Tailoring to Customers’ Needs

Abstract

For most organizations, the ability to adapt a service experience is the responsibility of frontline employees (FLEs). Previous research on adapting or customizing a service has focused much of its attention on the internal motivations or predispositions of FLEs to adapt a service. However, the ability to adapt a service experience is often a function of management setting expectations and allocating appropriate resources. Regardless of the FLE’s internal motivation, service providers need to educate employees on how and when to adapt a customer’s service experience. Drawing on role theory, our study focuses on how mangers can promote adaptive behaviors with FLEs. Our findings identify two major processes in adapting a service experience: (1) recognition of customer needs through employee empathy and anticipation and (2) creation of alternatives to meet those needs through employee creativity. To further examine the managerial influence on adapting a service, we explore how the perceived service climate of the organization and employee empowerment influences FLEs’ ability to adapt a service. Results of our study indicate that perceived service climate has a larger impact on recognition of customer needs, while empowerment has a stronger influence on the creation of alternatives. From a managerial perspective, this research highlights that adaptive behavior can be fostered in FLEs and is not solely dependent on hiring the “right” people who are predisposed to adapt. The findings of our study have implications for business practice in managing service encounters, employee empowerment, and training.