Performance effects of three foci in service firms

Article Abstract:

Service businesses are often urged to focus because otherwise they will falter. In effect, the "focus or falter" argument suggests that focus by service firms is likely to result in superior performance. Service firms might focus on serving selected customer segments, capitalizing on distinctinve internal capabilities, and serving particular geographic regions. Each focus offers certain potential benefits. This study collected data from the chief executives of 198 service firms to develop systematic evidence on the performance effects of these three foci. We found that a focus on selected customer segments was associated with higher performance, but a focus on either internal capabilities or geographic regions was associated with lower performance. (Reprinted by permission of the publisher.)

Research, Market segmentation, Services industry, Service industries

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Service with a smile and encounter satisfaction: Emotional contagion and appraisal mechanisms

Article Abstract:

Facial mimicry, an important component of emotional contagion process to find out if customers' expression change as a function of employees' expressions is discussed. Service with a smile in brief encounters is satisfying to the customer as it led to high ratings of quality service.

United States, Methods, Analysis, Customer service, Customer satisfaction, Support services, Smile, Smiling

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