Customer uncertainty following downsizing

HOMBURG, CHRISTIAN

Customer uncertainty following downsizing The effects of extent of downsizing and open communication - 2012 - 112-129

Although downsizing has become a nearly universal managerial practice, many downsizing initiatives fail. To explain this phenomenon, previous research has mainly investigated possible negative consequences for employees remaining in the firm whilelargely neglecting customer reactions to downsizing and the issues surrounding its implication. The authors discibe three studies analyzing how downsizing at a firm's point of customer contact affect customers and how managers can influence customer reactions through open communication.

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