Service distinctions: Examining the emotional and behavioral reactions of observant customers

Preferential services are a marketing strategy widely used in the service sector to increase customer satisfaction and build loyalty. However, the effects of this practice on observer customers have not been adequately examined. This thesis investigates whether spontaneous preferential services in the retail clothing sector create perceptions of injustice among observer customers and how this perception affects attitudes toward the service provider through negative emotions such as envy, anger, and disappointment. Based on social comparison and equity theories, the study evaluates the perspective of observer customers in the service experience. The research was conducted through a scenario-based survey method, and the data obtained from 578 customers were analyzed using PROCESS Macro. The findings reveal that spontaneous preferential services trigger negative emotions among customers through social comparisons, and these emotions increase negative consumer behaviors toward the service provider (e.g., negative word-of-mouth, complaint intention, and switching intention). Moreover, consumer cynicism plays a moderating role in this process and is identified as a factor that should not be overlooked in customer experience. This study contributes to the literature on spontaneous preferential services from various perspectives. First, by emphasizing the effect of social comparison in service processes, it demonstrates that the experiences of observer customers play a critical role in service evaluations. Second, by addressing how emotions such as envy, anger, and disappointment shape consumer behaviors from a broader perspective, it elaborates on the role of emotions in consumer behavior. Third, by revealing the moderating effect of consumer cynicism, it brings a new dimension to both the literature on privileged treatment and cynicism. Additionally, it provides a new perspective to the service justice literature by showing that perceptions of justice can be an important factor not only in the context of service failures but also in comparative experiences among customers. Finally, by comprehensively evaluating the effects of spontaneous preferential services, it suggests that managers should adopt more inclusive and justice-oriented approaches in service design and implementation.