This study examined whether the psychological climate for service friendliness correlated positively with employee displayed positive emotions, and whether such positive emotional displays influenced customer purchase decision and customer reactions concerning an organization. Data were collected from 290 sales clerks in 156 retail shoe stores in Taiwan, and from 284 customers who were served by one of the sales clerks. Results indicated a positive relationship between psychological climate for service friendliness and employees’ displayed positive emotions. The study also indicated that employees’ positive emotional displays would increase customer willingness to return to the store and pass positive comments to friends.
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