Impact of other customers in high and low involvement services: Moderating role of customer’s need for uniqueness

The purpose of this paper is to examine the effects of other customer perception (OCP) (Brocato et al., 2012) on focal customer’s service quality perception and revisit intention in high- and low-involvement services and the effect of customer’s need for uniqueness (NFU) as a boundary condition of the above relationships.

Following a theoretical methodology, hypotheses were developed to analyze the effect of OCP, service involvement and customer’s NFU. A 2 × 2 × 2 scenario-based experiment was designed. Multivariate analysis of variance (MANOVA) was used to test the hypotheses.

The analysis reveals that the presence of conforming (versus non-conforming) other customers improves service quality perception and revisit intention of focal customers in high-involvement services, but not in low-involvement services. However, the relationship between similarity perception and outcome variables does not hold good for high-NFU customers.

This study suggests that conforming and non-conforming other customers are critical in forming service quality perception of high-involvement services, and highlights the boundary condition of this relationship. If service managers take service involvement and individual differences into account, and strategize their service offering aligned to their target customers, influence of other customers can be managed more efficiently.

As this study is one of the first empirical studies to focus on the effect of OCP on service quality perception and examine its boundary condition, it contributes significantly to the body of knowledge. Future research directions are discussed and managerial implications are proposed.