Determinants of banking consumers’ engagement in post service failure positive word-of-mouth: Examining mediating mechanisms

Abstract

Purpose

The purpose of this paper is to develop and examine a theoretical framework that evaluates the effects of banking consumers’ justice perception on their post-complaint mindsets. It also aims to help business strategists to customize service failure management activities to achieve a competitive advantage.

Design/methodology/approach

To examine the proposed framework using partial least square structural equation modeling, the authors collected data through a survey. The authors also evaluated the proposed framework through multi-group analysis and importance-performance map analysis (IPMA).

Findings

Results show that recovery disconfirmation mediates the relationship between banking consumers’ perception of justice and recovery satisfaction. Moreover, after a service failure, brand equity and loyalty mediate the relationship between recovery satisfaction and positive word-of-mouth behavior. IPMA analysis at the construct level shows that fostering the perception of recovery satisfaction is crucial for creating a positive post-failure impression in the mind of the banking consumer.

Practical implications

For banking practitioners, the findings of this research provide a strategic blueprint for managing service failure by developing relationships with consumers, thus creating an opportunity to gain competitive advantage.

Originality/value

Anchored in the theoretical framework of justice theory (Adams, 1963), expectation disconfirmation theory (Oliver, 1977) and social exchange theory (Kelley and Thibaut, 1978), the research adds to the literature by providing a critical evaluation of how to influence banking consumers’ post-complaint behavior from a more systematic perspective.

Citation

Harun, A., Rokonuzzaman, M., Prybutok, G. and Prybutok, V.R. (2019), "Determinants of banking consumers’ engagement in post service failure positive word-of-mouth: Examining mediating mechanisms", International Journal of Bank Marketing, Vol. 37 No. 2, pp. 621-645. https://doi.org/10.1108/IJBM-01-2018-0001