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Effect of service transgressions on distant third-party customers: The role of moral identity and moral judgment

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  • Sharma, Isha
  • Jain, Kokil
  • Behl, Abhishek

Abstract

Service failure studies have paid little attention to the role of the other customers or bystanders present in a service setting. Using a mixed method approach, the current study examines the effect of visible service transgressions on distant third-party customers in a shared service territory. A netnography study reveals that a distant third-party customer is most affected by service transgressions that are unethical, that is violating the prescriptive norms of social and human behavior, and can lead them to engage in negative e-Word-of-Mouth (eWOM) against the transgressor. To reaffirm these findings, a conceptual model is proposed based on moral identity theory, moral judgment, distrust, and moral reasoning choice to explain the effect of ethical service transgression on distant third-party customers’ intentions to engage in negative eWOM and brand avoidance. The study highlights the strategic significance of the other customers in a triadic setting for firms and contributes theoretically to the research on ethical service transgressions, moral identity, and third-party customers.

Suggested Citation

  • Sharma, Isha & Jain, Kokil & Behl, Abhishek, 2020. "Effect of service transgressions on distant third-party customers: The role of moral identity and moral judgment," Journal of Business Research, Elsevier, vol. 121(C), pages 696-712.
    • Handle: RePEc:eee:jbrese:v:121:y:2020:i:c:p:696-712
    DOI: 10.1016/j.jbusres.2020.02.005
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