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Service failures usually occur in front of third-party customers. Third-party customers react emotionally and behaviorally to service failure and recovery efforts aimed at focal customers. However, there is a gap in the literature on how third-party customers react to a service failures incident and a recovery over another customer, depending on how socially close or distant they are from. This study investigates the effect of third-party customers' emotions on consumer forgiveness, negative word-of-mouth (WoM) and repatronage intentions in the service recovery process by comparing close and distant third-party customers.

This study utilizes a 2 (social distance to the focal customer: close, distant) × 2 (service recovery: yes, no) between-subjects design. The authors used a scenario-based experiment to test the proposed hypotheses. A total of 576 respondents were involved in the study.

The results from the authors' scenario-based experimental study show that positive and negative emotions felt by distant third-party customers are higher than those of close third-party customers. In addition, the effect of positive emotions on customer forgiveness is more substantial for distant third-party customers. Third, moderated-mediation analysis indicates that social distance has a moderator effect only on the relationship between positive emotions and customer forgiveness.

This study contributes to the service literature by comparing socially close and socially distant third-party customers' reactions to service failure and recovery attempts.

This paper aims to formally conceptualize service mega-disruptions as any far-reaching and unforeseen general environmental stressor or threat that impacts a service organization’s ability to provide a desired level of service. The authors differentiate sudden large-scale general environmental threats from traditional service failures in scope and scale of impact via number of customers and sectors affected and duration and speed of the disruption.

This paper draws from service recovery theory to build a conceptual model of service mega-disruptions. The resulting conceptual model maps service failure recovery strategies against a service mega-disruption recovery approach to examine consumer response to changes in service value. This work further articulates additional research needs including conceptualization, measurement and methods as traditional drivers of service recovery and the value of the service experience change in response to service mega-disruptions.

This work proposes a research agenda to investigate whether service mega-disruptions can bypass the need for service recovery due to a consumer self-moderating process. As past research shows, the less control a service provider has over a failure, the more customers attribute fault to the situation and transfer blame away from an organization. This paper suggests that this self-moderating process disrupts the need for service providers to court forgiveness for a failure with perceptions of similarity and controllability providing an alternate pathway to customer forgiveness. Similarly, it is suggested that service mega-disruptions play a role in transforming service ecosystems into tighter, more contractual systems with less agency for service providers and poorer ability to adjust to market conditions. The duration and longevity of effects on service providers’ control, agency and ability to adjust following a service mega-disruption must be researched further.

This paper builds theory to develop a conceptual model of service mega-disruptions and their role in customer engagement and reshaping the service ecosystem. This paper culminates in the proposition of a research agenda that aims to build research capacity among services marketing scholars as service providers’ coordination and market conditions are challenged by service mega-disruptions.

Based on appraisal theory and social response theory, this study aims to explore the mechanism of AI failure types on consumer recovery expectation from the perspective of service failure assessment and validate the moderate role of anthropomorphism level.

Three scenario-based experiments were conducted to validate the research model. First, to test the effect of robot service failure types on customer recovery expectation; second, to further test the mediating role of perceived controllability, perceived stability and perceived severity; finally, to verify the moderating effect of anthropomorphic level.

Non-functional failures reduce consumer recovery expectation compared to functional failures; perceived controllability and perceived severity play a mediating role in the impact of service failure types on recovery expectation; the influence of service failure types on perceived controllability and perceived severity is moderated by the anthropomorphism level.

The findings enrich the influence mechanism and boundary conditions of service failure types, and have implications for online enterprise follow-up service recovery and improvement of anthropomorphic design.

People develop general stereotypes and beliefs about how people look and behave, and discrepancies in perceptions of warmth and competence can lead to incongruence in expected behaviors during service interactions. These perceptions can contribute to negative outcomes for employees; therefore, this study aims to examine how perceptions of warmth affect both customer reactions to employees who are Asian and the work stress, strain and attitudes of employees who are Asian toward their jobs.

To investigate the phenomenon, the authors conducted three studies. The first study examined whether occupational-racial stereotypes influence customers’ evaluation of employees’ service recovery performance. The second study temporally examined whether employees who are Asian engage in more emotional labor strategies to counter these occupational-racial stereotypes and as a result experience more negative outcomes. And a third study investigated the cumulative effects of negative perceptions on employee outcomes.

The results suggest employees in the hospitality industry who are Asian are perceived as less warm during service failure interactions and, thus, must work harder to regulate their emotions. As a result, employees who are Asian reported experiencing more negative outcomes, supporting the notion that occupational-racial stereotypes contribute to racial disparity and act as challenges and barriers for employees in the service industry.

These findings emphasize the need to understand and address occupational-racial stereotypes for employees who are Asian to mitigate racial disparities in the service industry. Organizations can promote diverse work climates, provide emotional support and foster high-quality relationships to support employee well-being and satisfaction.

The results provide insight into how stereotypical warmth perceptions of employees who are Asian may affect the demands they face when engaging in service recovery, and how these increased demands may reduce the quality of their work experiences.

This paper aims to explore how authentic corporate social responsibility (CSR) activities can serve as a proactive service recovery tool and shield service providers from the negative consequences of service failures. Specifically, the authors investigate the conditions under which such activities can encourage conciliatory behavior among aggrieved consumers and how adding reactive service recovery tools to the mix interferes with the process.

The authors conduct three experiments on an online panel and college student participants. The authors present a service failure scenario at a restaurant (late/subpar food delivery); vary the restaurant’s CSR activity (authentic, inauthentic or nonexistent); and test CSR’s impact on conciliatory behavior, the underlying mechanisms and how reactive service recovery tactics (apology/compensation) moderate the process.

The authors find that authentic-CSR activities (relative to inauthentic or no-CSR activities) indirectly promote conciliatory behavior by (serially) making the failure appear as a onetime event and lessening consumer anger toward the service provider. However, the process gets disrupted when the authors add an apology/compensation to the mix, ostensibly because the latter is a more direct signal that the failure is a onetime problem.

To the best of the authors’ knowledge, this is the first study that tests how authentic-CSR activities can serve as a proactive service recovery tool and encourage conciliatory behavior among aggrieved consumers (a serial mediation process). The authors add value by showing that the process cuts across cultures (with participants from the USA and Turkey) and that CSR activities are indispensable when customers do not complain but simply exit the firm.

The purpose of this study is to examine how robotic anthropomorphism and personalized design may affect consumers' reactions to brands after service failure.

This study conducted two studies based on cognitive appraisal theory and artificial intelligence device acceptance theory. Study 1 explored the mechanisms by which the type of anthropomorphic design of the service robot (humanoid robot/nonhumanoid robot) influenced revisit intention after service failure through a one-factor between-subjects design based on a restaurant dining scenario. Study 2 was based on a hotel check-in scenario and explored the moderating effect of robot personalization design on the above mechanisms through a 2 (anthropomorphic design: humanoid robot/nonhumanoid robot) × 2 (personalized design: self-name/no name) between-subjects design.

Study 1 shows that consumers have higher performance expectations for nonhumanoid robots, leading to a higher tolerance for service failure, which in turn generates higher revisit intentions. Study 2 shows that consumers' performance expectations are significantly enhanced after custom naming of humanoid robots, so the serial mediation mechanism for the effect of robot anthropomorphic design on revisit intention does not hold.

This study extends the research of artificial intelligence device acceptance theory in the field of service failure and exploratively proposes an intervention mechanism for the negative effects of the anthropomorphic design of service robots.

This research aims to investigate the influence of consumers' anticipated trust in service providers on brand switching intention and its underlying psychological mechanism. More importantly, this study explores the moderating role of type of service providers (human staff/humanoid robots/nonhumanoid robots).

This study adopted two single-factor between-subjects experimental designs and tested the hypotheses in two typical service failure scenarios: Study 1, a hotel scenario (N = 403); and Study 2, a restaurant scenario (N = 323).

The results suggest that there is an inverted U-shaped relationship between consumers' anticipated trust and tolerance of service failure and that such tolerance has a mediating effect on the relationship between anticipated trust and brand switching intention. Moreover, when service failure is caused by a humanoid service robot, a moderate anticipated trust level of consumers is most conducive to increasing tolerance, which in turn reduces their propensity to switch brands.

This study examines the nature of the relationship between anticipated trust and tolerance in a service failure context, revealing an inverted U-shaped relationship. More importantly, the boundary conditions under which different service provides have an influence on this relationship are incorporated. Finally, this study explores the influence of service failure tolerance on brand switching intentions in a technological context, enriching consumer–brand relationship research.

Customer participation (CP) in service recovery is one of the ways to co-create value with the service provider. Most existing studies assume that customers are willing to participate in service recovery, provided the firm offers them the opportunity. In this study, the authors propose the construct named customer intention to participate in service recovery (CIPSR), develop a scale for it and argue that it is not always implicit but rather is dependent on the consumer's perceived control.

A multi-method approach was used with a combination of qualitative interviews, literature review, unaided dimension identification, correspondence analysis, exploratory factor analysis (EFA), confirmatory factor analysis (CFA) and structural equation modelling to develop the CIPSR scale. The authors used structural equation modelling to test the proposed effect of perceived control on CIPSR.

The study proposes a four-dimensional scale for CIPSR. The authors also found support for the effect of perceived control on CIPSR, with anxiety and failure controllability attribution as intermediate variables.

This study develops a comprehensive scale to measure CIPSR using a rigorous multi-method technique, as well as establishes its importance in the existing literature.

The purpose of this paper is to test the effect that anthropomorphic framing (i.e. robot vs automatic machine) has on consumers’ responses in case of service failure. Specifically, the authors hypothesize that consumers hold an unconscious association between the word “robot” and agency and that the higher agency attributed to self-service machines framed as robots (vs automatic machines) leads, in turn, to a more positive service evaluation in case of service failure.

The authors have conducted four experimental studies to test the framework presented in this paper. In Studies 1a and 1b, the authors used an Implicit Association Test to test for the unconscious association held by consumers about robots as being intelligent machines (i.e. agency). In Studies 2 and 3, the authors tested the effect that framing technology as robots (vs automatic machines) has on consumers’ responses to service failure using two online experiments across different consumption contexts (hotel, restaurant) and using different dependent variables (service evaluation, satisfaction and word-of-mouth).

The authors show that consumers evaluate more positively a service failure involving a self-service technology framed as a robot rather than one framed as an automatic machine. They provide evidence that this effect is driven by higher perceptions of agency and that the association between technology and agency held by consumers is an unconscious one.

This paper investigates a novel driver of consumers’ perception of agency of technology, namely, how the technology is framed. Moreover, this study sheds light on consumers’ responses to technology’s service failure.

The purpose of this research is to investigate the effects of service recovery experiences on customer engagement in negative word-of-mouth (WOM) in the hotel industry and explore the psychological motives and mediating mechanisms driving consumer behavior.

A scenario-based experimental design on Qualtrics was used, with a pre-test (N = 200). The main study data were collected using Amazon's Mechanical Turk platform.

Findings reveal that negative service experiences lead to higher engagement in negative WOM compared to positive and satisfactory recovery service experiences. Even well-executed recovery efforts may not completely eliminate negative WOM. The mediating role of emotional responses is substantiated, as heightened negative service experiences result in more intense negative emotional responses, leading to increased engagement in negative WOM.

The study emphasizes the importance of service recovery strategies and the need for businesses to consistently strive for exceptional service quality. It also highlights the complexity of customer reactions to service experiences, suggesting that further research is needed to explore the factors that minimize negative WOM across various service contexts.