Can signaling impact customer satisfaction and behavioral intentions in times of service failure?: evidence from open versus closed kitchen restaurants

Abstract

This study investigates the impact of signaling on customers’ evaluations of service qualities, customer satisfaction and revisit intentions in times of service failures. Open kitchen design is selected as a signal. An online survey is conducted to collect data on customers’ evaluations of service qualities in open kitchen restaurants in comparison with closed kitchen restaurants. Then, customer satisfaction and revisit intentions are measured under service failure scenarios. The findings demonstrate that open kitchen design is perceived as a negative signal for noise and smell but not as a positive signal for food hygiene and food quality. Under service failure scenarios, signaling is not confirmed to affect customer satisfaction and revisit intentions. Rather, signaling is found to be effective even when there were relatively higher chances of service failures.