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Keeping both employees and customers highly engaged has become a critical issue for service firms, especially for high-contact and highly customized services. Therefore, it is essential to engage employees and customers during service interactions for better service outcomes. However, past research on employee and customer engagement has primarily focused on brands and organizations. Little research has concentrated on service interactions as the objects of engagement. To fill this research gap, this study aims to clarify and define service engagement behaviors (SEBs), identify various employee and customer SEBs and develop a model to investigate the relationships between these behaviors.

A theoretical framework was developed based on social contagion theory and service-dominant (S-D) logic to explore the effects of employee SEBs on customer SEBs through customer perceptions of relational energy and interaction cohesion. Dyadic survey data collected from 293 customer-employee pairs in various high-contact and highly customized service industries were examined through structural equation modeling.

Results show that employee SEBs (service role involvement, customer orientation behavior and customer empowerment behavior) positively influence relational energy and interaction cohesion, which in turn affect customer SEBs (service exploration behavior and service coordination behavior).

This study represents pioneering research to conceptualize SEBs. Different from the extant literature on engagement, SEBs capture the proactive and collaborative engagement behaviors of employees and customers in service interactions. Various employee and customer SEBs were identified and an empirical model was proposed and tested to investigate the effect of employee SEBs on customer SEBs through relational energy and interaction cohesion.

Leveraging the power of corporate social responsibility (CSR) is strategically important to corporations. Although various studies have explored the positive effects of CSR, few have been devoted to the investigation of CSR related to service employees from the internal marketing perspective. Therefore, this study fills this research gap by developing a conceptual model based on social influence theory to explain how internal CSR initiatives affect service employees' attitudes and behaviors.

This study develops and empirically tests a theoretical model examining the impact of internal CSR initiatives (i.e. internal dissemination of and management support for CSR) on service employees' attitudes toward an organization (i.e. employee–company identification and value congruence), which ultimately enhance their organizational citizenship behaviors (OCBs) toward customers, other employees and the organization. Survey data from 271 frontline employees of service firms actively involved in CSR-related activities were examined with structural equation modeling.

The results suggest that perceived internal dissemination of and management support for CSR affect service employees' citizenship behaviors toward customers, other employees and the organization through the mediation of employee–company identification and value congruence.

Internal CSR initiatives are highly related to service employees' various OCBs that are beneficial to improving the service performance of firms. Therefore, it is imperative for companies to devote attention to internal marketing dissemination while promoting CSR. In addition, as managers' attitudes and behaviors trickle down to employees, service supervisors' support of CSR activities plays a significant role in forming employee perceptions of a firm's CSR dedication.

This study represents one of the first to view internal CSR initiatives as an effective internal marketing lever. Moreover, the relationship between internal CSR initiatives and service employees' OCBs – OCB toward customers, other employees and the organization – is proposed and tested with an empirical model, providing significant contributions.

Previous research on the relationship between service environments and customer emotions and service outcomes has focused on the physical environment. Among studies exploring the social environment, the emphasis has been on service employees, ignoring the impact of other customers. Recent research has further called for the need to include displayed emotion within the social environment. Therefore, this study aims to develop and test a more comprehensive model that focuses on the relationship between the social environment (employee displayed emotion and customer climate) and the physical environment (ambient and design factors) and resulting customer emotion and service outcomes.

Based on past research, a theoretical framework was developed to propose the links between social/physical environments and customer emotion/perceptions. Extant research from various academic fields, including environmental psychology, was reviewed, deriving 11 hypotheses. Data collected from fashion apparel retailers, using both observation and customer survey methods, was examined through structural equation modeling (SEM).

Results show that both social and physical environments have a positive influence on customer emotion and satisfaction, which in turn affect behavioral intentions. The physical environment exhibited more influence on customer emotion and satisfaction than social environment.

This research explains how both social and physical environments affect customer emotion and perceptions. Future research directions are discussed, with an emphasis on incorporating customer characteristics, industry attributes, and cultural variables to better understand the influence of service environments in different service settings.

Social and physical environments influence customer emotional states within the service delivery context, which in turn affect customer service evaluations. Therefore, both social and physical service environments should be emphasized by service firms.

This research represents an early attempt to develop a more comprehensive model explaining how both social and physical environments affect customer emotion and perceptions. This study also represents the first empirical study of service environment research to include employee displayed emotion as part of the social environment.