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Service failures are pivotal touchpoints that can reduce customer satisfaction, encourage negative word‐of‐mouth, and ultimately impact a firm's market share. We advance a novel perspective that after a service failure occurs, matching incidental arousal‐inducing stimuli to one's regulatory orientation can make the negative experience stemming from the service failure less deleterious. In three experiments (two stock out scenarios and one involving a rude salesperson), after a service failure, promotion‐focused and prevention‐focused individuals were exposed to high versus low arousal‐inducing stimuli. Three approaches available to retailers were used to manipulate arousal levels: background pictures (Study 1), colors (Study 2), and music (Study 3). When high (low) incidental arousal‐inducing stimuli were presented to those with a promotion (prevention) focus, this raised satisfaction, loyalty, and referral for …