Article

The road to recovery: Overcoming service failures through positive emotions

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Abstract

This research builds upon a service recovery framework, providing new perspectives on the role of two discrete, positive emotions - gratitude and pride - in process-oriented service failure and service recovery encounters. Specifically, this research demonstrates that recovery actions are appraised and trigger these emotions to promote the positive satisfaction-RPI link. Study 1 highlights the importance of service providers' recovery intentions, finding that benevolent motivations can be appraised to elicit gratitude and mediate the effects of recovery actions on outcomes. Study 2 reveals the effects of the agent responsible for the service recovery, showing that positive effects of service provider and customer initiated recovery determines whether gratitude or pride is elicited, with both emotions promoting favorable effects. Implications of these service provider recovery strategies are discussed along with suggestions that further investigations move away from global emotions and toward discrete emotions to further understand the existing service recovery framework.

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... This is consistent with the view that gratitude is the emotional core of reciprocity that motivates individuals to return benefits received (Palmatier et al., 2009;Emmons and McCullough, 2004). Addressing the role of gratitude is timely, given emerging literature that suggests identifying a specific emotion can help better explain customer behavior (Lastner et al., 2016;Bagozzi et al., 1999). Gratitude as a mediator with uncivil customers has yet to be empirically examined in the academic literature. ...
... Along with the reciprocal perspective, the appraisal theory of emotion (Lazarus, 1991) can also provide an important theoretical lens. Appraisal theorists suggest that emotions arise from an individual's cognitive evaluation or interpretation of a situation or stimulus and its implications for personal well-being (Lastner et al., 2016). As deep acting generally infers a higher utility or quality service than surface acting (Chi et al., 2011), it is likely to be appraised as more beneficial to the customer, and customers would, therefore, report greater levels of gratitude to the employee. ...
... Customer gratitude is considered an important relational emotion that links perceptions of the firm's actions with behaviors (Mishra, 2016). However, only limited studies examine the role of gratitude in service failure recovery contexts (Lastner et al., 2016), particularly related to customers' reciprocal behavioral intentions toward the employee. Reciprocal behavior pertains to the behavioral aspects and attitudes triggered by feelings of gratitude (Palmatier et al., 2009). ...
Purpose This study aims to examine the observing customer’s reactions, namely, gratitude, loyalty to the employee and tipping intention while observing other customer incivility during another customer service failure and the frontline employee’s emotional labor strategy. Design/methodology/approach A 2 (emotional labor strategy: deep acting vs surface acting) by 2 (service consumption criticality: high vs low) experiment is used to test the hypotheses. Findings The results reveal that observing an employee’s deep acting emotional labor (vs surface acting) leads to a greater level of gratitude among the affected customers and promotes their tipping and loyalty to the employee. However, there is no significant interaction effect of service consumption criticality and emotional labor strategy on customer gratitude. Research limitations/implications This research builds upon the social servicescape, customer misbehavior and emotional labor literature by examining previously untested relationships. Practical implications In cases of other customer service failure, managers should effectively communicate to their employees how their emotional labor induces positive customer feedback. Currently, emotional labor is emphasized mostly regarding its negative effects on employees, but this research suggests that serving the recovery expectation of the affected customers, especially when it is served with authentic emotional displays, can promote increased tipping and loyalty behavior. Originality/value No research investigates customers’ emotional and behavioral reactions to employee emotional labor in the context of other customer service failure.
... For example, Reichheld (1993, p. 71) holds that "between 65 and 85 percent of customers who defect say they were satisfied or very satisfied with their former supplier." Therefore, scholars have called for a fresh stream of research to address these issues on alternative emotional-mediating mechanisms, such as discrete positive emotions between service recovery strategies and behavioral outcomes (Lastner et al. 2016). However, most research focused on a composite form of emotions (i.e., positive affect) instead of discrete positive emotions (Chebat and Slusarczyk 2005;So et al. 2015;Kranzbühler et al. 2020). ...
... Emotions arise when customers evaluate the actions taken by the service provider to rectify the failure are fair or not (Xu et al. 2019). Appraisal theory can also explain the positive discrete emotions generated during the service recovery process as the interplay between different attributions leads to discrete emotions (Lastner et al. 2016). Discrete emotions are evoked when outcome desirability is combined with other appraisal dimensions. ...
... Following is an example of the latter." Lastner et al. (2016) tested their model with satisfaction as a consequent to gratitude. We operationalized gratitude in our model as a consequence of specific combinations of antecedents. ...
Article
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The study investigates how customers in exchange and communal relationships differ in evaluating the recovery efforts of service providers after a service failure. This research addresses the literature gap by examining specific antecedents, leading to the discrete emotion—gratitude and word of mouth. A 2 (relationship norm types: exchange vs communal) × 2 (perceived effort: low vs high) × 2 (outcome desirability: low vs high) between-subjects factorial design experiment was developed for data collection. The results suggest that perceived effort and outcome desirability significantly influence gratitude. However, exchange and communal customers’ perceived effort differs in low and high desirability situations.
... We thus propose to evaluate the criticality of online reviews with consideration of more diverse formats (e.g., numerical ratings vs. textual contents) or aspects (e.g., types of service failures, the length of the textual reviews) of comments (e.g. Amin, Yahya, Ismayatim, Nasharuddin, & Kassim, 2013;Lastner, Folse, Mangus, & Fennell, 2016;Proserpio & Zerbas, 2017;ReviewPro, 2017). ...
... Consistent with research interest on negative online comments in existing literature, this study also focuses on the negative reviews due to their salient impact on firm performance in the lodging industry (Hu et al., 2009;Levy et al., 2013). Besides, we contribute to exiting literature by extending "negativity" to "criticality" of online complaints by considering impacts of other important attributes, including the level of comment details (ReviewPro, 2017), the emotion of the customer (Lastner et al., 2016), the attributes of the service (Amin et al., 2013), the feasibility of the new solution (Voelpel, Leibold, Tekie, & Von Krogh, 2005), as well as a firm's existing response strategy (Baer, 2012). ...
... Recent research thus calls for more systematic investigations of critical rather than extreme online reviews as well as approaches to effectively identify them so that firms can improve their prioritization strategy in their online responses. It is imperative for researchers to optimize the response strategy with a more comprehensive evaluation of critical comments which examines not only review rating scores, but also comment details (Chan, Li, & Zhu, 2018), expressed emotions (Lastner et al., 2016), service attributes (Amin et al., 2013), the feasibility of solution (Voelpel et al., 2005), and the past response strategy of a firm (Baer, 2012). We focus on negative online reviews for its significant impact on customer's purchase intention and firm performance (Lee et al., 2009). ...
Article
This research proposes and tests mechanisms for defining and identifying the critical online consumer reviews that firms could prioritize to optimize their online response strategies, while incorporating the latest artificial intelligence (AI) technology to deal with the overwhelming volume of information. Three sets of analytical tools are introduced: Heuristic Processing, Linguistic Feature Analysis, and Deep Learning-based Natural Language Processing (NLP), to extract review information. Twelve algorithms to classify critical reviews were developed accordingly and empirically tested for their effectiveness. Our econometric analysis of 110,146 online reviews from a chain operation in hospitality industry over seven years identifies six outstanding algorithms. Firm value rating, comment length, valence, and certain consumer emotions, in addition to past comment-response behavior, are found to be superior in predicting incoming review criticality. However, the service attributes such as urgency to reply and the feasibility of actions to take are not as informative.
... They recognised customers' dissatisfaction when customers compared the severe failures in service they had experienced with other customers' experience of minor failures. Lastner, Folse, Mangus, and Fennell (2016) explained customers' evaluation of recovery experience and revenge tendency with appraisal theory: 'emotions arise in response to appraisals, or evaluative judgments' (p. 4279) and employee's utilisation of rudeness provoked a customer's intention to seek revenge. ...
... Compensation has traditionally been regarded as a mediator of incidents, in particular for severe failures allocated to fraud issues (Kau & Loh, 2006;Ozuem & Lancaster, 2014;Jones et al., 2018). An apology from an initially rude employee results in no satisfaction (Rio-Lanza et al., 2009;Lastner et al., 2016). In line with existing literature, explanations driven from downward social fundaments (i.e., employee's comparison of the customer with other customers who have experienced dissatisfaction) do not yield satisfaction for severe online nWOM (Bonifield & Cole, 2008). ...
Article
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Conceptualizing how customers construe online negative word‐of‐mouth (nWOM) following failure experiences remains unsettled, leaving providers with inconclusive recovery strategy programmes. This empirical study recognizes online nWOM as a co‐created encounter between the complainant (i.e., the initiator of the online nWOM) and the recipient (i.e., the consumer who engages with the online nWOM), examining their idiosyncrasies to discern their understanding of the experience. It introduces frustration–aggression theory to online WOM literature, recognizing that it can support a higher‐order understanding of phenomena. Through phenomenological hermeneutics, interviews and focus groups, data were collected from millennials in Albania and Kosovo that provided accounts of nuanced and distinctive online nWOM realities. The emerged insights extended extant theory to a three‐fold online nWOM typology (i.e., lenient online nWOM, moderate online nWOM and severe online nWOM) recognizing the negative impact customers have on a provider, which is controlled by frustration–aggression tags. Frustration–aggression variations across online nWOM led to the construct of three types of customers that engage in online nWOM, namely tolerable online nWOM customers, rigorous online nWOM customers and confrontational online nWOM customers. Findings culminated with satisfactory recovery strategies aligned to customer inferences regardless of the nWOM context.
... We consider five customer appraisals of goalblocking, uncertainty, responsibility/agency, control, and fairness associated with the discrete emotion of frustration. Appraisal theory has provided a powerful theoretical basis for studying customer emotions in general (Bagozzi et al., 1999;Nyer, 1997), and more recently in the delineation of discrete emotions, such as guilt (Antonetti & Baines, 2015), fear and anger (Antonetti et al., 2020;Su et al., 2018), or gratitude, and pride (Lastner et al., 2016). Studies have investigated the role of one, or several appraisal dimensions in customer emotions (Nyer, 1997;Ruth et al., 2002), but the few existing studies on frustration take a fragmented approach, for example, focusing on one or two appraisals only (Azemi et al., 2020;Guchait & Namasivayam, 2012;Wetzer et al., 2007). ...
... This is in line with the notion that negative emotions, such as anger and rage are salient in the service recovery experience (Khamitov et al., 2020). Our work thus extends previous findings on the role of discrete emotions in the service recovery process (Lastner et al., 2016;Nguyen & McColl-Kennedy, 2003) with subsequent impacts on satisfaction and loyalty. We therefore ask the question: ...
Article
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This research fills a gap in the consumer emotions literature regarding customer frustration in a customer service setting. Most research on customer emotions has examined anger, happiness or affect in general, largely ignoring the particularities of frustration. Consistent with appraisal theory, we use five experiments to explore the different appraisal dimensions that define frustration and its relation to customer loyalty and satisfaction. Contrary to common belief, we show that frustration is not simply the result of goal-blocking, but rather of a more complex combination of appraisals which differentiate it from anger and lead to distinct effects on satisfaction and loyalty. We also examine how the effects of frustration on loyalty and satisfaction are mitigated by service recovery in a further experiment and an event reconstructive method. Our results test appraisal theory, inform theory on customer emotions and have important implications for our understanding of customer satisfaction and loyalty following frustrating customer service encounters.
... Therefore, understanding the factors affecting behavioural intention to participate in charitable activity is important to ensure the successful of the goals of the causes. Positive emotion has been known to have a relationship with customer decision-making (Brunner-sperdin et al., 2014), loyalty (Chang, Lv, Chou, He, & Song, 2014;Rychalski & Hudson, 2017), purchase and repurchase intention (Lastner, Anne, Folse, Mangus, & Fennell, 2016) (Papagiannidis, See-to, & Bourlakis, 2014) and behaviour intention (Brunner-sperdin et al., 2014;Ladhari et al., 2017). Therefore, the following hypothesis is proposed: H2: Positive Emotion Influences Intention in Participating of future charity Program However, some authors argue that generosity can be a pure altruism act. ...
... That might also explain why the pure altruism motivation failed to be confirmed in previous study but positively confirmed in this study. This study strengthens the building evidence of the relationship between positive emotion and intention such as shown by Lastner et al., (2016), Papagiannidis et al. (2014), Brunner-sperdin et al. (2014) and Ladhari et al. (2017) that positive emotion influence people intention. Being happy, satisfied and contentment will make people intention to do something, such as purchase and repurchase intention, give good recommendation, doing good act. ...
Article
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This study taps into the questions of whether there is a direct relationship between customer generosity to customer intention in participating in charity program or there is a mediating role of positive emotion in the relationship. Previous study showed inconsistency on the motivation of people being generous. We hypothesize that there are direct and indirect relationship between customer generosity to customer intention in participating in future charity program. Using descriptive quantitative method, this study was conducted in Indonesian adults in several cities in Indonesia. A structured questionnaire regarding the construct of the study was designed using 6 Likert scale. Data from total 100 returned questionnaires was analyzed with PLS-SEM. The result of the study confirms the hypotheses that people has intention to participate in future charity program is not only motivated by the positive emotion but also motivated pure empathy.
... Most studies in SR area have investigated the positive effect of SR outcome on behavioural intentions (Chen et al., 2018;Xu et al., 2018) but far too little attention has been paid to the effectiveness of the process of service recovery, especially when it comes to playing a role by customers or firms in the process. Although extensive research studies have examined the impact of service failure and the importance of recovery within the hospitality industry (Azemi et al., 2019;Bagherzadeh et al., 2020;Park and Ha, 2016;Lastner et al., 2016), to the best of our knowledge, there are no results in the literature regarding how both communication of a mistake by service providers (stealing thunder) and participation of customers in the process of recovery (co-creation) are associated with outcome favourability to determine future behavioural intentions. Hence, the current work fills this gap broadly in SR literature through a range of relationships in the hospitality sector. ...
... Additionally, the scholars introduced outcome favourability as an alternative mechanism underlying the co- Therefore, once a service failure occurs, a well-executed SR affects customers' attitudes (Buttle and Burton, 2002) and leads to customer perceptions of service provider's efforts to find the best favourable outcome, which ultimately affects their evaluations and decisionmaking (Park and Ha, 2016). This leads to return satisfaction (Van Vaerenbergh et al., 2013) and behavioural intentions (Lastner et al., 2016;Orsingher et al.,2010). Thus, the following hypotheses are proposed: ...
Purpose: In recent studies, tourism scholars focussed more on service failure and recovery. Thus satisfaction with service recovery (SSR) and outcome favourability in conjunction with service recovery (SR) and customers’ behavioural intention was given very little attention, while they are very attention-grabbing, particularly in marketing areas of hospitality and tourism studies. Using stealing thunder and co-creation-based strategies, this study aims to investigate the impact of SR on outcome favourability, and its association with SSR and customer loyalty. Design/methodology/approach: To attain the objectives of the current study, data were collected through field survey by applying a random sampling technique from 346 regular customers four- and five-star hotels in the context of Iran. The structural equation modelling technique was applied for testing the measurement and relationship models of the study. Findings: The findings of this research reveal a positive relationship between SR and outcome favourability. The findings also indicate that outcome favourability positively affects SSR and loyalty. Finally, SSR exerts a favourable and significant impact on customer loyalty. Research limitations/implications: The study findings may have restricted applicability in different contexts other than four- and five-star hotels. Theoretically, the current research contributes insight into the dynamics of characterizing SR, outcome favourability, SSR and behavioural intention-based theoretical associations, as observed in the hospitality industry. Originality/value: This study adopted an un-explored SR, outcome favourability and SSR theoretical perspectives to identify the strength and nature of relationships between them and discuss their important implications for academicians and hotel managers.
... Service failure leads to unwanted experiences and bad perceptions (Bugg Holloway, Wang, & Beatty, 2009;Toister, 2013). But a good service recovery could possibly rebuild positive relationships with customers who initially experience service failure (Lastner, Folse, Mangus, & Fennell, 2016;Mostafa, Lages, Shabbir, & Thwaites, 2015). Service recovery strategies are actions by the service providers to respond to service failures. ...
... Service providers have a large number of generic options available to ameliorate service failure incidents with the end goal of ensuring satisfaction, maintaining or enhancing loyalty, and retaining customers. Previous research has consistently shown the important role of service recovery in achieving customer satisfaction in any service failure situations (Battaglia, Borchardt, Afonso Sellitto, & Medeiros Pereira, 2012;Ha & Jang, 2009;Lastner et al., 2016;Wang et al., 2011). Empirical studies have also suggested that efficient and effective service recoveries are required to eliminate customers' initial distress (Choi & Choi, 2014;Kumar & Kumar, 2016;Nguyen et al., 2012). ...
Article
Service failures are inevitable in any service delivery process that establishes the need for a good service recovery. This study aims to investigate the relationships among service recovery variables to develop appropriate recovery options considering different levels of failure severity and satisfaction. Using a scenario-based survey approach and structural equation modeling, the results are failure severity negatively relates to satisfaction; recovery justices positively relates to satisfaction regardless of the level of failure severity; complaining behavior strengthens (weakens) the relationship between the failure severity (recovery justices) and satisfaction; and relationship quality is a stronger predictor of post-purchase behavioral intentions than satisfaction. A service recovery matrix is proposed to depict appropriate recovery options for different situations.
... Most empirical studies of the effects of apology and compensation focus on justice theory (e.g., Wirtz & Mattila, 2004) and therefore on a cognitive construct. Emotional aspects are hardly addressed in service recovery research (Lastner, Folse, Mangus, & Fennell, 2016). Yet, insights into affective reactions are necessary ifas we assume in H1 and H2perceived relief influences further cognitive processes. ...
... Our studies also contribute to service research by indentifying "relief" as an affective variable that may account for the diverse effects of apology and compensation. This is particularly useful as such affective outcomes are barely addressed in research into service recovery (Lastner et al., 2016). ...
Article
Several psychological studies indicate that, in certain situations, humor can reduce tension and lead to a feeling of relief. In the literature on service management, however, the effect of humor in appeasing disgruntled consumers when services break down is almost unexplored. This paper seeks to answer the question: Can humor have a positive effect in such situations, leading to greater "leniency" on the part of the injured party, or does it intensify the consumer's negative experience of the service? We do this by analyzing consumer reactions to humor as a tool for "service recovery". We conduct a number of vignette experiments, the results of which confirm the positive effects of self-deprecating humor on customers, but at the same time show that the humor has to be experienced as particularly funny, otherwise it is less effective than traditional service recovery tools, such as a sincere apology or financial (or other) compensation.
... The sample consists of 258 undergraduate students (39% men, aged 20-29 years) from two universities in Thailand. Using undergraduate students as participants is consistent with previous research in service recovery (Bonifield & Cole, 2007;Grewal et al., 2008;Lastner et al., 2016;Prasongsukarn & Patterson, 2012). Furthermore, a student sample is appropriate for this study as students are familiar with the service domain. ...
... First, this study collected data from undergraduate students. Although using student participants is consistent with prior studies on service recovery (e.g., Grewal et al., 2008;Lastner et al., 2016) and while many studies revealed that student participants have reported nonsignificant different results as compared with non-student participants (e.g., Martin et al., 2009), investigating non-student data would further enhance external validity. Second, the data were collected only from Thai respondents; this might impact the generalization of the results. ...
Article
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Customer complaint or customer voice has been recognized as a key response to service failure that activates service recovery. This study aims at investigating how managing customer voice affects service recovery evaluation. Building on the concept of initiation, this study conceptualizes three conditions of service recovery, namely, service recovery based on customer-initiated voice, service recovery based on firm-initiated voice, and service recovery based on no voice. Using an experimental design, the present study investigates how customer evaluations of service recovery vary across voice initiation conditions. The multivariate analysis of covariance (MANCOVA) reveals that firm-initiated voice, compared with customer-initiated voice, elevates customer perceived justice and satisfaction while diminishing negative word-of-mouth intention. The research findings emphasize the necessity to activate customer’s voice following a service encounter so that service failure can be identified and addressed, which helps in improving customer evaluation of service recovery attempts.
... After the experiment, participants answered manipulation checks on service outcome ("The robot could solve my service inquiry"; [59]) as well as service recovery ("A solution was provided to my problem"; [59]. We collected the measure on responsibility attribution ("The responsibility for the outcome of the service interaction lies (1) outside of me / (7) inside of me"; [60]) as well as usage intention ("If given the chance, I plan to use the service robot in the near future", "If given the chance, I think I'll use the service robot in the near future", α = 0.96; [61]). ...
... After the experiment, participants answered manipulation checks on service outcome ("The robot could solve my service inquiry"; [59]) as well as service recovery ("A solution was provided to my problem"; [59]. We collected the measure on responsibility attribution ("The responsibility for the outcome of the service interaction lies (1) outside of me / (7) inside of me"; [60]) as well as usage intention ("If given the chance, I plan to use the service robot in the near future", "If given the chance, I think I'll use the service robot in the near future", α = 0.96; [61]). ...
Conference Paper
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Service robots are changing the nature of service delivery in the digital economy. However, frequently occurring service failures represent a great challenge to achieve service robot acceptance. To understand how different service outcomes in interactions with service robots affect usage intentions, this research investigates (1) how users attribute failures committed by humanoid service robots and (2) whether responsibility attribution varies depending on service robot design. In a 3 (success vs. failure vs. failure with recovery) ✕ 2 (warm vs. competent service robot design) between-subject online experiment, this research finds evidence for the self-serving bias in a service robot context, that is, attributing successes to oneself, but blaming others for failures. This effect emerges independently from service robot design. Furthermore, recovery through human intervention can mitigate consequences of failure only for robots with warm design. The authors discuss consequences for applications of humanoid service robots and implications for further research.
... This study also provides a better understanding of the underlying mechanism (emotions) for service providers to exert efforts in regulating and monitoring customers' emotions. Proper training should be provided in the efficient identification of customers' unexpressive emotional reactions and in timely preventive strategies once recognizing customers' negative emotions ( Lastner, Folse, Mangus, & Fennell, 2016;Miao, 2014;Miao et al., 2011). Introducing the concepts of the intention to praise and the intention to condemn helps restaurants understand customers' direct reactions during service recovery ( Chebat & Slusarczyk, 2006). ...
Article
This study identifies the depth structure of customer complaint efforts and investigates the roles of each dimension in the structural relations with customer satisfaction and loyalty. Three dimensions of customer complaint efforts were identified, procedural effort, cognitive effort, and affective effort in the restaurant context. This study uses two subsamples to develop and validate the proposed three-dimension customer complaint efforts scale. Exploratory factor analysis was conducted on the first subsample of 211 participants. Confirmatory factor analysis and structural equation modeling were applied on the second subsample of 328 participants. It is found that customers’ physical/procedural and cognitive efforts exerted during the complaint resolution process compound their affective efforts, which further reduce customer satisfaction with the complaint process and erode customer behavioral and attitudinal loyalty. This study bridges the research gap gaps and provides managerial implications to help reduce customer complaint efforts and ensure positive customer behaviors.
... This is relevant to the firm as the word-of-mouth behavior is more inwardly directed, hence, there is a stronger sense of ownership and self-attachment with this type of communication than with a simple service recommendation. This type of inward-directed pride has been shown as an outcome when the customer participates with the employee in the service process (Lastner, Folse, Mangus, & Fennell, 2016). With the increased presence of social media in customers' lives, there is a growing trend of posting positive word-of-mouth about an experience with the underlying goal of increasing one's self-image (Toubia & Stephen, 2013). ...
Article
For many customers “good” service is not enough to create an experience that warrants telling others. Customers want an extraordinary service experience, but what does that really mean? Through an initial qualitative study, the authors tackle this question and conceptualize a term called Idiosyncratic Service Experience (ISE) to represent the interpersonal aspects that create these unique or special service experiences. ISE is a higher order construct made up of a) perceived employee effort, b) surprise, and c) perceived employee empathy. Further, the authors examine the antecedents and consequences of ISEs in a structural model. The results of our study found that ISEs promoted feelings of delight which lead to a higher tolerance to future failures, decreased price consciousness, and stimulated self-enhancing word-of-mouth. We also explore how exception making or the willingness of an employee to break a service norm influences ISEs and evaluations of delight.
... Service failure is common, and consumers may experience disappointment with services after failure occurs. Therefore, it is essential that managers should train employees to respond to disappointed consumers with a recovery strategy in a way that expresses sincere regret for the service failure (Lastner et al, 2016). ...
Chapter
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This book chapter assesses the relationships between perceived justice and online service failure and recovery strategies in the fashion industry for customer retention. The existing literature has examined three-way and two-way interactions between procedural, distributive and interactional justice. The outcomes vary in terms of which combinations of justice create substantial interaction effects on customer recovery assessment. It recommends that for fashion brand providers to be competitive, they must combine both immersive technology and dimension metrics that comprise of subjective assessments. Both of these are critical to improve online service failure-recovery experiences which can have a significant impact on customer satisfaction and post-recovery behaviour. Furthermore, such a combination can mediate the relationship between satisfaction variables and justice dimensions.
... The consensus remains that in any given situation, whether a satisfactory or dissatisfactory one, recovery evaluation leads to customer post-recovery behaviour defined across beneficial and detrimental behaviours (Bougie et al., 2003;Choi & Mattila, 2008;Ozuem et al., 2018). Positive WOM and repurchase intentions are two of the explanatory elements of beneficial activities (Matos et al., 2007;Lastner et al., 2016 Further, customer satisfaction/dissatisfaction with the recovery is evident on the grounds of the service recovery paradox and the double deviation scenario. Service recovery paradox researchers suggest that a successful recovery might make customers happier with the company after a service failure rather than prior to it (Maxham & Netemeyer, 2002;Matos et al., 2007). ...
... This finding suggests that sport marketers should allocate resources and effort to increase customer service satisfaction. As Lastner, Folse, Mangus, and Fennell (2016) suggested, in the case of core service failure, sport service providers should engage in recovery efforts to address customer dissatisfaction and promote favorable effects. For instance, sport organizations could provide free items, such as cold bottled water or sweet candies, to sport fans at the exit gate after a loss. ...
Article
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This study examined the "emotion-satisfaction-behavior" model by synthesizing attribution theory (Weiner, 1985) and the transactional theory of coping (Lazarus & Folkman, 1984). Two moderators were included: (a) game outcome and (b) identification with the team. Data (N = 494) were collected from two sources: (a) a non-student sample provided by Amazon Mechanical Turk and (b) a student sample from a public university in the southeastern United States. Structural equation modeling (SEM) and partial least square (PLS) statistics were used to test the model. The latent moderated structural equations procedure (LMS) was used to examine the moderation effect of identification with the team. Results indicate that sport consumers' behavioral intention significantly differed based on game outcome. After a win, consumer emotions were related to both types of satisfaction (i.e., game and service), and game satisfaction mediated the relationship between emotions and behavioral intention. Consumer emotions resulting from a loss, however, did not influence service satisfaction. These findings can help sport organizations understand the emotion-satisfaction-behavior process of sport consumers and design appropriate recovery strategies, such as allocating resources and effort to deliver the highest level of ancillary services to help consumers cope after core service failure.
... Previous research has shown that positive emotions associated with past behavior stimulate subsequent behavioral intentions (Bagozzi et al. 1999;Louro et al., 2005) by reinforcing an individual's belief in their ability to attain positive outcomes through their actions (Louro et al., 2005). Appraisals of pride in marketing have been applied to contexts such as service satisfaction (Lastner et al., 2016), snack consumption (Winterich & Haws, 2011) and wasteful consumption behavior (Peter and Honea, 2012), yet the role of pride is still relatively under-explored. More recently, in a sustainability context, Schaffner et al. (2015) successfully used communications about biodiversity to evoke positive and negative emotions; however, their study did not look at past consumption behavior or recalled pride and guilt specifically. ...
Article
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Emotional appraisal research has demonstrated that recalling a past behavior and its associated emotions can influence future behavior. However, how such recalled emotions shape sustainable consumer choice has not been examined. This study examines the role of recalled pride and guilt in shaping sustainable purchase intentions and the mediating role of anticipated pride and guilt. A conceptual model is proposed for motivating sustainable purchase intentions through the emotions associated with the behavioral recall. The model is applied in two experiments with online consumers examining purchase intentions of low carbon cars. Recalling feelings of pride associated with a past sustainability‐related behavior increases sustainable purchase intention, as compared with a neutral recall. This effect occurs through the mediation of both anticipated pride at the prospect of a sustainable behavior choice and anticipated guilt if the future choice is not sustainable. Similar hypotheses relating to recalled guilt at past unsustainable behavior were not supported. The study contributes to research on sustainable consumption, revealing an emotional route by which past behavior can influence future behavior. It also adds to emotional appraisal research by showing the role of specific self‐conscious emotions in forming this route, as prior research has focused more broadly on emotional valence.
... This study also provides a better understanding of the underlying mechanism (emotions) for service providers to exert efforts in regulating and monitoring customers' emotions. Proper training should be provided in the efficient identification of customers' unexpressive emotional reactions and in timely preventive strategies once recognizing customers' negative emotions (Lastner, Folse, Mangus, & Fennell, 2016;Miao, 2014;Miao et al., 2011). ...
Article
This study investigates customers’ direct and indirect reactions to different levels of service recovery efforts using a proposed model incorporating perceived justice and emotions. This research proposes two forms of customers’ direct reactions after a service recovery: condemnation and praise. Based on a scenario-based online experiment with 395 casual dining customers in the United States, this research finds that distributive justice and procedural justice influence customers’ indirect reactions (e.g., revisit intention, word-of-mouth) both directly and indirectly via emotions. Interactional justice influences customers’ direct reactions both directly and indirectly through its prior effects on emotions. The moderating test on levels of service recovery efforts reveals that a high level of service recovery efforts significantly reduces the negative effects of emotions on customers’ intention to condemn and increases their intention to praise compared with a low level of service recovery efforts.
... In light of this changing retailing landscape, we pose two important research questions: First, how does the effort of referent consumers influence the price judgments of buyers, particularly under conditions of disadvantaged price inequality? While the broader consumer behavior literature has demonstrated the impact of one's own effort on a variety of consumer response domains including satisfaction (Lastner, Folse, Mangus, & Fennell, 2016;Mohr & Bitner, 1995;Roggeveen, Tsiros, & Grewal, 2012), promotional participation (Folse, Niedrich, & Grau, 2010), emotional responses (McColl-Kennedy & Sparks, 2003), willingness to pay (Morales, 2005), and price fairness (Xia et al., 2010), no research that the authors are aware of has examined the influence of the effort of other consumers in the marketplace on perceptions of price fairness. ...
Article
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Past research has demonstrated that consumers' price fairness judgments are influenced by comparisons between the offer price they receive and the prices paid by other consumers for the same product offering. In today's digital age, reference points for purchases are more prevalent than ever. However, investigations on how certain inputs of the transaction affect these judgments is lacking. Specifically, extant research has failed to account for how the purchase efforts of other consumers can influence one's own price fairness evaluations. Moreover, relatively little empirical research has endeavored to understand the simultaneous cognitive and affective processes that explain how consumers arrive at price fairness judgments. To address these gaps in the literature, we introduce two studies aimed at understanding the process through which the salient efforts of referent consumers serve to mitigate perceptions of price unfairness when two customers pay different prices for the same product. The findings support a dual‐process model whereby the efforts of other (referent) customers serve to simultaneously reduce buyer anger and increase buyer understanding of the price disparity, ultimately mitigating perceptions of price unfairness.
... For example, employee extra effort (Morales 2005) and extra-role behaviors (Bock, Folse, and Black 2016a) promote feelings of customer gratitude. Customer gratitude can also arise during the service recovery process (Lastner et al. 2016) in response to service-provider actions. The moral barometer hypothesis is further supported in B2B contexts with research showing @ Compared to feelings of indebtedness, gratitude is more strongly elicited by employee benevolent intentions and has a stronger effect on PWOM. ...
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In addressing the call for research to understand affect in sales, this research uses moral affect theory and literature on emotional contagion to examine the effects of salesperson gratitude and customer gratitude on downstream relationship outcomes. The findings of this work suggest that salesperson prosocial behaviors account for the positive association between salesperson gratitude and customer gratitude. These prosocial behaviors – information sharing and extra-role behaviors – combined with customer gratitude serve as explanatory mechanisms for the positive effects of salesperson gratitude on customer commitment, which is an important result of buyer-seller interactions and an essential component of long-term relationships. Further, this research finds that salesperson extra-role behaviors and relationship length interact such that salesperson extra-role behaviors cultivate customer gratitude within developing and established relationships, but that these behaviors are particularly beneficial for less mature relationships. Understanding the role of salesperson gratitude and customer gratitude in driving relational outcomes contributes to both a theoretical understanding of the role of affect in sales and practical applications of emotions within buyer-seller relationships.
... Service failure is usual and consumers may experience disappointments in the service industry after failure occurs. Therefore, it is essential that managers should train employees to respond to disappointed consumers with a recovery compensation in a way that expresses sincere regret for the service failure (Lastner et al, 2016). ...
Conference Paper
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This paper aims to analyse perceptions of online service failure-recovery and customer retention in relation to the creation of satisfactory experiences for both customer and providers in the banking sector. In specific, the negative impacts of service failures and the positive effect of recovery strategies are assessed. Online service failures can have adverse impacts on profitability, and on-and offline service failures are inevitable in the service industry. A number of observations are made with implications for customer and provider experience in the banking sector. The purpose of this paper is to divulge predominant academic insight into a consistent provider-customer interaction and unlocks new perceptions for future academic study by examining the phenomenon from the perspectives of both providers and customers.
... From the early days of research on service failure and recovery (Bitner, 1990;Bitner, Booms, & Tetreault, 1990;Folkes, 1984;Folkes et al., 1987) to more recent research (Gelbrich et al., 2015(Gelbrich et al., , 2016Lastner, Folse, Mangus, & Fennell, 2016), academics have placed considerable emphasis on perceptions, evaluations, and reactions of customers who are directly affected by these incidents (i.e., a target). To date, few studies have been done on the observers' perceptions of others' service failures (Cowley, 2005;Wan et al., 2011) and recovery (Mattila et al., 2014;Van Vaerenbergh et al., 2013). ...
Article
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This research investigates how target and observing customers react to service failure and recovery. Previous research has focused on the effect of service recovery on target customers. It has been assumed that the reactions of those customers observing the recovery efforts would mirror those of target customers, or perhaps be even more favorable, given that they are not directly affected by the service failure. This research challenges this pre-conception. Through three experiments, this paper shows that often greater recovery efforts are required to improve the evaluation of observing customers than that of target customers. This research explores the reasons behind this counterintuitive finding and concludes with a discussion of its theoretical and managerial implications.
... One effective recovery strategy indicated in the literature is offering compensation to customers following a failure (Grewal et al., 2008;Crisafulli & Singh, 2017). Findings from this study indicates that compensation is an effective recovery strategy; however, this strategy is most effective if the compensation is perceived by customers as being benevolently offered, hence, managers should train frontline employees to offer customers recovery compensation in a manner that demonstrates sincere regret for the service failure (Lastner et al, 2016). ...
Chapter
This book chapter assesses the relationships between perceived justice and online service failure and recovery strategies in the fashion industry for customer retention. The existing literature has examined three-way and two-way interactions between procedural, distributive and interactional justice. The outcomes vary in terms of which combinations of justice create substantial interaction effects on customer recovery assessment. It recommends that for fashion brand providers to be competitive, they must combine both immersive technology and dimension metrics that comprise of subjective assessments. Both of these are critical to improve online service failure-recovery experiences which can have a significant impact on customer satisfaction and post-recovery behaviour. Furthermore, such a combination can mediate the relationship between satisfaction variables and justice dimensions.
... In an economic exchange, a sufficiently high compensation amount puts customers on par with a failure-free situation. Yet, successful service recovery is a highly emotional, positive event that not only mitigates previously experienced anger but can also turn it into positive feelings such as gratitude (De Witt, Nguyen, and Marshall 2008;Lastner et al. 2016). Hence, financial remuneration offers the potential to serve as a positive anchoring event that initiates a social exchange. ...
Article
This research examines how to recompense customers, from a social resource theory perspective, which portrays financial compensation as the act of offering the resource “money” to customers during a service recovery attempt. This resource can differ in its particularism (is the money offered in a more or less personal way?) and concreteness (is the money offered in a more or less tangible way?), which are shown in two experiments to affect recovery outcomes. Specifically, personal compensation accompanied by a handwritten note from the service person (vs. impersonal: a typewritten note from the firm) fosters recovery satisfaction, mediated by justice perceptions, and reciprocal customer behavior (tipping, cross-buying), mediated by an obligation to reciprocate. Tangible compensation in the form of a banknote or banknote-like coupon (vs. intangible: a credit entry) also fosters reciprocal customer behavior via the obligation to reciprocate. In both studies, relationship strength amplifies the indirect effect of compensation’s particularism on recovery satisfaction. As a theoretical contribution, we show that the way the monetary resource is presented matters for service recovery. As a major managerial takeaway, this research presents personal (vs. impersonal) compensation as an impactful property of compensation: It increases recovery outcomes without additional monetary costs. Further, managers learn that handing over the money in a personal and tangible way can be a way to increase monetary returns to the firm in the form of tipping and cross-buying.
... 8-9), emotions form an important part of consumption experiences (Holbrook & Hirschman, 1982). Successful instances of co-creation and co-recovery are a source of positive emotions (Lastner et al., 2016), while emotions triggered by service failure are negative, leading to the negative outcome of value co-destruction (Echeverri & Skålen, 2011). Value co-destruction is reflected in negative emotions and often results in a decline in a customer's well-being (Järvi et al., 2020). ...
... According to Bagozzi (1992), the process moves from the appraisal to emotional response and then to behavior in sequential order. A handful of researchers have examined this process in their studies (Lin et al., 2014) websites, (Bansal & Taylor, 2015), intention switching (Lastner, Folse, Mangus, & Fennell, 2016), overcoming service failures (Zhao, Yan, & Keh, 2018), and employee behavior (Wen, Hu, & Kim, 2018). Self-regulation is the merging of self-motivation, activation control, and selfdetermination (Kaschel & Kuhl, 2004). ...
Article
Workplace incivility is continuously seen as a stressor for the employee and the organization. No organization prospers in an uncivil environment. The high level of turnover intention that results from an uncivil working environment threatens the organization's reputation and sustainability. Adopting from Bagozzi's Appraisal‐Emotional Response, this study tested the relationship between workplace incivility, turnover intention, and job satisfaction via the mediating role of emotional exhaustion, using AMOS version 22. The findings reviews that workplace incivility harms both the employees and the organization. Also, workplace incivility has a positive impact on emotional exhaustion and turnover intentions while a negative influence on job satisfaction. Human resource managers are advised to train both supervisors and customers to curtail uncivil behaviors. Both theoretical and practical implications were given. In conclusion, the study suggests further research presenting the limitations of the study.
... Lastner et al., 2016), they talk and share with their friends and relatives both online and offline. That is the origin of negative online word of mouth. ...
Article
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The current study develops a research model and explores the correlation between customer sense of online betrayal, brand hate, and anti-brand activism. The outrage customers’ anti-brand behaviors consist of negative online word of mouth, online public complaining, and online boycott. Data from an online survey of 383 online shoppers were used to test seven proposed hypotheses. The partial least square–structural equation modeling (PLS-SEM) was adopted to assess the measurement and structural model. The findings showed that the sense of online betrayal positively and significantly affects brand hate and anti-brand behaviors. In addition, brand hate is also the leading cause of customers’ anti-brand actions. The present study highlights the mediation role of brand hate in eliciting revenge from consumers subjected to online betrayal. This study also gives some recommendations to customers to stop the misconduct behaviors of online betrayals, such as spreading their betrayal cases to friends and relatives via social media, then asking for supports and help from governmental and legal agencies and participating in boycotts; raising boycott movements against the betraying brand should be considered as the most extreme punishment.
... The notions of service failure and service recovery are almost inseparable (Tax, Brown & Chandrashekaran, 1998). Some researchers, such as Lastner, Folse, Mangus and Fennell (2016) and Liu and Ji (2019), argued that hesitating to fix service deficiencies could be costly for service providers and lead to customer displeasure. Consequently, when service failures inevitably occur, providers implement recovery strategies, such as apologising, offering compensation or allowing customers to voice their concerns (Wu, Du, & Sun, 2020). ...
Chapter
The growth of user-generated content (UGC) within fashion brands’ online platforms has increased consumers’ awareness of service failure and impacted their level of involvement and attitude towards recovery strategies. However, a limited number of studies have explored the value and antecedents of UGC on service failure and recovery strategies in the fashion industry. The aim of the chapter is to explore the online behaviour of fashion customers in relation to UGC and their attitudes towards a firm’s response after a negative service experience, considering a range of recovery strategies that can be adopted. The chapter concludes with a discussion on the resulting managerial implications and solutions, and draws some conclusions for both marketing professionals and academics.
... Brands play an important role in developing customer relationships which ultimately has an impact on the business performances. This involvement of the consumer with the brand leads to loyalty (Lastner et al., 2016). According to Yacobi (2015), happiness is central to the reason for the existence of human life. ...
Article
Positive emotions have drawn considerable interest of researchers in the recent past. One such emotion is happiness. The current study attempts to discover the underlying mechanism through which consumer happiness transforms into positive outcomes. Based on the “broaden and build theory of positive emotions” a model was developed and tested. Gratitude has been taken as a mediating variable. The proposed model explains the Pakistani customers’ shopping considerations from well known clothing outlets. Consumer happiness in this study has been used as an antecedent of repurchase intentions and customer advocacy, whereas, gratitude mediates the relationship between consumer happiness and positive outcomes. Data was collected with the help of structured questionnaire from 330 respondents through survey method. All questionnaires were personally administered. PLS-SEM techniques have been used through smart PLS 3 for testing the model. The relationship between consumer happiness and customer advocacy was found significant. Gratitude was found as a significant mediator among consumer happiness and outcomes. However, repurchase intention from branded clothing stores in Pakistan was found to be insignificantly affected by consumer happiness. The study contributes towards the better comprehension about the shopping experience of Pakistani shoppers towards branded clothing stores in true letter and spirit. The study contributes to the existing body of literature by incorporating experiences of shoppers from emerging economies like Pakistan and establishing the mechanism through which consumer happiness transforms consumer experiences into positive outcomes. Keywords: Consumer Happiness, Gratitude, Repurchase Intention, Customer Advocacy.
... Customer positive emotions Customer positive emotions are pleasant feelings, such as happiness and excitement (Babin et al., 1998). Positive emotions are particularly important in a retail setting because they can Retail disturbances affect other aspects of customers' retail experience, such as improving service recoveries occurring after a failure (Lastner et al., 2016). Retail disturbances can harm customer positive emotions by causing delays and interfering with retail atmospherics. ...
Article
Purpose The customer retail experience is frequently interrupted by disturbances such as ringing phones and other people. Employees must be able to respond to retail disturbances effectively to ensure that customers have a satisfactory experience in the retailer. Using Affective Events Theory as a framework, the purpose of this paper is to develop and test a model for understanding how retail disturbances affect customers outcomes and how retail employee response mitigates the negative impact of retail disturbances. Design/methodology/approach The model was tested using a pre-study of retail managers and consumers, a survey study and four experimental studies. Findings Retail disturbances reduce interactional justice and customer positive emotions. Customers pay attention to how employees address retail disturbances, even when they are not directly involved. Research limitations/implications The research experiments focus on sound-based disturbances. Other stimuli (e.g. olfactory or visual) should be examined in more detail. Practical implications Employees can mitigate the negative effects of retail disturbances on customers with a positive response to the disturbance and to customers. Employee responses influence customers currently receiving service and nearby shoppers. Social implications The findings demonstrate the deleterious effect of solicitation calls on small retailers and provide recommendations for reducing solicitation calls. Originality/value This research shows that retail disturbances reduce customer outcomes, employee response becomes part of the disturbance event, and that it is possible for employees to address a group of nearby customers indirectly through unintentional observation.
... The findings from this paper indicate that compensation is an effective recovery strategy; however, this strategy is most effective if the compensation is perceived by customers as genuine, hence, managers should train frontline employees to offer customers recovery compensation in a manner that demonstrates sincere regret for service failure (Lastner et al., 2016). Another practical implication emerging from this study for responses to service failure is the use of apologies, which are not just expected by affected customers, but also expected. ...
Article
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Firms have progressively provided a range of schemes to enhance online service failure and recovery strategies. Luxury fashion brand firms have tested different types of recovery strategies and have transitioned from offline to online settings to implement these. This paper assesses the impact of interactions between service providers and customers in terms of recovery strategies. Analysis is based on interview data collected on various service failure and recovery strategies. The paper considers the extent of customers involvement in online settings. Analysis suggests that customers interactions with service providers concerning online service failure and recovery strategies are more important than investigating single service failure-recovery experiences. This paper encompasses the relevant concepts of service failure-recovery experience and the creation of various recovery strategies for service failure that rely on the circumstantial social domain.
... Also, the present study used composite emotions (i.e. affect balance); hence, future work may consider using specific emotions approach (Lastner et al., 2016). ...
Article
Purpose The purpose of this paper is to propose and empirically test a model that examines subjective well-being (SWB) components (affect balance and life satisfaction, colloquially referred to as “happiness”), as the intervening variables between resilience and organizational commitment (OC), drawing on appraisal theory and job demands‒resources model. Design/methodology/approach Based on an employee sample ( n =345) from Indian organizations, this study uses structural equation modeling to confirm the differential mediating mechanism for OC dimensions. Findings The results suggest that resilience can create a pathway for positive emotions and increase life satisfaction, which, in turn, can help an employee to stick to the organization. Notably, findings indicate that affect balance fully mediates the linkages between resilience and affective commitment, whereas life satisfaction fully mediates the relationship between resilience and continuance commitment. Practical implications Besides making useful contributions to the concerned literature, the findings also have useful messages for managers and organizations trying to develop a committed workforce by building employee resilience. Originality/value Although previous studies have supported the relationship between resilience and OC, to date, no study has analyzed the motivational and cognitive process through which resilience relates to each dimension of OC (i.e. affective, normative and continuance).
Article
Purpose The purpose of this paper is to investigate the relationship between service recovery and relational selling behavior on trust and satisfaction in the banking industry. Specifically, the mediating role of trust and satisfaction on the relationship between service recovery, relational selling behavior and loyalty is empirically examined. Design/methodology/approach Hypotheses are developed based on the literature review. The conceptual model is tested using SEM on survey data collected from 560 customers of 12 banks in Taiwan, including local banks and foreign banks. Findings The model test results indicate that the influences of service recovery and relational selling behavior on trust and satisfaction are both significant. In addition, the influences of trust and satisfaction on loyalty are significant. Practical implications For bank managers, it is crucial to have well programs to identify service failures and handle recoveries efficiently and effectively. Furthermore, bank managers should place a high value on increasing salesperson’s customer-oriented behaviors to discern potential problems that customer concerns and provide suitable solutions that customer needs. By creating these better customer experiences, greater trust, satisfaction and loyalty can be yielded. Originality/value This study aims to provide a superior understanding of the relationship between service recovery, relational selling behavior, trust, satisfaction and loyalty in the banking industry. The research findings can contribute to forming targeted strategies and gaining competitive advantages for bank managers.
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Recently, the business landscape has changed because of the COVID-19 pandemic, which has led to changes in the behaviors of both customers and business owners. The COVID-19 pandemic and its associated restrictions on store closures have presented a new challenge to businesses that rely on physical interaction, brick and mortar to meet different customer needs. Mandatory shutdowns and social distancing measures have left voids that have been filled by digitalisation. The main problems customers face are service failures and breakdowns. As a result, customers are grappling with how they can have their problems addressed during the pandemic. There is therefore a need for a paradigm shift in terms of how businesses respond to unforeseen circumstances and pandemics because it is the only firm that use automation that will be more robust in competitive scenarios. This study is aimed at providing a hybrid approach to integrating digital technology into service recovery strategies, namely apology, explanation, speed, compensation and empowerment, during the COVID-19 pandemic in order to achieve customer recovery satisfaction. Therefore, a model for integrating technology and digital connectivity into service recovery strategies to achieve recovery satisfaction has been proposed. Thus, this model provides insight into how businesses can use digital technology to implement service recovery strategies during a pandemic. This is critical to help enterprises maintain consistency and minimize service variability due to changes caused by the COVID-19 pandemic. This study contributes to the literature on digital technology and service recovery by using current methods to address today's challenges.
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The "service recovery paradox" is a remarkable concept and phenomenon in the vital domain of customer service, whereby customer satisfaction loyalty towards the service provider increases after an incidence of a problem faced by the customer. With this phenomenon in the backdrop, this research paper pertains to a threefold purpose-to analyze situations and prevailing contexts which may cause formation and further strengthening of a service recovery paradox, secondly to identify factors which are required for the formation of the not-so-apparent service recovery paradox, and thirdly to propose a theoretical model of factors and their inter relationship. The study draws considerably from relevant available pieces of literature and from case-based experiences. Independent variables have been identified through a qualitative analysis of the literature. The service recovery paradox is the dependent variable. From a practical perspective, the service recovery paradox is an under rated phenomena which may be taken up by industry for strategic advantage. The study provides a starting point from where academicians may provide a theoretical understanding of the concept.
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This research examines how host’s interaction styles can shape consumer outcomes (e.g., satisfaction and switching intentions) after experiencing service failure in home-sharing via the intervening role of trust. Drawing on findings from two experimental studies, the results consistently suggest that adopting a personal (vs. professional) style in the initial host–guest interaction yields higher trust in the host (Study 1a, 2a). When service failure occurs, consumers exposed to an initial personal (vs. professional) interaction with the host report greater satisfaction and lower switching intentions, regardless of recovery interaction styles (Study 1b, 2b). Serial mediation analysis suggests that trust accounts for the differential impact of interaction styles on post-service recovery outcomes. Implications for the sharing economy literature and managerial practices are discussed.
Article
Purpose This paper aims to explore the influence of frontline employees’ (FLEs’) positive psychological capacities (PPCs) (optimism, hope, resilience and self-efficacy) on service recovery. Design/methodology/approach A model of FLE PPCs is tested using two studies: a field study (Nretail = 205; Nrestaurant = 160) and between-subject experimental design (Neducation = 206) in three service settings. Findings Results show that positive emotions mediate the relationship between PPCs and problem-solving adaptability, and that authenticity of positive emotions moderates the relationship between positive emotions and interactional justice. Surprisingly, problem-solving adaptability positively influences perceptions of distributive justice and interactional justice. A small interaction effect between positive emotions and problem-solving adaptability also was found. Research limitations/implications The dependent variable (problem-solving adaptability) was measured using an open-ended question evaluated by objective, independent raters rather than a self-reported structured metric, to minimize social desirability bias. Practical implications Given that the customer complaints to the Better Business Bureau in 2016 were close to one million, most of them occurring in the service sector, service firms need continuous research into improving service recovery. This study argues that firms can improve FLEs’ problem-solving adaptability behavior by training existing FLEs to strengthen PPCs, hiring FLEs that have strong PPCs and fostering positive emotions. Originality/value This is the first study that examines the effect of PPCs on service recovery outcomes. By incorporating PPCs as antecedents of positive emotions, this paper explains how FLEs can offer a better recovery rather than dictating what they ought to display and say. An explanation of how FLE PPCs influence customer outcomes via the broaden-and-build theory of positive emotions and emotion contagion theory is offered, highlighting a novel path/relationship between FLE positive emotions and problem-solving abilities, and extending emotion contagion to service recovery.
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The ideas of service failure and recovery strategies have been transformed, due to the internet environment, from a consumer-provider perspective to a multifaceted web quality activity. The research on service failure and recovery strategies has been well-developed in terms of the consumer’s viewpoint of service as well as the responsibility for recovery conventionally expected to be allotted to the marketer. On he contrary, existing research indicates that there is a limited range of understanding of consumer-website interactivity relating to online service failure and recovery strategies as well as less understanding of the highly diverse characteristics of computer-mediated marketing environments (CMMEs). The perspectives of CMMEs relate to online customer behaviour as distinct from conventional behaviour. In fact, providers are involved in intense activity in the online environment in terms of market competition, as customers are positioned just a click away from switching providers in the case of service failure.
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IS service delivery failures inside companies are value diminishing events. Information systems service providers seek to limit this value destruction but lack guidance on IS incident resolution actions that satisfy users and preserve IS service value. We apply Service-Dominant Logic (SDL) to explore what is relevant to users’ recovery service experiences while interacting with IS service providers. We use an integrated research approach including qualitative and quantitative data. We uncover actions that lead to a satisfying incident recovery and categorise them into three recovery components (responsive handling interactions, supportive communicating interactions, and effective resolving actions) that reflect IS provider resource exchanges of information, knowledge, and service skills with users in resolving incidents. We integrate these three recovery components as factors in our research model and test direct and moderating effects on value outcomes. We find that users’ recovery satisfaction results from both a “fix it fast and fully” perspective and a sense of effort and fairness conveyed. Results point to managers preserving overall IS service satisfaction and service quality by facilitating proper resource exchanges during an incident recovery.
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This study aims to provide empirical evidence on the relationship between generosity and intention to participate in Cause-Related Marketing (CRM) program directly or mediated by positive emotion. The quantitative study was conducted with convenience sampling to 54 respondents (92% return rate). The questionnaire included items to measure the attitude toward generosity, intention to participate in the CRM program and positive emotion. All data were analyzed using SmartPLS. The finding of the study is that there is a significant positive relationship between generosity to positive emotion and a significant positive relationship between positive emotion and intention to participate in the CRM program. However, the direct relationship between attitude and generosity to the intention to participate in the CRM program is not significant. This study has both theoretical and practical implications. The contribution to theoretical is that this study gives empirical evidence of the relationship between generosity and intention. The practical implication is that this study can give insight to the manager on how to use CRM to improve company relationships with customers.
Article
Purpose — This study aims to increase understanding of how the strength of the relationship between service failure–induced customer anger and revenge intentions might be influenced by attitudinal moderators that are both within and outside the realm of the service firm’s control. Drawing on past research, the authors hypothesize that customers’ perceptions of the corporate reputation and silent endurance constitute boundary conditions of the relationship between service failure–related customer anger and revenge intentions. Design/methodology/approach — In line with past service failure research, the authors test the hypotheses using a scenario-based online experiment with 243 participants. Findings — This research reaffirms the positive relationship between anger and revenge intentions and finds support for the hypothesized boundary conditions; customers with better corporate reputation perceptions and higher levels of silent endurance express weaker revenge intentions than those with poor corporate reputation perceptions and lower levels of silent endurance.
Purpose The purpose of this study is to examine the mediating effect of psychological well-being between organizational dehumanization and two outcome variables: service recovery performance and service sabotage. This research also investigates whether organizational tenure moderates the relationship between organizational dehumanization and psychological well-being. Design/methodology/approach Using survey methodology, 200 hotel frontline service employees (FLEs) in Turkey were sampled over two time points. Additionally, employees’ direct supervisors rated their service recovery performance. The partial least squares method, specifically SmartPLS 3.3.3, was used for data analysis. Findings The results indicate that organizational dehumanization negatively influences employees’ psychological well-being. However, organizational tenure moderates this relationship, in which organizational dehumanization has less of a negative effect on employees’ psychological well-being in those with longer tenure. Psychological well-being was found to mediate the relationship between organizational dehumanization and service recovery performance. Finally, psychological well-being mediates the relationship between organizational dehumanization and service sabotage. Practical implications Managers should consider the negative effect organizational dehumanization has on FLEs’ psychological well-being and aim to establish an organizational culture that values these employees as individuals and as invaluable resources for the organization. Further, this study has found that less tenured employees are less likely to have the psychological resources to cope with organizational dehumanization and are more susceptible to decreased productivity (i.e. service recovery performance) and engaging in counterproductive work behaviors (i.e. service sabotage) due to mistreatment in the workplace. Originality/value This study furthers our understanding of organizational dehumanization, an understudied concept in hospitality research, which influences employee outcomes. The findings of this study contribute to the advancement of the self-determination theory and how organizational dehumanization impacts psychological well-being. It also contributes to the conservation of resources theory and current literature on service recovery performance and service sabotage.
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Purpose – Consumption situations can be emotionally charged. Identifying the cause(s) of emotions has clear practical import to the understanding of consumer behaviour. Cognitive appraisal theory serves this purpose; however, a consensus has not yet emerged concerning terminology, number of relevant concepts and concomitant construct measurements, and theoretical linkages between constructs. This paper attempts to rectify this shortcoming. Design/methodology/approach – This conceptual paper provides an extant review of emotions literature as it pertains to cognitive appraisals and consumption behaviours. Based on this review an integrative cognitive appraisal theory is advanced that is parsimonious and incorporates similarities across the various appraisal theory perspectives to date. Findings – Four appraisals are proffered that appear capable of implicating specific emotions and their effects on consumer behaviour. The appraisals advanced are outcome desirability that encompasses pleasantness and goal consistency, agency which includes responsibility and controllability, fairness, and certainty. Sample propositions concerning how cognitive appraisals affect information processing extensiveness have also been provided. Originality/value – First, the paper provides an extant review of cognitive appraisal theories of emotions, which makes transparent the looseness in terminology and differences in theoretical perspectives that currently exist. Second, based on this review the paper advances a unifying theory of consumption appraisals and explore their relevance to marketers. The theory proposed could explain inconsistent findings in the current literature. Third, directions for future research highlighting confounds that should be considered in study designs complete the paper.
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A significant body of research concludes that stable beliefs of perceived consumer effectiveness lead to sustainable consumption choices. Consumers who believe that their decisions can significantly affect environmental and social issues are more likely to behave sustainably. Little is known, however, about how perceived consumer effectiveness can be increased. We find that feelings of guilt and pride, activated by a single consumption episode, can regulate sustainable consumption by affecting consumers’ general perception of effectiveness. This paper demonstrates the impact that guilt and pride have on perceived consumer effectiveness and shows how this effect rests on the ability of these emotions to influence perceptions of agency. After experiencing guilt or pride, consumers see themselves as the cause of relevant sustainability outcomes. The process of causal attribution associated with these emotions influences consumers’ use of neutralization techniques. Through the reduction in consumers’ ability to neutralize their sense of personal responsibility, guilt and pride positively influence perceived consumer effectiveness. The inability to rationalize-away their personal responsibility, persuades consumers that they affect sustainability outcomes through their decisions. The research advances our understanding of sustainable consumption and identifies a new avenue for the regulation of individual consumer behavior that has significant implications for the development of sustainable marketing initiatives.
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Abstract Purpose – For centuries, gratitude has represented an integral component of social relationships, yet it remains relatively overlooked by marketing scholars in the study of commercial relationships. The purpose of this paper is to demonstrate how gratitude helps to build, maintain and transform commercial relationships and to suggest noteworthy areas of investigation for those researchers seeking to help companies understand the role of gratitude in relationship marketing. Design/methodology/approach – Gratitude’s role in relational exchange is explored by a review of relevant literature and two qualitative studies. Questions developed from the literature and exploratory interviews are then investigated in a main study through in-depth interviews with buyers and sellers of goods and services in both B2B and B2C contexts, leading to a grounded theoretical foundation. Generalizations and directions for future research are presented. Findings – Gratitude is a fundamental component of buyer-seller relationships and is critical for advancing relationship marketing theory and practice. Gratitude’s changing role as relationship stages advance is described. Research limitations/implications – The research is of an exploratory nature. Confirmation of the generalizations by other studies is suggested. This research is largely consistent with that from a markets-as-networks perspective and moves relationship marketing research toward a more extended view. Practical implications – Gratitude should be included along with other relational mediators in discussions and investigations of relationship success, and practiced by those that seek to build, develop and enhance their buyer-seller relationships. Originality/value – This paper provides a much needed exploration of a new and important topic in relationship marketing and a call for gratitude to be studied and implemented in a variety of relational exchange contexts. Specifically, it is the first to address the importance of gratitude to both buyers and sellers in B2B and B2C goods and services markets. It also is the first to document the changing role of gratitude through relationship stages.
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The Service Recovery Paradox (SRP) has emerged as an important effect in the marketing literature. However, empirical research testing the SRP has produced mixed results, with only some studies supporting this paradox. Because of these inconsistencies, a meta-analysis was conducted to integrate the studies dealing with the SRP and to test whether studies' characteristics influence the results. The analyses show that the cumulative mean effect of the SRP is significant and positive on satisfaction, supporting the SRP, but nonsignificant on repurchase intentions, word-of-mouth, and corporate image, suggesting that there is no effect of the SRP on these variables. Additional analyses of moderator variables find that design (cross-sectional versus longitudinal), subject (student versus nonstudent), and service category (hotel, restaurant, and others) influence the effect of SRP on satisfaction. Finally, implications for managers and directions for future research are presented.
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Because co-creation allows customers to help shape or personalize the content of their experience, it can affect customer satisfaction with recovery efforts, as well as offer a more cost-effective alternative to compensation. This article identifies specific situations in which co-creation is and is not useful. Study 1 tests the impact of co-creation in comparison with compensation for enhancing satisfaction with the recovery process and demonstrates that co-creation offers a cost-efficient strategy for companies when customers must deal with severe delays. Study 2 extends these results by showing that the impact extends to repurchase intentions. Study 3 details conditions in which co-creation harms evaluations. Finally, Study 4 explores whether it is necessary for the company to meet the customer’s requests when co-creating a recovery, as well as what happens when the company exceeds a customer’s requests. The article concludes with a discussion of the theoretical and managerial implications, limitations, and research directions that emerge from the studies.
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This study examines the role of customer emotions in the context of service failure and recovery encounters. It investigates how customers' emotional responses to service failures influence their satisfaction judgments after accounting for cognitive antecedents of satisfaction. The study also considers how customers' emotional responses to service failures influence how they evaluate an organization's recovery efforts. The research is conducted by surveying customers about their satisfaction judgments in two service settings, restaurants and hotels. The results suggest that customers' emotional responses to service failures will influence their recovery effort evaluations and satisfaction judgments in some circumstances and that the effects of emotion vary across industry settings. This study identifies the types of efforts that are most effective in helping customers “recover” from the negative emotions caused by service failures.
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A conceptual model articulating the nature and determinants of customer expectations of service is proposed and discussed. The model specifies three different types of service expectations: desired service, adequate service, and predicted service. Seventeen propositions about service expectations and their antecedents are provided. Discussion centers on the research implications of the model and its propositions.
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This study develops a model that addresses the following: (a) How does a customer's satisfaction with a service failure and recovery encounter affect cumulative satisfaction judgments and repatronage intentions? (b) To what extent do a customer's prior assessments of overall satisfaction and repatronage intentions formed before the service failure and recovery encounter carry over to influence subsequent overall satisfaction and repatronage intentions? (c) Can a highly satisfying service failure and recovery encounter enhance a customer's overall satisfaction with a service organization and increase repatronage intentions? The model is operationalized with data from two experiments conducted in different service settings in which actual customers "experienced" a hypothetical service failure and recovery encounter at an organization they had recently patronized. The results suggest that although excellent service recoveries can enhance customer satisfaction and increase repatronage intentions, viewing service failures as opportunities to impress customers with good service performance may involve substantial risks.
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in our discussion of emotion and dysfunction, we have intimated that emotions are instructive about persons because both emotions and the personality are organized around the problem of surviving, getting along, and flourishing over the life course begin by addressing the question of what an emotion is / describe our own [the authors'] recent work directed at illuminating what we see as one of the important issues in emotion theory—the role of cognitive appraisal embed this work in a general model of emotion, which identifies the key variables and processes within a systems framework emphasizing person-environment relationships and cognitive mediation illustrate how emotion theory makes firm contact with a variety of topics currently being pursued across diverse psychological disciplines, especially personality and social psychology the adaptational problem and the evolution of emotion / appraisal theory / personality, society, and biology in emotion (PsycINFO Database Record (c) 2012 APA, all rights reserved)
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This research examines the nonlinear effects of compensation on customer satisfaction in order to determine the optimal compensation after a flawed service. As our core contribution, we argue that the nature of this nonlinear effect depends on the way customers handle a flawed service. Building on the Service-Dominant (S-D) logic, this research introduces two specific failure handling tactics—when customers reject versus accept a flawed value proposition—that affect the shape of the nonlinear function of compensation on satisfaction. Our key hypotheses are tested with two experiments that manipulate 11 compensation levels (0–200%) and the two failure handling tactics (rejection vs. acceptance). Consistent with our logic, both studies reveal an S-shaped curve progression for service rejection and a concave shape for service acceptance. For service rejection, the highest incremental effect of compensation on satisfaction lies in between 60% and 120%. For service acceptance, the highest return in satisfaction is obtained with the first dollars invested in partial compensation. As a major managerial takeaway, firms can use these findings to determine the compensation level that provides the best satisfaction return.
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This empirical research focuses on suspense, which is proposed to be a formative construct comprised of the emotions of hope and fear. Two measurement studies that focus on developing a scale for suspense, as well as scales for its two emotional components of hope and fear, are first presented. Next, using a 2 (approach appraisal)×2 (avoidance appraisal)×2 (probability fluctuation) experiment, we first show that hope and fear are valid indicators of suspense. We also determine that hope is influenced by an approach appraisal of a potential event, whereas fear is influenced by an avoidance appraisal of a potential event. Further, we demonstrate that probability fluctuation positively affects outcome uncertainty, which in turn, positively affects the anticipatory emotions of hope and fear.
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Two experimental studies (a lab experiment and a study involving a real usage experience over time) reveal the existence of a strong, positive impact of customer satisfaction on willingness to pay, and they provide support for a nonlinear, functional structure based on disappointment theory (i.e., an inverse S-shaped form). In addition, the second study examines dynamic aspects of the relationship and provides evidence for the stronger impact of cumulative satisfaction rather than of transaction-specific satisfaction on willingness to pay.
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A theory specifying how appraisals of a situation determine one's emotional responses (Roseman, 1979) was subjected to an experimental test. According to the theory, particular combinations of 5 appraisals determine which of 13 qualitatively different emotions will be experienced in any given situation. The appraisals are: motivational state (rewarding/punishing), situational state (presendabsent), probability (certaiduncertain), legitimacy (positivehegative outcome deserved), and causal agency (circumstanced other person/self). The emotions whose occurrence they determine are joy, relief, hope, liking (“warmth-friendliness”), pride, distress, sorrow, fear, frustration, disliking (“coolness-unfriendliness”), anger, regret, and guilt. In the experiment, 120 college students read brief stories in which these appraisals were manipulated, and rated the intensities of various emotions felt by story protagonists. Results showed that each appraisal had a significant effect upon emotions, and that the particular combinations of appraisals specified by the theory predict the relative intensities of particular emotions, across a wide variety of situations. Theoretical predictions were more clearly supported for appraisals of motivational state, situational state and probability than for appraisals of legitimacy and agency. Results provide significant support for the theory, and suggest that it be subjected to further testing and development. Possible modifications in the theory are also discussed.
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Emotions are mental states of readiness that arise from appraisals of events or one’s own thoughts. In this article, the authors discuss the differentiation of emotions from affect, moods, and attitudes, and outline an appraisal theory of emotions. Next, various measurement issues are considered. This is followed by an analysis of the role of arousal in emotions. Emotions as markers, mediators, and moderators of consumer responses are then analyzed. The authors turn next to the influence of emotions on cognitive processes, which is followed by a study of the implications of emotions for volitions, goal-directed behavior, and decisions to help. Emotions and customer satisfaction are briefly explored, too. The article closes with a number of questions for future research.
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This study investigates the relationships among appraisals (goal congruence/incongruence and agency), consumption emotions (gratitude, happiness, guilt, anger, pride, and sadness), and post-consumption behaviors (positive and negative word of mouth, repurchase intention, and complaint behavior). The findings demonstrate that these emotions predict different specific types of post-consumption behaviors and that they are elicited by appraisals specified in the psychology literature. In particular, gratitude but not happiness, predicts repurchase intention and positive word of mouth. By contrast, guilt inhibits complaint behaviors and negative word of mouth. The implications of these findings for marketing practice are discussed. © 2007 Wiley Periodicals, Inc.
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Pride feelings and processes have been under-studied in marketing and consumer research although they have major consequences for marketers and consumers. In this article, a multidimensional process view of pride is offered by reporting the findings of a qualitative interpretive study on soccer fans’ possessions. Four types of pride are put into light, i.e., introspective, vicarious, contagious, and conspicuous. Their antecedents and consequences are developed. A series of theoretical and managerial implications are finally suggested. Making consumers proud of the brand/company may lead to stronger commitment and loyalty, increased consumption (new products, upgrades and merchandise), positive WOM, and co-creation of value. KeywordsPride-Consumption experience-Identity-Brand loyalty-Interpretive research
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This study examines the effects of distributive, interactional, and procedural justice on complainants' repatronage and negative word-of-mouth intentions. In order to test the hypotheses an experiment was conducted; twelve different scenarios were created, each describing a situation in which a customer was returning a product to a retail store. In the various scenarios, the customer was allowed to exchange the product or was given a partial discount on a new product, was treated either with courtesy and respect or was treated rudely, and was able to take care of the problem promptly or was asked to come back to the store the next day. Subjects were asked to read one of the twelve scenarios and to imagine that this situation happened to them, they were then asked to imagine how they would have felt and what they subsequently would have done. In order to make the scenarios more vivid, subjects then watched a videotape depicting the same event. Of the three dimensions, interactional justice had the largest impact on complainants' repatronage and negative word-of-mouth intentions.
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Loyalty and fairness are major research topics in the marketing literature. However, research examining how customer loyalty and fairness perceptions affect each other is lacking. This study examines these two topics in the context of a retailer increasing its prices, develops hypotheses, and tests these hypotheses using an experimental design approach. Results indicate that loyalty has a positive effect on fairness perceptions when price increases are low, though no such effect is found when price increases are high. Also, justifiable reasons for price increases lead to increased fairness perceptions when price increases are low, but any reason offered when price increases are high increases fairness perceptions. Whether distributive or procedural fairness influences post customer loyalty in the presence of price increases is dependent on both the level of the price increase and the reason offered for the price increase. This research provides implications for retailers and directions for future research.
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This research was conducted to examine the hypothesis that expressing gratitude to a relationship partner enhances one's perception of the relationship's communal strength. In Study 1 (N = 137), a cross-sectional survey, expressing gratitude to a relationship partner was positively associated with the expresser's perception of the communal strength of the relationship. In Study 2 (N = 218), expressing gratitude predicted increases in the expresser's perceptions of the communal strength of the relationship across time. In Study 3 (N = 75), participants were randomly assigned to an experimental condition, in which they expressed gratitude to a friend, or to one of three control conditions, in which they thought grateful thoughts about a friend, thought about daily activities, or had positive interactions with a friend. At the end of the study, perceived communal strength was higher among participants in the expression-of-gratitude condition than among those in all three control conditions. We discuss the theoretical and applied implications of these findings and suggest directions for future research.