Exploring the impact of customer feedback on the well-being of service entities

Abstract

Purpose – Adopting the transformative service research (TSR) perspective, the purpose of this paper is to investigate the impact of positive customer feedback on the well-being of front-line employees, companies, and society. Using a multidisciplinary approach, the overlooked area of “positive feedback” is explored resulting in the development of the “Positive Feedback Model” (PFM). The study also compares managers’ and employees’ perceptions of positive customer feedback. Design/methodology/approach – Two exploratory qualitative studies were conducted: Study 1 consisted of 22 semi-structured interviews with managers working in the service industry and Study 2 consisted of seven focus groups with front-line service employees. The extensive literature review and the results of these two studies contributed to the development of the PFM. Findings – Positive customer feedback is an overlooked area of service research which offers potential for improving the well-being of the service entities. Front-line employees are the main recipients and topics of positive customer feedback. The developed PFM describes various forms, channels, and times of administration of positive customer feedback and its multitude of impacts on the well-being of service entities. Research limitations/implications – This study contributes to the literature on TSR and customer feedback management. The developed model presents possible positive feedback categories, their various outcomes and the outcomes for the concerned parties involved. By developing PFM and encouraging a multidisciplinary approach combined with advanced research methodologies, the researchers propose an agenda for further research insights within the TSR and customer feedback areas. The comparison of the managers’ and employees’ perceptions of positive customer feedback presents novel managerial implications and directions for future research. Originality/value – This study is the first to explore customer feedback from a TSR perspective. It examines the overlooked area of positive customer feedback. The well-being of service entities is prioritized as services have been extensively criticized for ignoring human well-being.