The authors develop a framework for understanding the behaviors and practices of service providers that build or deplete consumer trust and the mechanisms that convert consumer trust into value and loyalty in relational exchanges. The proposed framework (1) uses a multidimensional conceptualization for the trustworthiness construct; (2) incorporates two distinct facets of consumer trust, namely, frontline employees and management policies and practices; and (3) specifies value as a key mediator of the trust–loyalty relationship. The authors test the proposed model using data from two service contexts—retail clothing (N = 264) and nonbusiness airline travel (N = 113). The results support a tripartite view of trustworthiness evaluations along operational competence, operational benevolence, and problem-solving orientation dimensions. Moreover, the authors find evidence of contingent asymmetric relationships between trustworthiness dimensions and consumer trust. For frontline employees, benevolent behaviors demonstrate a dominant “negativity” effect (i.e., a unit negative performance has a stronger effect than a unit positive performance), whereas problem-solving orientation has a dominant “positivity” effect (i.e., a unit positive performance has a stronger effect than a unit negative performance). Value completely mediates the effect of frontline employee trust on loyalty in the retailing context and partially mediates the effect of management policies and practices trust on loyalty in the airlines context. The role of frontline employees is more critical in the retailing context, whereas management practices and policies play the dominant role in the airlines context. Overall, the proposed framework successfully models trust and loyalty mechanisms across the two industries examined in the study, while remaining sensitive to essential contextual differences.

The authors propose a framework for understanding key mechanisms that shape satisfaction in individual encounters, and loyalty across ongoing exchanges. In particular, the framework draws together two distinct approaches: (1) agency theory, rooted in the economic approach, that views relational exchanges as encounters between principals (consumers) and agents (service providers) and (2) trust research that adopts a psychological approach toward consumer-provider relationships. In so doing, the authors specify how trust mechanisms cooperate and compete with agency mechanisms to affect satisfaction in individual encounters and influence loyalty in the long run. Because a multidimensional conceptualization of trust is used, the hypothesized framework offers a fine-grained understanding of the interrelated mechanisms. The high level of specificity allows extraction of multiple propositions, facilitates empirical testing, and encourages theoretical development of the proposed model. Several directions to guide future research are provided.

In a U.S. sample of nonprofit professional theaters, we examine how slack resources interact with environmental threat appraisal to influence product exploration and exploitation. We find systematic variation depending on the extent to which a resource is rare and absorbed in operations, and the extent of perceived environmental threats. Absorbed, generic resources are associated with increased exploitation and decreased exploration. Unabsorbed resources, both generic and rare, result in higher exploration and lower exploitation, but only when perceived environmental threat is high. Overall, results reveal pragmatic decision making balancing the benefits of superior strategic position against the risks of jeopardizing viability.

Few, if any, past studies have attempted to develop a model to capture and explain industry context variability and hypothesize its effects on consumer-firm relationships. Generally, industry effects are ignored, described, or explained post hoc. Using the notion of consumers' dispositions toward a market, a framework is proposed for understanding the influence of industry context on consumer satisfaction, trust, value, and loyalty in relational exchanges. The empirical results of a survey in two service industries show that industry contexts matter and yield significant direct and moderating effects on consumer-firm relationships. The study underscores the promise of a dispositional approach for providing insights for the theory and practice of relationship marketing, resolving outstanding questions, and proposing fruitful areas for further examination.

Can preconsumption mood influence postconsumption evaluations? In this article, we attempt to answer this question; in doing so, we broaden our understanding of both the factors that can influence consumers' evaluations of the consumption experience as well as the role of mood in consumer behavior. The results of an experimental study show that not only can mood influence postconsumption brand attitudes, but that such effects are moderated by the affective intensity of the consumption experience. Mood effects were not observed when consumption evoked strong positive or negative responses. Rather, preconsumption mood influenced brand attitudes only when the consumption experience was relatively neutral in affective intensity.