Abstract

The service failure that customers experience may be appraised as an intentional, discriminatory act under certain circumstances. Using two studies, we examined the impact of a service failure, which is perceived as discrimination, on customers’ direct, face-to-face and indirect, online voice behavior, incorporating power as a boundary condition. In Study 1, we constructed a moderated mediation model involving perceived discrimination, anger, power, and two types of customer voice. The results showed that a low power state suppresses the impact of perceived discrimination on direct, face-to-face voice through anger, but not on indirect, online voice. In other words, low-power individuals may not confront service providers to speak up on site when they are angry at perceived discrimination; they rather express themselves indirectly in the online environment. Further, in Study 2, content analyses revealed that most customers avoid using the term, “discrimination” while making complaints despite their strong agreement on perceived discrimination.

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