Shining Examples of Service When the Lights Went Out: Hotel Employees and Service Recovery during the Blackout of 2003

The electrical outage in the summer of 2003 that interrupted power to thousands of hotels wrought a variety of facilities failures and service-process problems. Fortunately, strong service-recovery efforts from hotel employees mitigated the worst of the blackout’s effects. Using survey data from hotel managers who experienced the blackout, this study highlights those employee actions that most contributed to immediate service recovery; however, the study also reveals limited organizational learning or efforts to failsafe hospitality service from the eventuality of future power failures.

Service Loyalty: An Integrative Model and Examination across Service Contexts

Marketing academics and practitioners generally agree that customer loyalty is vital to business success. There is less agreement on the factors that determine customer loyalty, particularly in service contexts. Research on the determinants of service loyalty has taken three distinct paths: 1) quality/value/satisfaction; 2) relationship quality; and, 3) relational benefits. In this research, the authors coalesce these paths to derive a model that links dimensions of customer loyalty (cognitive, affective, intention, and behavioral) with a system of determinants. The model is tested with data from varied services (airlines, banks, beauty salons, hospitals, hotels, and mobile telephone) and 3,500 customers in China. Results are consistent across contexts and support a multidimensional view of customer loyalty. Key loyalty determinants are customer satisfaction, commitment, service fairness, service quality, trust, and a construct new to service loyalty models—commercial friendship. The research contributes to the literature by providing a more complete, integrated view of customer loyalty and its determinants in services contexts.

Does Tipping Help to Attract and Retain Better Service Workers?

A survey of several hundred restaurant servers in the United States found that servers’ attitudes toward working for tips and average tip sizes were weakly related (at best) to their service-orientation, intended job-tenure, and occupational-tenure. These findings suggest that tipping does not substantially help to attract and retain more service-oriented workers. Restaurateurs can eliminate tipping at their restaurants without fear that doing so will reduce the quality of their wait-staff.

Free Drink or Free Mug? Managing Service Experience with Experiential vs. Material Complimentary Gifts

In the marketplace, complimentary gifts can take the form of experiential elements (e.g., a meal) or material items (e.g., tangible objects such as a mug). We identify these free gifts as a meaningful service design choice that helps service providers innovate service. Specifically, we examine the circumstances under which experiential or material gifts are preferred and generate greater consumer satisfaction, enhancing the overall service experience. Across three experiments, we demonstrate that consumers are generally happier with experiential offerings, and they prefer (and are more satisfied with) experiential offerings on ordinary consumption occasions; experiential elements are believed to further enrich otherwise mundane experiences. However, this experiential advantage disappears for consumers on meaningful and special occasions because of a strong desire to obtain a memory cue that will help them recall the experience. Indeed, the preference for a material item holds only when the gift has the quality to serve as a salient memory marker, but not when it lacks this quality. This research provides insight for managers to take into account consumption occasions or type of consumers (e.g., special occasions, repeat customers) to effectively design service bundles with complimentary gifts and thus better manage overall service experience.