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Professor Anat Rafaeli - Technion, ISRAEL http://Anat.Rafaeli.Net 1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management Technion ISRAEL

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Page 1: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

Professor Anat Rafaeli - Technion, ISRAEL http://Anat.Rafaeli.Net

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Emotion and Customer Service

Professor Anat Rafaeli

Industrial Engineering and Management

Technion

ISRAEL

Page 2: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

Parasuraman, A., V. A. Zeithaml, and L. L. Berry (1985), A conceptual model of service quality, Journal of Marketing, 49, 41-50.

Professor Anat Rafaeli - Technion, ISRAEL http://Anat.Rafaeli.Net

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2004

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Quality Service Requires

A Service Climate:

Fundamental Values and

Assumptions that Guide Employees

in How to Behave

Professor Anat Rafaeli - Technion, ISRAEL http://Anat.Rafaeli.Net

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Page 4: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

Quality Service Requires A Service Structure:

A Structure of Roles and Resources That Allows Employees to Provide

Quality Service

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Page 5: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

Service Never Ends

• Suppliers Employees

• Employees Employees

• Employees Customers

• Customers Customers Professor Anat Rafaeli - Technion, ISRAEL

http://Anat.Rafaeli.Net5

Page 6: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

What is Service?

Ben Schneider (and Marketing)

• Intangible;

• Consumed while produced:

Cannot be stored;

• Requires customer participation

Professor Anat Rafaeli - Technion, ISRAEL http://Anat.Rafaeli.Net

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Customer Service IS Emotion!

• Employees

• Customers

• Organization

Professor Anat Rafaeli - Technion, ISRAEL http://Anat.Rafaeli.Net

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Sponsored Links

Customer ServiceContact Center for Dummies: Seethe benefits of superior contact!www.avaya.co.uk/contact-center

Better Customer Service.Give Frontline Staff The Tools TheyNeed To Deliver 'Superior Service.'www.cdcrespond.com

Customer Service and Emotion

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Emotion at the Organizational Level

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Page 9: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

What is an organization? (Rafaeli, 1996)

In Finance: A set of contracts

In Psychology:

A set of people (employees, customers)

A set of artifacts (logos, structures, queues, policies)

A set of emotions

Professor Anat Rafaeli - Technion, ISRAEL http://Anat.Rafaeli.Net

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Page 10: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

Organization of Customer Service

“ An organization is a group of people (a group of groups …) working together (in some structured fashion) toward a common goal …."

Customer service organization:…. Working together … to fill customer service needs …. and to create the right customer emotion …

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".... Customer service ... Creates an experience“

(page 20)

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2007

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Organizational Emotions?Organizational Emotions?

Page 13: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

Quality Service Requires A Pleasant Work Climate

“People who focus their aggression on the less

powerful—poison the work environment and are

detrimental to businesses.They have to go!”

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Page 14: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

Sources of Organizational Emotion

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• Physical set-up (“in Marketing: “Servicescapes”)

(Elsewhere: Physical Design, Logos, Symbols, Employee Dress, Queues)

• Policies

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Disney: Service and Happiness

Experience 'The Happiest Place on Earth’

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Starbucks: Service and “Cool”

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Organization Physical Design Creates Emotion

Gilboa & Rafaeli, (2003); Wassserman, Rafaeli, &

Kluger, (2000):

More Harmonious and Organized Restaurants

and Stores Create more Positive

Emotions

Page 18: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

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Organization Policies Inspire Employees Emotion (and Behavior)

Rafaeli, (1989): Better Customer

Service when Employees Wear

Organizational Name Tags and Uniforms.

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Organization Policies Can Ridicule Employee Emotion

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Service is delivered through Relationships or through Encounters

Barbara Gutek (1997; 2000; 2002)

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Policies can Hurt Emotions! Service Queues

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Perceptions of Service Organizations are

Saturated with Emotion

(Rafaeli and Vilnai-Yavetz, 2004)

Page 23: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

Customer: “I’m angry! What a dark and gloomy color. It’s so depressing. But it is typical. They’re obnoxious to their employees and passengers!”

Professor Anat Rafaeli - Technion, ISRAEL http://Anat.Rafaeli.Net

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Emotion Embedded in Perceptions of Organization

Emotion to Artifact Emotion to Organization

Employee: I am furious. They pretend to be a good, warm, caring organization.”’ But they are bad; they pollute the environment. ”

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Customer Emotions

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Service is An Experience

• Time, Context evokes emotion

• Money evokes economic exchange

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Context Effects

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Vilnai-Yavetz, and Rafaeli (2006). Journal of Service Research.

Page 27: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

Emotion Mediates Reactions

Professor Anat Rafaeli - Technion, ISRAEL Slides and Papers Available at http://Anat.Rafaeli.Net

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Page 28: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

Starbucks: Service and Relaxation

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“Please stay on the line. All our customer service rep’s

are busy kidding around.”

Service = Waiting =

Time = Emotion!

Page 30: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

Queue 1

Queue 2

Queue 3

1. How long do you expect to wait in this queue? _____ min

2. Do you think this is a fair queue?

yes Don't know

no

3. How long do you expect to wait in this queue? _____ min

4. Do you think this is a fair queue?

yes Don't know

no

5. How long do you expect to wait in this queue? _____ min

6. Do you think this is a fair queue?

yes Don't know

no

METHOD: SURVEY Please look at the pictures of the different types of wait queues and answer the questions next to each one.

Multiple Queue

Single Queue

Number Queue

Service and Waiting

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Rafaeli, Baron & Haber (2002):

Customers View Multiple

Queues as Shorter but

More Unfair!

Customers Emote to Queues (Time )!

Page 32: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

Expectations Effects

Multiple Queues viewed as UNFAIR

Single Queues Evoke More

Positive Feelings

To what extent do you feel

Irritated? To a great

extent

To a little extent

Service stations

Please answer the question

Page 33: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

Telephone Waiting is Really Bad!

Munichor & Rafaeli (2007):

Create a Sense of Progress in Customers

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Mindless Emotion:

Reactions to Corporate Logos

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Brands Sell!

Professor Anat Rafaeli - Technion, ISRAEL http://Anat.Rafaeli.Net

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And Evoke Irrational Emotions and other Reactions!

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Rafaeli, Sagi and Derfler (2008):Do You Trust These Women? Higher Trust of Stranger With a Logo!

Page 37: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

What Emotions do Customers Display?

“Greg and George are customers who call to complain about a bill problem.”

Greg acted ANGRY.

George acted CALM.

Who will be rewarded?

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Page 38: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

Professor Anat Rafaeli - Technion, ISRAEL Slides Available at http://Anat.Rafaeli.Net

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Customers: Anger is rewarded (though I don’t like this!)

Customer Responses to: “Who WILL BE rewarded?” ANGRY

Customer Responses to: “How WOULD YOU behave to be rewarded?” ANGRY

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Professor Anat Rafaeli - Technion, ISRAEL Slides Available at http://Anat.Rafaeli.Net

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Employee self-concept: “I am not influenced by anger”

Responses to: “Who would YOU reward?”: POLITERepresent self-presentation and social desirability

Responses to: “Who WILL BE rewarded?”:ANGRYRepresent social norms

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Emotions at the Employee Level

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Emotion of Customer Service:Employees

• Employee Emotion:Reactions to the Work and the People

• Employee Emotion Work

Employees Follow Organization Requirements to Display the “Right”

Emotions.

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How Do Service Employees Feel?

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How Do Service Employees Feel?

• Service Jobs Typically have Poor Job Design (Identity, Autonomy, Feedback)

• High Burnout

• High Withdrawal

• Higher Withdrawal in “encounter” rather than “Relationship” service design

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Most Severe Problems: Telephone Service

• Average Work Load: 100-150 interactions

• Can reach 250 per shift!

• Highly Scripted Work;

• Extreme Monitoring;

• Little autonomy;

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Yearly Turnover - by Industry

46%

34%33%

24%

30%

39%35%

0%

10%

20%

30%

40%

50%

Average Tenure in Call Centers -- 13 months Average Tenure in General -- 4.6 years !! (controlling for age and education)

Batt, Holman et al (2006)

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Average Daily Absenteeism by Type of Call Center

8%

9%

6% 5%6%7%

10%

0%

5%

10%

15%

Global Call Center Survey (Batt et al.; 2006)

Page 47: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

Are workers' rights in the toilet?

British workers are too busy to step out to the toilet! Some have suffered a pay cut for visiting the lavatory during work time, a move which has prompted the Trades Union Congress (TUC) to launch a campaign, called Gotta Go, to force bosses to treat staff with greater respect. (http://news.bbc.co.uk/1/hi/talking_point/)

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http://www.hazards.org/toiletbreaks/index.htm

“Britain's bad bosses have a dirty secret. They don't think you deserve the right to choose when you need to go to the loo. … They work you so hard there's no time for breaks.

•A November 2002 poll of more than 1,000 staff found over half (54 per cent) of British workers are too busy to take toilet breaks.”

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Emotions Displayed by CSR’s? to CSR’s ?

Manager

Coworker

CSR

Customer

Spore

Israel

France

USA

What do you believe you Should do when you are interacting with a XXX and you feel angry?

Are customers hostile to CSR’s?

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Globalized Emotion Suppression Norms!

Anger expression norms

0102030405060708090

100

Target person

% A

ng

er

ex

pre

ss

ion

USA

Israel

Singapore

France

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Do Employees Express what they Feel?

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But is that realistic?

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Employees may express emotions non-verballyEmployees may express emotions non-verbally

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Organization Policies and Employee Organization Policies and Employee Emotions Toward CustomersEmotions Toward Customers

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“Please stay on the line. All our customer service rep’s

are busy kidding around.”

Gap between employee and

customer needs.

Needs to be resolved by organization

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Posted Mar 19, 2008 at 1:09 AM PDTKatz Palace

Joined: Jan 01, 2008Location: KSPosts: 532   show all posts Re: Emotions: Good or bad?

I have no chance to be mad or sad all day because I work in retail and I am forced to smile so that I give my customers good customer service. I sometimes feel so crazy and out of mind because I will be sad or depressed and I will be smiling! It is because I have trained myself to not let my emotions get to me even

though I have a sad or angry heart .

Employee Frustration with Display Rules for

“Required Emotions”

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Important Developments in the Study of Emotion of Customer Service Employees

Emotion Contagion in Service (Pugh, 2001):

Customers as a source of influence over employees

(Customer Emotion as a Source of Influence over Employees: More in Keynote Address)

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Important Developments in the Study of Emotion of Customer Service Employees

Types of Emotion Labor:

• Surface acting (managing facial expressions) vs.

• Deep acting (managing inner feelings)

• Surface acting Stress, quality service

(Grandey, 2002, 2003)

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Employees as Actors

Surface Acting

Grows with greater number of interactions Grows in shorter interactions (encounters)

Includes showing required emotion and NOT showing felt emotion

Page 59: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

Deep Acting

Deep Change

• Employees come to Feel required emotion

• Presumed better for customer

• Presumed better for employee

• Difficult to develop given job structure!

• Is it really valued??

Professor Anat Rafaeli - Technion, ISRAEL http://Anat.Rafaeli.Net

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Page 60: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

Glomb et al (2004): The Value of Emotional Labor vs. Cognitive Labor

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Page 61: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

Emotion Labor and Pay

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Page 62: Professor Anat Rafaeli - Technion, ISRAEL  1 Emotion and Customer Service Professor Anat Rafaeli Industrial Engineering and Management

The Loneliness of a Service Employee

• Frequent Interaction with Customers means little opportunity for social support.

• Employees CANNOT find social support in customers.

• Little structure for peer support.

• A Population with High Social Needs!

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Effects of Loneliness

Known in psychology to …• Hamper job satisfaction• Create Stress • Create Withdrawal• Hamper Cognitive Abilities

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SummaryService is Saturated with Emotion

• Organizational Level: Physical design, policies and practices

• Customer Level:Time and Brand Reactions and

Expectations

• Employee LevelEmotional Labor Poorly Rewarded and

Creates Severe Emotional Demands

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Slides and

Papers Available at http://Anat.

Rafaeli.net

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