Consumer Cynicism and Situated Learning: When is it Best for Consumers to Learn About Service Failures?

<em>While prior research has discussed the importance of situated learning and consumer’s contextual cynicism when exposed to service failures, this is the first research that combines the two. Especially, cynical consumers need to learn about service remedies at the time or around the time-of-service failure. Providing information earlier in anticipation of a service failure may not help them in developing trust and empathy of the company and perceive that the company would responsibly resolve the issue. However, it may be okay to inform consumers who are not highly cynical ahead of time to help them prepare for any anticipated service failures. While previous research has suggested that primacy effect is preferable with service failures, recency effect is better when explaining such failures and remedial measures through situated learning, especially with cynical consumers. </em>