Asymmetric effects of customer emotions on satisfaction and loyalty in a utilitarian service context

Abstract : This paper investigates the relative effects of customer positive versus negative emotions on satisfaction and loyalty in a utilitarian service setting. In-depth interviews with 20 call-center customers identify emotions and appraisals related to the customer service experience. Regression analysis of subsequent quantitative survey results from 1440 customers of a call-center shows that positive emotions influence satisfaction more strongly than negative emotions. In contrast, negative emotions influence recommendation intentions more strongly than positive emotions in line with prospect theory. However, for ‘higher risk’ repatronage the prospect of losses from switching reduces the effect of negative emotions resulting in a symmetric effect of positive and negative emotions on repatronage intentions.