Moderating Effect of the Power-Distance Belief on the Relationship between Employees' Service Failures and Customers' Behavioral Outcomes in the Sport Service Industry.

Hyunseok Song,Kevin K Byon

doi:10.3390/ijerph18052488

Abstract

This study was designed to examine the moderating effects of the power–distance belief (PDB) on the relationship between employees’ service failures and customers’ transactional and non-transactional outcomes in a fitness center context. To test the relationships among these variables, we employed two pretests and a main experiment. In Pretest 1, a critical incident technique (CIT) was used to identify the employees’ service failure situations in fitness centers. Then, in Pretest 2, we developed two written scenarios that described employees’ service failures according to low and high severity and confirmed the differences between these two scenarios with a manipulation check. In the main experiment, we employed scenarios to examine the relationships among service failures’ severity, PDB, and customers’ non-transactional and transactional outcomes. We used Hayes’ PROCESS macro to test the PDB’s single moderating effect on the relationship between the service failures’ severity and the customers’ responses. According to the results, the moderating effect on the relationship between the service failures’ severity and fitness center customers’ non-transactional and transactional behaviors was confirmed. We extended the understanding of fitness center customers’ reactions, depending upon individual PDB to service failures, by comparing low- and high-service failure situations. Our findings also suggest that segmenting fitness center customers may help managers recognize that their customers’ varying responses depend on PDB.

Highlights

A gym management company report indicated that one of the most common problems in the fitness industry is attributable to gym owners’ poor customer service [1]
When we investigated the power–distance belief (PDB) effects according to the severity of service failure situations, the effect was larger (b = 0.28, SE = 0.11, p < 0.05, 95% CI = 0.07 to 0.50) than in the high severity service failure situations
To examine the moderating effect, (1) we investigated feasible service failure situations using critical incident technique (CIT), (2) developed written scenario describing low- and high-severity fitness center service failures, and (3) conducted an experiment to examine fitness center consumers’ unfavorable responses depending upon their PDB level

Summary

Introduction

A gym management company report indicated that one of the most common problems in the fitness industry is attributable to gym owners’ poor customer service [1]. According to Briggs [2], the training staff’s attitude toward fitness centers (i.e., their skepticism and indifference to their gyms’ management) is the most critical roadblock to profitability. Frontline employees who provide excellent service are the key to fitness centers’ success. Employees’ services are not always perfect, and sometimes service failures are inevitable. Once a service failure has occurred, customers respond with adverse behavioral outcomes that include, but are not limited to, negative word-of-mouth, switching behavior, and complaints to the service provider [3,4,5]

Methods

Results

Discussion

Conclusion