Service Failure Research Articles

Pathways linking expectations for AI chatbots to loyalty: A moderated mediation analysis

Despite the prevalence of generative AI chatbots such as GPT and Bard, scholarly inquiry into how users' enduring expectations influence their engagement with AI chatbots remains scant. Drawing on expectation violation theory, the present study examines how user expectations, informed by belief in machine heuristics and concerns over human uniqueness, impact chatbot loyalty through a moderated mediation framework. A questionnaire survey of 900 participants in China revealed that belief in machine capabilities bolsters users' perceptions of machine intelligence, which in turn, enhances user loyalty. Interestingly, when users encounter service failures that challenge their expectations, their perceived intelligence of the chatbot intensifies rather than diminishes. In contrast, expectations shaped by human uniqueness concerns diminish users' perceptions of machine intelligence and, consequently, their loyalty, which remains consistent regardless of the encounter with AI failure. The study also delves into the theoretical contributions of these findings to the evolution of expectation violation theory within the sphere of human-robot interaction.

Determinants of disengagement and negative customer engagement behaviour: expectancy disconfirmation and justice perspectives

PurposeThis study aims to identify the determinants of customer disengagement (CD) and negative customer engagement (NCE) behaviours following service failure.Design/methodology/approachThis study distributed a survey on negative service experiences to 404 customers in Vietnam and analysed the data using structural equation modelling.FindingsBased on the findings, this paper developed a comprehensive model of the determinants of CD and NCE behaviours. CD manifests as “neglect”, while NCE manifests as vindictive, third-party and online complaints and negative word of mouth. The key drivers of CD and NCE are negative expectancy disconfirmation and perceived injustice, mediated by customer outrage. A novel finding is that self-efficacy and risk-taking traits enhance NCE behaviours. Vietnamese customers tend to adopt less confrontational NCE behaviours.Practical implicationsThe findings provide brand managers with insights into unfavourable customer responses to service failure, including CD and NCE behaviours. Customers in Vietnam were predominantly found to disengage. Fulfilling the firm’s promises and treating customers fairly are paramount for preventing customer outrage, CD and NCE.Originality/valueThis study identifies the determinants of CD and NCE, namely, disconfirmation of service quality expectations and perceived injustice, in the context of an emerging market.

Exploring the relationship between chatbots, service failure recovery and customer loyalty: A frustration–aggression perspective

AbstractAn increasing number of companies are introducing chatbot‐led contexts in service failure recovery. Existing studies are inconclusive on whether humanlike chatbot‐driven service failure recovery enhances customer loyalty. Grounding our work in phenomenological hermeneutics and utilizing frustration–aggression theory, we concentrate on the historical circumstance and the participatory nature of understanding customers' chatbot‐driven interactions and loyalty. We conducted 47 in‐depth interviews with millennials from four countries (United States, France, Italy, and the United Kingdom). By analyzing interview data through thematic analysis, our study offers two significant contributions. First, through thematic analysis, we define the dynamics occurring between customers and chatbots in a service recovery journey, such as customers' priorities and expectations. Second, we present a chatbot‐led service failure recovery typology framework that identifies four types of customers based on their interactions with a chatbot and their emotions, specifically frustration and aggression, and the effects of the interactions on their brand loyalty and intention to use chatbots. The identification of four customer types can help managers shape strategies to effectively turn negative customer experiences into opportunities to strengthen their loyalty, such as making more than one touchpoint available (human and chatbot). Our study shows that customers' emotions, specifically frustration and aggression, affect not only customer loyalty but also technology adoption. The concluding section suggests future avenues for research in the service recovery literature.

Performance of Dynamic Retry Over Static Towards Resilience Nature of Microservice

Objectives: The main objective of this study is to enhance the flexibility of microservice-based cloud applications, so they can cope with transient or short-term failure conditions more effectively, providing a higher throughput of cloud applications as a result. Methods: The comparison is done between the existing or manual resilient patterns such as circuit breaker and retry with a dynamically proposed retry patterns using a microservice application. Findings: The short-term or transient failures in cloud based microservice applications can occur for many reasons. Examples such as Network glitches, service failures, timeouts of requests etc. These failures can bring down the entire application resulting in a cascading of failures. Resiliency patterns are used to protect these applications from failures. The widely used patterns are circuit breaker and retry, with static configurations. It is possible that the static configurations used in resiliency patterns might not support all types of failures. Hence, a dynamic approach has been proposed to satisfy all these transient failures of cloud. The analysis proves that the application efficiency is balanced in dynamic retry than the static configurations of resiliency pattern. Hence, performance can be increased up to 34.3%, which means the availability can be ensured, in transient failure cases. Very little research has been carried out on this resiliency pattern, and there are no standards available for this pattern. When comparing with the existing adaptive retry pattern the performance is increased up to 88.52%, while using a microservice application. Novelty: A dynamically modified resilient pattern is been proposed by incorporating additional parameters such as execution time to the existing parameters of the static retry pattern. This is an individual resilience pattern, which can perform independently when compared with other dynamic resilience patterns. Keywords: Dynamic retry, Request time, Static circuit breaker, Resilience, Static retry

Medication Error Prevention Using Healthcare Failure Mode And Effect Analysis At Clinical Pharmacy Installation

Medication error is the second most common patient safety incident worldwide. Medication errors can be defined as unintentional failures in medication services that have the potential to cause harm to patients. Maintaining safe health services is highly dependent on the ability of service providers to proactively conduct patient safety risk analysis, one of which is using the Healthcare Failure Mode and Effect Analysis (HFMEA) method. This study was aimed at obtaining the HFMEA design as an effort to prevent medication errors at Company X Clinical Pharmacy Installation. The research method used is qualitative research with a specific type of Operations Research. Data collected by in-depth interviews, observation, secondary data analysis, and focus group discussion. The results of this study found factors that cause medication errors to occur from organizational factors and staff factors. These results then analyzed for the HFMEA design which obtained 11 risks that required attention and then 14 action plans are made to overcome them. This study successfully developed HFMEA design to prevent medication error in Company X Clinical Pharmacy Installation.

Servant leadership and service recovery performance: influence of creative adaptability and employee psychological well-being

PurposeThis study draws on insights from the theory of conservation of resources to explore the impact of servant leadership (SL), creative adaptability (CA), and psychological well-being (PWB) on the service recovery performance (SRP) of employees. More specifically, the objective of this study is twofold: one to ascertain whether employees' service recovery performance would increase significantly after their exposure to SL, and two, to determine whether CA and PWB serially mediate the link between SL and SRP.Design/methodology/approachTo analyze the data collected from a sample of 371 air service providers’ front-line employees (FLEs), partial least squares structural equation modeling (PLS-SEM) was performed.FindingsThe result indicated that SL was positively related to SRP. Likewise, the results of the serial mediation analysis showed that CA and PWB independently and serially mediated the SL-SRP relationship. This study makes significant contributions to the literature on SL and SRP.Originality/valueThis study adds to the growing body of research on how FLEs effectively deal with customers who are dissatisfied with their service failure experiences. Specifically, this research expands on previous results by proving the favorable effect of leadership style on FLE’s service recovery performance. In addition, the current study examines how effective service recovery is by assessing the employee’s resources based on COR theory. Finally, this research provides new insight into the influence of SL on SRP through the serial mediation of CA and FLE’s well-being.

How the communication style of chatbots influences consumers’ satisfaction, trust, and engagement in the context of service failure

This study examines consumers’ reactions to the communication styles of chatbots during failed service experiences. The current study explores whether the communication style adopted by a chatbot impacts consumer satisfaction and behavior intention and how expectancy violations can moderate these relationships in the service context. A pre-test examined the validity of the stimuli of chatbots that were either task-oriented or social-oriented after consumers encountered service failure. For more information, the experiment was designed to manipulate the AI-based chatbot agent’s process and style of communication and measure the role of expectancy violations. The main experiment results showed that interactions with social-oriented communication style chatbots enhance the level of consumers’ interaction satisfaction and intention of behavior. Respondents experienced a higher perception of warmth when interacting with social-oriented communication style chatbots than task-oriented. Moreover, expectancy violation moderates the mediation of warmth on the relationship between the chatbot’s communication style/type and interaction satisfaction, trust, and intention of patronage. Setting chatbots’ communication styles to be social-oriented can help reduce negative emotions among consumers caused by service failure; specifically, the perception of warmth created by the social-oriented communication style can alleviate negative evaluations of service agents and companies, such as dissatisfaction and loss of interest. Therefore, in managerial practice, the firm should choose the social-oriented communication style chatbot agent to recover the customer relationship after a service failure.

Urbanization, Legacies of Elite Capture, and Multi-Dimensional Exclusions in Ghana: Towards Just Housing and Neighborhood Policies in African Cities

Persisting housing challenges in Africa’s cities are often theorized as driven by rapid demographic expansion outstripping housing supply or by the urbanization of poverty which puts the cost of adequate and serviced housing beyond the reach of many urban dwellers. This theorization links the problem of inadequate supply and low quality of housing to ahistorical, apolitical factors such as the size and income/poverty characteristics of Africa’s urban population and ignores legacies of elite capture and multi-dimensional exclusions reflected in policies and practices. Yet these policies and practices shape urban governance and who gains access to land, housing finance and ultimately serviced housing and neighborhoods. Drawing on a review of policies, media sources and literature on housing in Ghana and taking a critical postcolonial institutional theoretic approach, we argue that a more complete conceptualization of Africa’s urban housing crises should involve a close look at the regressive historical patterns of urban investments and persisting elite biases in institutions managing land, finance and housing. This re-framing of housing problems creates a more holistic framework and better articulates the unjust foundations of regressive and exclusionary policies and practices. Further, it highlights elite capture and multi-dimensional exclusions that perpetuate current housing and service failure in African cities. An explicit focus on power, exclusion and injustice is necessary to formulate and advocate alternative policies that are more likely to produce inclusive livable housing and neighborhoods. These include moratoriums on evictions, expanded slum upgrading, progressive property and land taxation, more inclusive planning systems, better regulation of rental housing and improved delivery of land and finance for transit oriented affordable public and rental housing.

Dissatisfaction and service failures in luxury consumption: a systematic review

PurposeWhile service failures and recoveries (SFR) constitute a well-explored research domain, such negative consumption experiences have been understudied in the luxury context. The current study undertakes a systematic review to capture current knowledge and stimulate research in this vital domain.Design/methodology/approachThis study adopts a systematic literature review methodology and employs the Theory-Context-Characteristics-Methods (TCCM) framework.FindingsGuiding theories, industry and national contexts, relevant constructs and their relationships, and research methods employed in studying SFR in luxury consumption are identified and synthesized.Originality/valueA comparative analysis of the luxury SFR with broader extant knowledge is offered. Further, hospitality is revealed as the dominant context, meriting its emphasis.

Guarantee or inoculate? Ex ante messages against service failures

PurposeWhile many studies have focused on the effectiveness of service recovery after encountering service failure, few have considered for pre-recovery opportunities. Drawing on service guarantee research and the inoculation theory, this study examines the effect of pre-recovery strategy on customer’s satisfaction when faced with possible service failure. This study takes into consideration the uncertainty of service failure, including specific or unpredicted failures.Design/methodology/approachThree experimental studies were conducted to examine our research hypotheses, which include a total of 1203 subjects recruited from online and offline platforms.FindingsThe findings reveal that service guarantees and inoculation messages both effectively mitigate the negative consequences of a service failure. Specifically, the pre-recovery strategy is particularly effective for specific service failures. In addition, we thoroughly examined the mediating role of customer attribution.Originality/valueThis research significantly contributes to the existing literature on service research by delving into the potential positive impact of proactive measures undertaken by service enterprises. Furthermore, the findings of this research offer valuable insights for practitioners.

A cross‐cultural replication of “citizens' blame of politicians for public service failure: Experimental evidence about blame reduction through delegation and contracting”

AbstractTheories of blame suggest that the institutional design of public service delivery affects citizens' blame of politicians for service failure, and that delegation or contracting out reducing citizens' blame of politicians. We replicate experimentally James et al.'s blame study to assess whether the findings still apply in the original, Western context, and if the findings can be generalized to East Asia (Hong Kong and South Korea). Our replications (N = 3600) show support for contracting out to the private sector as an effective institutional arrangement for politicians to avoid blame—providing evidence for this hypothesized effect that was not found by the original study in England. Blame shift effects are typically weaker in East Asia as anticipated because of cultural differences. Overall, the findings show that politicians can use cues about delegation to reduce citizens' blame for service failure, but that such strategies vary in their success according to context.

The robot saw it coming: physical human interference, deservingness, and self-efficacy in service robot failures

ABSTRACT Robotic services’ popularity continues to increase due to technological advancements, labour shortages, and global crises. Yet, while providing these services, robots are subject to occasional physical interruption by humans to them, thus restricting their functioning and, at times, leading to failure. To investigate this issue, the present study examined the role of third-party human interference in service robot failures and its effects on the observers’ attitudes towards and willingness to engage with the robot. We manipulated human interference resulting in different robotic service failures in two online scenario-based experiments. The results revealed that individuals held less favourable attitudes towards a failed service robot without (vs. with) physical human interference, and they were less willing to engage with the failed service robot without (vs. with) physical human interference. The perceived deservingness of the robot accounted for this effect, moderated by the person’s self-efficacy regarding robots. The results are discussed with their implications for not only the theory of service failures and human-service robot interactions but also for robotic service providers.

Countering Virtual Brand Sabotage: The Power of Informative Responses

Many disgruntled consumers who experience service failures turn to brand sabotage, by posting vindictive posts on social media platforms. Such aggressive revenge behavior has the goal of influencing others and causing harm to a firm. Vindictive posts require a response from the firm, to limit their potential negative influence on other consumers who read the posts. Three large-scale field studies and five lab experiments, including an incentive-compatible study, demonstrate that firm responses to such sabotage should focus on information (rather than empathy) because informative responses help reduce readers’ risk perceptions, prompting them to exhibit more positive behaviors toward the firm. Service guarantees can mitigate the impact of these responses. Importantly, the type of firm response only matters if the post is vindictive. For non-vindictive posts both informative and empathic firm responses working equally well. Our findings help firms to detect vindictive posts, suggest appropriate response strategies, and reveal how the risk perceptions evoked by vindictive posts can be mitigated.

Unveiling the mediating mechanisms: service recovery and customer advocacy between app attachment and customers’ responses

PurposeThis study investigates the direct impact of app attachment on service recovery and customer advocacy and their combined impact on recommendation and purchase intention. The mediating mechanisms of service recovery and customer advocacy between app attachment and customer responses are also tested in the context of food delivery apps (FDAs).Design/methodology/approachUtilizing a quantitative approach, the authors surveyed 207 responses from users of FDAs who had experienced service failures. Structural equation modeling in Smart PLS 3.0 was used to analyze the data.FindingsThe results supported direct effects among all constructs in the model. The main contribution of the study confirms the mediating mechanisms of service recovery and customer advocacy between app attachment and customer responses.Research limitations/implicationsPrevious studies have mostly relied on the technology acceptance model (TAM). This theory posits that perceived usefulness and ease of use influence the decision of individuals to use a new technology. Although this theory is valuable in terms of accepting new technologies, it neglects psychological phenomena involving the individual and the technological entity – in this case, the FDA. Thus, our study is unique in applying attachment theory and putting emphasis on the importance of building trust in the relationship between FDAs and their customers. Social exchange theory is applied to explain the importance of overcoming the cost of experiencing a failure through service recovery. Thus, we extend the knowledge regarding psychological individual reactions to mobile technologies in the food context, an important sector within the hospitality market.Practical implicationsFDA managers should invest in developing emotional ties with customers. Specific actions include messaging customers on their birthdays or other festive dates. Short testimonial videos on TikTok or other social media with customers advocating in favor of the company could help spread recommendations and the intentions of other customers using the FDAs. To use these practical recommendations properly, we recommend that FDA managers consider the level of quality service recovery delivered and individuals’ cultures, beliefs and values regarding where the company operates to avoid misunderstandings.Originality/valueThis study is original in proposing a model to FDA operators considering app attachment, service recovery, customer advocacy, recommendation and purchase intention. It further supports the mediating effect of service recovery and customer advocacy between app attachment, recommendation and purchase intention on mobile phones.

Enhancing service recovery satisfaction with chatbots: The role of humor and informal language

Effective communication with customers is a key factor in achieving positive reactions, especially in text-based chatbots where no human interaction is involved. This study investigates how the use of humor and informal language by chatbots affects service recovery satisfaction (SRS) following service failures, with a focus on the moderating role of brand equity and service failure severity. Results from the two scenario-based experiments suggest that a match between humor and informal language can increase SRS, particularly for low-equity brands and low severity failures. The findings provide practical implications for companies using chatbots for customer service and suggest incorporating humor and informal language into their messaging when addressing service failures.

How does AI agent (vs. IVR system) service failure impact customer purchase behavior: mediating effect of customer involvement

ABSTRACT In recent years, the use of artificial intelligence (AI) agents in customer service has become a prominent area of study, focusing on their influence over consumer behavior. However, there is a noticeable gap in the current literature regarding AI agent service failures during product information consultations and their effects on customer purchase behavior. The present study, grounded in attribution theory, investigates the effects of various types of self-service failures in both Interactive Voice Response (IVR) systems and AI agents on customer involvement and subsequent purchase behavior. The findings indicate that customers experiencing service failures with AI agents during the consultation stage are more inclined to make purchase behavior after human-led recovery compared to those encountering IVR system failures. Additionally, customer involvement is found to play a pivotal role as a mediator between types of service failures and purchase behavior. The results of this work may offer valuable theoretical and practical insights.

Compensating Service Failures: The Moderating Role of Customers’ Political Ideology

When service failure occurs, the service provide often dispenses compensation to manage customer relations. However, little research has studied who accepts larger or smaller compensation amounts. Presently, we use political ideology as a basis to segment customers. Drawing on prior work on System Justification Theory, we hypothesize that politically conservative customers accept a lower amount of compensation than liberals as conservative customers more likely believe that whatever amount the service provider offers is just and fair. Importantly, we propose that the effects are specific to economic conservatives, not social conservatives. The findings are consistent with our predictions, with (economic) conservatives’ customers’ system justification beliefs serving as a mechanism. Theoretically, our work is the first to examine who accepts different levels of compensation while also broadly suggesting that political ideology is an important customer segmentation basis in the tourism and hospitality sectors. Our work also contributes to the literature on political ideology by being one of the first to empirically tease apart the distinct effects of economic and social conservatism.

Shared decision making for patients with kidney failure to improve end-of-life care: Development of the DESIRE intervention.

To describe the development of a shared decision making intervention for planning end-of-life care for patients with kidney failure, their relatives and health professionals in kidney services. End-of-life care conversations within standard disease management consultations are challenging for patients with kidney failure, their relatives and health professionals. End-of-life care planning is about making difficult decisions in advance, which is why health professionals need shared decision making skills to be able to initiate end-of-life conversations. Health professionals report needing more skills to raise the issue of end-of-life care options within consultations and patients want to be able to discuss issues important to them about future care plans. The development design was guided by the UK Medical Research Council's framework and a user-centred approach was applied. Four workshops were conducted with end users. The Template for Intervention Description and Replication for Population Health and Policy interventions was used to shape which questions needed to be answered through the workshops and to present the intervention. The International Patient Decision Aid Standards (IPDAS) criteria set the standards to be achieved. Areas considered significant to a shared decision making intervention were training of health professionals, conversations about end-of-life care, planning and evaluation of the decisions, reporting decisions in health records and repetition of consultation. The development process went through 14 iterations. An intervention named DESIRE was developed that comprises: (1) a training programme for health professionals; (2) shared decision making conversations; and (3) a patient decision aid. The intervention met 30 out of 33 IPDAS criteria. DESIRE is intended to support shared decision making about planning end-of-life care among patients with kidney failure, their relatives and health professionals. The study provides important tools for the stakeholders engaged that can be used within different models of care. What problem did the study address? International guidelines recommend health professionals involve patients with kidney failure in making decisions about end-of-life care, but there is variation in how this is implemented within and across kidney services. Furthermore, patients, relatives and health professionals find it challenging to initiate conversations about end-of-life care. What were the main findings? The study resulted in the development of a complex intervention, called DESIRE, about shared decision making and planning end-of-life care for patients with kidney failure, their relatives and health professionals in kidney services, including a training programme for health professionals, shared decision making conversations and a patient decision aid. Where and on whom will the research have an impact? The research contributes a shared decision making intervention to patients in the later stage of kidney failure, their relatives and health professionals. We believe that the DESIRE intervention could be introduced during consultations with health professionals at an earlier stage of the patient's illness trajectory, as well as being applied to other chronic diseases. This intervention development research is reported according to the GUIDance for the rEporting of intervention Development (GUIDED) checklist and the DEVELOPTOOLS Reporting Checklist. Patients, relatives and health professionals have been involved throughout the research process as part of the research team and advisory board. For this study, the advisory board has particularly contributed to the development process of the DESIRE intervention by actively participating in the four workshops, in the iterations between the workshops and in the preparation of the manuscript.

A qualitative analysis of cascading effects of critical infrastructure service failure post torrential floods in formal & informal settlement: the study-case of Medellin city, Colombia

ABSTRACT Critical infrastructure (CI) services are crucial to the functioning of modern communities, and a single CI failure can cause cascading effects through a network of services, impacting an entire city. Challenges such as climate change and rapid urbanisation are increasing the risk of cascading effects of CI failure, particularly impacting the urban poor in peri-urban and informal settlements. This study uses a systems thinking approach to validate the hypothesis if CI services are susceptible to generating severe cascading effects in informal than formal settlements. Qualitative data was collected on cascading effects via interviews and focus group discussion in a formal and an informal settlement in Medellin, Colombia. The responses were analysed and structured using a service chain framework and a Causal Loop Diagram. Our findings show that cascading effects vary between the formal and informal contexts concerning CI service availability and accessibility and may be attributed to differences in demography, geography, socio-economic development, risk regulations, community coping capacities and other factors associated with urban development.

Virtual versus human: Unraveling consumer reactions to service failures through influencer types

In an era where both human and virtual influencers play pivotal roles in shaping consumer behavior, understanding their influence on consumers' reactions to service failures has become an essential scholarly pursuit. This research stands at the forefront of this burgeoning field, dissecting the unique impact of human versus virtual influencers on consumer attitudes toward service failures, including forgiveness propensity, behavioral responses, and punishment intention. Through a series of experimental studies, the research uncovers a nuanced preference for virtual influencers, who elicit higher levels of forgiveness, more positive behavioral responses, and lower punitive intentions during service failures. These findings are mediated by mind perception and responsibility attribution, and are moderated by familiarity, thereby unveiling a complex interplay of psychological processes. The study's contributions transcend mere observations, offering a theoretical framework with empirical testing that integrates consumer psychology with the emergent phenomenon of virtual influencers. The insights gleaned from this research not only enhance academic understanding of the dynamics between influencer types and consumer reactions but also provide actionable strategies for marketers. By bridging theory and practice, this study carves a new path in influencer marketing research, particularly illuminating how to leverage influencer types to mitigate negative consumer reactions due to service failures.