Customer misbehavior: The impact of a symbolic recovery strategy and cultural tightness-looseness on observing customers

Customer misbehavior is a major problem in shared service environments. Empirical evidence suggests that customer misbehavior negatively affects the patronage intentions, emotions, and overall service experience of observing customers. Yet, there is limited knowledge on how service providers can restore the satisfaction of customers who witness other customers' disruptive behaviors. To fill this gap, this study examines the impact of symbolic recovery strategies (appreciation vs. apology) and cultural tightness-looseness on observing customers' recovery satisfaction. Through three experimental studies, we find that among bystanders with a tight (vs. loose) orientation, an apology (vs. appreciation) leads to greater recovery satisfaction. A moderated mediation analysis further reveals that perceived norm violation mediates the impact of recovery strategy on bystanders’ recovery satisfaction, particularly among participants with a loose orientation. Theoretically, our study contributes to the literature on service recovery and cultural tightness and looseness. Importantly, our research suggests that hospitality firms operating within cultures characterized by a low tolerance for norm violation should offer an apology, while those in loose contexts may show appreciation to customers observing others' misbehavior. Additional theoretical and managerial implications are discussed.