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Although there has been considerable research about service failure in the last 15 years, scholars have only recently started to examine its impact on relational constructs. This study proposes a holistic model that jointly investigates the role of company image and trust in response to service failures and their impact on the customer value-loyalty process across routine and service failure scenarios. Using survey data of a sample of 552 airline customers, the empirical results find evidence of a relational protective layer for the firm. This layer protects the customer value-loyalty process from the negative impact of service failure by exerting a halo effect on customer value and loyalty, which is concurrently magnified by this negative impact. Further analysis also indicates the diverse roles of company image and company trust in service failures, which reveals the coexistence of the buffering and magnifying effects. The findings underline that company image is the most versatile asset of the firm, and it can serve as an indicator of how service failures will affect the company. Company trust, as opposed to its passive role in routine situations, acts like a safety net in service failures by enhancing the customer's value perception.

PurposeDespite the significance of online communication and interactions, previous research has not systematically compared all features on a single platform from the users' perspective. This study aims to fill this gap by extensively reviewing the current literature on social media affordances and proposes and tests a feature-centric and affordance-based conceptualization of social media platforms (SMPs) between users, features, the audience and content.Design/methodology/approachThis research surveys users on Facebook, one of the largest SMPs, and asks them to assess 20 features of Facebook on six relational affordances between users, features, audience and content. The data in this study were collected on Amazon Mechanical Turk (MTurk) with participants from the US Correspondence analysis was employed to examine the relationship between affordances and the ties among affordances, features and outcomes.FindingsResults of the study indicate that users perceive features differently, and employing features as the unit of analysis captures users' interactions effectively. The findings support the presence of user-oriented affordances, such as presentation flexibility, association and content association. These three affordances can be summarized in two higher-level ones: self-expression and connection (SEC) and persona-linked content (PLC). Our findings of the two dimensions, SEC and PLC, highlight the importance of targets and their connections in understanding social media interactions' dynamic nature.Practical implicationsBy proposing to shift the focus from platforms to features, this study suggests that companies should focus on understanding the features they use for their users to interact with their brand, rather than merely ensuring that their company is omnipresent on all platforms. This study underlines the need to focus on features that will help managers influence interpersonal and user-brand communications and interactions on social media.Originality/valueThis research is the first to put features at the center of its investigation and quantitatively examine the relationship between social media features and affordances in a social media context. In all, this research provides a new unit of analysis that is more suitable for researchers to build a robust conceptual foundation for affordances. We believe that conceptualizing audience and content as outcomes, distinguishing it from features and creating connections between them as affordances is the unique aspect of our conceptualization.

The use of digital employees (DEs)—chatbots powered by artificial intelligence (AI)—is becoming increasingly common in the service industry. However, it is unclear whether collaborations between the human employee (HE) and DE can influence customer outcomes, and what the mechanisms behind such outcomes are. This research proposes and tests a theoretical model that explains how the communication of HE-DE collaboration in the form of interdependent behavioral cues can influence customer evaluations of the service they received from such a team. Five experimental studies involving a total of 1403 participants demonstrate that making HE-DE collaboration visible to customers during the service encounter can reinforce their perception of HE-DE team cohesiveness and service process fluency, driving satisfaction. The communication of coordination and team goal cues are two strong stimulants that strengthen such impressions. Further, this research also reveals that the HE-DE collaboration (vs. augmentation or substitution) appeals to customers thanks to their perception of a transparent process, which is induced through collaborative cues. This research provides theoretical implications for a transparent collaborative process between HE and DE and practical advice for firms seeking to integrate DE into their organizations' workflows.

Several researchers have pointed out that if marketing is to develop as a discipline and contribute to solving complex business and societal challenges, it should question the neoclassical view of markets and develop its own theory of markets. Efforts in this direction indicate an emerging view of markets as dynamic, subjective, and subject to multiple change efforts. However, the neoclassical view of objective, detached, and deterministic market still influences the dominant models used to describe market change. We argue that in order to better understand market dynamics, both academics and practitioners need new concepts and constructs that go beyond existing linear process and development stage models. We seek to contribute to improved understanding of markets by studying a special characteristic of markets that enables market dynamics. Borrowing a term used by Alderson (1957: 277), we propose that markets are characterized by plasticity, that is, a "potentiality for being remolded and responding in a different way thereafter." Even though the plasticity concept was introduced into the marketing literature nearly 60 years ago, the plastic character of markets remains underresearched. This article investigates the meaning and manifestations of market plasticity, drawing analogies from the physical, natural, and social sciences. We define market plasticity as the market's capacity to take and retain form and propose that the dialectic between market stability and market fluidity lies at the heart of market change.