Vicarious embarrassment is a negative emotion, which is experienced by an individual when others misbehave. People can feel vicariously embarrassed when observing other people's pratfalls or awkward appearance. For instance, vicarious embarrassment is elicited when watching reality TV or in service encounters where many other customers are present. However, the relevance of vicarious embarrassment in physical service environments has not yet been thoroughly analyzed in the context of service encounters. The objective of the present study is to close this research gap and to introduce the phenomenon of vicarious embarrassment to service research. The findings of 25 in-depth interviews indicate that vicariously embarrassing incidents mostly occur in service encounters and that these incidents are triggered by the violation of social norms in both customer-to-customer and customer-to-employee interactions. The authors of the present paper identified closeness of relationship, the service context, and parties involved as important situational variables influencing vicarious embarrassment and further emotional, cognitive, and behavioral consequences for the observing person. From a managerial point of view, the relevance of vicarious embarrassment in physical service environments is caused by negative spillover effects of the service experience, which lead to decreasing customer satisfaction, negative word-ofmouth and purchase intentions, and a negative impact on the overall image of the service provider.

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Purpose This research aims to investigate the contingent influence of service scripts on the links between service employees’ job demands and customers’ perceptions of discrimination. Design/methodology/approach Drawing on prior conceptual and empirical work, as well as conservation of resources theory, the authors propose a conceptual model comprising job demands (job stress and role ambiguity) and two dimensions of perceived discrimination. Findings A unique, dyadic data set reveals that the two focal job demands positively affect customers’ perceptions of discrimination. Service scripts enhance those negative relationships, such that they have resource-depleting and job demand-exacerbating effects. Originality/value This study offers the first research to link customer perceived discrimination with employee antecedents. These insights, in turn, have several key theoretical and managerial implications, and they offer directions for further work in this arena.

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