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Service quality in the USA has become a frustrating and unsatisfying experience. Recent indicators suggest customer satisfaction with service has been steadily declining. The financial services sector is no exception. Existing research indicates credit union customers are more satisfied with service quality than bank customers. Current studies also suggest service quality and employee satisfaction are linked to customer satisfaction. Surveys were administered to bank and credit union employees about service quality they receive from their managers. The results did not support the study’s hypothesis that credit union managers would receive higher scores than bank managers. However, the results and implications are important for researchers and practitioners interested in improving service quality at banks and credit unions.

In this chapter, we summarize and build on the current state of the customer mistreatment literature in an effort to further future research on this topic. First, we detail the four primary conceptualizations of customer mistreatment. Second, we present a multilevel model of customer mistreatment, which distinguishes between the unfolding processes at the individual employee level and the service encounter level. In particular, we consider the antecedents and outcomes unique to each level of analysis as well as mediators and moderators. Finally, we discuss important methodological concerns and recommendations for future research.

The aim of the research reported in this article was to develop a conceptual model that links emotional labor strategies performed by service employees to a number of relevant antecedents as well as to a variety of customer outcomes. We link emotional labor directly to the customer domain by examining how customers experience and react to emotional displays of service employees. Thus, we expand current emotional labor research which has predominantly focused on employee and organizational outcomes but has offered limited theoretical guidance as to how customers may be directly affected by emotional labor in the service delivery process. Specific research propositions are developed that offer insight into the antecedents and potential impact of emotional labor strategies on customer behavior. Managerial and research implications as well as avenues for future research are discussed from the perspective of emotional labor theory.

Emotion work benefits service organizations, but high emotion-workloads lead to negative consequences for employees. We examined differences between employees highly competent in emotion work (Experts) and those who are less competent (Novices). We found that Novices conformed to organizational level display rules, used simple strategies and felt overwhelmed by their emotion-workload. In contrast, Experts followed interaction level display rules, used proactive strategies, and found emotion work to be effortless. This suggests that emotion work competence can act as a firewall buffering employees from negative consequences. Hospitality organizations can benefit from encouraging employees to increase their emotion work competence.

The service-profit chain model (Heskett, Jones, Loverman, Sasser, & Schlesinger, 1994) highlights the well-documented relationship between employee and customer attitudes suggesting that employees who are satisfied and engaged with their work provide better customer service resulting in higher levels of customer satisfaction and, ultimately, driving firm revenue. The authors propose an expansion of the service-profit margin identifying the leadership behaviors that create positive employee attitudes and engagement. Specifically, the authors suggest that leaders who focus on recognition, involvement, growth and development, health and safety, and teamwork (Kelloway, Nielsen, & Dimoff, 2017) create a psychologically healthy workplace for customer service providers and, ultimately, an enhanced customer experience.

This chapter investigated tactics used by customer service employees in performing emotion work during their interactions with customers and those internal to organizations. Based on a qualitative study in the hospitality industry, I discovered that customer service employees used a range of tactics that impact different phases of the emotion regulation process in order to facilitate emotion work. One group of tactics was directed towards the work context while the other was self-directed in an attempt to regulate the experience and expression of emotion. Taken together these two groups of tactics provide a holistic portrayal of the range of tactics used by customer service employees in performing emotion work.

This chapter summarizes a meta-analysis of 72 studies (N= 20,701) that link customer mistreatment (abusive, nasty, and rude behavior of customers toward employees) to psychological, attitudinal, and behavioral strains. Results showed that customer mistreatment related significantly to a variety of psychological and attitudinal strains (emotional exhaustion, emotional strain, job (dis)satisfaction, turnover intentions, perceived organizational support, and supervisor support) and behavioral strains (reduced customer service performance and counterproductive work behavior (CWB) directed toward organizations and customers). These results were similar to those found with general mistreatment, suggesting that mistreatment by organizational outsiders might have similar effects to mistreatment from organizational insiders. These results suggest a clear association of mistreatment with strains, but recent work is discussed that questions the typical assumption that mistreatment leads to CWB rather than the reverse.

This article overviews some key contributions to service research from the organizational behavior/human resource management (OB/HRM) discipline with its strong focus on the role of employees. This focus complements the Marketing discipline’s heavy emphasis on customers, largely true of service research, overall.

Ten OB/HRM frameworks/perspectives are applied to analyzing the roles of people (with a focus on employees and modest consideration of customers as “partial” employees who co-create value) in a service organization context. Also, commentary is offered on how the frameworks relate to six key themes in contemporary service research and/or practice. The article concludes with five reflections on the role and status of employees in service research—past, present and future.

Employee roles in evolving service contexts; participation role readiness of both employees and customers; role stress in participating customers; an employee “empowered state of mind”; an emphasis on internal service quality; “strong” HRM systems link individual HRM practices to firm performance; service-profit chain with links to well-being of employees and customers; a sociotechnical system theory lens on organizational frontlines (OF); service climate as an exemplar of interdisciplinary research; emotional labor in both employees and customers; the Human Experience (HX); specification of employee experience (EX).

Service remains very much about people who still guide organizational design, develop service strategy, place new service technologies and even still serve customers. Also, a people and organization-based competitive advantage is tough to copy, thus possessing sustainability, unlike with imitable technology.

This paper aims to aims to extend emotional labor research by exploring whether the impact of emotional labor on customer satisfaction depends on the order in which different emotional labor strategies are used by employees. Specifically, the authors explore how the order effects of two emotional labor strategies – deep and surface acting – impact customer satisfaction.

The authors conducted two experimental studies in which participants interacted with service employees who systematically switched between surface and deep acting strategies during the service episode. In Study 1, participants watched a video clip depicting a service encounter in a bookstore. In Study 2, participants partook in a simulated career-counseling session.

The four different emotional labor strategy order effects differentially impact customer satisfaction. Consistent with theories of gain–loss effects, improvement and decline trends positively or negatively impact customers, respectively. Furthermore, results show that these trends impact customer satisfaction growth differently over time.

The authors only focused on two emotional labor strategies, and future research may benefit from extending the research to additional regulation strategies and/or specific discrete emotions.

The results suggest that managers may train employees in recognizing that customer satisfaction is not just driven by customers’ overall assessment of the interaction but also by their experience at different stages of the interaction.

Service marketing and management scholars have largely explored emotional labor from a between-person or within-person perspective, with little empirical attention paid to within-episode processes that focus on how employee behavior varies within a single service episode. To the best of the authors’ knowledge, this study is one of the first to demonstrate that surface and deep acting can be used simultaneously and dynamically over the course of a single service interaction in impacting customer satisfaction.