Abstract
PurposeSimple transactions are evolving into complex service relationships that require the attention of multiple organizations. When integrated products fail, customers must determine which organization is responsible and capable of resolving the problem. If the initial firm contacted cannot resolve the problem, it is then passed on to another until resolution. The objective of this paper is to determine how customer satisfaction with one organization may be moderated by the subsequent performance of another organization following the service issue hand‐off.Design/methodology/approachData otherwise unavailable from the market are collected using a unique, longitudinal internet‐based experiment, wherein customer satisfaction is monitored throughout a complex exchange experience. During the exchange, problem ownership transfers from one firm's service organization to that of another.FindingsResults show three forms of damage resulting from a service hand‐off: a credibility loss; a dissatisfaction compounding effect; and a resolution delivery failure effect. When problem resolution requires the attention of a second service provider, customer perceptions of the initial service provider are influenced by the performance of the second provider.Practical implicationsA service provider can often avoid substantial damage to customer satisfaction by establishing, a priori, formal back‐end partnerships with other service providers.Originality/valueOrganizations typically do not monitor customer satisfaction once a service problem is abandoned or handed‐off to another organization. In this experimental study, customer satisfaction is carefully monitored as service exchange crosses organizational boundaries during a service experience simulated over the period of one week.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.