Effects of counterfactual thinking on customers' negative emotions and reactions in service failures: moderating role customer participation

This study has empirically examined the effects of counterfactual thinking on customers' negative emotions (disappointment, regret, and anger) and subsequent customer reactions after service failures depending on the level of customer participation. In particular, the study investigated the role of counterfactual thinking in mitigating or magnifying customers' negative emotions in service failures. Results show (1) there were no differences in the number of counterfactual thoughts after service failures between the high- and low- participation conditions, (2) the high participation group had the higher level of negative emotions (disappointment, regret, and anger), dissatisfaction, and negative word-of-mouth intention, and (3) low-participation group had higher level of switching intention compared to high-participation group, perhaps due to perceived locus of control and preparative function of counterfactual thinking. Implications and directions for future research are also offered