You're driving me crazy! How emotions elicited by negative driver behaviors impact customer outcomes in last mile delivery

With the growth of e-commerce and associated home deliveries, understanding the role of drivers in shaping the customer experience in last-mile delivery is now more crucial than ever. Delivery drivers increasingly act as retailers' frontline employees and are thus instrumental in developing pseudorelationships between customers and retailers. Industry surveys, however, reveal that drivers admit to engaging in unprofessional behaviors with customers and often refuse to address customers' requests beyond package delivery. Following a middle-range theorizing approach and leveraging Cognitive Appraisal Theory, we investigate how two negative driver behaviors, inappropriate behavior and inflexibility, impact customer satisfaction and repurchase intentions. We also examine the moderating effect of driver affiliation, private versus outsourced, in altering the magnitude of customer responses. Results from a scenario-based experiment indicate that while the negative effects of driver inappropriate behavior on customer outcomes are mediated by anger, the effects of driver inflexibility are mediated by sadness. Moreover, the negative effect of driver inflexibility on customer outcomes is weaker for outsourced logistics than for private fleet drivers. In turn, driver inappropriate behavior exhibits similar negative effects on customer outcomes for both driver affiliations. These findings offer important insights for last-mile delivery strategy and operations research and practice.