Customer participation in service conversations: an investigation of the dynamics of service context

In this research, I focus on service conversations in professional services. For most Business-to-Business or Business-to-Consumer professional services, the service conversation is an important part of the service experience and is critical to solutions co-creation as well as customer satisfaction. In this research, I examine service conversation sequences at the micro-level and explore two important research questions: (1) how do I explain the dynamics of moment-by-moment Customer Participation in Service Conversations (CPSC)? and (2) how do the temporal and process dynamics of CPSC relate to customer satisfaction and solution compliance? From a dynamic context perspective, I develop a conceptual framework that explains the co-existence of stable and dynamic customer participation behavior in a service conversation. I conduct a series of lab experiments and an observation study of online conversations between 173 customers and 52 doctors to empirically validate the conceptual framework. This research demonstrates that at any given moment, customers manage their information sharing and interaction control based on their mental representation of the context complexity. Although the context-behavior relationships are stable, the service conversation context is dynamic. The service provider's behavior can constantly change and introduce new context cues. When the context changes so does the CPSC behavior. Finally, this research shows that to improve customer satisfaction, customer perceived service quality, and customer solution compliance, service providers should focus on helping customers reduce their perceived context complexity as early as possible, by providing information and educating customers. This research makes important theoretical and managerial contributions. Theoretically, it defines and develops measures of service context complexity in terms of its psychological features. It develops a conceptual framework to explain the temporal dynamics of CPSC on multi-dimensions. Empirically, this research adopts a phase-based sequence analysis approach and uses a negative bi-nominal model to examine the temporal process effect of the service conversation on service outcomes. Managerially, the research findings provide firms important and actionable guidelines to manage conversation-based professional services.