Curvilinear relationship between customer engagement and responses to service failures

Abstract

ABSTRACT Drawing on the activation theory and the Exit-Voice-Loyalty-Neglect model, this study examines how the level of customer engagement affects the four different types of customer responses to a service failure in the mobile application context. In addition, we investigate the moderating role of relationship quality in those relationships. This study used data from a self-administrated online survey of 345 South Korean customers who had experienced a mobile application service failure. Partial least squares structural equation modeling was applied to our conceptual model. The results revealed a U-shape relationship between customer engagement and destructive responses (i.e. exit and neglect), as well as an inverted U-shape relationship between customer engagement and constructive responses (i.e. loyalty and voice). Furthermore, a greater relationship quality reinforces the relationship between customer engagement and responses to service failures, except for loyalty. This study addresses the inconsistent research findings of customer engagement by suggesting the curvilinear relationship between customer engagement and response to service failure. Additionally, it provides new insights for marketers or managers to develop marketing strategies to operate mobile applications efficiently.