Responses to other similar customers in a service setting – analyzing the moderating role of perceived performance risk

Abstract

Purpose – The purpose of this paper is to identify the effect of similarity in a customer-to-customer-relationship and of perceived performance risk as a boundary condition in a service setting. Design/methodology/approach – Following theoretical methodology, hypotheses were developed in order to analyze the effect of similarity as well as perceived performance risk. An experimental scenario-based design was used to manipulate similarity and performance risk and to test the hypotheses. Findings – The analysis reveals that similarity is an important dimension in the customer-to-customer-relationship. Positive similarity effects are shown in relation to subjects' willingness to interact with present customers, joining and recommending a service provider, and subjects' evaluation of the service provider. A mediating effect of positive emotions (joy and interest) on the link between similarity and willingness to interact with customers present is shown. Performance risk is also discovered as a boundary condition under which the predicted relationships are weakened. Practical implications – This study suggests that similarity in the customer-to-customer-relationship leads to positive effects. If managers take this into account, their business may benefit from these positive effects. The study offers suggestions on how to “manage” customers' similarity. Originality/value – As this study is one of the first empirical studies to concentrate on the effect of similarity in a customer-to-customer-relationship, it is meaningful. Moreover significant effects are shown; further research ideas are developed and management implications are proposed.