The influence of protracted service failure on consumer wellbeing

The concepts of service and wellbeing are central to transformative service research (TSR). As a service-related phenomenon, protracted service failure (PSF) is a service failure episode that occurs and remains unresolved over a long period which can be depicted by its severity, difficulty and lengthiness. Evidence suggests that service consumers suffer high levels of stress from exposure to PSF. However, the phenomenon has received little attention within service and marketing research. Using a financial services context, this thesis seeks to understand the influence of PSFs on consumer psychological and physical wellbeing. It also examines the moderating effect of consumers' trait rumination as well as consumers' financial knowledge and behaviour. A combined qualitative and quantitative methodological approach was used to investigate the adverse effects of PSFs on consumer psychological and physical wellbeing. The preliminary study-media content analysis-used published news reports from mass media (e.g., newspapers) to explore the PSF phenomenon and its impact on consumer wellbeing in the Australian context. Fifty-two news articles reporting PSF incidents that occurred in financial-related services (e.g., financial planning and insurance) were gathered through ProQuest: Australia & New Zealand (ANZ) Newsstream. Analysis of the news reports indicated PSF components, in which the PSF elements were also classified, including severity, difficulty and lengthiness. The analysis also revealed potential declines in consumer psychological and physical wellbeing (e.g., anxiety,  depression and somatisation). Together with a further review of relevant literature, a conceptual framework was developed, along with the research hypotheses. In the main study, a survey using a 2 × 2 × 2 scenario-based experimental survey was designed and conducted with 665 online participants to test the hypotheses. The experimental data suggested that all PSF elements-severity, difficulty and lengthiness-may indirectly (through perceived stress) lead to declines in psychological and physical wellbeing, including anxiety, depression, somatisation and social dysfunction. However, the moderating effects of trait rumination, financial knowledge and financial behaviour were not significant in this study. This thesis represents the first step in investigating the service phenomenon of PSF. The findings will contribute to a better understanding of the detrimental effects of PSF on consumer wellbeing, which will be valuable to TSR researchers. Practical implications for business and public health practitioners are provided, as well as suggestions for future research.