Can you ask “too much” of your customers?

Abstract

PurposeCompanies are beginning to rely more on customer participation (CP). As a result, consumers are expected to expend more resources throughout the service exchange. Through three studies, this study aims to examine the effect of CP on customers’ evaluations of these exchanges. Study 1 examines the interaction between two levels of CP (low versus high) and shopping experience type (hedonic versus utilitarian). In Study 2, the focus shifts to understanding the negative consequences of high CP. In Study 3, the authors explore how the negative effects of high CP can be mitigated.Design/methodology/approachScenario-based experiments were implemented across three studies. This study used multivariate analysis of variance (Study 1) and PROCESS (Hayes, 2018; Studies 2 and 3) to uncover how consumers respond to CP.FindingsResults of Study 1 indicate that the CP level negatively impacts satisfaction and positive word-of mouth (PWOM) in a utilitarian context but has no effect in a hedonic context. Study 2 finds that the negative effects of high CP on satisfaction and PWOM are mediated by fairness and frustration. Study 3 suggests that these negative results can be mitigated by offering a financial incentive.Originality/valueThis study’s two primary objectives address specific calls in the CP literature. First, this study examines the effects of increased CP during hedonic and utilitarian shopping experiences. Second, this study investigates mediators and moderators associated with the negative effects of increased CP, shedding light on how the consumer processes high CP service encounters.