The Effects of Customer Anger Arik Cheshin Rellie Derfler Dorit Efrat Ella Glickson Anat Rafaeli Amir Erez Technion Sharon Lubasch Israel Institute Ella Miron-Spector of Technology Shy Ravid Ravit Rozillio Slides and Papers Available at http://Anat.Rafaeli.net Orit Schwartz 1 “30% of British Workers experience encounters with bullies on at least a weekly basis” “27% of workers in a representative sample … in Michigan … experienced mistreatment by someone in the workplace.” Professor Anat Rafaeli - Technion, ISRAEL http://Anat.Rafaeli.Net 2 Implicit Assumption: Displaying Anger to CSR’s Gets Them to Do More for us … But is this true? Slides and Papers Available at http://Anat.Rafaeli.net 3 Effects of Customer Anger on Employee Rewards Organizational Policy Role Instructions (IV*) Customer Complaint Customer Reward (IV**) (DV) Time Dependent Variable Independent Variables Reward (discount, compensation) Organizational policy (service / profit) Anger intensity (High / 4Low) Employees Reward Customer Anger 1000 900 800 600 500 371.74 400 300 200 133.54 100 0 Lower Anger Intensity Higher Anger Intensity Reward 700 Customer Service Policy Rewards Customer Anger 800 700 600 355.85 400 300 222.31 200 Cost Policy: "It is very important for us to keep company Cost-oriented policy profitability" Service Policy: "It is very important for us to keep Service-oriented policy customers satisfied" 100 0 Reward 500 What Happens to the Employees Who Encounter the Anger Displayed by Customers? Slides and Papers Available at http://Anat.Rafaeli.net 7 Emotions Are Tasks that Require Resources Beal and Weiss et al (2005) Weiss and Cropanzano (1996) Episodic Process Model of Affective Influence Affective Events Theory 8 Social Psychology Findings about Individual Emotion Effects Bad Emotions Can Deplete Resources Gross, Richards (1999, 2005) Baumeister (1998) Cookies or Radishes? Active self is a limited resource Concealing bad feelings requires resources Slides and Papers Available at http://Anat.Rafaeli.net 9 General Argument: Emotions are Social Influence Agents Hareli, S. & Rafaeli, A. (2008) Research in Organizational Behavior Available Research is about Effects of Own Emotions! Customer Hostile Emotions Employee’s Resource Depletion Slides and Papers Available at http://Anat.Rafaeli.net 11 Customer Contact Center Customer request Employee Task: Handling details. Multiple folders Slides and Papers Available at http://Anat.Rafaeli.net 12 Customers Convey Anger/Rudeness Polite Customer My home phone number changed. Need to update it please. My number is 037526654. Thank you very much, George Ashley. Angry – Rude Customer It’s such a nightmare to reach you! Your service is just horrible. Update my home phone to 03-7526654. George Ashley Hi please note my request to move me to the weekend deal. My password is "Friends". Thank you, Josh. I am sick and tired of your lousy service. Move me to the weekend deal. Password is "Friends". Josh. Slides and Papers Available at http://Anat.Rafaeli.net 13 Data Undergraduate Students Training (15 minutes; rules, tools). Practice (6 minutes; no pay). Real Work 15 minutes; up to 40 customers. pay for correct work. Slides and Papers Available at http://Anat.Rafaeli.net 14 Task Performance % requests handled correctly N M SD Angry Requests 34 0.46 0.10 Affect Free Requests 35 0.57 0.12 t = -2.05, p < .05 Slides and Papers Available at http://Anat.Rafaeli.net 15 Employee Fatigue after Customer Anger Reported exhaustion (1-7 scale) N M SD Angry Requests 34 3.52 1.18 Affect Free Requests 35 2.77 1.13 t = 2.71, p < .01 Slides and Papers Available at http://Anat.Rafaeli.net 16 Another Test … • Auditory anger Recall of details Anger or Arousal? Performance with Angry and Overly Positive Customer Statement: Angry: “Can you fix my account? I can’t believe your service is so slow and lousy! Neutral: “Please fix my account. There is an extra charge that need to be fixed” Overly Positive: Please fix my account. Your service is always so amazing and superb!” Could it be Arousal? Performance success rate (cumulative average) Performance with Angry and Overly Enthusiastic 86.33% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% Anger – Neutral: p < .001 Anger – Positive: p < .01 40% 33.00% Anger Neutral Enthusiasm What Have We Learned? Some One Displays Anger Focal Person Fatigue Slides and Papers Available at http://Anat.Rafaeli.net Performance of Work Tasks 20 Anger of Different Customers? e.g., VIP vs. Regular Customers? Simulation: Some tasks are more important …valued more ($1.00 vs. 25 cents) Slides and Papers Available at http://Anat.Rafaeli.net 21 Others’ Anger Hurts Ability to Prioritize 0.75 0.7 0.65 0.6 0.55 Accurate Performance 0.5 (%) 0.45 1.00$ 0.25$ 0.4 0.35 Affect-free Requests Hostile Requests Slides and Papers Available at http://Anat.Rafaeli.net 0.3 22 Anger and Cognitive Processing? Memory? Weaker after others’ anger? Recovery? Longer after others’ anger? Slides and Papers Available at http://Anat.Rafaeli.net 23 Method Employees Read Transcripts of Hostile / Non-Hostile Customers. Slides and Papers Available at http://Anat.Rafaeli.net 24 Others’ Hostility Hostile Affect-Free Customer: I am having reception problems with my phone. Employee: Perhaps you have a problem when you are in an area with no reception? Customer It happens all the time! I need to know your problems? I am in all sorts of areas. Your phones are bad quality; your technicians are lousy. Every time a new problem pops up? Customer I don’t know but I think it happens all the time. I am in all sorts of areas. There should not be such reception problems. It seems to be anywhere I happen to be. Slides and Papers Available at http://Anat.Rafaeli.net 25 Measures: Recall of Details When did the person previously call? Last week. Two weeks ago. Three weeks ago Four Weeks ago What was the name of the caller? Eric . George Dan Sam. What hour of service was caller promised? 09:00 – 10:00 10:00 – 11:00 11:00 – 12:00 12:00 – 13:00 Slides and Papers Available at http://Anat.Rafaeli.net 26 Number of Angry Others Influences Ability to Recall Mean Number of items recalled (1-9) N M SD 0 angry calls 36 6.00 1.17 1 angry call 36 5.56 1.40 2 angry calls 36 4.44 1.44 3 angry calls 36 4.14 1.29 (F(3,140)=15.94, p<.000) Slides and Papers Available at http://Anat.Rafaeli.net 27 Recovery of Depleted Employees ? Please wait. I need to recover. I am temporarily depleted from the previous customer http://Anat.Rafaeli.Net © Rafaeli 2009 28 ... Need to Press Enter ... (A Test of Relief Time) ...Relief Time in Between Requests ... Idle Time )average in seconds( 60 45 30 15 0 1 2 3 4 5 6 7 8 9 10 11 Customer Request Number Enthusiasm Neutral Anger Help! How Long Does Effect of Customer Anger Last? Effects on Problems Not Related to Customer ? Slides and Papers Available at http://Anat.Rafaeli.net 31 Resource Depletion Suggests Weaker Performance on Subsequent Tasks Performing Unrelated Task After Another Person’s Hostility • Ten (10) Raven’s matrices; • 8 minutes; • After encounter with anger Others’ Anger Depletes Focal Person of Resources for Subsequent Task Mean Number of items Solved (1-8) N M SD Anger Condition 20 4.7 1.65 Neutral Condition 21 5.8 1.53 t = -2.22, p < .05 Slides and Papers Available at http://Anat.Rafaeli.net 33 Effects on A Different Task? Creative Thinking Tasks: Solution to Creative Task Accurate Performance Angry Non-Angry 0.75 0.67 Creative Task P= 0.0001 N=36 What Have We Learned? Performance of Unrelated Tasks Some One Displays Anger Focal Person Fatigue and Resources Slides and Papers Available at http://Anat.Rafaeli.net Performance of Work Tasks 37 A Note … Powerful effects with very benign anger! This must mean … VERY powerful effects with strong anger Slides and Papers Available at http://Anat.Rafaeli.net 38 How Do We Manage all of This? Slides and Papers Available at http://Anat.Rafaeli.net 39 Turnover / Carryover Issues Slides and Papers Available at http://Anat.Rafaeli.net 40 Please Visit Me at Technion http://Anat.Rafaeli.Net