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Background/ Objectives: The aim of this service management literature review is to identify the role of emotions during service encounter, to analyze effect of emotions on service customers and employees, and to identify ways to manage emotions for effective service encounter. Method: The review based on systematic review based on literature tracked chronologically; based on SCOPUS database. The literature is then scanned for relevance and citation counts. The themes arising in service encounter management are identified and grouped for conceptual ease. Conclusion/ Improvements: The study highlights importance of effective emotion management during service encounter. It identifies customer emotional reactions like anger, frustration, fear, hate, grief, love and joy; and indicates relationship of demographic factors with emotions. The study also uncovers effect of emotions on service employees during service encounter in terms of; emotional labor, employee burnout, emotional dissonance. Finally, the study lists ways to manage emotions using;—emotional intelligence and motivation; supervisory support; employee and customer citizenship behavior; clue management, theatrical approach and emotion script; and service recovery management. For effective customer experience, it is imperative to manage every service encounter effectively. Since services in general involve human being, emotions generated during service delivery process is a key to customer experience. Managers are advised to create customer experiences considering for emotion management. The study is a unique effort to highlight literature related to service encounter in relations using emotions. It analysis emotions related service consumers as well as service employees.

Keywords

Clue Management, Customer Experience, Customer Value, Emotions, Service Encounter.
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