The dynamic process of customer psychological contracts in a service context

Abstract

This study aims to extend our understanding of the customer-service team relationship from a new angle, that is, the customer psychological contract. This study adopts the psychological contract theory, proposes and empirically tests a dynamic process of customer psychological contract with the sales teams. In particular, this study examines the relationships between customer psychological contract breach, violation, and satisfaction. In addition, it identifies sales team exhaustion, and customer past positive experience as the conditions which moderate the link between customer psychological contract breach and violation. Using multisource data collection from matched 263 sales team members with 1,003 customers nested in 88 sales teams, the results from multilevel modeling show that customer psychological contract breach leads to a high level of perceived violation, which in turn reduces customer satisfaction. Although sales team exhaustion amplifies the positive impact of customer psychological contract breach on violation, customer past positive experience diminishes such impact. Overall, this study provides a unique contribution to existing literature on the service organization, psychological contract, and the management of customer and service team interactions.