Service encounters nowadays are increasingly characterized by customer-to-customer (C2C) interactions where customers regularly become targets of other customers’ misbehavior. Although previous research provides initial evidence of the contagiousness of such C2C misbehavior, it remains unclear whether, how, and why C2C misbehavior spreads when frontline employees (FLEs) are involved and what FLEs can do to curb it. Two online and one field experiment in the context of co-working and transportation services reveal that FLE-directed blame attributions drive the spread of C2C misbehavior while perpetrator-directed blame attributions reverse it. These blame attributions are greater the more severely customers judge other customers’ misbehavior. Findings further rule out alternative contagion mechanisms (social norms and emotional contagion) and show that contagion spills over to C2C misbehavior unrelated to the initial transgression. By specifying how contagion unfolds and by explicating the central role blame attributions play in C2C misbehavior contagion, this research uncovers its social dynamics, thus extending existing theory on customer misbehavior and attribution theory in multi-actor settings. Managerially, this research provides FLEs with explicit guidance on what they should do (personalized FLE interventions delivered either in person or remotely) and avoid doing (disapproving looks, FLE service recovery) when faced with C2C misbehavior.
