Search results

This paper aims to explore practice innovation and organizational resiliency during exogenous service ecosystem disruptions. This inquiry focuses on the extreme disruption caused by the COVID-19 pandemic, which required service firms to recodify long-established service scripts, adapt digital and physical material elements of the service encounter and ultimately reconfigure a system of practices. The specific context is forced practice innovation in Starbucks servicescape (kiosks and coffeehouses). Starbucks is best known for its custom beverages and third-place strategy. Their strict adherence to a complex service script and unique ordering practices altered during pandemic stay-home disease prevention mandates.

Thematic coding consistent with prior research on practice innovation and diffusion and a grounded theory methodology was conducted. Data were triangulated and analyzed within and across a variety of sources. These include field notes from direct observation, interviews, focus groups, firm-authored collateral in the form of marketing communications and third-party authored secondary sources such as news, social media, blogs and forums.

Data reveal how practice innovation occurs through the reconfiguration of a system of practices, which support organizational resiliency and can force brand evolution, in prolonged exogenous service ecosystem disruptions. The COVID-19 pandemic required service industries to adapt and recodify service scripts and alter physical and digital elements of service encounters. While the pandemic affected all firms in the sector, we argue that Starbucks' established scripts and third-place strategies, which characterized the brand experience, were particularly vulnerable. We find that practice innovation occurs through the reconfiguration of practice elements – competences, meanings and materiality – and restructures the service encounter. Practice codification, transposition, adaptation and stabilization support organizational resiliency and brand evolution. We find that Starbucks' brand experience emphasis on the third place is reconceptualized from an in-person community-based retailscape to a platform-based strategy necessitating script recodification and practice adaptation. Our analysis of Starbucks' kiosks and coffeehouses illuminates how a distinctly branded service encounter is constituted by a system of practices that can be reconfigured and diffused anew in the face of disruption.

The conceptualization of practice innovation as systems reconfiguration establishes a novel approach to understanding innovation in service ecosystems. The COVID-19 pandemic is a unique context to study a sector-wide exogenous extended service disruption. We focus on a firm with an elaborate pre-pandemic service script and commitment to a third-place brand experience guiding its system of practices. We reveal unique insights on practice innovation within service ecosystems during exogenous prolonged disruptions in which brands evolve through the recodification of service scripts and sustained reconfiguration of systems of practice.

Using the analogy of “If you build it, they will come” from the movie Field of Dreams, this study aims to draw on relational signaling and commitment–trust theories to examine the role of different types of trust (cognitive, affective and relational) in the relationship between relational-encounter quality and customer loyalty to service employees and to the organization in the case of an integrated casino resort. The study confirms that building it (trust), they (customers) will come to the casino exhibited in their loyalty to casino hosts and their affiliated casinos.

The study was conducted with very important person (VIP) customers who have a designated VIP host to provide them with personal services at an integrated casino resort in Macau. The questionnaire was distributed to the respondents by VIP hosts using WeChat and Tencent QQ.

The study shows that different types of trust (cognitive, affective and relational) play a significant mediation role in the relationship between relational-encounter quality and the customers’ loyalty to the hosts and their affiliated casinos.

To the best of the authors’ knowledge, this study is the first to investigate the roles of different types of trust (cognitive, affective and relational) in the relational encounter between casino hosts and VIP customers and provides insights into the link between service employees and their firm through the nurturing of the service encounter with the firm’s key accounts.

An AI concierge is a technologically advanced, intelligent and personalized assistant that is designated to an individual customer, proactively taking care of that customer’s needs throughout the service journey. This article envisions the idea of AI concierges and discusses how to leverage AI concierges in the customer journey.

This article takes a conceptual approach and draws insights from literature in service management, marketing, psychology, human-computer interaction and ethics.

This article delineates the fundamental forms of AI concierges: dialog interface (no embodiment), virtual avatar (embodiment in the virtual world), holographic projection (projection in the physical world) and tangible service robot (embodiment in the physical world). Key attributes of AI concierges are the ability to exhibit semantic understanding of auditory and visual inputs, maintain an emotional connection with the customer, demonstrate proactivity in refining the customer’s experience and ensure omnipresence through continuous availability in various forms to attend to service throughout the customer journey. Furthermore, the article explores the multifaceted roles that AI concierges can play across the pre-encounter, encounter and post-encounter stages of the customer journey and explores the opportunities and challenges associated with AI concierges.

This paper provides insights for professionals in hospitality, retail, travel, and healthcare on leveraging AI concierges to enhance the customer experience. By broadening AI concierge services, organizations can deliver personalized assistance and refined services across the entire customer journey.

This article is the first to introduce the concept of the AI concierge. It offers a novel perspective by defining AI concierges’ fundamental forms, key attributes and exploring their diverse roles in the customer journey. Additionally, it lays out a research agenda aimed at further advancing this domain.

The involvement of clients in service encounters and service development has become a central principle for contemporary health and social care organizations. However, in day-to-day work settings, the shift toward client involvement is still in progress. We examined how health and social care professionals, together with clients and managers, co-develop their conceptions of client involvement and search for practical ways in which to implement these in organizational service processes.

The empirical case of this study was a developmental intervention, the client involvement workshop, conducted in a Finnish municipal social and welfare center. The cultural-historical activity theory (CHAT) framework was used to analyze the development of client involvement ideas and the modes of interaction during the intervention.

Analysis of the collective discussion revealed that the conceptions of client involvement developed through two interconnected object-orientations: Enabling client involvement in service encounters and promoting client involvement in the service system. The predominant mode of interaction in the collective discussion was that of “coordination.” The clients' perspective and contributions were central aspects in the turning points from coordination to cooperation; professionals crossed organizational boundaries, and together with clients, constructed a new client involvement-based object. This suggests that client participation plays an important role in the development of services.

The CHAT-based examination of the modes of interaction clarifies the potential of co-developing client-involvement-based services and highlights the importance of clients' participation in co-development.

This paper aims to answer questions pertinent to whether or not services provided by smart hotels are really what customers are looking for, as well as to ascertain what are some unintended experiences guests may encounter. In essence, to the best of the authors’ knowledge, this research is the first in the field to acknowledge the paradox of smart service.

This inquiry adopts a qualitative approach with data-driven from online customer reviews and semistructured interviews. Thematic analysis was undertaken to interpret review comments.

Results point to a new phenomenon, which is coined as the smartness paradox. In particular, customers on one hand enjoy an array of smart-infused experiences that jointly offer patrons a sense of a futuristic lifestyle. On the other hand, smart devices superimpose a number of hindrances that bring guests dismay and annoyance.

This investigation brings smart service failure to the fore to highlight several key failure themes that could jeopardize the entire operation with debased customers’ satisfaction and loyalty inclination.

The smartness-paradox framework used in the present inquiry entails both approach and avoidance consequences customers enact depending on their smart experiences.

The study has two objectives: (1) expand our knowledge of the relationship between unethical behaviour and both trust and satisfaction and (2) demonstrate that unethical behaviour research should be examined multi-dimensionally.

Data were collected by resorting to a mixed methods approach. First, individual interviews were performed with 31 bank consumers from six main commercial banks in Bukavu city in the Democratic Republic of the Congo. Interview notes were submitted for content analysis to identify items and components that underpin the unethical practices construct. Second, a quantitative survey was conducted with 410 consumers from the same six banks. An aggregated-disaggregated structural equations modelling approach was used to test the impact of unethical practices on relationship outcomes through two studies. Study 1 tested a model that links unethical behaviour as a one-dimensional construct to trust and satisfaction. Study 2 tested a model that directly connects the four specific unethical behaviour components to both trust and satisfaction.

Results from study 1 reveal that perceived unethical behaviour negatively influences consumer trust. Results also confirm that trust positively influences customer satisfaction. Results from study 2 confirm that unresponsive, disrespect and lying behaviours negatively influence both trust and satisfaction. Banks which are involving in those specific unethical behaviours can neither satisfy their consumers, nor maintain a sustainable and profitable relationship with them. Therefore, unethical behaviours harm the relationships outcomes in the banking sector.

The perceived unethical behaviour scale derives from a single data set and its reliability and validity need to be improved. Relationships between constructs are tested in a more direct way and ignore moderating variables. Perceived unethical behaviour is connected to relationship outcome variables while its impact on firms’ metrics have been ignored.

Banks have to understand customers’ perception of unethical behaviours and find a way to overcome them. Banks should recruit, motivate and retain employees who demonstrate an ethical inclination in the service encounter and create structures and mechanisms in order to monitor and manage unethical practices.

Banks employees' unethical behaviour and practices not only damage the trust and reputation of banks but also can lead to frustration on the part of customers and damage their relationship with the institution. Our paper is a warning of this danger and might improve the social interactions between organisations (in general) and customers.

Unethical behaviour is measured with a four-component scale in contrast to previous studies that have used bi-dimensional or one-dimensional scales. The study tests a disaggregated model that links four components of perceived unethical behaviour to relationship outcome variables. Perceived unethical behaviours are analysed from the customers’ perspective by resorting to mixed methods strategy.

Future service interactions are anticipated to use humanoid robots in a society that is shifting to a digitalized era. Currently, it is evident that many businesses are replacing service interactions with self-service technologies (SSTs). This movement creates substantial societal changes that researchers have not paid sufficient attention to comprehend. In this setting, the purpose of this study is to examine the social drivers that influence customer mobility toward co-creating value via SSTs. The study also seeks to discover variations in customers' willingness and capacity to adopt SSTs.

To fulfill the research aims, a qualitative technique was adopted, with semistructured interviews conducted with 25 SST users from varied demographic backgrounds. To recruit individuals for the study, a nonprobabilistic purposeful sampling technique was adopted, with the goal of employing information-rich instances. The data were analyzed using thematic analysis.

The study identified eight social drivers that are important in the customer transition toward co-creating value with SSTs. According to the study, SSTs are characterized as a social trend in which adoption is accepted (social norm) and modifies social connections in a new direction. Using SSTs has evolved into a socializing tool that gives people social acknowledgment. Some people see SSTs as social pressure, putting them at a disadvantage if they do not adopt. People, on the other hand, acquire sufficient social support and independence to use SSTs. Customers were categorized into four groups depending on their willingness and ability to embrace SSTs: trendsetters, dreamers, old-fashioned and stragglers.

In practice, service providers can use this knowledge to successfully promote their SSTs and create enhanced client experiences through technological interfaces.

The study adds new knowledge by identifying social determinants in customer shifts toward SSTs, a phenomenon that has not been studied previously, and it adds to marketing theory by proposing a typology to group customers based on their ability and willingness to embrace SSTs.

This study aims to explore Augmented Language Models (ALMs) for synthetic data generation in services marketing and research. It evaluates ALMs' potential in mirroring human responses and behaviors in service scenarios through comparative analysis with five empirical studies.

The study uses ALM-based agents to conduct a comparative analysis, leveraging SurveyLM (Bickley et al., 2023) to generate synthetic responses to the scenario-based experiment in Söderlund and Oikarinen (2018) and four more recent studies from the Journal of Services Marketing. The main focus was to assess the alignment of ALM responses with original study manipulations and hypotheses.

Overall, our comparative analysis reveals both strengths and limitations of using synthetic agents to mimic human-based participants in services research. Specifically, the model struggled with scenarios requiring high levels of visual context, such as those involving images or physical settings, as in the Dootson et al. (2023) and Srivastava et al. (2022) studies. Conversely, studies like Tariq et al. (2023) showed better alignment, highlighting the model's effectiveness in more textually driven scenarios.

To the best of the authors’ knowledge, this research is among the first to systematically use ALMs in services marketing, providing new methods and insights for using synthetic data in service research. It underscores the challenges and potential of interpreting ALM versus human responses, marking a significant step in exploring AI capabilities in empirical research.

While the proliferation of chatbots allows companies to connect with their customers in a cost- and time-efficient manner, it is not deniable that they quite often fail expectations and may even pose negative impacts on user experience. The purpose of the study is to empirically explore the negative user experience with chatbots and understand how users respond to service failure caused by chatbots.

This study adopts a qualitative research method and conducts thematic analysis of 23 interview transcripts.

It identifies common areas where chatbots fail user expectations and cause service failure. These include their inability to comprehend and provide information, over-enquiry of personal or sensitive information, fake humanity, poor integration with human agents, and their inability to solve complicated user queries. Negative emotions such as anger, frustration, betrayal and passive defeat were experienced by participants when they interacted with chatbots. We also reveal four coping strategies users employ following a chatbots-induced failure: expressive support seeking, active coping, acceptance and withdrawal.

Our study extends our current understanding of human-chatbot interactions and provides significant managerial implications. It highlights the importance for organizations to re-consider the role of their chatbots in user interactions and balance the use of human and chatbots in the service context, particularly in customer service interactions that involve resolving complex issues or handling non-routinized tasks.

Small retail stores in the luxury market face significant challenges due to fluctuations in market demand. This task turns challenging as it requires effectively coordinating and translating customer needs into specific requirements that align with retail goals and available resources. However, limited empirical research exists investigating how managers can address service value and quality attributes in small retail stores. This article aims to bridge this gap by investigating the role of quality function deployment (QFD) in improving market and quality requirements management in small retail stores.

Based on the case study, a customer survey was initially conducted to gather information on critical characteristics valued in the luxury retail segment. QFD was used to assist the company in identifying and prioritizing key quality attributes to meet customer requirements effectively.

The findings demonstrate that implementing QFD in small luxury retail stores empowers managers to identify previously neglected product and service quality aspects. The article shows that QFD informs organizational adaptations that align with the demands of the retail market, leading to an improved ability to meet customer expectations and enhance customer value through the development of enhanced products and services. The study showcases the efficacy of the tested methodology in effectively capturing and prioritizing both tangible and intangible customer needs in retail.

Findings offer valuable insights to retail managers of small luxury stores, providing actionable market-oriented strategies. By implementing the recommended practices, managers can improve the store’s competitiveness and better cater to the customer base.

This study contributes to bridging persistent knowledge gaps by addressing the unique context of small luxury retail stores and introducing the application of QFD in this setting. The insights gained from this research are relevant to both retailing and quality management literature. Considering the growing prevalence of transformations in the retail industry, the study provides practical implications for retail managers in effectively navigating these changes.