperating manufacturer participated in a survey. Customers reported the most important product defect (if any) the customers had experienced with the customers' vehicle during the past year. Three linear regressions (OLS) were used to test the proposed hypotheses.

Defect severity moderates the effects of recovery efforts on quality perceptions. The well-known recovery effect occurs only for product defects of minor severity. Experiencing a severe product defect damages the customers' perceptions of product quality even if the product defect is completely fixed. Double deviations (failed recovery of a product defect) do not damage quality perceptions for defects of minor severity. Finally, warranty coverage of repairs can attenuate the adverse effects of a failed recovery of severe defects on customers' quality perceptions. Additionally, only non-complainers who have experienced a severe product defect correspond to the prevailing conceptualization of an at-risk customer group.

Despite the pervasiveness of product defects, research on the effects of experiencing product defects on customers' product quality perceptions is scarce. Furthermore, the authors' findings reconcile inconsistent results and provide a more nuanced understanding of the well-known recovery and double-deviation effects. Finally, the role of warranty coverage in the recovery process as a buffer for customers' perceptions of product quality is novel.

Digital transformation (DT) has created a number of significant opportunities and related alterations in consumers' behaviours. However, consumers differ in adopting DT. There is still a need to investigate consumer's capabilities and his/her perception of other customers that supports or hinders the DT process. This study aims to investigate human thinking capabilities (critical thinking, holistic thinking and creative thinking) as drivers of two specific types of outcomes: DT barriers and/or DT nurture. In addition, this research also examines the linkage between human capabilities (three types of thinking) and other customers' perception. Finally, it postulates that other customers' perception drives DT barriers and/or DT nurture.

Applying to the public, private and international banking sectors, 273 questionnaires were collected. The collected data was analysed using AMOS as well as the PROCESS macro.

The results showed that human thinking capabilities have different effects on DT barriers and nurture. While critical thinking has a significant effect on DT barriers, both holistic thinking and creative thinking have a significant effect on DT nurture. Other customers' perception construct has a significant effect on both DT barriers and nurture. In addition, only holistic thinking has an effect on other customers' perception.

This study advances knowledge in three ways. Firstly, it examined DT barriers and nurture as variables from the customer's perspective. Secondly, it examined each human thinking capability on DT barriers and nurture, giving more insights. Thirdly, it studied human thinking capabilities as one of the main factors that might affect other customers' perception and DT barriers and nurture, while most previous studies focused only on other customers' perception's impact on DT barriers and nurture.

To obtain a competitive advantage in the logistics market, international express companies should design services to stimulate customers’ usage intention by understanding customers’ affective perceptions (or in Japanese, Kansei) of the service offerings. Thus, the purpose of this paper is to analyze the relationships among the service elements of international express, customer Kansei perceptions, and intentions to use the service, to provide new ideas for the design of international express services (IESs).

By using Kansei engineering approach, customers’ Kansei perceptions related to elements of IES are first determined, and the logistic regression technique is then used to analyze three constructed models based on the relationships among the service elements of international express, customers’ Kansei perceptions, and usage intention.

Accordingly, five critical service elements that correspond to four vital Kansei words related to usage intention were obtained based on cross-comparisons of the results of three models. The findings have important implications for international express managers, in that the priorities in designing services should be those service elements that favorably elicit certain Kansei perceptions among customers and effectively lead to customers’ usage intention in the pre-purchase phase. Moreover, some important missing Kansei perceptions further derived from customers’ real service experiences in the post-purchase stage should be incorporated into future design considerations.

This study incorporated customers’ Kansei perceptions into the procedure of IES design. By understanding the service elements and feelings that customers deem important, international express companies can improve the content of existing services and strengthen the design of new services to increase customers’ behavioral intentions.

The purpose of this paper is to apply a thoroughly tested model to the study of how corporate social responsibility (CSR) perceptions impact customers’ affective and behavioural responses in the banking industry. As a contribution to the previous literature, the moderating role of the type of company (savings banks vs. commercial banks) in the conceptual model is explored.

A structural equation model is tested with information collected from 648 customers of savings banks and 476 customers of commercial banks.

The findings demonstrate that CSR perceptions positively impact customer identification with the banking company, emotions, satisfaction, recommendation and repurchase behaviours in both samples. However, CSR is perceived differently by customers depending on the type of banking company that implements it. Thus, its effects on customers’ affective and behavioural responses are different.

Practitioners should not try to promote the best CSR approach for a standardised organisation, regardless of its special industry characteristics. They should be aware of the differences customers perceive in companies to adapt their CSR initiatives to the expectations of their targets.

The contributions of the paper are two-fold. On the one hand, the banking industry has been scarcely explored by previous scholars. On the other hand, the authors explain the role that the type of banking company plays in the conceptual model proposed in the paper because significant differences are observed among savings bank customers and commercial bank customers concerning their affective and behavioural responses to CSR perceptions.

The purpose of this paper is to focus on the use of retail customer service as a value added component and potential success strategy for rural tourism retailers. More specifically, service quality expectations and perceptions as a means for segmenting tourism markets are to be examined.

Data were collected using a case study methodology in an established rural tourism community. Local customers, tourist customers, and retailers participated in the study. A canvassing approach was employed for administering a hand‐delivered, self‐report survey that examined parallel sets of service quality expectations and perceptions among the three groups, along with service satisfaction outcomes (i.e. retailer loyalty and purchase intentions). Descriptive analysis, factor analysis, t‐tests, and regression analysis were conducted.

Local and tourist customers' prior expectations for retail service quality were similar; however, local and tourist customers' post‐experience service quality perceptions differed significantly. A modified version of the SERVQUAL scale represented two service quality perception constructs important to local customers and retailers and one service quality perception construct for tourist customers.

Generalizability of findings may be limited as the in‐depth study was conducted within a single rural tourism community in Iowa.

The study sheds light on service quality perception dimensions that are salient to local customers, tourist customers, and retailers. Results aid in the development of customer relationship management strategies for both local and tourist customers and enhanced competitive options for rural tourism retailers.

Findings provide baseline information regarding customer relationship management strategies aimed at establishing rural tourism retailer sustainability by simultaneously meeting service expectations and enhancing service perceptions for local and tourist customers.

The purpose of this study is to examine the actions and interactions that take place before and after purchase between a service provider (service seller) and its customers (service buyers) in complex business relationships. Specifically, it is to examine customers’ expectations of the service provider’s service offer before purchase and the same customers’ perceptions of the service solution offered after purchase in a business-to-business (B2B) context.

This study adopted a mixed methods design, which combined data generated through in-depth interviews (both with service buyers and key informants from the service company), an online customer survey, analysis of textual documents and structured observations of buyer–seller interactions and actions. Both objective and subjective points of view at different stages of the investigation were collected.

The authors’ results show that, contrary to previous evidence in B2C service research, the customers’ perceptions of the service performance were not significantly related to their previous expectations. In this context, characterized by dynamic and constantly evolving processes and many parties (both from the buyer and the seller company) involved in the implementation process, service complexity may cause a lack of well-formed expectations regarding how the service will perform and its relevant performance attributes.

This study suggests that the service models traditionally used to describe and explain customer service expectations and perceptions in relatively simple service contexts with final consumers are difficult to apply in B2B complex business relationships. Rather, scholars need to take a holistic, continuously evolving and adapted perspective when examining the formation of customer service expectations and their perceptions in B2B complex services.

There should be a teleological balance between sales and purchase approaches in B2B contexts to optimize the outcome of complex business relationships between service providers and service receivers. The authors suggest several recommendations to service providers to ensure that their salespeople do not create unrealistic and unachievable expectations in the minds of the service receivers. Service providers are also encouraged to develop formal cross functional teams (e.g. consisting of salespeople, service technicians and service support) based on mutual understanding and information sharing.

This study provides an alternative time-oriented understanding of the way customer expectations before purchase and their perceptions after purchasing a complex software solution in industrial markets formed through the lens of teleological framework. As such, this is the first empirical inquiry with this specific framework in B2B contexts making a relevant contribution to literature.

This paper presents a holistic model of customer retention incorporating service quality perceptions, price perceptions, customer indifference and inertia. Data from a large‐scale postal survey of telephone users in England showed that perceptions of service quality have a direct linear relationship with customer retention even in mass services with low customer contact. Price perceptions and customer indifference too were found to have a direct linear effect on retention. Furthermore, it was also seen how both price perceptions and customer indifference moderated the relationship between service quality perceptions and customer retention. A linear relationship between inertia and customer retention was not found. Furthermore, there was evidence to indicate that inertia was a relatively unstable condition and that reliance by service providers on inertia to retain customers could indeed be a risky strategy.

This study aims to demonstrate that meta-perceptions play a contributing role in customers’ direct complaint intention.

In an exploratory study, we identified different types of meta-perceptions. In a scenario-based experiment, we tested the interaction effect of service failure attribution and the perceived service failure severity on meta-perceptions and direct complaint intention.

After experiencing service failure, customers amplify both positive and negative meta-perceptions. Depending on how customers attribute the service failure and perceive the magnitude of service failure, they evaluate these meta-perceptions differently which then determine their subsequent actions.

The use of hypothetical scenarios may not capture the richness of an actual service encounter. The study is limited to two service failure contexts: cable TV connection and restaurant booking.

Service managers should design marketing strategies that can elevate customers’ positive social image associated with voicing complaints.

This study offers a new explanation, in that some customers do not engage in direct complaining behavior owing to meta-perceptions that they develop during service failure.

The purpose of this paper is to develop a framework that describes and explains how corporate social responsibility (CSR) initiatives are perceived by customers and links customer perception to the notion of customer value perception. To explore customer value conception firstly, the perception of CSR initiatives is investigated; secondly, indications for the value-enhancing effects of CSR initiatives are studied, and finally, the varying effects which different value categories can have on customer attitudes and behaviour are extracted.

The data consists of 12 semi-structured interviews with customers of European telecommunication companies.

The results suggest that CSR initiatives, when communicated efficiently and considered as relevant by customers, will enhance two customer value categories: the extrinsic self-oriented value defined as efficiency and excellence and the intrinsic other-oriented value pertaining to ethics or spirituality. Enhancement of extrinsic self-oriented value imbeds the potential of CSR initiatives to affect customers’ purchase behaviour and thus strengthen ethical consumerism within the telecommunications industry.

The main implication for research is a better understanding of the relationship between customer perception and customer value perception in the field of ethical consumerism. Focussing on one industry for the study can be named as a limitation.

As indicated by the research, results by customers prioritised CSR initiative can affect the customer value perception, mainly the extrinsic/self-oriented value. If the company is aiming to change customer behaviour and to strengthen ethical consumerism, it is important that the customer experience of CSR initiatives improve excellence (quality) and/or efficiency of the product/service.

This paper fulfils an identified need of research on how CSR initiatives can influence consumer behaviour.