Drawing on detailed qualitative case study evidence from four retail banking organisations, this article highlights the connections between customer relations strategy, the psychological contract and employee behaviour. The purpose of the research is to extend our understanding of the links between employees and customers by showing how this relationship evolves over time and by highlighting that a front-line employee's service orientation needs to be understood within the broader context of the employee's service experience. It is suggested that a better understanding of these connections could facilitate improved customer service standards and enhance the experiences of those working in service industries.

Contextual performance in the workplace has been identified as including relational activities that maintain the broader social and psychological environment in which task performance occurs in organisations. In this conceptual writing, organisational advocacy (OA) is offered as a form of task and contextual performance that is pertinent in the 21st century, especially while serving and working with customers on a day-to-day basis. Organisational citizenship behaviour is conceptualised as a component of the contextual performance of OA. OA and customer advocacy are defined and models are provided, suggesting that what is thought, said, and done by organisational members must receive expanded attention, in this case, in dealing with internal and external customers.

We propose that a trust climate will help the employee–customer interface in the retail context. Specifically, we argue that a work climate that is based on trust induces the exercise of discretion by retail managers and discretionary behavior by front-line staff. Managerial and staff discretion is necessary for retail stores to become locally responsive, as store responsiveness is linked to customer satisfaction. Our propositions are derived from interpersonal trust and social exchange theories. The use of a trust climate to analyse the antecedents of customer satisfaction offers another theoretical perspective to study the interface dynamics between employees and customers and thus this paper contributes to ‘linkage research.’

A growing emphasis on the discourse of ‘student as customer’ has increased the salience of the concept of service climate in universities and anecdotal evidence suggests that this may have placed increased pressure on staff. This study investigated the relationship between service climate and psychological well being in a sample of 340 university staff. Questionnaire data was analysed using structural equation modelling showed that a positive service climate was negatively related to job-induced tension and positively related to job satisfaction. Job-induced tension also mediated the effects of service climate on psychological dysfunction and job satisfaction. Implications for management of university stakeholder relationships and directions for future research are discussed.

We provide conceptual and empirical insights elucidating how organisational practices influence service staff attitudes and behaviours and how the latter set affects organisational performance drivers. Our analyses suggest that service organisations can enhance their performance by putting in place strategies and practices that strengthen the service-oriented behaviours of their employees and reduce their intentions to leave the organisation. Improved performance is accomplished through both the delivery of high quality services (enhancing organisational effectiveness) and the maintenance of front-line staff (increasing organisational efficiency). Specifically, service-oriented business strategies in the form of organisational-level service orientation and practices in the form of training directly influence the manifest service-oriented behaviours of staff. Training also indirectly affects the intention of front-line staff to leave the organisation; it increases job satisfaction, which, in turn has an impact on affective commitment. Both affective and instrumental commitment were hypothesised to reduce the intentions of front-line staff to leave the organisation, however only affective commitment had a significant effect.

Aggression at the service delivery interface (the point of contact between service provider and service recipient) has become a focus of much recent research attention. However, much of what we know is based on cross-sectional survey data – which tells us little about the underlying dynamics within specific aggressive incidents. Further, these data are often collected from the perspective of the service provider alone. For this study, we focused on specific hostile interactions during the delivery of healthcare services and gathered data from the perspectives of service providers and service recipients. Drawing on interviews with US Department of Veterans Affairs (VA) staff and US military veterans, we categorised and compared each party's attributions for the initiation of hostile (unpleasant) encounters. We found that staff and veterans had different perspectives on the nature of precipitating factors and that the initial attribution for the event was linked to differences in subsequent responding. These findings are discussed in terms of their insight into the temporal dynamics of aggressive events and their implications for the prevention and management of hostility at the service delivery interface.

The employee–customer interface in hedonic services requires high quality interactions at key touch points to ensure experiences are positively remembered. We propose an approach that combines service blueprinting with internal marketing to achieve these experiences. While internal marketing suggests using marketing techniques for hiring, retaining and motivating employees, the literature in this field has been largely independent of each employee's contribution to the internal value chain. Service blueprinting is a useful approach which makes explicit the value creation processes used in service production. No study has thus far connected the blueprint (which identifies functions to be performed) to internal marketing (which specifies the mechanisms for hiring, retaining and motivating the people performing the functions). This paper proposes a service value chain optimisation framework to enhance employee–customer interactions in hedonic services using these two research streams.

Customer power is an ever-increasing phenomenon, particularly in relation to service failure. Service failures not only elicit strong emotional reactions from disgruntled customers, but may ultimately lead to a severing of the service provider–customer relationship. A significant but overlooked area of research relates to the behavioural processes which shape customers' perceptions of service failure and recovery. As front-line staffare frequently the customer's only contact in the service encounter, they act as the key referent point in the literature with regard to service quality, speed and convenience. However, it is asserted that as employees of the organisation, senior management also plays an important role. This conceptual paper draws from research in the field of services marketing and organisational behaviour to provide evidence which suggests that customer responses to a service crisis are likely to be affected by perceptions of senior management behaviours and character attributes as generally just. We propose a cumulative effect of these justice perceptions on customer emotions and trust. In the wake of exceptional service failure, we argue, these factors play a vital role in shaping how customers may respond to such events.