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Maxi Bergel and Christian Brock
The purpose of this paper is to examine the impact of three different dimensions of switching costs on customer dissatisfaction response styles as well as on the evaluation of…
Abstract
Purpose
The purpose of this paper is to examine the impact of three different dimensions of switching costs on customer dissatisfaction response styles as well as on the evaluation of service recovery.
Design/methodology/approach
Study 1 is a scenario-based experiment and Study 2 uses a critical incident technique combined with survey-based measures of switching costs, dissatisfaction responses and perceived complaint handling.
Findings
The results of these studies highlight the need to consider the different effects of switching costs. Not only do different switching costs lead to varying customer dissatisfaction responses, they also have differential moderator effects on the interrelationships between customer-perceived recovery justice and service recovery satisfaction.
Research limitations/implications
Service failure severity was an influential control variable. Future studies should investigate how the type, context and severity of service failure influence customers’ complaint behavior. Furthermore, participants had trouble differentiating between their relations toward their service provider in general and one particular employee. Hence, further research should explore the relationship between customers and frontline employees.
Practical implications
The authors encourage managers to take a closer look at the switching cost dimensions of their service industry. This may lead practitioners to promote differentiated strategies for complaint stimulation and complaint handling.
Originality/value
This is the first study to simultaneously explore all three dimensions of switching costs when examining their impact on customers’ dissatisfaction response styles as well as the moderating effects in the recovery process. In doing so, this study reveals some hitherto uncovered effects.
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Nasser Tarin, Adel Azar and Seyyed Abbas Ebrahimi
Some essential issues about modeling of reverse logistics (RL) systems and product recovery networks include consideration of the qualities of the returned products, taking into…
Abstract
Purpose
Some essential issues about modeling of reverse logistics (RL) systems and product recovery networks include consideration of the qualities of the returned products, taking into account uncertainty and integrating the forward and reverse flows. The purpose of this paper is to develop the integrated RL model, which focuses on the control of inventory and production planning problems in a case of uncertainty in demand, quantities and qualities of returns.
Design/methodology/approach
The model involves a forward production route, three alternative recovery routes and a disposal route. Various levels of qualities are considered for returned products. A fuzzy mixed integer programming model (FMIP) is developed to provide a solution for the problems of production planning and inventory control. After maximizing the satisfaction degree, different solutions can have the same maximum. Moreover, policies that use all recovery routes and reduce the overall uncertainty have no chance to be chosen. To tackle these problems, a two-phase approach method is applied.
Findings
According to the results of the numerical example, using different and appropriate recovery options based on the quality of returns can significantly decrease the recovery costs. Similarly, it is shown that the two-phase approach can be an effective and efficient method to reach a satisfactory solution for such problems.
Originality/value
In this study, after maximizing the FMIP model, a two-phase approach ‒ as a novel optimization technique in this research ‒ is employed to achieve a desirable solution.
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Herwig Unnerstall and Frank Messner
The requirement of full cost recovery for water services including environmental and resource costs in accordance with the polluter pays principle in Art. 9 EU-Water Framework…
Abstract
The requirement of full cost recovery for water services including environmental and resource costs in accordance with the polluter pays principle in Art. 9 EU-Water Framework Directive is a unique provision in the history of the European environmental law. The wording of the provision is a compromise between the Council's and the Parliament's versions that mirrors different conceptual ideas on how to internalize environmental and resource costs. Art. 9 now contains a two-step concept for the achievement of the aim. The uniform implementation of the full cost-recovery calls for common accounting standards for the calculation of financial cost and a common methodology for the estimation of environmental and resource costs on the European level. In Germany, the requirements of the first step are partly fulfilled, but necessities of the second step are not being met at the moment.
Sanjoy Kumar Paul and Priyabrata Chowdhury
A recent global pandemic, known as coronavirus disease 2019 (COVID-19), affects the manufacturing supply chains most significantly. This effect becomes more challenging for the…
Abstract
Purpose
A recent global pandemic, known as coronavirus disease 2019 (COVID-19), affects the manufacturing supply chains most significantly. This effect becomes more challenging for the manufacturers of high-demand and most essential items, such as toilet paper and hand sanitizer. In a pandemic situation, the demand of the essential products increases expressively; on the other hand, the supply of the raw materials decreases considerably with a constraint of production capacity. These dual disruptions impact the production process suddenly, and the process can collapse without immediate and necessary actions. To minimize the impacts of these dual disruptions, we aim to develop a recovery model for making a decision on the revised production plan.
Design/methodology/approach
In this paper, the authors use a mathematical modeling approach to develop a production recovery model for a high-demand and essential item during the COVID-19. The authors also analyze the properties of the recovery plan, and optimize the recovery plan to maximize the profit in the recovery window.
Findings
The authors analyze the results using a numerical example. The result shows that the developed recovery model is capable of revising the production plan in the situations of both demand and supply disruptions, and improves the profit for the manufacturers. The authors also discuss the managerial implications, including the roles of digital technologies in the recovery process.
Originality/value
This model, which is a novel contribution to the literature, will help decision-makers of high-demand and essential items to make an accurate and prompt decision in designing the revised production plan to recover during a pandemic, like COVID-19.
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Chengpeng Wan, Jiale Tao, Zaili Yang and Di Zhang
Since the start of the current century, the world at large has experienced uncertainties as a result of climate change, terrorism threats and increasing economic upheaval. These…
Abstract
Purpose
Since the start of the current century, the world at large has experienced uncertainties as a result of climate change, terrorism threats and increasing economic upheaval. These uncertainties create non-classical risks for global seaborne container trade and liner shipping networks (LSNs). The purpose of this paper is to establish a novel risk-based resilience framework to measure the effectiveness of different recovery strategies for the disruptions in LSNs in a quantitative manner.
Design/methodology/approach
Based on a resilience loss triangle model, an indicator of resilience–cost ratio is designed to measure the performance of LSNs during recovery. Four recovery strategies are proposed to test the rationality and feasibility of the developed indicator in aiding decision-making of LSNs from a resilience perspective.
Findings
The analysis results reveal that the superiorities of different recovery strategies vary depending on both the structures of LSNs and the specific requirements during recovery. Moreover, optimizing the sequence of ports being recovered will improve the overall recovery efficiency of the investigated LSN.
Research limitations/implications
As an exploratory research trying to enrich the risk-based resilience evaluation of LSNs from a complex network perspective, only two attributes (e.g. port scare and economy) are considered at the current stage when estimating the time needed to fully recover the whole LSN. In future research, more attributes from the industry may be identified and incorporated into the proposed model to further extend its ability and application scopes.
Practical implications
The findings will help to improve managerial understandings of recovery strategies to build more resilient LSNs. The proposed model has the capability to be tailored to tackle different types of risks in addition to the storm disaster condition.
Originality/value
The risk-based resilience framework and the resilience–cost ratio indicator are newly developed in this research. They can consider LSNs' structural resilience and the total costs that a recovery strategy needs to restore the whole system simultaneously.
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Ajay Jose, Sonia Mathew, Rejikumar G., Dony Peter Chacko and Ajith K. Thomas
The emergence of tech-driven initiatives in retail banking has created a vast spectrum of system-related service failures; hence, e-service recovery quality is of prime importance…
Abstract
Purpose
The emergence of tech-driven initiatives in retail banking has created a vast spectrum of system-related service failures; hence, e-service recovery quality is of prime importance to banks to ensure e-service recovery satisfaction. However, e-service satisfaction is dependent on the ease of moving from one service provider to the other; thus, switching costs assume great significance. This study aims to probe the moderating role of switching cost on e-service recovery satisfaction by exploring e-service recovery quality antecedents.
Design/methodology/approach
A measurement model is suggested in the contextual settings of the Indian banking scenario and is estimated using structural equation modeling. Responses from 399 e-banking customers, who had experienced a service failure, were sought using a five-point Likert scale.
Findings
The result affirms that “recovery expectation” is the most significant predictor of e-service recovery satisfaction, and that switching cost moderates the relation between e-service recovery quality and e-service recovery satisfaction.
Practical implications
The study highlights the high relevance of switching costs in the e-banking context and emphasizes investment in marketing strategies and campaigns to do away with switching intentions. It also highlights the relevance of recovery expectations as an antecedent of e-service recovery quality and thus stresses the need to satisfactorily address the same in the e-service recovery process.
Originality/value
This study contributes to the e-service recovery satisfaction literature in the banking context by empirically validating the moderating role of switching cost. It also identifies the critical antecedents of banking e-service recovery quality.
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The purpose of this study is to establish a comprehensive service recovery mechanism by analyzing different behaviors of customers with different personality traits after service…
Abstract
Purpose
The purpose of this study is to establish a comprehensive service recovery mechanism by analyzing different behaviors of customers with different personality traits after service failures and by proposing different service recovery measures that service providers could adopt based on diverse customer personality traits.
Design/methodology/approach
This paper constructs a service recovery mechanism based on a signaling game theory by considering customers and service providers as two players in the game and analyzing possible outcomes under both separating and pooling equilibria to achieve an optimized strategy and set of actions that allow the highest payoffs for both service providers and customers.
Findings
This study successfully simulated the separating equilibrium and pooling equilibrium between service providers and customers in a signaling game with incomplete information. It also provides a reference for service providers to design service recovery strategies after service failures. By using this model, when facing problems related to service failures and service recovery, service providers will have a better chance of increasing the service recovery success rate, improving customer satisfaction and achieving optimal payoffs for both themselves and their customers.
Originality/value
Based on concepts of service science, this study designed a service recovery mechanism by applying the signaling game from game theory and introducing personality traits theory to the service recovery scenario so that service providers are able to execute service recovery after service failures more effectively. This study proposed a service recovery mechanism based on the perspectives of both service providers and customers, considering the mutual influence of key variables related to both of them, as well as the context of service failures, customers’ personality traits and service providers’ available resources. Many studies have applied personality traits to different fields; however, to the best of authors’ knowledge, few studies have applied this concept to service-related subjects, and only the influence of employees’ personality traits on service providers has been discussed.
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Swee Siong Kuik, Sev Nagalingam, Premaratne Samaranayake and Michael William McLean
The purpose of this paper is to propose an approach to evaluate product performance of returned products, using four key performance attributes as the basis for improving…
Abstract
Purpose
The purpose of this paper is to propose an approach to evaluate product performance of returned products, using four key performance attributes as the basis for improving sustainability through product recovery.
Design/methodology/approach
A fuzzy logic approach is developed to account a trade-off scenario for a manufactured product with recovery options. This approach is demonstrated using a numerical example and is validated using a case study in the automotive parts and components industry.
Findings
Product utilisation value (PUV) is found to be a useful index that manufacturers can use to assess product recovery options, as it brings together a number of conflicting parameters into a rationalised value for decision making. In addition, PUV provides a rationalised approach for comparing and selecting the most appropriate recovery configuration option.
Research limitations/implications
The authors only utilise four key performance measures to derive PUV. Further research is needed to modify and incorporate other measures that are important to decision makers to improve sustainability in manufacturing supply chains.
Practical implications
The proposed approach may motivate decision makers to consider sustainable recovery options by comparing PUVs of products for primary and secondary markets. The case study demonstrated the conflict and complexity organisations face in a global supply chain of a competitive industry.
Originality/value
The authors propose an approach to optimise trade-off considerations of selected performance attributes through PUV. This PUV as a benchmark can help improve recovery of the returned products and reduce landfill.
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Brendan Phillips and Peter Sanders
Service industries, such as public bus transport, are time‐bound, which makes it impossible to inventory their service output. The potential revenue from an empty seat on a bus is…
Abstract
Service industries, such as public bus transport, are time‐bound, which makes it impossible to inventory their service output. The potential revenue from an empty seat on a bus is lost for good once the service run is complete. Conversely, when demand for a seat on a service run exceeds supply, the revenue is also lost. As public bus transport has a high fixed to variable cost ratio, these demand and supply imbalances have a significant impact on cost recovery performance. Addresses a number of factors that influence the cost recovery performance of public bus transport using data from one of Australia’s largest operators. It considers the shortcomings of current fare price structures and how these may be changed to reflect operational cost drivers in a way that improves cost recovery performance. The various non‐monetary costs passengers incur when purchasing and using public transport are also considered along with methods of reducing these to increase the revenue‐generating performance of operators’ fixed capacity.
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