Using scenario-based experiments, we demonstrate that active listening improves customer satisfaction, which in turn increases tip size (Study 1).
We define active listening as (1) listening to customers’ concerns before apologizing and (2) verbally acknowledging them. The purpose of this research is to explore when and why the employee’s active listening has a positive influence on customer response. However, previous studies reveal little about how listening to customer complaints operates in recovering a service failure.
A service employee’s active listening plays a crucial role in restoring a damaged customer relationship.
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