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The purpose of this paper is to take a new look at an old idea: since McGregor’s work in the 1960s, it is common knowledge that managers’ implicit theories about their followers can have self-fulfilling consequences. Surprisingly, McGregor’s work has largely remained within the bounds of employee motivation and has not met with a wide response in related fields such as service management. Assuming that managers do not only hold implicit theories of their followers but also of their customers (i.e. implicit customer theories), this paper transfers McGregor’s Theory X and Theory Y to the service context. It further derives a framework of possible consistencies and inconsistencies between management styles and service strategies, depending on implicit managerial theories about the average employee and customer.

This conceptual paper integrates a management classic, current empirical findings, and media reports into a new line of thought.

This paper develops and undergirds the thesis that it is conducive to the development of trustful and productive relationships both with customers and followers if managers proceed from confident assumptions about them, thereby activating virtuous circles instead of vicious cycles.

This paper links concepts from the organizational domain to the service domain. It implies a normative component in arguing for the productive potential of positive and the destructive potential of negative assumptions about both followers and customers. The value of this idea lies in the potential for positive relational dynamics and better customer and workplace relationships.

This paper aims to introduce the implicit firm theory, distinguishing between the belief that firms can (incremental firm theory) or cannot (entity firm theory) readily change in response to marketplace demands. It is proposed and shown, that firm theory beliefs influence customer-engagement attitudes and intentions.

Study 1 tests the relationship between firm theory, self-theory and knowledge-sharing attitudes. Study 2a tests differences between incremental and entity firm theorists in response to firm failure. Study 2b examines the relationship between firm theory and blame attributions on post-failure loyalty. Study 3 explores the effect of firm theory on perceptions of control and blame attributions following repeated firm failures.

Study 1 shows firm theory influences consumer knowledge-sharing attitudes beyond the effect of self-theory. Study 2a shows incremental firm theorists are more likely to remain loyal to a firm following failure and less likely to share negative word-of-mouth. Study 2b shows that blame attributions mediate the relationship between firm theory and loyalty intentions, with incremental theorists ascribing less blame. Study 3 shows incremental firm theorists significantly increase blame following multiple failures, while entity firm theorists do not.

Results are based on scenario-based surveys and experimental methods; their applicability in more complex real-world customer-firm relationships warrants additional study.

Firms should account for a customer’s firm theory in their communications, emphasizing situational factors to reduce post-failure blame among incremental firm theorists.

Establishes that consumers hold beliefs regarding the malleability of firm traits, which influence their firm engagement intentions.

Fitness service organizations often promote the personal training service by attributing competent features, qualifications, or/and service provision of fitness service providers to efforts or talents. This study aims to investigate whether and when the promotional attribution of fitness service providers' competent features, qualifications, or/and service provision contributes to customers' compliance with service instructions.

The authors developed the experimental stimuli of performance attribution promotion (i.e. effort attribution and talent attribution) and validated them via a pretest (N = 400). Utilizing the validated stimuli, the authors conducted an experiment (N = 400) employing a single-factor (performance attribution promotion: effort vs talent) between-subject design. The authors performed partial least squares structural modeling (PLS-SEM) to test our hypotheses.

The results revealed the interaction effect of performance attribution promotion and customers' implicit mindset on customer participation expectation. Specifically, when customers were high in implicit mindset (i.e. incremental-minded), attributing competent features, qualifications, or/and service provision of fitness service providers to effort (vs talent) increased customer participation expectation. Yet, when customers were low in implicit mindset (i.e. entity-minded), such an effect did not occur. Further, the authors identified customers' intention to comply with service instructions as a downstream consequence of the aforementioned interaction effect.

The contribution of this paper is twofold. It enriches the performance attribution literature by finding its new consequences and boundary condition. Moreover, the findings aid fitness service practitioners in developing strategies for eliciting customers' compliance with service instruction through performance attribution promotion.

A total of 90 hotel, restaurant, and pub managers completed unstructured telephone interviews exploring their implicit theories of how atmospheric music affects consumer behavior. Many of the implicit theories emerging in the interviews were grounded in previous research, but others had no obvious counterparts in the literature. The more novel theories suggested that atmospheric music: must follow circadian rhythms to be effective; encourages or discourages anti‐social behavior; and blocks out annoying and intrusive background noise. Each of the 14 industry‐based explanations of the effects of music is compared with results reported in the academic literature, and directions for future research on the effects of atmospheric music are identified.

Building on both the uncanny valley and construal level theories, the analyses detailed in this paper aims to address customers’ explicit and implicit attitudes toward various service robots, categorized by the degree of their human-like appearance, namely, mechanoids (low human-likeness), humanoids (medium human-likeness) and realistic robots (high human-likeness).

The analyses reflect a mixed-method approach, across three studies. A qualitative study uses focus groups to identify consensual attitudes. An experiment measures self-reported, explicit attitudes toward the three categories of robots. Another experiment explores customers’ implicit attitudes (unconscious and unintentional) toward robots, using three implicit association tests.

Customers express both positive and negative attitudes toward service robots. The realistic robots lead to both explicit and implicit negative attitudes, suggesting that customers tend to reject these robots in frontline service settings. Robots with lower human-likeness levels generate relatively more positive attitudes and are accepted to nearly the same extent as human employees in hospitality and tourism contexts.

Because customers reject, both consciously and unconsciously, very human-like robots in service encounters, managers should leverage this key finding, along with the more detailed results, to inform their strategic introduction of robots into hospitality frontline service settings.

The combined qualitative and quantitative studies specify and clarify customers’ implicit and explicit attitudes toward robots with different levels of human-likeness, in the real-world setting of hospitality and tourism services. Such insights can inform continued research into the effects of these service innovations.

Although service guarantees are generally believed to give firms a competitive edge, much remains to be learned about the value of, and return on, this customer relationship management strategy. This study aims to examine the influence of implicit service guarantees on two important aspects of business performance: customer satisfaction and return on investment.

The study hypotheses are tested utilizing three different sources of secondary data to assess the study variables.

Over a four-year period, top implicit service guarantee provider firms generated superior market and financial performance in terms of customer satisfaction and return on investment than their industry peers

Research limitations/implications

The number of top implicit service guarantee provider firms used to test the study hypotheses is relatively small due to inherent constraints associated with using secondary data. Testing more exemplar firms against their respective industry averages would have been preferable and may have yielded even more robust findings.

Firms recognized for leveraging customer service skills and resources to “make right” any sources of customer dissatisfaction may achieve positional advantages associated with superior business performance. Therefore, focusing on building a firm's reputation for exceptional customer service provision may be a more effective approach than offering an explicit service guarantee.

This research offers support for contentions that customers value the implicit service guarantees associated with firms recognized for outstanding customer service and responds to calls for research that evaluates the specific information that must be communicated to customers to enhance the credibility and effectiveness of service guarantees.

This article is based on an empirical study and describes an approach for managing customer expectations to achieve long‐term quality and customer satisfaction in professional services. Professional services are somewhat different from other types of services, and often so are customer expectations. This article describes three types of expectations typical in the professional services context: fuzzy, implicit, and unrealistic. These types of expectations may represent a dangerous pitfall for long‐lasting customer satisfaction. Managing expectations is important since service quality and satisfaction result from how well the actual service performance, in other words the service process and outcome, matches the expectations. Much can be done to achieve long‐lasting satisfaction with sophisticated expectations management. This article suggests that making fuzzy expectations precise, implicit expectations explicit, and unrealistic expectations realistic, facilitates long‐term quality and customer satisfaction. The expectations‐management approach introduced in this article is particularly important when the goal is to create long‐term customer relationships.

There is a pressing need for practitioners to adopt viable analytic procedures that may help them optimize resource allocation to strengthen customer satisfaction. This paper reviews a range of procedures used for measuring customer satisfaction that are identified in the literature and tests which procedures might be more useful to practitioners.

Customer satisfaction measurement procedures developed in the literature are reviewed to assess the non‐linear and asymmetric relationship between attribute performance and overall satisfaction. A convergent validity test between the two measurement procedures that the review suggests are the most suitable for application in practice is then conducted to discover the relative merits of each. The test is based on an empirical investigation carried out in the mobile communication industry.

Two measurement procedures were identified as the most appropriate to practitioners, “regression with dummy variables” and the “Importance Grid”. These were compared using a convergent validity test, which revealed a lack convergent validity between the two. Discussion about the reliability of the two procedures and the implications for practice is provided. On balance, the regression with dummy variables was identified as the better approach.

The paper highlights the importance that recognition is given to the non‐linear and asymmetric response of customer satisfaction to the performance of different product/service attributes if appropriate decisions are to be made for allocating marketing resources. While research on customer satisfaction has emphasized the need to account for the non‐linear and asymmetric relationship between attribute performance and overall satisfaction, no effort has been made to disseminate these insights fully among practitioners. Since understanding the relationship between attribute performance and overall satisfaction is paramount if resource allocation to improve attribute performance is to be prioritized correctly, there is a pressing concern to move customer satisfaction programs closer to the theory predictions. A range of measurement procedures is reviewed and compared. Through this work, academics and practitioners may gain further insight into procedures for measuring customer satisfaction and an understanding of the relative benefits and limitations of the procedures that may be adopted.

Implicit contracts are ‘invisible handshakes’ that are not legally binding but are grounded in mutual understanding between the parties of what they expect from each other. These contracts are very common both within the firm (e.g., between managers and employees) and in business relationships (e.g., between a firm and its suppliers). Typically, implicit contracts arise in relationships that are in some way open-ended. An extensive literature has showed that implicit contracts allow firms to create value by encouraging relationship-specific investment and motivating effort by stakeholders. This chapter focusses on how sustainability satisfies existing implicit contracts (including a broad social contract with society at large) and facilitates a firm in entering new implicit contracts by improving its trustworthiness. The author argues that the adoption of sustainability is directly related to industry- and firm-level variables that make implicit contracts important to a firm’s strategies, and inversely related to the strength of overriding factors that make a firm trustworthy. Based on this reasoning, the author analyses four areas in which rates of sustainability adoption can vary according to the importance of implicit contracts.