Research background
Since 1909, the famous motto of Harry Gordon Selfridge about customer satisfaction
The phrase "the customer is always right" has become a cornerstone in the customer service industry, emphasizing the importance of addressing customer complaints seriously As a result, customer satisfaction has emerged as a vital component of organizational success Research has shown a strong correlation between customer satisfaction and business performance at both the firm and macro levels (Williams & Naumann, 2011) To achieve this, employees undergo training to effectively meet customer needs; however, this pressure can lead to stress For instance, in Vietnam, employee retention rates are notably lower than in other Asian countries, highlighting the challenges faced in maintaining a satisfied workforce.
Pacific Region, although the employee engagement level of Vietnamese companies is much higher (Ruge, 2011) According to Ruge in the presentation to the America Chamber of
In February 2011, excessive workload and job pressure were identified as primary factors contributing to high employee turnover rates, particularly in the Business, Technical Support, and Production Operations sectors, which reported averages ranging from 12% to 17%.
The Vietnam labor market is evolving, with a focus on roles that involve significant customer interaction Job satisfaction extends beyond traditional factors like security, benefits, and growth opportunities; it increasingly encompasses the essential need for employees to feel respected and safeguarded against verbal abuse, threats, and physical violence.
Employee engagement is often overlooked as a key objective for organizations, with managers prioritizing customer satisfaction, especially in service industries, as indicated by the focus on customer satisfaction surveys Meeting customer expectations is essential, but not all demands can be fulfilled immediately, leading to dissatisfied customers Larger customers tend to be more demanding and sometimes unreasonable due to the power dynamics in customer-employee relationships, where the notion that "the customer is always right" can result in aggressive behavior Research on customer-employee interactions in Vietnam has largely neglected the emotional well-being of employees, instead overemphasizing customer behavior, which can lead to emotional exhaustion for customer service representatives This exhaustion can negatively impact employee commitment to customer-oriented tasks and potentially increase turnover rates Managers play a crucial role in addressing complaints and resolving customer issues, which is vital for maintaining employee morale and retention.
Organizational factors, such as perceived organizational support and justice, can potentially mitigate workplace issues Research has shown a significant relationship between perceived organizational justice and work-related attitudes, highlighting the importance of these elements in fostering a positive work environment (Elamin, 2012; Howard and others).
Managers must address the issue of low organizational performance stemming from emotional exhaustion Research highlights the positive impact of employee engagement on business performance, underscoring the need for effective strategies to enhance workforce morale and productivity.
Engaged employees significantly enhance return on assets (ROA), profits, and market value, surpassing the replacement costs of assets (Martin, 2009) High employee retention is crucial, as businesses incur substantial costs and time training new employees who may not perform as well as their predecessors This instability in service quality can lead to decreased productivity and customer dissatisfaction While some studies in China have explored the relationship between customer behaviors and employee emotional responses affecting service quality and business performance, research in Vietnam on this issue remains limited and underexplored.
Research problem
In today's competitive landscape, businesses recognize the critical importance of customers for their success and sustainability Vietnamese companies are no exception, understanding the necessity of thorough research into various facets of their operations This includes examining the interactions between customers and customer service representatives, who play a pivotal role in delivering care and support.
Unfortunately, as mentioned previously in the last session, for Vietnam market, there are a large number of local studies from clients’ perspective but not so many from employees’ side
Understanding the impact of demanding customers on employees is crucial for businesses It is essential to explore how these interactions influence staff emotions and whether they contribute to increased turnover intentions Addressing these challenges effectively can help mitigate potential issues within the organization.
Therefore, it is indispensable to investigate influence of problematic customers on employee’s emotional exhaustion and turnover intentions.
Research objectives
This research aims to identify and analyze the key factors influencing employee emotional exhaustion and commitment in the context of customer-oriented activities in Vietnam's competitive customer service landscape By focusing on employee engagement, the study seeks to uncover the critical elements that impact both employee well-being and their dedication to delivering exceptional customer service.
To determine factors of problematic customers and their influences
To examine the possible outcomes of customers on employees emotionally and physically.
Research scope
This study invites all employees in the customer service sector who engage directly with clients to participate in research, focusing on those in Ho Chi Minh City, Vietnam's largest and most dynamic urban area The research is constrained by a six-month timeframe, emphasizing the importance of gathering insights from frontline workers who interact with customers daily.
Research contributions and implications
This study explores how problematic customers affect employee emotional responses and the extent of this influence It also examines organizational strategies for addressing customer-related issues and their impact on employee satisfaction The findings aim to provide valuable insights for businesses to enhance both employee commitment and customer satisfaction.
Structure of the thesis
This paper consists of five chapters: an introduction to the research topic, a comprehensive literature review of relevant theories and opinions, a detailed methodology outlining the constructs' validity and reliability, an analysis of the data and presentation of results, and a concluding chapter that summarizes findings while offering recommendations and future research possibilities in related areas.
- Chapter 2: Literature review and hypotheses development
Theoretical background
In today's competitive business landscape, organizations strive to gain a significant edge over their rivals through advanced technologies, superior products, or cost efficiencies However, as these advantages can be quickly replicated, companies are increasingly prioritizing exceptional customer service, believing that this approach fosters long-term profitability (Hartline et al., 2000).
Numerous studies, including those by Bitner et al (1990) and Keaveney (1995), highlight the crucial importance of customer satisfaction in service interactions However, it's important to recognize that service jobs can also present challenges, as some customers may misuse their privileges, leading to rude behavior and difficulties for employees and organizations Yagil (2008) and Grandey et al (2004) categorize these individuals as problematic customers, emphasizing the dual nature of customer interactions in service settings.
In 1994, Lovelock introduced the concept of "jay customers," referring to individuals whose negative behaviors adversely impact both the organization and fellow customers This idea has since evolved, with terms like "inappropriate customers" (Strutton et al., 1994) and "consumer misbehavior" (Fullerton and Punj) emerging to describe similar disruptive behaviors in various contexts.
In their research, Harris and Reynolds (2003) identified dysfunctional customer behaviors that disrupt the relationship between customers and companies, often stemming from dissatisfaction with services or a desire for dominance, reflecting the notion that customers see themselves as kings This perspective aligns with the observations of cynical consumers noted by Helm (2006) and highlights the significance of understanding customer motivations in order to improve service delivery and enhance customer satisfaction.
In 2004, customer irrationality was categorized into four primary groups: disproportionate expectations, ambiguous expectations, disliked customers, and verbal aggression These classifications highlight the demands customers place on employees and the harmful intentions expressed through their words.
This research focuses on two specific types of behaviors: "abusive behavior" and "unreasonably demanding behavior" (Poddar and Madupalli, 2012, p.522) Abusive behavior includes the use of offensive language and unfairly blaming individuals, while unreasonably demanding behavior involves illogical requests for escalation to higher management, unrealistic expectations, and asking employees for favors that go against company policies These definitions will be utilized throughout the study to clarify, measure, and support the research findings.
2.1.2 Problematic customers and Emotional exhaustion
Customer misbehavior is inevitable, prompting varied employee reactions, particularly in cases of sexual harassment These responses can be emotional, work-related, or physical, significantly impacting employee well-being Such reactions often lead to negative moods, depression, and diminished motivation, ultimately resulting in emotional exhaustion due to the lack of energy and time to address these challenges (Boles et al., 1997).
Staff members strive for positive interactions with clients, often relying on their best emotions However, dealing with challenging customers can negatively impact employees' mental resilience, as highlighted by Dallimore et al (2007) and Grandey et al.
Recurrent verbal aggression is linked to emotional exhaustion, as illustrated in 2004 Maslach and Jackson (1981) emphasized that emotional exhaustion is a common stressor, particularly for individuals in people-oriented professions They also noted that an increase in emotional exhaustion is a key indicator of burnout.
Nurses often view aggressive clients as obstacles in their daily tasks, leading to increased stress and burnout (Evers et al., 2001) Similarly, customer service officers frequently encounter difficult clients, which can require additional effort and time, ultimately resulting in greater emotional exhaustion for employees.
In this circumstance, we hypothesize that:
H1 – Abusive customers have a negative effect on emotional exhaustion levels of customer service officers
H2 - Unreasonably demanding customers have a negative effect on emotional exhaustion levels of customer service officers
2.1.3 Emotional exhaustion and Turnover intentions for customer-related activities
Overwhelming emotions can lead to significant negative consequences in the workplace, including decreased job performance, lower productivity, reduced job satisfaction, and an increased intention to quit (Singh et al., 1994) When individuals experience emotional exhaustion, they often seek coping mechanisms to protect themselves (Hobfoll and Shirom, 2001) If these feelings of exhaustion and worry persist without resolution, employees may resort to a straightforward decision: quitting their job (Siegall and McDonald, 2004) Turnover intention refers to an employee's desire to change professions or leave their current company (Schyns, Torka, and ).
While much of the marketing literature on turnover intention emphasizes organizational factors, it's important to recognize that employees may also seek to change their occupations due to high levels of emotional exhaustion (Gürssling, 2007; Poddar and).
In optimal conditions, employees wishing to remain with their company prioritize distancing themselves from customer-related tasks Turnover intention, a negative indicator for businesses, stems from a mix of job-related factors Therefore, it is essential to investigate all potential causes of turnover This study proposes the following hypothesis.
H3 – Emotional exhaustion has a negative effect on employee turnover intentions to customer- related activities
2.1.4 Emotional exhaustion and Job satisfaction for customer-related activities
Job satisfaction, as defined by Locke (1976), refers to a positive emotional state resulting from one's job or work experience This concept has been extensively studied across various sectors, including sales (Babakus et al., 1999) and management and organizational behavior (Dhammika, Ahmad, and Sam, 2012) Additionally, earlier research has explored the psychological impacts of customer-related stressors on employees in the customer service field.
Singh et al (1994) mentioned a negative connection between burnout and mental effects
Emotional exhaustion, a key component of burnout, may significantly impact job satisfaction, as suggested by Maslach and Jackson (1981) Previous studies have explored job satisfaction in various roles, examining it as a precursor, correlate, and outcome influenced by both work-related and non-work factors Understanding this relationship is crucial for enhancing employee commitment and reducing turnover intention.
(Bowling and Hammond, 2008) Moreover, there are statistical evidences from several studies indicates that emotional exhaustion is inversely proportional with job satisfaction (Lee and
Ashforth, 1993; Ramirez et al., 1996; Grandey et al., 2004) Therefore, this study hypothesizes the following:
H4 - Emotional exhaustion has a negative effect on job satisfaction
2.1.5 Job satisfaction and Turnover intentions for customer-related activities
Proposed model
This study proposes a model to identify and measure the impact of problematic customers on employee emotional exhaustion, considering factors such as employee turnover intentions, job satisfaction, and perceived organizational justice The research aims to explore how perceived organizational justice moderates the relationship between problematic customer interactions and emotional exhaustion among employees.
Employee turnover intention from customer-oriented activities
Hypotheses summary
H1 – Abusive customers have a negative effect on emotional exhaustion levels of customer service officers
H2 - Unreasonably demanding customers have a negative effect on emotional exhaustion levels of customer service officers
H3 – Emotional exhaustion has a negative effect on employee turnover intentions to customer- related activities
H4 - Emotional exhaustion has a negative effect on job satisfaction
H5 – Employee turnover intentions from customer-oriented activities are inversely proportional with job satisfaction
H6A–Distributive justice negatively moderates the relationship between abusive customers and emotional exhaustion
H6B –Distributive justice negatively moderates the relationship between unreasonably demanding customers and emotional exhaustion
H6C –Procedural justice negatively moderates the relationship between abusive customers and emotional exhaustion
H6D –Procedural justice negatively moderates the relationship between unreasonably demanding customers and emotional exhaustion.
Chapter summary
This chapter provides concise definitions and insights into the theoretical frameworks regarding the impact of problematic customers on organizational behavior It highlights the absence of specific factors to measure this effect The subsequent chapter will outline the research methodology designed to test the proposed hypotheses.
Research design process
The questionnaire design process commenced following a thorough literature review of relevant research related to the proposed model An initial draft of the questionnaire was created from selected constructs and underwent back-translation Subsequently, this draft was meticulously reviewed through a pilot phase involving ten in-depth interviews to ensure the survey's clarity and effectiveness.
The research design process aimed to eliminate any misleading or incomprehensive elements for respondents A final questionnaire was distributed to 500 targeted individuals, yielding approximately 369 responses The collected data underwent processing using Cronbach’s alpha reliability analysis, exploratory factor analysis (EFA), and multiple regression analysis in SPSS to ensure reliable results.
Measurement scales
The measurement scales for abusive and unreasonably demanding customers were adapted from Dormann and Zapf (2004) Additionally, the emotional exhaustion scale was derived from the work of Maslach and Jackson (1981) Furthermore, the occupational turnover intention scale was based on the research by Hom, Griffeth, and Sellaro (1984) Lastly, the job satisfaction scale was also adapted for this study.
Churchill et al (1974) Last but not least, perceived organizational justice scale was adapted from Niehoff and Moorman (1993)
The questionnaire was included a total of 38 questions and designed on Likert scale type from 1 to 5 such as strongly agree, agree, neutral, disagree and strongly disagree
AC1 Some of my customers use abusive language with me
In customer service interactions, it is common for customers to direct their frustrations towards representatives rather than the company's policies, especially when issues remain unresolved This often results in heightened emotions, with customers frequently raising their voices and expressing anger, even over seemingly minor concerns.
AC5 Some customers argue all the time Unreasona bly demandin g customer -
DC1 Some of my customers demand that I do something for them even when I am not allowed to do so
DC2 Some of my customers demand to talk to my supervisor, even when I explain that I am the person who can solve their problem
Some customers often seek special treatment and may not understand the necessity of adhering to specific rules They frequently fail to recognize when we are overwhelmed with work, leading to unreasonable complaints Additionally, their instructions can complicate our processes, contributing to emotional exhaustion among our team.
EE1 Working with customers directly puts too much stress on me
The demands of my job leave me feeling emotionally drained, as I constantly strive to meet the expectations of customers This pressure often leads to frustration, particularly when working directly with clients, as I invest significant effort in ensuring their satisfaction.
Many employees experience burnout as they struggle to meet the high expectations set by top management This overwhelming pressure often leaves individuals feeling depleted by the end of the workday Consequently, many wake up fatigued, dreading the prospect of facing another challenging day at work.
EE8 I feel like I am at the end of my rope
OT1 I am planning to search for a new job outside this profession during the next
OT2 I often think about quitting this profession OT3 If I have my own way, I will be working in some other profession one year from now
JS1 My job gives me a sense of accomplishment
JS2 My job is exciting JS3 My job is satisfying JS4 I am really doing something worthwhile in my job Distributiv e justice -
DJ1 I consider my workload to be quite fair
(1993) DJ2 Overall, the rewards I receive here are quite fair
DJ3 I feel that my job responsibilities are fair Procedural justice -
PJ1 Job decisions are made by the general manager in an unbiased manner PJ2 To make job decisions, my general manager collects accurate and complete information
PJ3 All job decisions are applied consistently across all affected employees
PJ4 My general manager makes sure that all employee concerns are heard before job decisions are made
PJ5 When decisions are made about my job, the general manager treats me with kindness and consideration
PJ6 When decisions are made about my job, the general manager shows concern for my rights as an employee
PJ7 The general manager offers adequate justification for decisions made about my job
PJ8 When making decisions about my job, the general manager offers explanations that make sense to me
To maximize respondent participation, the questionnaire was provided in both English and Vietnamese It was crafted to offer valuable insights into the proposed model, featuring forty-three questions that were adapted and refined following a pilot study.
To identify the target group, a screening question is employed, ensuring that only those service officers who regularly interact with customers through emails, phone calls, or face-to-face meetings proceed to the next section.
The demographic profile of interviewees provides essential insights for researchers, allowing them to assess how factors such as age, gender, years of experience, and the type of organization impact the final research outcomes.
This section focuses on utilizing a five-point Likert scale—ranging from strongly agree to strongly disagree—to assess key elements of the proposed model, including abusive customers, unreasonably demanding customers, perceived organizational justice, emotional exhaustion, job satisfaction, and the intention to leave the job.
Sampling
This study examines the impact of problematic customers on employee emotional exhaustion and its influence on turnover intentions The research specifically targets customer service officers engaged in direct customer interactions in Ho Chi Minh City, Vietnam.
The study employed multivariable analysis techniques, specifically factor analysis and multiple regression methods, to process the data It is essential that the sample size is at least five times the number of factors being analyzed, with a recommended minimum of 105 participants to ensure robust results.
(DeCoster, 2004) As there are 38 variables for factor analysis, the minimum sample size is
According to Tabachnick and Fidell (1996), the minimum sample size for a multiple regression model should be calculated using the formula n = 50 + 8m, where m represents the number of independent variables In this case, with 23 independent variables, the required minimum sample size is determined to be 234 (50 + 8x23).
To effectively gather and analyze data for the study, questionnaires were distributed to approximately 500 individuals through direct delivery, emails, and Facebook using an online survey via Google Drive The quantitative research method employed convenience sampling to streamline the process and enhance efficiency.
The study utilized SPSS Version 20 (Statistical Package for Social Sciences) to analyze the collected data, employing Cronbach’s alpha for reliability analysis, exploratory factor analysis (EFA), and multiple regression analysis to support the findings of this research.
To ensure the reliability of the measurement scales, Cronbach's alpha reliability analysis was conducted, with a coefficient threshold of 0.7 or higher deemed acceptable (Pallant, 2005) Additionally, items with an item-total correlation value below 0.5 were excluded to enhance the overall reliability of the scales.
Exploratory Factor Analysis (EFA) is utilized to identify and assess the impact of various factors on measurements, as noted by DeCoster (2004) In this study, the Principal Axis Factoring method is employed for extraction, with Promax rotation and Kaiser Normalization applied to enhance the analysis.
In conclusion, the factor is considered to be appropriate when:
The Kaiser-Meyer-Olkin index (KMO) is 0.6 or greater
The Bartlett’s test of sphericity is statistically significant: p < 0.05 The number of representative factors are decided when:
Eigen value is greater than 1
Cumulative percentage is equal or greater than 50%
Factor loading criteria should be 0.5 or more to ensure a practical significance
3.3.6.3 Multiple regression analysis for hypotheses testing
To evaluate the hypotheses and the proposed model, multiple linear regression analysis was conducted According to Pallant (2005), certain conditions must be satisfied to determine the acceptance of the results.
The number of sample (n) is bigger than 50 + 8m (with m is the amount of independent variables)
There are normality and linearity
The writer also used R-square value to express to what extend the variance in dependent variables can be explained by the proposed model.
Chapter conclusions
In this chapter, an overall explanation for the research methodology is provided
The research process consists of four key phases: designing the questionnaire, conducting a pilot survey, launching the main survey, and analyzing the collected data Additionally, the development of the data analysis instrument is outlined The subsequent chapter will present further analysis and research findings.
Sample analysis
4.1.1 Sample description and data clearance
There are 500 questionnaires that have been sent to target respondents who works and contact with customers in daily tasks Among 429 collected surveys (85.8 percent), there are
369 valid questionnaires (86 percent) The common mistakes are missing data or the respondents had the same answers for all the questions
The majority of respondents, 75.3 percent, fall within the age range of 25 to 35 years, indicating that customer service positions are predominantly held by younger individuals, as these roles are typically entry-level Additionally, the survey reveals a significant gender representation, with 263 women participating in the study.
(71.3%) and 106 men (28.7%) This percentage difference in gender represents the occupational characteristics which refer to the fact that majority of labor in customer service is female
Over 60% of respondents are employed by private or multinational companies, where client service is highly valued This highlights the significance of after-sales service in non-state-owned businesses, as it is crucial for attracting and maintaining customer relationships Additionally, there is a notable balance in years of experience among respondents, with 161 individuals having between 1 to 3 years of experience.
5 years (132 respondents) presented a well-mixed group of respondents that could provide a thorough perspective for this matter
The sample primarily consists of women employed in non-government corporations, showcasing a diverse range of experience in customer service This demographic is anticipated to accurately represent the target group of client service officers However, it is important to note that male office workers and those in state-owned enterprises also encounter customer-related challenges.
Below table shows the sample characteristics of sample size, which included the descriptive information of all the respondents
Measurement reliability and validity
To ensure acceptable reliability in research, each construct must have a Cronbach’s alpha coefficient exceeding 0.7 Additionally, the corrected item-total correlation for each item should be above 0.5; items that do not meet this threshold will be excluded from further analysis.
Following the reliability testing, DC6 was excluded due to its corrected item-total correlation of 0.412, falling short of the required threshold of 0.5 The reliability analysis results are summarized in the table below, which reflects six constructs assessed through a total of 38 items.
In this table, all of the constructs are highly reliable which are over 0.8, for example:
Abusive customer with 0.857, Unreasonably demanding customer with 0.865, Distributive justice with 0.814 and Job satisfaction with 0.847 Especially for Emotional exhaustion,
Procedural justice and Occupational turnover intention, their rates are even bigger than 0.9
From this result, all independent and dependent variables were accepted to the next step of analysis phase
Table 3 Cronbach's alpha reliability test result
Cronbach's Alpha if Item Deleted
In a study examining 23 independent factors across four variables related to employee outcomes, only one factor (DC6) failed to satisfy the criteria for Cronbach’s Alpha analysis, which measures the reliability of scales assessing employee exhaustion, job satisfaction, and occupational turnover intention.
In this study, exploratory factor analysis (EFA) will be conducted on each variable individually, as well as collectively, to assess their validity.
The below table showed the EFA results – Scales without modification
Table 4 EFA results – Scales without modification
In joint exploratory factor analysis (EFA), factors with a value less than 0.5 are eliminated to maintain practical significance, as outlined in chapter 3 After conducting five iterations, the factors AC5, DC2, JS1, and DC1 were identified.
DC7 are omitted because of loading into 2 factors at the same time, out of their groups or has unacceptable value (