As one of the retailer’s most potent recovery tactics to offset disgruntled customers, firms invest heavily in compensation to increase customer satisfaction and improve loyalty. However, the effectiveness of this tactic remains unclear. This study examines whether firm-offered compensation affects customers’ emotional responses and bad-mouthing behavior (i.e., telling others about a particular problem). Importantly, the study investigates whether the level of collaboration during the recovery encounter moderates the link between compensation and customers’ emotional responses, and whether collaborative efforts influence the effectiveness of compensation. The findings indicate that collaboration during the recovery encounter is necessary if compensation is to mitigate negative emotional responses, with downstream effects on bad-mouthing behavior. In confirming the importance of collaboration during recovery encounters, the findings have critical managerial and financial implications.

Purpose Previous research on salesperson-customer proximity has yielded mixed results, with some studies documenting positive proximity effects on shopping responses and others demonstrating the reverse. To reconcile such mixed findings, this paper aims to test whether and how salesperson proximity influences a series of key customer outcomes in actual retail settings using sample sizes that are considerably larger than most former investigations. Design/methodology/approach We conducted two high-powered field studies (N = 1,312) to test whether salesperson-customer proximity influences consumers' purchase behavior and store loyalty. Moreover, we investigated whether the short-term effects on purchase behavior were moderated by the extent to which the consumption context had a clear connection to consumers' own bodies. Findings Salesperson proximity increased purchase incidence and spending in consumption contexts with a bodily basis (e.g. clothes, beauty, health), suggesting that consumers "buy their way out" in these contexts when a salesperson is violating their personal space. If anything, such proximity had a negative impact on consumers' purchase behavior in contexts that lacked a clear bodily connection (e.g. building materials, furniture, books). Moreover, the link between proximity and consumer responses was mediated by discomfort, such that a salesperson standing close-by (vs farther away) increased discomfort, with negative downstream effects on shopping responses. Importantly, the authors found opposite proximity effects on short-term metrics (purchase incidence and spending) and long-term outcomes (store loyalty). Research limitations/implications Drawing on the nonverbal communication literature and theories on processing fluency, the current work introduces a theoretically relevant boundary condition for the effects of salesperson-customer proximity on consumers' purchase behavior. Specifically, the bodily basis of the consumption context is discussed as a novel moderator, which may help to explain the mixed findings in this stream of research. Practical implications Salesperson-customer proximity may serve as a strategic sales tactic to improve short-term revenue in settings that are closely tied to consumers' own bodies and characterized by one-time purchases. However, as salesperson proximity was found to be associated with lower store loyalty, irrespective of whether the shopping setting had a bodily basis, the risk of violating consumers' personal space may have costly consequences from a long-term perspective. Originality/value The present field studies make three central contributions. First, we introduce a novel moderator for proximity effects in various sales and service settings. Second, we test the focal hypotheses with much higher statistical power than most existing proximity studies. Finally, we document that salesperson-customer proximity ironically yields opposite results on short-term metrics and long-term outcomes, thus underscoring the importance of not solely focusing on sales effectiveness when training frontline employees.

This field study examined how customer-employee interactions are affected by the congruency between an employee's gender and the perceived gender image of the consumption context in one of the most gender equal cultures in the world (Scandinavia). Mystery shoppers had a service encounter with an employee across a set of physical commercial settings that were classified according to their gender image. The mystery shoppers noted the gender of the employee, provided employee evaluations, and indicated word-of-mouth (WOM) ratings. Shoppers who had a gender congruent service encounter (e.g., a female employee in a “feminine” consumption context) reported more favorable employee evaluations and WOM ratings than shoppers who had a gender incongruent service encounter (e.g., a female employee in a “masculine” consumption context), with the impact of gender congruency on WOM ratings mediated by employee evaluations, particularly with respect to competence inferences. These findings highlight the ethical dilemma of a positive gender congruency effect, as it can generate superior consumer responses but also risks resulting in gender occupational segregation.

Across a series of lab and field studies, with a total sample of over 1200 participants, we investigate how the physical proximity between salespeople and customers can impact store loyalty, purchase intentions, and actual spending. An initial survey among a representative sample of retail salespeople reveals that they associate close physical proximity between employees and customers with positive consumer outcomes, an intuition that dovetails with prior research documenting the positive influence of such proximity on purchase intentions, particularly in nonexpressive consumption contexts. Contrary to this work, we demonstrate, across four studies in which proximity was both measured and manipulated, that store loyalty, purchase intentions, and actual spending behavior are negatively impacted when consumers encounter a salesperson who is standing close by (vs. farther away), particularly in expressive consumption contexts. Psychological discomfort mediates this effect, such that consumers experience greater discomfort when a salesperson is standing close by, which in turn decreases spending. Importantly, this phenomenon is moderated by identity relevance, such that the negative influence of salesperson-customer proximity specifically emerges when consumers think about products in terms of their ability to express their identities. These findings carry important implications for retailers operating in expressive consumption contexts.

This mixed methods study investigated how value is created in the physical retail space and how the customer experience is influenced by digital technology. A cross-sectional survey, with both qualitative and quantitative components, was distributed across a heterogeneous sample of 832 customers. The results revealed an overarching model comprised of three interrelated clusters: customer, service provider, and digital technology. We propose that this model can be understood as a valuescape, where customers' specific goals, needs, and desires drive them to interact and co-create value with service providers in the physical retail space, with digital technology either enhancing or disrupting this value co-creation process. The results also show that the importance of aligning digital solutions with customers’ drives increases at the same pace as reliance on technology. The findings offer guidelines on how to utilize digitalization to leverage customer experiences and thus strengthen the attractiveness of physical retail spaces.

This eye-tracking study investigated whether the physical appearance of another consumer can influence people's visual attention and choice behavior in a grocery shopping context. Participants (N = 96) took part in a lab-based experiment and watched a brief video recording featuring a female consumer standing in front of a supermarket shelf. The appearance and body type of the consumer was manipulated between conditions, such that she was perceived as 1) healthy and of normal weight, 2) unhealthy by means of overweight, or 3) unhealthy through visual signs associated with a potentially unhealthy lifestyle, but not by means of overweight. Next, participants were exposed to a supermarket shelf with cereals and were asked to choose one alternative they could consider buying. Prior exposure to a seemingly unhealthy (vs. healthy) consumer resulted in a relative increase in participants' visual attention towards products perceived to be healthy (vs. unhealthy), which prompted cereal choices deemed to be healthier. This effect was stronger for products that holistically, through their design features, managed to convey the impression that they are healthy rather than products with explicit cues linked to healthiness (i.e., the keyhole label). These results offer important implications regarding packaging design for marketers, brand owners, and policy makers. Moreover, the findings highlight the value of technological tools, such as eye-tracking methodology, for capturing consumers' entire decision-making processes instead of focusing solely on outcome-based metrics, such as choice data or purchase behavior.

Purpose This study aims to examine the links between office types (cellular, shared-room, small and medium-sized open-plan) and employees' subjective well-being regarding cognitive and affective evaluations and the role perceived noise levels at work has on the aforementioned associations. Design/methodology/approach A survey with measures of office types, perceived noise levels at work and the investigated facets of subjective well-being (cognitive vs affective) was distributed to employees working as real estate agents in Sweden. In total, 271 useable surveys were returned and were analyzed using analyses of variance (ANOVAs) and a regression-based model mirroring a test of moderated mediation. Findings A significant difference was found between office types on the well-being dimension related to cognitive, but not affective, evaluations. Employees working in cellular and shared-room offices reported significantly higher ratings on this dimension than employees working in open-plan offices, and employees in medium-sized open-plan offices reported significantly lower cognitive evaluation scores than employees working in all other office types. This pattern of results was mediated by perceived noise levels at work, with employees in open-plan (vs cellular and shared-room) offices reporting less satisfactory noise perceptions and, in turn, lower well-being scores, especially regarding the cognitive (vs affective) dimension. Originality/value This is one of the first studies to compare the relative impact of office types on both cognitive and affective well-being dimensions while simultaneously testing and providing empirical support for the presumed process explaining the link between such aspects.

his research aims to revive the applicability of the exchange concept in the marketing domain. The authors draw on current exchange theories to show how members of an aquatic center receive relational, social support, and restorative resources from other center members and employees. They then empirically demonstrate that members’ loyalty to the center is fueled by the resources they receive from others in the center and that their experience in the center mediates the relationship between exchanged resources and member loyalty. This research reveals that service organizations may foster person-place bonds by providing customers with resources over and above goods and services. Customers appreciate resources that transform their well-being, such as social support and natural, restorative resources, and they demonstrate loyalty to places where they can obtain therapeutic resources. From a theoretical standpoint, this work shows support for the notion that the exchange concept is a foundational aspect of a general theory of marketing and explains how the exchange and value concepts in marketing are linked together.

This article introduces the concept of 'therapeutic servicescapes' to the retailing and services discipline. In the health literature, therapeutic landscapes emerge when physical and social conditions in a geographically bounded space combine to produce an atmosphere that is conducive to human well-being. Traditionally, therapeutic landscapes have been associated with natural and leisure settings, such as parks, green spaces, and beaches. This work breaks new ground in the marketing domain by linking therapeutic landscapes to commercial retail establishments. This study empirically demonstrates the extent to which physical and social conditions may combine in a customer-centric grocery store to positively enhance customers' well-being and promote feelings of attachment to the establishment. Furthermore, this study reveals that customers' future behavioral intention are driven by the store's impact on their well-being and their desire to maintain 'place attachment.' From a managerial perspective, this work recommends that retail and consumer service organizations facing online competition focus on creating architectural and human resource conditions that promote consumer well-being and place attachment.