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How the response to service incidents change customer–firm relationships

How the response to service incidents change customer–firm relationships This paper analyzes previously unmeasured effects of a response to a service incident called “benevolent” within the customer –firm relationship.Design/methodology/approachA questionnaire was administered to telecommunication customers in a Western European country, and the model was estimated using partial least squares (PLS).FindingsThis study shows that the customer–firm relationship is surprisingly affected by the response to expected incidents that the customer interprets as acts of benevolence or opportunism. This research also shows that the firm's incident response interpreted as benevolence or opportunism has an effect that merely positive or negative events do not. Acts of benevolence response towards an incident positively affect customer–firm relationship quality, and expectations of such acts may lead to an upward spiral in customer commitment.Originality/valueWhile benevolence trust has been proposed and studied before, the response to incidents interpreted as benevolent or opportunistic and their consequences have been under-studied, hence exhibiting a research gap. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png European Journal of Management and Business Economics Emerald Publishing

How the response to service incidents change customer–firm relationships

How the response to service incidents change customer–firm relationships

European Journal of Management and Business Economics , Volume 32 (2): 17 – May 12, 2023

Abstract

This paper analyzes previously unmeasured effects of a response to a service incident called “benevolent” within the customer –firm relationship.Design/methodology/approachA questionnaire was administered to telecommunication customers in a Western European country, and the model was estimated using partial least squares (PLS).FindingsThis study shows that the customer–firm relationship is surprisingly affected by the response to expected incidents that the customer interprets as acts of benevolence or opportunism. This research also shows that the firm's incident response interpreted as benevolence or opportunism has an effect that merely positive or negative events do not. Acts of benevolence response towards an incident positively affect customer–firm relationship quality, and expectations of such acts may lead to an upward spiral in customer commitment.Originality/valueWhile benevolence trust has been proposed and studied before, the response to incidents interpreted as benevolent or opportunistic and their consequences have been under-studied, hence exhibiting a research gap.

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References (70)

Publisher
Emerald Publishing
Copyright
© Pedro Simões Coelho, Paulo Rita and Ricardo F. Ramos
ISSN
2444-8451
DOI
10.1108/ejmbe-05-2021-0157
Publisher site
See Article on Publisher Site

Abstract

This paper analyzes previously unmeasured effects of a response to a service incident called “benevolent” within the customer –firm relationship.Design/methodology/approachA questionnaire was administered to telecommunication customers in a Western European country, and the model was estimated using partial least squares (PLS).FindingsThis study shows that the customer–firm relationship is surprisingly affected by the response to expected incidents that the customer interprets as acts of benevolence or opportunism. This research also shows that the firm's incident response interpreted as benevolence or opportunism has an effect that merely positive or negative events do not. Acts of benevolence response towards an incident positively affect customer–firm relationship quality, and expectations of such acts may lead to an upward spiral in customer commitment.Originality/valueWhile benevolence trust has been proposed and studied before, the response to incidents interpreted as benevolent or opportunistic and their consequences have been under-studied, hence exhibiting a research gap.

Journal

European Journal of Management and Business EconomicsEmerald Publishing

Published: May 12, 2023

Keywords: Customer relationships; Service incidents; Expectancy and disconfirmation; Benevolence; Opportunism

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