1.

Introduction

Under the new economy of service, front-line workers and customers are the center of
management concern [1]. Service researchers are paying increasing attention to the interaction
between customers and frontline employees in service business. A great deal of managerial
concerns has been generated toward service encounter. Some researchers in people-based service
encounters have been proposing the primitive emotional contagion and appraisal mechanisms,
which predicts that service with a smile and encounter satisfaction [2] and that the examination
of the essential elements of service encounter from a role theoretical perspective connects to
service performance [3]. Importantly, the service encounter affords the single greatest
opportunity for a service firm to customize its service delivery down to the level of the individual
customers [4]. In 2008, Heskeff, et al. [1] took a close look at the links in the service-profit
chain, which puts hard values on soft measures, and, managers can calibrate the impact of
employee satisfaction, loyalty, and productivity on the value of products and the services
delivered. Managers can then use this information to build up customer satisfaction and loyalty,
and assess the corresponding impact on profitability and growth.