“…customers are more satisfied with failed service encounters when they are aware the employee was reprimanded.” This research paper by Pugh et al. proposes a new and very cost-effective approach to mediate service recovery. To be effective, however, corrective actions must be performed in a very specific way: “One of the challenges associated with employee …
By: David Bowen In the classic 1978 HBR article, “Where does the customer fit in a service operation?” Richard Chase described the impact of high or low customer contact on the efficiency of the service production system. The article also posed the question, “What do you, (a service operation), have to give up in order …
By Phil Klaus The employee, the forgotten asset? Forgotten is a day and age when the consumer calls the shots and consumer to consumer (C2C) interactions seemingly rule the business world (Klaus 2013a; 2013b)? Or, has the tide turned again, and managers do recognize that employee retention is crucial from both a primary (think cost of …
By Darima Fotheringham New research by Darren Dahl, University of British Columbia, and Morgan Ward, Southern Methodist University, “Should the Devil Sell Prada? Retail Rejection Increases Aspiring Consumers’ Desire for the Brand” received a lot of attention in the press lately. The research shows that condescending attitude of sales representatives at higher end stores can …
