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Services marketing research continues to be largely focused on firms’ reactive interactions for recovering from service failure rather than on proactive customer interactions that may prevent service failure from occurring in the first place. Building on previous studies that assess the efficacy of implementing proactive interaction in service provision contexts, the purpose of this paper is to compare the influences of proactive interaction to prevent service failure and reactive interaction to correct service failure on customer emotion and patronage behavior. Since proactive interaction for service failure prevention is a relatively underexplored and resource-intensive approach, the authors also assess the moderating influences of customer and firm-related characteristics.

The study hypotheses are tested with survey data from two scenario-based experiments conducted in a retail setting.

The findings reveal that customers prefer service providers that take the initiative to get to them before they have to initiate contact for themselves. The findings also identify the moderating influences of relationship quality, situational involvement, and contact person status and motive.

The research contributes to the development of service provision theory and practice by expanding on previous studies which report that proactive efforts to prepare customers for the adverse effects of service failure are favorably received. The results also shed light on moderating factors that may further inform the exploitation of resource-intensive proactive interaction for service failure prevention. An agenda is proposed to stimulate future research on proactive customer interaction to prevent service failure in service provision contexts.

Location has long been touted as an important competitive factor in retailing and services. However, since convenient, high‐traffic locations are costly, an examination of conditions under which locational convenience is more important and those in which it is less important is critical. Supplements the logic of prior research to examine the importance of location as a function of both customer satisfaction with the core service and service type. Finds that a convenient location is critical in more standardized, less personalized services when satisfaction falters, but is not important for less standardized, more personalized services regardless of satisfaction levels. Thus, a convenient location can act as a barrier to defection in more standardized, less personal services such as banks, making it an important strategic factor in minimizing defection when satisfaction with the core service drops. However, contrary to conventional wisdom, locational convenience appears less important to repurchase intentions for less standardized, more personal services such as hairstylists, thus negating its potential as a switching barrier for such services.

This paper aims to explore the different forms of other customers' influence in various service settings.

The critical incident technique (CIT) method was used to collect and analyze the data. A total of 142 critical incidents involving other customers' influence in services were collected.

Based on CIT analysis, nine types of other customers' influence involving positive and negative, direct and indirect customer‐to‐customer interactions emerge. In addition, the researchers find that the degree of other customers' influence varies for different service settings.

Methodologically, there are a number of limitations of the CIT method used in this research. The paper suggests ways to overcome these limitations. Moreover, findings of this research suggest a number of additional directions for future research.

This research suggests the importance of proactively managing customer‐to‐customer interactions during a service encounter experience.

This paper builds on previous research and provides empirically based analysis of the different forms of other customers' influence across service settings.

The authors explore complex adaptive systems (CAS) theory as an updated theoretical perspective for managing product returns that better matches the chaotic nature of recent consumer behaviors. CAS theory highlights the importance of agents who create and self-organize to help systems adapt in unpredictable environments.

This research utilizes data collected from return managers in an online survey and applies regression analyses to estimate the influence of the focal variables.

Empirical evidence of the firm flexibility–firm adaptability link is established, and return processor creativity positively relates to this link. The firm flexibility–firm adaptability link fully mediates the relationship between return processor creativity and returns management performance and partially mediates the relationship between return processor creativity and relationship quality. Nonmediated effects were observed for turnover and revenue size.

Managers of returns who embrace an adaptability approach become facilitators of returns by supporting processor creativity. Enhancing the autonomy of processors in their day-to-day work increases the knowledge-creation capabilities of the firm, which helps the firm move forward and adapt in an uncertain environment.

This research presents empirical evidence of the underlying mechanisms of CAS theory in the product returns context by studying processor agents and argues that CAS theory better fits the current dynamics of the product returns environment. Further, this paper extends work by Espinosa et al. (2019) and Nilsson (2019) by studying how a specific human characteristic – creativity – impacts product returns management.

This study aims at identifying the most critical factors affecting the customer switching behavior for mobile service providers in Jordan. A number of 580 questionnaires distributed to a random sample of Jordanian mobile users. The questionnaire contains 33 items measured on a five‐point likert scale. The data were analyzed using regression analysis. It was found that all the independent variables (pricing, inconvenience, core service failures, service encounter failures, employee responsiveness to service failures, attraction by competitors, changes in technology, switching cost) had a significant effect on switching behavior of mobile service users except change in technology and employee responsiveness to service failure. Recommendations and directions for future research are proposed.

This paper aims to examine the antecedents of customer inertia (i.e. knowledge, confusion, perceptions of competitor similarity and switching costs) and their relationship to customer satisfaction, service providers’ switching intentions and actual switching behavior. Customer inertia is said to reduce the incidence of service provider switching; however, little is known about the antecedent drivers of inertia.

The conceptual model was tested by a longitudinal/discontinuous panel design using an online survey research of 1055 adult (i.e. +18 years old) subscribers to cell phone services. Partial least squares (PLS) path modeling was used to simultaneously estimate both the measurement and structural components of the model to determine the nature of the relationships between the variables.

Findings of the PLS structural model provide support for the direct relationship between customer inertia and its antecedents (i.e. knowledge, confusion, perceptions of competitor similarity and switching costs). The results show that customer inertia has a moderate negative effect on the intention to change service providers but had no measurable effect on the actual behavior of changing service providers, other than indirectly, by influencing the perception of difficulty in switching some 11 months later. Further results from an analysis of indirect pathways of the antecedents to inertia show that switching costs are the only variable which indirectly reduce intentions to change service providers. The results also show that the effect of satisfaction on switching service providers is partially moderated by inertia. Importantly, these relationships are reasonably robust given past switching behavior and contract status of consumers.

The authors find evidence which explains some of the causes of inertia, and show that it has both direct and moderating effects on service provider switching intentions, though not necessarily the behavior of changing service providers. However, support was found for its indirect role through intent as an influence on switching behavior. Importantly, the authors find that inertia has lingering effects, in that it influences the perception of switching difficulties and, hence, behavior up to 11 months in the future.

Managerial implications are that service firms can profit from customer inertia through a reduction in churn. However, high levels of customer inertia over the longer term may increase the level of customer vulnerability to competitor offers and marketing activities, as satisfaction with the provider does not in itself explain switching intentions or behavior.

This study is the first study to contribute to an understanding of the antecedent drivers of customer inertia with respect to service provider switching and to empirically evaluate a variety of antecedent factors that potentially affect switching intentions. Importantly, the long lasting latent effect of inertia in indirectly influencing service switching behavior was found to persist some 11 months later.

The purpose of this paper is to adapt the market performance indicator (MPI), used by the European Commission to evaluate market conditions, over time, to show that the MPI explains actual switching behavior better than stated intent and satisfaction. While research on service provider switching has focused on the outcomes of service transactions and the benefits of switching, there is little research on how consumers view market conditions as being favorable or not for switching.

The authors used a mixed methodology of focus groups and longitudinal survey research of cell phone consumers to evaluate the effect of the MPI on satisfaction, perceptions of value, switching intentions and behavior.

The MPI was found to influence perceptions of satisfaction and value, and was found to contribute strongly to actual switching behavior. The results also showed that an improvement in the MPI or market conditions lead to a much greater relationship between it and actual switching behavior, suggesting that there may well be important threshold level, upon which greater switching behavior occurs.

The MPI provides marketers and policy-makers with benchmarks to compare the consumer welfare of different markets in different countries. Switching studies with MPI figures can be more easily generalized to different contexts.

The purpose of this study is to test the effects of satisfaction, satisfaction with service recovery (SSR) and switching costs (SC) on loyalty and positive word-of-mouth (PWOM) of bank customers in a service recovery context, taking into account the interaction among latent variables and the effects of contextual factors.

A theoretical model is proposed based on previous studies and tested using structural equation modeling technique and bootstrapping estimates. A survey was conducted with 1,878 bank customers of a large Brazilian bank.

Results supported the positive effects of satisfaction and SC on loyalty, while PWOM was influenced mainly by SAT. In addition, SC significantly interacted with satisfaction, reducing the effects of satisfaction on loyalty. Finally, relationship time, gender and age were the most relevant contextual factors.

This study highlights the importance of switching costs in the banking industry. Although satisfaction is a relevant predictor of loyalty, this influence is contingent on the customer's SC. Hence, investment on marketing strategies and campaigns should be oriented to better convert switching perceptions into effective loyalty.

Despite recent investigations on the roles of SC in customer loyalty, results have indicated mixed findings and most of the studies do not consider interactions between latent constructs. This study addresses this issue using the orthogonalization procedure.

Government policy mandates information disclosure in financial communications to protect consumer welfare. Unfortunately, low readability can hamper information disclosures’ meaningful benefits to financial decision making. Thus, this experiment tests the product evaluation and decision satisfaction of Korean consumers with less or more subjective knowledge and with or without personal finance education.

A between-subjects experiment examined responses of a nationally representative sample of 400 Korean consumers toward a Korean-language credit card advertisement.

Financial knowledge improves financial product evaluation and decision satisfaction. More readable disclosures improved evaluation and satisfaction among less knowledgeable consumers. Less readable disclosures did not. Consumers without financial education exhibited lower evaluations and decision satisfaction regardless of readability. More knowledgeable consumers and those with financial education performed equally well regardless of disclosure readability.

Financial service providers seeking more accurate evaluations and better decision satisfaction among their customers should use easier-to-read disclosures when targeting consumers with less prior financial knowledge.

One-size-fits-all financial communications are unlikely to achieve public policy or consumer well-being goals. Government-mandated information should be complemented by augmenting financial knowledge and providing personal finance training.

Although almost a quarter of the world’s population lives in East Asia, this is the first examination of readability in disclosures written in East Asian characters rather than a Western alphabet. Previous readability research on Asian-originating financial disclosures has been conducted on English-language texts. This study extends knowledge of readability effects to growing East Asian markets.