Influencing customer compensation expectations in service failures: Comparing the roles of service robots and human employees

This research addresses a critical gap in understanding how service failures by robots versus human employees shape customer compensation expectations in the hospitality industry. While substantial literature explores service failure, the nuanced impacts of failure severity and the interplay with different types of service providers – robotic or human – have not been thoroughly examined. Through three experimental studies, we discover that customers expect higher compensation when service failures involve robots and that this expectation is further influenced by the severity of the failure, which intensifies compensation expectations across both types of service providers. Moreover, our analysis reveals that blame attribution mediates the relationship between service provider type and compensation expectations, with severity of failure moderating this mediation effect. These findings offer insights for service firms aiming to navigate the challenges posed by integrating service robots, suggesting the importance of tailored service recovery strategies to maintain customer satisfaction and loyalty.