The mitigating effect of matching regulatory focus with arousalinducing stimuli in service failure situations

Abstract

Service failures are pivotal touchpoints that can reduce customer satisfaction, encourage negative word-of-mouth, and ultimately impact a firm's market share. We advance a novel perspective that after a service failure occurs, matching incidental arousal-inducing stimuli to one's regulatory orientation can make the negative experience stemming from the service failure less deleterious. In three experiments (two stock out scenarios and one involving a rude salesperson), after a service failure, promotion-focused and prevention-focused individuals were exposed to high versus low arousal-inducing stimuli. Three approaches available to retailers were used to manipulate arousal levels: background pictures (Study 1), colors (Study 2), and music (Study 3). When high (low) incidental arousal-inducing stimuli were presented to those with a promotion (prevention) focus, this raised satisfaction, loyalty, and referral for brands compared to when promotion (prevention)-focused individuals were exposed to low (high) arousal-inducing stimuli. Changes in self-rated arousal and affect valence levels (arousal and valence levels were measured after the service failure and then after exposure to the incidental arousal-inducing stimuli) mediated the effect on these consumer behaviors. These insights extend theory by considering the combined effect of regulatory focus and affect. They also have practical relevance.