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This research investigates the role of customer forgiveness as the result of online service recovery transparency in predicting customer engagement. It also examines the moderating roles of timeliness and personalization in this proposed model.

An online survey study using retrospective experience sampling and a scenario-based experimental study were conducted to test the proposed hypotheses.

Customer forgiveness positively influences customer engagement and plays a mediating role in the relationship between service recovery transparency and customer engagement. Additionally, timeliness and personalization moderate the positive influence of service recovery transparency on customer forgiveness. The positive influence of service recovery transparency on customer forgiveness is more apparent when levels of timeliness and personalization decrease.

To retain focal customers' engagement after a service failure, firms must obtain their forgiveness. One of the firm's online complaint handling strategies to increase the forgiveness level of focal customers is to provide a high level of service recovery transparency (i.e. responding to their complaints in a public channel), especially when the firm is unable to respond to online complaints quickly or provide highly personalized responses.

This research provides new insights into the underlying mechanism of customer engagement by applying the concept of customer forgiveness. It also contributes to the social influence theory by applying the essence of the theory to explain how other customers' virtual presence during the online complaint handling influences the forgiveness of focal customers in order to gain their engagement. Additionally, it provides insight into the conditions under which the role of service recovery transparency can be very effective in dealing with online complaints.

The purpose of this paper is to develop and apply the sequential incident laddering technique as a novel approach for measuring customer service experiences. The proposed approach aims to correspond with the concept's theoretical foundation in the extant literature.

The paper applies the sequential incident laddering technique to measure customer service experiences. The technique integrates two well‐established methods in service marketing: sequential incident and laddering techniques. The data collected from 41 customers in a hotel and restaurant experience context illustrate that the method corresponds with the key themes of the proposed experience concept and experience formation process.

Applying the proposed technique reveals first, the customer's cognitive and emotional responses to company stimuli. Second, the salient customer cognitions and emotions across several episodes of the service interaction process are identified. Third, the personal values which drive the customer's service experience are disclosed.

The empirical study is a first illustration of the proposed measurement approach in only one company based on a limited sample size. The methodological contributions and development opportunities for further applications are set out for different contexts and in combination with other methods.

The proposed method integrates customer and company‐related constructs. Therefore, the data collected can provide managers with guidelines for customer service experience design based on detailed customer feedback.

The paper proposes an innovative measurement approach to customer service experiences which can support knowledge development in an important marketing area.

The customer retail experience is frequently interrupted by disturbances such as ringing phones and other people. Employees must be able to respond to retail disturbances effectively to ensure that customers have a satisfactory experience in the retailer. Using Affective Events Theory as a framework, the purpose of this paper is to develop and test a model for understanding how retail disturbances affect customers outcomes and how retail employee response mitigates the negative impact of retail disturbances.

The model was tested using a pre-study of retail managers and consumers, a survey study and four experimental studies.

Retail disturbances reduce interactional justice and customer positive emotions. Customers pay attention to how employees address retail disturbances, even when they are not directly involved.

The research experiments focus on sound-based disturbances. Other stimuli (e.g. olfactory or visual) should be examined in more detail.

Employees can mitigate the negative effects of retail disturbances on customers with a positive response to the disturbance and to customers. Employee responses influence customers currently receiving service and nearby shoppers.

The findings demonstrate the deleterious effect of solicitation calls on small retailers and provide recommendations for reducing solicitation calls.

This research shows that retail disturbances reduce customer outcomes, employee response becomes part of the disturbance event, and that it is possible for employees to address a group of nearby customers indirectly through unintentional observation.

The purpose of this paper is to explore influencing factors that affect the effectiveness of service recovery strategies using social network from operations management perspective. Specifically, the authors study the relationships between social media agent responses to customer complaints, customer emotion changes and customer satisfaction. Furthermore, the authors investigate the roles of recovery speed and failure severity in the service recovery process using social network platform.

The results are based on 347 mini cases drawn from the Twitter accounts of a sample of airlines. Grounded theory approach is used to conduct qualitative analysis using NVivo 9, a qualitative data analysis program. A conceptual framework was developed, then tested using χ² analysis.

Agent responses that do not require customers to take further initiatives for problem solving have positive effects on customer emotion alleviation and satisfaction. In contrast, responses that provide further directions poses negative effect on service recovery outcomes. There is a strong positive linkage between customer emotion change and customer satisfaction. Surprisingly, the direct effect of recovery speed on customer emotion and satisfaction is not supported by the data. Rather, it plays a moderating role in affecting the relationship between agent responses and customer satisfaction. The qualitative data further reveals the pivotal role of failure severity, one of key service failure attributes.

The authors study service businesses’ recovery strategies using social media. A conceptual framework is developed to link agent responses, customer emotion changes and customer satisfaction from the lens of service providers, using an operations-oriented approach. Finding on recovery speed and failure severity reveal that these variables play different roles when service recovery is operated on social media platform as compared to traditional channels. Additionally, relying on tweets as data sources has constrained us from assessing other long-term service recovery outcomes such as loyalty, repurchase intent and word of mouth. The drawback is resulted from the limited information conveyed through tweets, which tends to be short and brief. The study focusses on the airline industry, which limits the generalizability of the findings to other service industries.

The authors highlight the value and potential of service recovery strategies using social network and provide insights for recovery operations where agent responses should be focussing on real time problem solving. The findings support the benefits of empowering social network agents for service recovery operations. Improving recovery speed should be less of a priority as it serves as a qualifier when service recovery is operated via social network. Given the pivotal role of failure severity, it is critical for social network agents to stand in the shoes of the complaining customers, making imminent assessment of the actual failure severity and taking action accordingly in real time. In the meantime, effective communication through social network may help to lower perceived magnitude of failure by customers, which in turn enhance the effectiveness of other service recovery efforts.

This study is the first attempt to investigate the service recovery process using social media from an operations-oriented perspective. The results supports the potentials of employing service recovery strategies using social media.

Customer service is often described as consisting of a set of measurable elements. Similarly, market response to customer service may be viewed as consisting of a set of components which are measurable. Most published empirical studies of the relationship between customer service and market response, however, have represented market response through the use of a single measure. The results of an empirical study of interset association between two sets of measures, one representing the elements of customer service (measured in service levels) and the other representing various forms of market response, are reported. Canonical correlation analysis of data collected from 91 grocery channel dyads indicated (as expected) a closer association of market response with customer perceptions of customer service than with supplier perceptions of the same. Also presented, is the contribution of individual measures to the close association between market response and customer perceptions of customer service.

There is growing interest in the use of human-like social robots, able to undertake complex tasks whilst building consumer engagement. However, further exploration is needed on the optimal level of humanoid appearance for service robots. In particular, the literature is limited with respect to mitigating disconfirmed expectations for robots high in human-likeness. This paper aims to address this gap by testing the effect of robot appearance, disconfirmed expectations and warmth (vs competence) on customers’ responses.

The study adopts a mixed-method design by presenting a focus group (Study 1) that guides two laboratory experiments (Studies 2 and 3). Studies 2 and 3 test for the moderating effect of warmth (vs competence) and the mediating roles of perceived eeriness and disconfirmed expectations.

The findings show that a robot high (vs low) in human-likeness leads to higher negative customers’ responses, which is explained by disconfirmed expectations rather than perceived eeriness. However, when customers interact with a warm (vs competent) robot high in human-likeness, this negative effect vanishes.

The paper investigates boundary conditions and underlying mechanisms that affect customers’ experiences. Although the study adopts high realistic experiments, a limitation lies in not measuring customers’ actual behaviours in the field.

This study provides new insights on how the appearance and characteristics of social robots influence the consumers’ experience. By doing so, this study offers managers actionable insights (i.e. enhancing warmth) to lessen the risk of disconfirmed expectations.

The paper offers new explanations as to why human-like robots can generate negative responses from customers. Moving beyond the “uncanny valley” hypothesis, this study shows the key role of disconfirmed expectations in explaining consumers’ negative responses towards humanoid robots. Moreover, it sheds light on the moderating role of warmth (vs competence), which can mitigate such negative effects.

The application of artificial intelligence (AI) in the customer market has completely changed customer behaviors. This study aims to investigate the customers' co-creation experiences with AI in the digital age.

An online survey was used to collect data from 699 customers who had used AI-enabled banking services. Hypotheses were validated using partial least squares modeling.

The findings indicate that the customer response capabilities (e.g. perceived response expertise and perceived response speed) serve as the intermediate processes between the AI service quality and the overall co-creation experience with AI. Moreover, AI function-customer ability fit negatively moderates the direct relationship between the AI service quality and the overall co-creation experience with AI.

This study improves the current understanding of co-creation by investigating the human–machine co-creation (e.g. customer–AI co-creation) instead of human–human co-creation.

Recognizing that crowding in a restaurant waiting area forms a first impression of service and sets service expectations, the purpose of this study is to investigate the impact of crowding in the effective control of the waiting environment. The study seeks to examine the impact of crowding on customers' emotions and approach‐avoidance responses and to examine the mediating role of emotion and the moderating role of desired privacy in the relationship between crowding and approach‐avoidance responses.

Using real‐scale, interactive virtual reality (VR) technology that allows high‐fidelity representations of real environments, the authors created a navigable, photo‐realistic three‐dimensional model of a restaurant waiting area. Through an experimental study which manipulated crowding levels in the VR restaurant, they surveyed the subjects' responses toward crowding conditions.

The study found significant effects of crowding on emotions including arousal and dominance, but not pleasure, and on approach‐avoidance responses. The impact of crowding on approach‐avoidance responses was more direct than indirect, without having emotion as a mediator. It was also found that the desire for privacy as a psychological trait moderated the relationship between crowding and affiliation.

The findings of this study offer restaurant managers insights toward the effective management of the pre‐process service environment during the waiting state that minimizes the negative consequences of waiting/crowding. This study provides three courses of management actions that can make unavoidable crowding in the restaurant waiting situation more enjoyable and comfortable.

By using VR simulation, this study adds a new approach for crowding studies. Theoretically, this study broadened the scope of crowding studies by adding a potential mediating variable, emotions, and a moderating variable, desired privacy, in examining the relationship between crowding and approach‐avoidance responses. Also, by focusing on a restaurant waiting area, the authors were able to explore the pre‐process service expectations.

This paper aims to examine the role of three forms of customer commitment (normative, affective, and continuance) on a variety of loyalty‐related customer responses.

Data were collected from two distinct sampling frames, which yielded a combined metrically invariant sample of 348 consumers. A three‐dimensional conceptualization of commitment is used to analyze impacts on one focal (i.e. repurchase intentions) and two discretionary customer responses.

Results of structural equation modeling analyses indicate that affective commitment is the primary driver of the customer responses and mediates the effects of normative and continuance commitments. These effects are contingent upon the type of service.

This research emphasizes the primacy of affective commitment in predicting loyalty‐like customer responses.

Managers need to focus primarily on generating affective commitment, but be mindful that normative and continuance commitment also play a role in generating desirable consumer responses.

The paper builds on and overcomes several deficiencies in prior commitment research. A more accurate and useful representation of affective, normative, and continuance commitment roles in generating focal and discretionary behaviors is provided.

After a negative consumer review (NCR) has been posted on an online shopping site such as Amazon.com, the immediate concern of a brand holder should be to focus on the steps the brand should take to rebuild the unhappy consumers’ trust. The purpose of this paper is to employ the signalling theory to analyse whether a brand response, a customer response or a response that combines both when responding to a NCR leads to better product purchase intentions at the customer end.

In a laboratory study comprising 351 respondents, six different response scenarios are tested, both for a well-known and an unknown brand. The experiment employs a 6 (response scenario: single brand response, single customer response, brand response and one customer response or vice versa, brand response and three customer responses or vice versa)×2 (customer-based brand equity: strong/weak) between-subject design.

The findings show that after a NCR, the subjects perceive a customer response as more trustworthy than a response from an unknown brand. However, customer-based brand equity changes the whole story. If a strong brand responds, the purchase intentions of the subjects are similar to those generated by a single customer’s response. In addition, after considering multiple responses, it can be seen that a response combining a brand and a customer response has a higher effect than from a single response. Furthermore, the authors demonstrate that perceptions are more favourable if several customer responses are sent in case of an unknown brand.

The originality of this paper lies in the fact that it tries to explore how the consumers perceive multiple responses from different sources after a NCR has been posted. The results highlight that a response that combines a brand and a customer response has a significantly higher effect than what is achieved from a single response. It must also be noted that customer-based brand equity plays a key role.