Work

Frontline Human Capital and Consumer Dissatisfaction: Evidence from the U.S. Airline Industry

Year: 2021

Type: article

Abstract: Drawing on a decade-long panel dataset on the U.S. airline industry, we find an inverted U-shaped relationship between frontline human capital expenses and consumer dissatisfaction. As an organization’s frontline human capital expenses grow, consumer dissatisfaction initially increases until a threshold is crossed, after which greater frontline human capital expenses lead to fewer subsequent consumer complaints. Our analysis also finds that when experienced frontline workers leave the organization, it results in an increase in dissatisfaction among customers. Our study also informs how changes in frontline human capital expenses are associated with changes in complementary strategies and circumstances. Specifically, we find that greater investments in frontline workers leads to fewer consumer complaints when an organization has a differentiated business model, lower advertising expenditures, and after an exogenous event that negatively affects the focal industry, such as 9/11.

Source: The Journal of Consumer Satisfaction, Dissatisfaction & Complaining Behavior

Authors: Chauradia, Amit Jain, Milewicz, Chad, Echambadi, Raj, Ganesh, Jaishankar

Institutions: Doane University, University of Southern Indiana, Illinois Institute of Technology, Rutgers, The State University of New Jersey

Language: English

Topic: Customer Service Quality and Loyalty

Subfield: Marketing

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W7215585007

FWCI:

Cites: 105

Cited by:

Related to: 10