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Article
Publication date: 21 May 2020

Graca Miranda Silva, Filipe Coelho, Cristiana R. Lages and Marta Reis

This study aims to investigate the configurations that drive employee service recovery. Rather than analyzing the net effects of individual antecedents of service recovery, which…

Abstract

Purpose

This study aims to investigate the configurations that drive employee service recovery. Rather than analyzing the net effects of individual antecedents of service recovery, which is the common approach in the literature, this study uses a configurational approach to investigate how five antecedents (customer service orientation, rewards, teamwork, empowerment and customer service training) combine to yield employee adaptive and proactive service recovery behaviors.

Design/methodology/approach

The study collects responses from 90 frontline employees through an online survey. Building on configurational theory, the authors developed and empirically validated four research propositions by using a fuzzy-set qualitative comparative analysis.

Findings

Three equifinal configurations of managerial practices result in either employee proactive or adaptive service recovery behaviors. Two of these three configurations result in both adaptive and proactive behaviors. In addition, the findings show that two out of the three configurations that lead to proactive behavior in service recovery also lead to the simultaneous existence of proactive and adaptive behaviors in service recovery. None of the sufficient configurations require the presence of all managerial practices. These results underscore that managers do not have to act on every single managerial intervention area to promote service recovery.

Research limitations/implications

The study advances the knowledge on the antecedents of employee behavior in service recovery by investigating how these antecedents combine to yield different recipes for developing either employee adaptive or proactive behavior in service recovery.

Practical implications

The findings provide insights for managers into the different combinations of practices that can be used to develop employee proactive or adaptive behavior in service recovery.

Originality/value

To the best of the authors’ knowledge, this is the first study that relies on a configurational approach to understand the combinations of managerial practices that result in employee proactive and adaptive behaviors in service recovery.

Details

European Journal of Marketing, vol. 54 no. 7
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 8 May 2017

Alexandra K. Abney, Mark J. Pelletier, Toni-Rochelle S. Ford and Alisha B. Horky

Social networks offer consumers the ability to voice their opinions of brands in a real-time, public setting. This represents a unique challenge for firms as brand managers must…

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Abstract

Purpose

Social networks offer consumers the ability to voice their opinions of brands in a real-time, public setting. This represents a unique challenge for firms as brand managers must develop new strategies for properly communicating with consumers, especially in the event of a service failure. The purpose of this research is to explore the impact of various adaptive service recovery strategies via social media, specifically Twitter.

Design/methodology/approach

Through a series of experimental manipulations, four service recovery strategies are tested alongside two variations of consumer complaint tweets. The service recovery responses vary in their degree of adaptiveness, which have differential impacts on numerous consumer outcome variables.

Findings

The findings indicate that highly adaptive recoveries responses positively impact consumers’ evaluations of service recovery satisfaction, leading to greater consumer behavioral intentions. Additionally, the type of tweet the consumer sends may further reveal their expectations for adequate service recovery responses.

Originality/value

This study is the first to empirically test the use of social media platforms in the service failure and recovery context. Although social media is commonly used for such purposes by practitioners, academic research up to this point has predominately focused on social media for generating word-of-mouth. Further, this study seeks to examine how service adaptability is perceived from the customer perspective, as opposed to the more traditional employee viewpoint.

Details

Journal of Services Marketing, vol. 31 no. 3
Type: Research Article
ISSN: 0887-6045

Keywords

Open Access
Article
Publication date: 25 August 2023

Nathalie Kron, Jesper Björkman, Peter Ek, Micael Pihlgren, Hanan Mazraeh, Benny Berggren and Patrik Sörqvist

Previous research suggests that the compensation offered to customers after a service failure has to be substantial to make customer satisfaction surpass that of an error-free…

1031

Abstract

Purpose

Previous research suggests that the compensation offered to customers after a service failure has to be substantial to make customer satisfaction surpass that of an error-free service. However, with the right service recovery strategy, it might be possible to reduce compensation size while maintaining happy customers. The aim of the current study is to test whether an anchoring technique can be used to achieve this goal.

Design/methodology/approach

After experiencing a service failure, participants were told that there is a standard size of the compensation for service failures. The size of this standard was different depending on condition. Thereafter, participants were asked how much they would demand to be satisfied with their customer experience.

Findings

The compensation demand was relatively high on average (1,000–1,400 SEK, ≈ $120). However, telling the participants that customers typically receive 200 SEK as compensation reduced their demand to about 800 SEK (Experiment 1)—an anchoring effect. Moreover, a precise anchoring point (a typical compensation of 247 SEK) generated a lower demand than rounded anchoring points, even when the rounded anchoring point was lower (200 SEK) than the precise counterpart (Experiment 2)—a precision effect.

Implications/value

Setting a low compensation standard—yet allowing customers to actually receive compensations above the standard—can make customers more satisfied while also saving resources in demand-what-you-want service recovery situations, in particular when the compensation standard is a precise value.

Details

Journal of Service Theory and Practice, vol. 33 no. 7
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 9 January 2017

Aysin Pasamehmetoglu, Priyanko Guchait, J.B. Tracey, Christopher J.L. Cunningham and Puiwa Lei

The purpose of this paper is to amend and extend the emerging research that has utilized an employee-focused approach to examining the service recovery process. In doing so, the…

1936

Abstract

Purpose

The purpose of this paper is to amend and extend the emerging research that has utilized an employee-focused approach to examining the service recovery process. In doing so, the authors examine the influences of supervisor and coworker support for error management on two measures of employee service performance: service recovery performance and helping behaviors during service failure and recoveries. Specifically, this study examines the linear and non-linear interaction effects of supervisor and coworker support for error management on the outcome variables.

Design/methodology/approach

To examine the proposed relationships, the authors conducted a field study that utilized survey data from a sample of 243 restaurant employees and their immediate supervisors. Employee ratings of supervisor and coworker support for error management were matched with the data gathered for the two dependent variables (i.e. supervisory ratings of service recovery performance and helping behaviors). Structural equation modeling was used to examine the linear interaction effects on the outcome variables. To examine the non-linear interaction effects on the outcome variables the authors utilized polynomial regression and response surface modeling.

Findings

The results showed that the interaction effects of supervisor and coworker support for error management was significantly positively related to both service recovery performance and helping behaviors. In addition, an alternative analysis of the shape of the interaction effects using polynomial regression and response surface modeling showed that the moderating effects may be better conceptualized as non-linear.

Originality/value

These findings offer new insights about the roles and impact of various forms of support in the service recovery process. First, the current study focuses specifically on supervisor and coworker support for error management and the impact on employees’ service recovery performance and helping behaviors. Second, this research investigates the interaction effects of these two forms of support on service recovery performance and helping behaviors. Third, along with linear interaction effects, the current work examines non-linear interaction effects. These relationships examined in this study have not been tested before. Thus, the findings of this research make a unique contribution to research in service management. The findings of this study provide more prescriptive insights about the means to prevent and respond effectively to service errors.

Details

Journal of Service Theory and Practice, vol. 27 no. 1
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 19 June 2020

Hyunju Shin and Lindsay R.L. Larson

Displaying a sense of humour provides various interpersonal benefits including reducing tension and promoting conflict resolution, but should a firm use humour in response to…

2269

Abstract

Purpose

Displaying a sense of humour provides various interpersonal benefits including reducing tension and promoting conflict resolution, but should a firm use humour in response to publicly viewable online customer complaints after a service failure? The purpose of this study is to demonstrate that a firm’s use of humour in response to negative online consumer reviews has both positive and negative effects on perceptions of corporate image from a customer-as-onlooker perspective.

Design/methodology/approach

Three experimental studies are conducted and analysis of variance is used to empirically test the hypotheses.

Findings

Although humorous responses have an unfavourable influence on perceived trustworthiness of the firm, they have a favourable influence on perceived excitingness of the firm. The former influence is tied to lower perceived firm sincerity, whereas the latter is tied to higher perceived firm innovativeness and coolness. Furthermore, humour within the customer complaint itself is shown to moderate the influence of humorous responses on perceptions of the firm. Finally, regardless of the type of humour used (i.e. affiliative or aggressive humour) in the humorous response, the positive effect of humorous response remains strong, although aggressive humour further aggravates the negative impact of humorous response on trustworthiness.

Research limitations/implications

The experimental set-up may limit external validity of the study, and the research is limited to the variables examined.

Practical implications

Humorous response is identified as a non-traditional approach to online customer complaints that poses a double-edged sword for managers of service organizations. Firms should avoid using humour in online service recovery if perceptions of trustworthiness are critical or if complaints are written in a neutral tone. However, such responses may be successfully used when a firm wants to position itself as exciting and if complaints are also humorous. Finally, firms are advised to avoid aggressive humour.

Originality/value

The present research represents one of the few studies in marketing to examine the potential of injecting humour into complaint management and service recovery. In addition, this study considers the consumer-as-onlooker perspective inherent in social media.

Details

European Journal of Marketing, vol. 54 no. 8
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 14 August 2017

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

458

Abstract

Purpose

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

Design/methodology/approach

This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

Findings

Social media now rules our online lives. It is an inescapable part of our modern existence, and as such, it is being embraced by companies to allow them to survive in the digital age. Twitter is becoming the go-to destination for customer service issues, mainly because of its public and instantaneous nature. Customers are able to make use of a huge audience and the potential for brand damage to a company by using Twitter to complain about a service failure. The costs are now so great that companies need to seriously consider and invest in their Twitter customer services. Success here can not only mitigate brand damage, but also improve it, whereas failure to do so can be catastrophic. Twitter is now the key to how well a company can do globally.

Practical implications

The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations.

Originality/value

The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Details

Strategic Direction, vol. 33 no. 8
Type: Research Article
ISSN: 0258-0543

Keywords

Article
Publication date: 5 January 2022

Simoni F. Rohden and Celso Augusto de Matos

E-commerce has experienced huge growth in emerging countries, but analysis of service failure/recovery for online retailers has been limited in this context. Hence, this study…

Abstract

Purpose

E-commerce has experienced huge growth in emerging countries, but analysis of service failure/recovery for online retailers has been limited in this context. Hence, this study aims to investigate customers’ reactions to service failures in e-commerce and the influence of cultural dimensions on complaint intentions.

Design/methodology/approach

A survey was conducted with 553 customers from Brazil, India and China. A model was proposed and tested using structural equation modeling.

Findings

Results indicate that satisfaction with service recovery (SSR) increases repurchase intentions and reduces third-party complaints and negative word-of-mouth. This study also shows that the reactions of consumers to service failures in online situations are influenced by their cultural orientation (i.e. individualism, uncertainty avoidance and power distance) and contingent factors (i.e. relationship level, switching costs and the severity of the failure).

Originality/value

This study shows that the extent to which consumers from emerging countries complain after a service failure in online purchases will depend on their cultural orientation, previous experiences with the retailer, switching costs and the severity of the failure.

Details

Journal of Consumer Marketing, vol. 39 no. 1
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 26 April 2011

Wen‐Hsien Huang and Tzu‐Da Lin

The purpose of this paper is to gain some insight into the effectiveness of different types of tangible compensation strategies for two different types of services: utilitarian…

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Abstract

Purpose

The purpose of this paper is to gain some insight into the effectiveness of different types of tangible compensation strategies for two different types of services: utilitarian and hedonic.

Design/methodology/approach

The hypotheses are investigated using a 2×2 between‐subject experimental design and two factors: service type (utilitarian vs hedonic) and compensation type (utilitarian – a price reduction vs hedonic – a free gift).

Findings

The results show that customers prefer to receive a form of compensation that matches the type of service involved. For example, customers who receive a utilitarian compensation (e.g. a price reduction) after experiencing a failure in utilitarian service (e.g. at a bank) report higher levels of satisfaction and repurchase intention than they would after experiencing a failure in hedonic services (e.g. at a restaurant), but that the reverse is true for a hedonic‐type compensation (e.g. a free gift).

Practical implications

The offering of either a price reduction or a free gift cuts into company profits. Organizations should, therefore, tailor their service recovery efforts, focusing on those resources in the bundle that will have the greatest positive impact and create the most favorable customer response.

Originality/value

The primary contribution of this paper to the service marketing literature is that it provides empirical results, which shed light on the interplay between the type of compensation and the type of service on the customer's post‐recovery judgment of that service.

Details

Journal of Service Management, vol. 22 no. 2
Type: Research Article
ISSN: 1757-5818

Keywords

Article
Publication date: 14 July 2021

Inés López-López, Mariola Palazón and José Antonio Sánchez-Martínez

This paper analyzes the effect of company response style and complaint source on silent observers' reactions to a service failure episode vented on Twitter.

Abstract

Purpose

This paper analyzes the effect of company response style and complaint source on silent observers' reactions to a service failure episode vented on Twitter.

Design/methodology/approach

In a 2 × 2 experimental design, company response style (personalized vs automatic) and complaint source (ordinary Twitter user vs influencer) were manipulated to test the hypotheses.

Findings

Complaint source moderates the effect of company response style on brand image, purchase intention and electronic word-of-mouth (eWOM). Thus, the authors found that a personalized response to a complaint, compared to an automatic response, leads to a more favorable brand image as well as purchase intention and eWOM intention when the complainant is an ordinary Twitter user. However, the automatic response, compared to the personalized one, is better perceived when the complainant is an influencer. The authors also found that service failure response attribution and the emotions elicited during the firm–complainant interaction mediate the previous effects.

Research limitations/implications

This paper deals with the company's initial reaction after a complaint is posted on Twitter; however, the complaint-handling process is longer, and both the customer and silent observers await a resolution. Future research could tackle subsequent stages of the process and different recovery strategies.

Practical implications

The study offers meaningful insights regarding complaint handling on Twitter and how the effectiveness of the company response style depends on the complaint source. Marketers should offer adapted personalized responses to prompt positive behavioral intentions for ordinary Twitter users, who represent prospective consumers. However, a personalized response given to an influencer may be perceived more negatively, as silent observers may interpret that the company offers such a response just because the complaint comes from a well-known person who can reach many users and not because of an honest interest in serving consumers.

Originality/value

This research focuses on the underresearched area of the impact of online complaints on silent observers, a large group of prospective consumers quietly exposed to complaints aired on Twitter. The underlying mechanisms are also identified.

Details

Journal of Research in Interactive Marketing, vol. 15 no. 4
Type: Research Article
ISSN: 2040-7122

Keywords

Article
Publication date: 11 October 2021

Durgesh Agnihotri, Kushagra Kulshreshtha, Vikas Tripathi and Pallavi Chaturvedi

The purpose of this study is to conceptualize and analyze a framework that provides greater understanding toward the impact of service recovery antecedents such as role clarity…

Abstract

Purpose

The purpose of this study is to conceptualize and analyze a framework that provides greater understanding toward the impact of service recovery antecedents such as role clarity, customer service orientation, employee empowerment and employee relational behavior on customer satisfaction and customer delight in the context of quick-service restaurants (QSRs).

Design/methodology/approach

A self-administered questionnaire was distributed to 408 participants who had experienced service recovery efforts by leading QSRs on social media. The current paper draws upon the prevailing literature to test a series of research hypotheses through structural equation modeling.

Findings

The findings of the study have confirmed that antecedents of service recovery are good to describe customer satisfaction and customer delight in the setting of QSRs. Besides, the study provides an understanding on how monetary compensation moderates the relationship between customer delight and customer satisfaction.

Practical implications

This study carries an understanding on how frontline employees must operate in a non-conventional and innovative way to resolve customers' issues and show commitment with truthfulness to provide excellent services to make customers feel delightful.

Originality/value

This is a unique study to understand the role of service recovery antecedents to describe customer satisfaction and customer delight in the social media environment. In addition, the results support the possibilities of implementing prompt service recovery efforts using social media.

Details

Asia-Pacific Journal of Business Administration, vol. 14 no. 4
Type: Research Article
ISSN: 1757-4323

Keywords

1 – 10 of over 4000