Purpose
Deciding on the appropriate level of service is one of the paramount decisions a firm must make. Making this decision more complicated is the debate regarding the viability of aiming for the highest level of service or customer delight. One avenue of research missing from the literature is the impact of providing delight to one customer while in the presence of others. In response the purpose of this paper is to evaluate the emotional and cognitive reactions of the observing customer.
Design/methodology/approach
Structural equation modeling was utilized to evaluate a sample of 272 respondents. Additional moderation analysis was conducted on the impact of perceived deservingness.
Findings
Findings indicate that the observing customer experiences the dual effects of joy and jealousy which both impact perceptions of unfairness and subsequent behaviors of complaining and repurchase. The perceived deservingness of the customer experiencing the delight is shown to reduce the impact of jealousy on unfairness.
Research limitations/implications
The main limitations include cross-sectional data and the fact that the data were retrospective.
Practical implications
This research suggests that firms should embrace the positive contagion that occurs between the delighted customer and observer while attempting to minimize the impact of jealousy.
Originality/value
This is the first research to quantitatively evaluate the impact of a customer viewing another customer receiving delight.
