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The Effect of Group Polarization on Complaint Intention in Service Failure Encounters Abstract Group service failure events have been frequently observed nowadays. However, there is scant research in group service failure. Through four experiments, we show that during group service failure, (1) group polarization occurs among group customers after group discussion, i.e., group complaint intention is greater than individual complaint intention in a service failure involving a single customer; (2) group polarization occurs for group customers with higher levels of complaint intentions after group discussion, and it amplifies as group size increases. This result does not hold for group customers with lower levels of complaint intentions; (3) an informal leader of group customers guides the direction of group polarization; (4) if the minority of group customers express their opinion clearly and confidently (i.e., complain or not to complain), it will guide the direction of group polarization. Keywords: Group polarization, group service failure, complaint intention, informal leader, minority Introduction Since service systems inherently have high degree of openness and customer contact, service failure is likely to occur during service process. This in turn will result in customer complaints, which have been commonly observed in practice, even for companies with good management (Grönroos, 1984; Lovelock, 1983). In this paper, we are particularly concerned with some typical service industries, which involves tens or hundreds of customers receiving services in the same place and at the same time (e.g., the restaurant, tourism, bank, airline industry), or sometimes even thousands of customers (e.g., the concert, sports industry). Prior literature in service failure and recovery mainly takes the perspective of an individual customer (Maxham and Netemeyer 2002; Hocutt, Chakraborty and Mowen 1997). There is a scarce of research that investigates group customers’ emotions and behaviors during service failure encounters. When service failure involves a group of customers, social influence and interactions within the group will further stimulate an individual customer’s perceived control and antagonism. It is plausible to conjecture that customer complaint intention during service failure involving group customers would be quite different from that during service failure involving only an individual customer. Therefore, in this study, we seek to address research questions as follows. First, during service failure in terms of the same degree of severity, is customer complaint intention stronger in a group service failure than that in an individual service failure? Second, is it possible that group complaint intention polarize to two extreme directions in a group service failure? Does it amplify as group size increases? Third, during a group service failure, one or several leaders may stand out of the group spontaneously, who usually have high prestige among the customers. Can they lead group complaint intention to polarization? Fourth, does the minority’s attitude influence group complaint intention in a group service failure? Group Polarization Under Group Service failure Group polarization traced back to the research on risk shift. For example, Stone (1961) designed some decision dilemma scenarios and asked subjects to indicate the degree to which the imaginary figures in the scenarios would undertake the risk. Then, subjects were divided into several groups for discussion with five people in each group. Through group discussion, group subjects’ opinions converged. More interestingly, the group’s converged opinion tended to be more risk seeking than subjects’ original opinions. The group polarization effect has received substantial laboratory evidence in a variety of situations, such as gambles and adventures, ethical issues, personal perceptions, simulation of court decisions, judgments of problems with ambiguous facts, etc. (Lamm and Myers, 1978; Myers and Lamm, 1976). We are interested in whether the group polarization phenomenon occurs among a group of customers in the context of a group service failure. Since service failure hurts the rights of almost all group customers, they are likely to produce a common complaint objective. This in turn will stimulate strong interactions among group customers when they negotiate with the service provider to deal with the service failure. The previous research suggested that group attitude polarization is easier to occur in a common fate group (Kagan and Carlson, 1969) or a group with high similarity (Zaleska, 1978). Thus, during a group service failure, group customers possess the essential characteristics for group polarization to occur. Furthermore, Norris et al. (1977) showed that it is more likely for a group of people to take antagonistic actions after they dispute about the brutality of policemen with each other. For a fairly serious group service failure, customers tend to have higher levels of complain intentions and thus form a group of customers with homogeneous attitudes. As a result, through group discussion, group complaint intention will shift to risk. Therefore, we suggest the following hypothesis: H1: Group complaint intention is greater than individual complaint intention, i.e., group customers with homogeneous attitudes are more risky. Two classic theories have been used to explain the occurrence of group polarization (Isenberg, 1986). The first explanatory mechanism for group polarization is the social comparison theory (SCT) (e.g., Brown 1974; Myers 1978; Myers, Bruggink, Kersting, and Schlosser 1980; Myers, Wojcicki, and Aardema 1977). The second explanatory mechanism for group polarization is the informational influence theory (Anderson & Graesser, 1976; Bishop & Myers, 1974; Kaplan, 1977: Kaplan & Miller, 1977; Madsen, 1978). We next discuss about the effect of the two different mechanisms above (i.e., informational influence and normative influence) on the process of group polarization during a group service failure. First, at the orientation stage, the decision faced by group customers is whether to raise complaints to the service provider. As Laughlin (1996) pointed out, the decision involves both intellectual and judgmental questions. Regarding intellectual questions, for instance, customers need to obtain sufficient information related to service failure to evaluate the necessity of complaints and the chance of successful complaints. By contrast, with respect to judgmental questions, usually there is no clear answer to the questions, such as whether to complain finally. To answer judgmental questions, it requires group customers’ subjective judgments. Next, group customers enter the discussion stage. At this stage, group customers interact with each other about their own experience and feelings of service failure, and then identify and evaluate potential complaint alternatives. Apparently, questions of this stage emphasize more on the intellectual dimension. Thus, informational influence plays a key role at this stage. However, the information accumulates quickly within the group as time evolves. In addition, since the information is likely to be mixed and inconsistent, group customers usually can not persuade each other. But the group has to make a decision due to the limit of time. Therefore, at the decision stage, group customers tend to follow the mainstream opinion of the group. That is, the social comparison process starts to influence group decisions at this stage. Consequently, group norm guides the direction of group decision and eventually forces the group to make extremized decisions. Furthermore, Janis (1982) suggested that when faced with high degree of pressure and danger, a group of people prefers decision speed to decision accuracy. During a group service failure, group customers’ rights are harmed and they are faced with high pressure of decisions. They usually make quick decisions, while ignore to conduct detailed analysis of the information available. As a result, the process of informational influence is weakened, and the social comparison process plays a more important role in quick decisions. Kelly et al. (1997) also pointed out that once a group has to make quick decisions, group members tend to only process superficial or heuristic information (Karau and Kelly, 1992). Under this situation, no matter whether a task is intellectual or judgmental, group members depend on normative influence to make their decisions. Hence, normative influence is more effective in the process of group polarization during group discussion in service failure. Therefore, we suggest the following hypothesis; H2: During group discussion in service failure, normative influence has a greater effect on group complaint intention than informational influence. To test the hypotheses, we conduct four consecutive experiments. Specifically, in experiments 1 and 2, we examine the fundamental effects of group polarization in the context of a group service failure (i.e., hypotheses 1 and 2) by stimulating group customers with homogenous attitudes. In experiments 3 and 4, we explore the influence of leaders and the minority on group polarization (i.e., hypotheses 3 and 4 proposed in later sections) by constructing group customers with heterogonous attitudes. For the four experiments, all of the subjects were undergraduate students. Experiment 1 Procedure Sixty-six undergraduate students at a prestigious university of China participated in this experiment, with 31 male and 35 female. The detailed experiment procedure is depicted in Figure 2 below. Specifically, we are interested in examining the dynamic change in customer complaint intention at three different times, denoted as T1 (before group discussion), T2 (right after group discussion), and T3 (right after group decision). Accordingly, we name the individual complaint intention at T1, T2, and group complaint intention at T3 to be CI1, CI2 and CI3, respectively. Outset 5 minutes Individual Complaint Intention (CI1) Individual Test T1 10 minutes Individual Complaint Intention (CI2) Group Discussion 5 minutes Group Complaint Intention (CI3) T2 Group Decision T3 Figure 2. An Illustration of the Procedure of Experiment 1 Results The average complaint intention of an individual participant was 73.6 at T1. By contrast, after group decision, the average complaint intention of group participants increased to be 87.5 at T3, which was significant greater than that of an individual participant (t = 4.193, p < .001). Thus, Hypothesis 1 is supported. In addition, after group discussion, the average complaint intention of an individual participant went up to 78.0 at T2. However, the change was not significant compared to the complaint intention at T1 (t = 1.701, p = .094). On the other hand, as presented above, the increase in the complaint intention was significant between T1 and T3. This suggests that normative influence in group decision plays a more important role in group polarization. Therefore, we provide empirical support for Hypothesis 2. Experiment 2 During group discussion, the difference between group norm and individual attitude causes the individual to receive the psychological contagion by the other group members. As a result, group members continue to move towards this direction and ultimately reach an extremed opinion. Therefore, in the context of service failure, group polarization could shift to either risk, or caution. We suggest the following hypothesis: H3: During service failure, group customers with homogenous attitudes lead to group polarization through group discussion. Specifically, after group discussion, group customers with higher (lower) levels of complaint intentions will significantly increase (decrease) their complaint intentions. With information exchange and social interactions, scattered small groups would merge into a large size group. Thus, as small size groups merge together into a large group, customers would more firmly stick to their previous opinions. Therefore, we conjecture that during service failure, the larger a group is, the stronger is the interaction among group customers and thus the group polarization effect. We suggest the following hypothesis: H4: During service failure, the group polarization effect amplifies as the group size increases for group customers with homogenous attitudes. That is, a larger group size leads to stronger (weaker) group polarization effect. Procedure We recruited 130 undergraduate students at a prestigious university of China to participate in this experiment. Among them, 59 were male students and 71 were female ones. Figure 3 shows the detailed procedure of experiment 2. In this experiment, we are interested in examining the dynamic change in customer complaint intention at four different times, denoted as T1 (before the smaller group discussion), T2 (right after the smaller group discussion), T3 (right after the smaller group decision), T4 (right after the larger group discussion), and T5 (right after the larger group decision). Accordingly, we name the individual complaint intention at T1, T2, T4, and group complaint intention at T3 and T5 to be CI1, CI2, CI4, and CI3, CI5, respectively. Individual Individual Group Individual Group Complaint Complaint Complaint Complaint Complaint Intention Intention Intention Intention Intention (CI1) (CI2) (CI3) (CI4) (CI5) Outset 10 minutes 5 minutes 10 minutes 5 minutes 5 minutes Individual T1 Test Smaller T2 Smaller T3 Group Group Discussion Decision T4 Larger T5 Larger Group Group Discussion Decision Figure 3 An Illustration of the Procedure of Experiment 2 Results In this experiment, we examined customer complaint intention at five different times, i.e., individual complaint intention at T1, T2 and T4, and group complaint intention at T3 and T5. From Figure 5, we can see that for customers with lower levels of complaint intentions, their average complaint intentions changed slightly over time, i.e., there was no significant change in customer complaint intention from the beginning to the end of the experiment. Thus, for customers with lower levels of complaint intentions, group polarization to caution did not occur. Additionally, we did not find the effect of group size on group complaint intentions. In contrast, for customers with higher levels of complaint intentions, their complaint intentions increased significantly at T3 and T5. As a result, we provided empirical evidence for the effect of group polarization to risk and the amplifying effect group polarization with respect to group size. Finally, we found that the group polarization effect was not significant at the stage of group discussion, but it played a critical role at the stage of group decision. This is consistent with Hypothesis 2. Experiment 3 During a service failure, when there are conflicting opinions among group customers, an informal leader is likely to appear spontaneously and influence the behaviors of other group members. Thus, we suggest the following hypothesis. H5: During serviced failure, a leader of group customers with inhomogeneous attitudes guides the process of group discussion. The leader’s intention of complaining (not complaining) leads to higher levels of group intention of complaining (not complaining) after group decision. Procedure Sixty-eight undergraduate students (i.e., 32 male and 36 female) at a prestigious university of China participated in this experiment for partial course credit. Figure 4 illustrates the detailed procedure of experiment 3. In this experiment, we are interested in examining the dynamic change in customer complaint intention at three different times, denoted as T1 (right after the individual test), T2 (right after the group discussion), and T3 (right after the group decision). Accordingly, we name the individual complaint intention at T1, T2, and T3 to be CI1, CI2, and CI3, respectively. Individual Each Group Individual Group Elected An Complaint Complaint Complaint Informal Intention Intention Intention Outset Leader (CI1) (CI2) (CI3) 5 minutes 10 minutes 5 minutes 5 minutes Individual T1 Test T2 Group T3 Group Discussion Decision Figure 4. The Procedure of Experiment 3 Results In this experiment, we examined customer complaint intention at three different times, i.e., individual complaint intention at T1, T2, and group complaint intention at T3. The results provided empirical support for the effect of group leaders on the direction of group polarization. Experiment 4 Wood et al. (1994) suggested that the minority usually echoes the majority’s views due to the conventional wisdom that the truth is held by the majority (i.e., informational influence), or the concern that the minority hopes to get accepted by the majority (i.e., normative influence). Mugny and Perez (1991) argued that the minority often receives negative evaluations, and thus it is not easy for other group members to understand and accept their views. If the minority of group members insists not to follow the group decision, it will cause a great deal of pain to them (Levine 1989). Bassili (2003) found that the minority usually shows minority slowness effect, i.e., the minority tends to express their views more slowly than the majority does. In addition, sometimes the minority also receives pressure from the majority. Consequently, the minority’s view disappears under the presence of the majority’s view. Therefore, during service failure, if the minority of group customers express their opinion clearly and confidently (i.e., complain or not to complain), it will guide the direction of group polarization. Specifically, we suggest the following hypotheses: H6. For group customers with inhomogeneous opinions during service failure, when the minority does not express their opinion clearly and confidently, their opinion will be dominated by the majority’s opinion. Consequently, group decision will polarize to the majority’s opinion. H7. For group customers with inhomogeneous opinions during service failure, when the minority expresses their opinion clearly and confidently, it will increase the strength of the minority’s opinion. Consequently, group decision will polarize to the minority’s opinion. Procedure One hundred undergraduate students (i.e., 46 male and 54 female) at a prestigious university of China participated in this experiment for partial course credit.The detailed procedure of experiment 4 is depicted in Figure 8. In this experiment, we are interested in examining the dynamic change in customer complaint intention at three different times, denoted as T1 (right after the individual test), T2 (right after the group discussion), and T3 (right after the group decision). Accordingly, we name the individual complaint intention at T1, T2, and group complaint intention at T3 to be CI1, CI2, and CI3, respectively. Individual Attach Tags Individual Group Complaint Complaint Complaint to Half of Intention Intention Intention the Minority Outset (CI1) (CI2) (CI3) 5 minutes 10 minutes 5 minutes 5 minutes Individual T1 Test T2 Group T3 Group Discussion Decision Figure 5. The Procedure of Experiment 4 Results In experiment four, we tested customer complaint intention at three different times, i.e., individual complaint intention at T1, and T2, and group complaint intention at T3. We provided the empirical evidence for the effect of the minority’s opinion on group decision. Specifically, the minority with tags (represented by squares) obviously guided the direction of group polarization to their own opinion, whereas for the minority without tags (represented by diamonds), their opinion was dominated by the majority’s opinion, which guided the direction of group polarization. Theoretical implications First, From a theoretical perspective, it is novel to use the group polarization theory to address group customers’ interactions after service failure. In the context of group service failure, both experiments 1 and 2 provided empirical evidence that with respect to a group of customers with homogeneous attitudes, group customers have higher levels of complaint intentions than an individual customer, i.e., the group complaint intention is more risky relative to the individual complaint intention. Second, the results in experiments 3 and 4 showed that when the minority expresses their attitude clearly and confidently, it will increase their efforts of persuading others, and thus group decision tend to polarize to the minority’s opinion. On the contrary, when the minority does not clearly and confidently express their attitude, it will be dominated by the majority’s opinion, and in turn group decision will polarize to the majority’s opinion. Third, Our study provided a comprehensive investigation of the process of group polarization. Specifically, we collected customer complaint intentions several times during each of the experiments. The results showed that among group customers with homogeneous attitudes, group polarization does not occur at the stage of group discussion, but becomes significant at the stage of group decision. In contrast, among group customers with heterogeneous attitudes, group polarization to risk occurs at the stage of group discussion and is reinforced at the stage of group decision, no matter whether there is an informal group leader or the minority showing their attitudes clearly and firmly; whereas group polarization to caution can occur at the stage of group discussion for the minority expressing their attitudes clearly and firmly, but not for an informal group leader. Practical implications First, if a service failure encounter produces a group of customers with homogeneous attitudes (i.e., nearly all the customers are not satisfied with the service failure and thus have higher levels of complaint intentions), it could be dangerous to the service provider. Second, the results of this study indicate that group polarization to caution does not occur without the guidance of an informal group leader or the minority during the service failure. Thus, service providers should never take service failure slightly even if it is trivial or its occurrence has an acceptable reason.Third, we show that informal group leaders or the minority with firm attitude can guide the direction of group polarization. Therefore, at the occurrence of group service failure, service providers should calmly identify the informal group leader and the minority with radical opinions. Limitations and Future Research This study has several limitations. First, the process of group polarization is very complicated. Second, this study mainly uses statistical tests to examine differences between groups. It would be interesting to compare differences in an individual customer’s perception across different groups by using hierarchical linear model (HLM). As group service failure occurs more and more frequently, it will receive much more attention in the research of service marketing. 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