Considered Service-specific journals were Journal of Service Research, Journal of Service Management, Journal of Services Marketing, Journal of Service Theory and Practice, Service Industries Journal, Cornell Hospitality Quarterly, and Service Science.
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Albrecht, A. K., G. Walsh and S. E. Beatty (2017): Perceptions of Group Versus Individual Service Failures and Their Effects on Customer Outcomes, Journal of Service Research, 20(2), pp.188-203
A service failure and its negative effects can involve multiple customers at the same time, which suggests the need to understand the psychological mechanisms that underlie differential perceptions of group service failures (GSFs) versus individual service failures (ISFs) as well as their related outcomes. With an attributional framework, this article reports on two experiments that varied in their blame-attribution ambiguity. The results reveal that customers experience greater anger and show higher negative word-of-mouth and complaint intentions after a GSF versus an ISF. These differential effects are mediated by blame attributions, such that GSFs cause customers to blame the service provider more than ISFs. Customer entitlement also moderates the effect of the failure context (GSF vs. ISF) on blame attribution, contingent on perceptions of whether the service provider or customer violated an existing rule. Thus, we find that customers respond differently to service failures depending on the context. Managerial implications include separating customers from each other when GSFs are likely to take place, using techniques to redirect customer’s blame attributions to sources other than the service provider after a GSF and using customer scripts to minimize the occurrence of customer-induced service failures.
Henkel, A. P., J. Boegershausen, A. Rafaeli and J. Lemmink (2017): The Social Dimension of Service Interactions, Journal of Service Research, 20(2), pp.120-134
Service interactions run a gamut from an instrumental self-focus to full social appreciation. Observing another customer’s incivility toward a frontline employee can emphasize social concerns as guiding principles for the observer’s own service interaction. Five studies test these dynamics; the results reveal that an incivility incident leads observers to prioritize social over market concerns. This reprioritization becomes manifest in a subsequent service interaction through increased feelings of warmth toward the employee who experienced incivility. In turn, feelings of warmth prompt observers to provide emotional support to the affected employee. Yet such prosocial inclinations are less likely when an employee is held responsible for or reciprocates incivility. Finally, this article also examines the effects of different employee reaction strategies on observers’ inferences about the employee and the service firm, showing that observers are most positively disposed toward the employee and the firm when the former reacts to incivility with a polite reprimand. Together, the results suggest that, contrary to past theorizing, observing customers may contribute to employee well-being, contingent on appropriate employee responses. Notably, the commonly prescribed polite, submissive employee reaction that requires emotional labor may not be the most desirable reaction—neither for the employee nor for the firm.
Chennamaneni, P. R., R. Desiraju and A. Krishnamoorthy (2017): Advance Sales of Services, Journal of Service Research, 20(2), pp.135-151
We investigate a service provider’s advance selling strategies in the presence of a channel intermediary who improves (i) consumers’ accessibility to the service or (ii) the service provider’s access to higher valuation segments. We evaluate the conditions under which dealing with such an intermediary may offset the attendant costs of providing suitable incentives. Our results indicate that the relative profitability of selling via the intermediary is affected by an interaction among marginal costs, capacity level, and the type of value the intermediary brings to the channel. We find that a capacity-constrained service provider may prefer selling via an intermediary that offers improved access to higher valuation consumers. However, when the service provider has excess capacity, indirect sales is preferred even when the intermediary is simply expanding the reach. In such a setting, both the service provider and the intermediary can enhance their profits in a symbiotic manner. Our findings have several implications for service providers. A service provider with limited capacity and relatively small marginal cost would be better off not contracting with an intermediary. In contrast, service providers with larger capacity and marginal cost will benefit from using an indirect channel despite the costs of incentivizing such an intermediary.
Kraemer, T., M. H. J. Gouthier and S. Heidenreich (2017): Proud to Stay or Too Proud to Stay? How Pride in Personal Performance Develops and How It Affects Turnover Intentions, Journal of Service Research, 20(2), pp.152-170
Although a considerable amount of research has been devoted to the formation of turnover intentions, the influence of pride in personal performance (PP), which is one of the most frequently felt workplace emotions, has been largely neglected. Employing a three-stage study design, this article explores how PP develops and how it affects turnover intentions among frontline employees. First, relying on affective events theory, a prestudy that employs a qualitative diary approach was performed to empirically identify work events that are the primary causes of PP. The prestudy was followed by Study 1, which applied a quantitative research design to determine which job characteristics promote these events. Finally, Study 2 utilized three-wave panel data of frontline employees to investigate the effects of PP on turnover intentions. The findings of the latter study confirm that PP triggers two processes that contrarily affect turnover intentions: (1) PP enhances job satisfaction, which decreases turnover intentions, and (2) PP increases self-efficacy, which enhances turnover intentions. However, further analyses reveal that the latter effect is not relevant for highly satisfied employees and that overall, increasing PP results in decreasing turnover intentions, suggesting that companies should foster PP to retain their frontline employees.
Marchand, A., M. Paul, T. Hennig-Thurau and G. Puchner (2017): How Gifts Influence Relationships With Service Customers and Financial Outcomes for Firms, Journal of Service Research, 20(2), pp.105-119
Service companies invest billions of dollars to develop and maintain long-term customer relationships by offering corporate gifts. Yet several questions remain regarding such relationship marketing instruments: What impact do different kinds of gifts have on customers? Which perceptions allow gifts to affect customer behavior? What financial outcomes do these gifts imply for firms? To answer these questions, the authors use data from 1,950 airline customers—combining a longitudinal field experiment with internal customer database information—and explore the effects of different gift designs on customer perceptions and actual spending behavior. The experiment manipulates four gift designs (economic related/unrelated; social related/unrelated) and measures customer perceptions and behavior at different points in time. Multivariate analyses of covariance (MANCOVAs) and spotlight analyses reveal that the congruent combinations of economic related and social unrelated gift dimensions have the strongest effects on customer perceptions of relationship investment. Serial mediation analyses further reveal that the impact of gifts on customer spending is fully mediated by customer perceptions of perceived relationship investment and repurchase intention. Economic related gifts produce the highest contribution margins. Service managers may use these findings to design effective gifts and management processes (e.g., gift success tracking).
Mathwick, C. and J. Mosteller (2017): Online Reviewer Engagement, Journal of Service Research, 20(2), pp.204-218
Consumers who generate online reviews provide a vital information service for the buying public, influencing nearly half of all purchase decisions. This study focuses on factors that motivate online reviewer engagement (ORE). ORE is a contextually dependent psychological state characterized by varying degrees of altruistic and egoistic market-helping motives coupled with an individual’s intrinsic motivation to review when the needs for autonomy, competence, and social relatedness are fulfilled. Amazon.com’s top reviewer community, which uses a public ranking system to motivate, recognize, and influence reviewer behavior, provides the study’s context. Three reviewer types—indifferent independents (IIs), challenge seekers (CSs), and community collaborators (CCs)—all report altruistic motives; however, egoistic motives associated with rank and psychological need fulfillment vary. IIs fulfill autonomy needs by using the platform for self-expression, with rank exerting little influence. CSs view rank as a game to master. CCs, who have fully integrated the ranking system, perceive reviewing as an enjoyable, socially embedded experience that merits advocacy. This study extends engagement theory by linking market-helping motives and psychological need fulfillment with high levels of behavioral engagement. Thus, findings may help managers tailor reviewing environments to attract and retain a diverse and highly engaged reviewing community.
Sheng, X., P. M. Simpson and J. A. Siguaw (2017): Communities as Nested Servicescapes, Journal of Service Research, 20(2), pp.171-187
Using a long-duration service experience, this study proposed and tested a servicescape transference effects phenomenon of two nested multidimensional servicescape satisfaction constructs—labeled perceived nestscape and surroundscape satisfaction—on one another and on loyalty intentions. Both perceived servicescape satisfaction constructs positively affected loyalty intentions. The direction of effects between the two satisfaction constructs was found to emanate from satisfaction with the larger surroundscape to satisfaction with the smaller nestscape rather than the opposite direction. All dimensions of the servicescapes were significant, but the design dimension contributed the most to perceived nestscape satisfaction, while the social dimension had the greatest influence on surroundscape satisfaction. These findings suggest that managers of servicescapes should proactively respond to all dimensions of both the larger and the smaller contiguous servicescapes to heighten customer satisfaction and loyalty. In addition, servicescape engagement positively affected perceived surroundscape satisfaction, but not perceived nestscape satisfaction. Servicescape engagement moderated the nestscape and surroundscape effects by weakening the impacts of both constructs on loyalty intentions. Consequently, managers should provide superior levels of engagement activities for seasonal migrants less concerned with the servicescape and enhance perceived servicescape satisfaction for less engaged consumers to induce loyalty.
Adrodegari, F. and N. Saccani (2017): Business models for the service transformation of industrial firms, Service Industries Journal, 37(1), pp.57-83
This study comprehensively reviews the literature on the service transformation of industrial firms, applying the business model (BM) perspective. Despite the wide use of the BM terminology, a true BM approach to this phenomenon is an emergent trend. We provide a threefold contribution to the research debate. First, we identify the reasons of relevance of such a BM approach to the service transformation phenomenon. Second, based on a reference model, we provide a characterization of the service transformation literature according to the BM perspective, both from the structural and the content standpoints. Third, we outline four future research directions: (i) the comprehensive and detailed structural description of BMs; (ii) the adoption of a differentiated approach to BMs; (iii) the internal and external factors affecting the choice of BMs; (iv) the transition paths.
Chou, C. Y., J.-S. Chen and Y.-P. Liu (2017): Inter-firm relational resources in cloud service adoption and their effect on service innovation, Service Industries Journal, 37(42798), pp.256-276
The article examines inter-firm relational resources for cloud service adoption and their effects on service innovation. Topics covered include contribution of the accelerated advances of cloud services to the customization of service quality, usefulness of a firm’s potential resources, and clarification of which inter-firm relational resources drive a firm’s cloud service adoption.
da Silva, S. V., N. Antonio and J. C. de Carvalho (2017): Analysis of the Service Dominant Logic network, authors, and articles, Service Industries Journal, 37(2), pp.125-152
The present study analyses research conducted in Service Dominant Logic (S-D logic), providing an overview of its intellectual structure. For that purpose, a structured approach was adopted through the implementation of bibliometric methods, using co-citation analysis combined with performance analysis and an integrative science mapping approach, which considered a timeline, a graph, and a distance-based perspective. This allowed the identification of the leading authors and of six clusters of articles based on bibliographic coupling, along with the most prominent research themes clustered in five subdomains of research based on co-occurrence of terms. The networks extracted show the associations between the main articles and concepts treated by the S-D logic community, unveiling the salient challenges and prospective expansion facing its future theoretical and practical context.
Domínguez-Falcón, C., J. D. Martín-Santana and P. De Saá-Pérez (2017): Predicting market orientation through internal market orientation as culture and behaviour: an empirical application in Spanish hotels, Service Industries Journal, 37(42798), pp.229-255
The article discusses a study that examines how the internal market orientation (IMO) influences the development of external market-oriented behaviours by improving the attitudinal results of the internal customers. Topics covered include IMO as culture and IMO as behaviour, the relevant role the IMO adopts in the development of external market-oriented behaviours, and definition of organizational commitment in the literature.
Donati, C. (2017): Service industries, growth dynamics and financial constraints, Service Industries Journal, 37(42798), pp.190-205
The article examines the effects of financial constraints on firm growth within the business services. Topics covered include the impact of liquidity constraints on the growth of industries requiring qualified labor pool, the distribution of employment on small and medium size enterprises in Italy, and sample of service firms provided by the Italian Institute of Statistics.
Edgar, F., A. Geare, D. Saunders, M. Beacker and I. Faanunu (2017): A transformative service research agenda: a study of workers’ well-being, Service Industries Journal, 37(1), pp.84-104
Interest in workers’ well-being is mounting – a key driver being the growing recognition that well-being is linked to performance. Utilizing a transformative service research (TSR) agenda, this study examines how people management practices impact the well-being of hospitality and retail workers. Comparing the experiences of permanent and precarious workers, we find it is not employment practices per se that promulgate feelings of insecurity and inferiority; rather, it is the attributions ascribed to them. This has practical implications. Most notably, some of the deleterious effects of precarious employment might be mitigated where careful attention is paid to the motives underlying an organization’s people management practices. Theoretically, TSR offers a more expansive lens for understanding the social exchange occurring in both employment relationships and service encounters, thus contributing significantly to knowledge on mutual gains theories. These findings and their implications are discussed in detail in the paper.
Ghavidel, S. and S. Narenji (2017): Cost disease in service sector, Service Industries Journal, 37(42798), pp.206-228
The article investigates the supply and demand-side reasons for cost disease. Topics covered include the two reasons for cost disease to take place from the supply side in an economy, the annual growth rate of increase in the price of a physician’s services in the postwar period in the U.S. from 1948 to 1995, and labor productivity growth in manufacturing and services in France, Germany, Japan, Great Britain, and the U.S. from 1973 to 1996.
Hsiao, C., Y.-H. Lee and H.-H. Hsu (2017): Motivated or empowering antecedents to drive service innovation?, Service Industries Journal, 37(1), pp.5-30
Which type of antecedents, motivated or empowering, can stimulate service innovation? We choose the empowering (team and worker empowerment) and motivated variables (creative self-efficacy and intrinsic motivation) as the four antecedents to investigate how they influence service innovation. Positive psychological capital (PPC) was chosen as a key mediator to examine whether the four antecedents have impacts on service innovation through PPC. Hierarchical linear modeling was adopted for analyses. This study provided the following findings: (a) the empowering factors have no positive effects on service innovation. (b) The motivated factors have significantly positive effects on service innovation. (c) PPC completely mediated the relationship between the empowering factors and service innovation and partially mediated the relationship between the motivated factors and service innovation. Our findings suggest that motivated factors have significantly positive influences on service innovation compared with empowering factors. We also confirm PPC as the mediating mechanism to stimulate service innovation.
Hung, H.-C., C.-Y. Chung, M.-C. Wu and W.-L. Shen (2017): A membership pricing policy to facilitate service scale-expansion, Service Industries Journal, 37(42798), pp.167-189
The article discusses a study that proposes a multi-year membership pricing policy for a service business like a gym chain. Topics covered include a nonlinear mixed integer programming model made to formulate the pricing decisions, the reason for prohibiting longer contract in Great Britain, and the Consumer Protection Act in South Africa.
Naor, M. and A. Coman (2017): Offshore responsiveness: theory of Constraints innovates customer services, Service Industries Journal, 37(42798), pp.155-166
The article discusses a study that described a typical scenario taking place inside service call center working in shifts with high agent turnover. Topics covered include ways to streamline operation through the usage of Theory of Constraints (TOC) methods, the need for call centers to diminish reliance on automatic voice recognition technologies, and TOC applications in service industries.
Nardelli, G. (2017): Innovation dialectics: an extended process perspective on innovation in services, Service Industries Journal, 37(1), pp.31-56
Services are characterised by the involvement of customers and other interest groups in the innovation process. The aim of this study is to understand how and why, in the service context, tensions and potential conflicts between heterogeneous interest groups unfold during processes of innovation. The empirical field in which the investigation was set is facility services, a type of business-to-business support services. The findings were extracted from a longitudinal, in-depth case study of a Danish, multi-national organisation over 13 years, complemented with an explorative study in the Danish facility service context. The findings suggest that tensions and conflicts between heterogeneous interest groups are an intrinsic element of innovation processes in services, and that emphasising them might actually support a clearer understanding of processes of innovation in services. The outcome of the analysis is a process model, which proposes innovation dialectics as one of the driving mechanisms of innovation in services.
Warland, M. and H. Mayer (2017): Peculiarities of public sector clients in service innovations, Service Industries Journal, 37(2), pp.105-124
This paper analyses knowledge-intensive business service firms and their innovation activities in the context of federal government procurement with empirical evidence from Swiss information technology firms. The paper contributes to the growing literature on knowledge-intensive business services by expanding the concept to also capture public sector clients. It focuses in particular on the ways in which having a public sector client influences a knowledge-intensive business service firm’s ability to innovate, opportunities for interactive learning with their clients, and ways in which having a public sector client allows a firm to diversify. The paper shows that having a federal agency as a client is quite different from a private sector client particularly with regard to multi-party systems on the client side, the importance of informal interactions, and the role of public reputation.
Brewster, Z. W. and J. R. Brauer (2017): Different Service, Same Experience: Documenting the Subtlety of Modern Racial Discrimination in U.S. Restaurants, Cornell Hospitality Quarterly, 58(2), pp.190-202
Restaurant servers’ negative sentiments toward Black customers have been well documented. Further, existing research has shown that a large proportion of waiters/waitresses confess that they sometimes discriminate against Black Americans by giving them less than their optimal service effort. However, research assessing the generalized consequences of servers’ discriminatory practices on consumers’ experiences is lacking. In response, this study analyzes survey data from a demographically diverse sample of Black and White consumers (N = 415) to test for interracial differences in nine distinct self-reported outcomes assessing typical and recent dining experiences in full-service restaurants. Given widespread anti-Black sentiments and discriminatory actions among servers, we posit that Black Americans will on average report diminished dining experiences relative to their White counterparts. In contrast to our predictions, results indicate that Black and White respondents report similar dining experiences when visiting full-service restaurants and, where differences exist, Black respondents appear to report slightly more positive and less negative experiences compared with their White counterparts. We identify a number of interconnected factors that may account for this observed pattern and conclude by encouraging additional scholarship on the nature and downstream effects of race-based restaurant service.
Giebelhausen, M. and H. H. Chun (2017): Replicating and Extending Our Understanding of How Managers Can Adjust the “Warm Glow Thermostat”, Cornell Hospitality Quarterly, 58(2), pp.122-133
This article presents four studies that replicate and extend a recent article examining how guest participation in voluntary green programs (e.g., towel reuse) increases service satisfaction by evoking a “warm glow” response. Importantly for managers, we not only replicate across new hospitality and service contexts but also conceptualize alternative incentive paradigms, and test alternative mediators. In particular, we reconceptualize the “self-benefiting” versus “other-benefiting” incentive structure presented by Giebelhausen, Chun, Cronin, and Hult to consider “virtue,” “vice,” and “cash” incentives (i.e., three different types of self-benefiting incentives). The results provide managers with a better understanding of how they should promote and reward sustainable guest behavior. In addition to managerial implications, the present research also contributes to the academic literature on a growing phenomenon that has important implications for both business and society at large.
Khan, I. and Z. Rahman (2017): Brand Experience Anatomy in Hotels: An Interpretive Structural Modeling Approach, Cornell Hospitality Quarterly, 58(2), pp.165-178
Identification of the factors of hotel brand experience (HBE) and the interrelationships shared by them are of interest to both practitioners and academics, as such an understanding would enable hoteliers to deliver superior HBE. However, very few studies have concentrated on brand experience in hotels. This study identifies the factors of HBE and determines the interrelationships among them through the development of a reliable and robust hierarchy-based model using interpretive structural modeling (ISM) approach. Results show that particular factors (hotel location, attractive and informative hotel website, and active exposure on social media) have a high degree of influence on the development of HBE and exhibit low dependence. The present work has significant implications for hoteliers who could use the findings of the study to provide superior HBE.
Lee, J.-E. and D. Severt (2017): The Role of Hospitality Service Quality in Third Places for the Elderly: An Exploratory Study, Cornell Hospitality Quarterly, 58(2), pp.214-221
This study examines the role of hospitality service quality in a third place for the elderly using a Continuing Care Retirement Community (CCRC) setting. The study builds from the relational theory of third places testing the causal relationships among resident needs, place meaning, and loyalty outcomes. The study extends the theory by applying it to the CCRC context through using data that were collected from 157 CCRC residents in the southeastern portion of the United States. The proposed relational third-place model using the construct of place meaning was tested using confirmatory factor analysis (CFA) and structural equation modeling (SEM). Results indicated that resident needs (tangibles, instrumental support, and emotional support) positively influenced place meaning, and in turn place meaning positively impacted resident loyalty outcomes. Through the relational theory of third places, the CCRC is a meaningful place to residents, and CCRC residents are loyal to the community. Most importantly, the results of the study identified that service quality strongly impacted place meaning in the CCRC. Theoretically, the study provided valid and reliable support suggesting that the construct of place meaning is applicable to the CCRC setting. Practically, this study provides empirical support for the importance of providing a rich hospitality service culture through strengthening instrumental support, emotional support, and tangibles. In this way, management should establish a culture that is rich in hospitality and service through the enhancement of tangibles, empathetic and interactive staff care. Finally, this rich culture will lead to enhanced place attachment as supported by this exploratory study.
Radojevic, T., N. Stanisic and N. Stanic (2017): Inside the Rating Scores: A Multilevel Analysis of the Factors Influencing Customer Satisfaction in the Hotel Industry, Cornell Hospitality Quarterly, 58(2), pp.134-164
In this study, we conducted a multilevel analysis of factors affecting customer satisfaction in the global hotel industry. The survey data collected from TripAdvisor.com included customer reviews relating to 13,410 hotels located in 80 major global urban tourism destinations. We examined multiple relevant factors at each of the following five levels of analysis: (a) service encounter, (b) visitor, (c) visitor’s nationality, (d) hotel, and (e) destination. The results show that hotel attributes and the personal characteristics of visitors most powerfully influence customer satisfaction. However, the purpose of the trip, the characteristics of the destination, and the visitor’s nationality are also found to play an important role in hotel evaluation. By integrating multiple levels of analysis into a single statistical model, multilevel modeling framework enables researchers and professionals to see the “big picture” of factors affecting customer satisfaction in the contemporary hotel industry.
Sturman, M. C., A. D. Ukhov and S. Park (2017): The Effect of Cost of Living on Employee Wages in the Hospitality Industry, Cornell Hospitality Quarterly, 58(2), pp.179-189
This study examines the effect of cost of living (COL) on employee wages in the hotel industry. Although prior research clearly indicates that COL and wages are positively related, there is a lack of research explicitly considering the specific nature of the relationship between COL and wages, and potential moderators to the relationship. Using a dataset containing information on 97 jobs over 67 cities, our study shows that while there is a positive effect of COL on wages, the adjustment is not equal in magnitude to the difference that the COL levels would indicate. Furthermore, the effect of COL decreases as the average wage for the given job increases. We also show differences in COL’s effects for full-service versus limited-service hotels. We illustrate the implications of our findings by showing predicted wage rates for four jobs in five different cities, at both full-service and limit-service hotels. The study has implications for research, particularly for future work on COL and compensation. The findings also have important implications for practice, and may be particularly useful when managers need to set pay levels when local market data are unavailable.
Wu, L., Y. Gao and A. S. Mattila (2017): The Impact of Fellow Consumers’ Presence, Appeal Type, and Action Observability on Consumers’ Donation Behaviors, Cornell Hospitality Quarterly, 58(2), pp.203-213
Many hospitality consumption experiences are shared with fellow consumers such as acquaintances, friends, or family members. Yet research examining the impact of fellow consumers’ presence on consumers’ donation behaviors is scant. To bridge that gap, the current research examines how the presence of fellow consumers influences consumers’ donation behaviors in a restaurant setting. Results from our experiment reveal that the impact of fellow consumers’ presence depends on two factors: observability of the donation and donation appeal type. Specifically, we found that when the act of donating is unobservable by others and the donation appeal highlights self-benefits, the presence of fellow consumers drives individuals to exhibit more favorable attitude and higher levels of donation intention. Conversely, when the act of donation is observable by others and the donation appeal portrays other benefits, the presence of fellow consumers makes individuals to exhibit less favorable attitude and lower levels of donation intention. Furthermore, our mediation analyses show that anticipated emotional benefits is the underlying psychological mechanism explaining the effects. We discuss the theoretical contributions and managerial implications of our findings as well as limitations and opportunities for future research.