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Article
Publication date: 26 July 2013

Yuanyuan Zhou, Minxue Huang, Alex S.L. Tsang and Nan Zhou

Consumers use cues to assess whether a recovery is effective. Prior literature on service recovery has focused mainly on individual-related factors. This paper aims to study how…

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Abstract

Purpose

Consumers use cues to assess whether a recovery is effective. Prior literature on service recovery has focused mainly on individual-related factors. This paper aims to study how other consumers in the same failure and recovery influence an individual consumer to evaluate the firm ' s recovery efforts.

Design/methodology/approach

Two experiments were conducted. Experiment 1 tested the interaction effects between recovery modes (public vs private) and recovery dimensions (economic vs social) on an individual consumer ' s evaluation of a recovery strategy for a group service failure. Experiment 2 investigated the complementary role of social recovery on economic compensation.

Findings

Experiment 1 identified a significant interaction effect. Results suggest that an individual in a group service failure responds more favorably to public economic recovery than to private recovery. However, an individual ' s reaction to social recovery follows the opposite pattern. Furthermore, in experiment 2 a complementary effect between economic recovery and social recovery was found.

Originality/value

One potential contribution is that the paper sheds light on the issue related to the influence from other affected consumers in the same service failure and recovery situation in affected consumers ' recovery evaluation. An individual will consider the recovery other individuals receive when he or she evaluates the recovery ' s strategy. The paper also provides insight into the complementary use of economic and social recoveries to enhance a consumer ' s evaluation of a firm ' s overall recovery at a reduced cost.

Details

European Journal of Marketing, vol. 47 no. 8
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 17 June 2011

Hwy‐Chang Moon, Joseph L.C. Cheng, Min‐Young Kim and Jin‐Uk Kim

While many studies have investigated the impact of foreign direct investment (FDI) on a host country's economic development, little research has been done on the role of FDI as…

2988

Abstract

Purpose

While many studies have investigated the impact of foreign direct investment (FDI) on a host country's economic development, little research has been done on the role of FDI as related to economic decline and recovery. This paper aims to fill this gap by investigating the economic effects of inward and outward FDI during turbulent times.

Design/methodology/approach

This paper develops a theoretical argument postulating that FDI will have a stabilizing effect on a nation's economic growth during crisis and also at times of recovery. Hypotheses were advanced and tested with data collected from affected economies during the Asian financial crisis using a fixed‐effect panel regression analysis.

Findings

Results confirm that both inward and outward FDI stabilizes a country's economic growth during times of a financial crisis. Countries that had higher levels of FDI prior to the crisis experienced a milder recession and a more gradual recovery. This stabilizing effect, however, is found to be more robust for FDI‐stock than for FDI‐flow.

Social implications

This paper reveals that FDI has a stabilizing rather than an accelerating effect on a country's economy growth during both periods of crisis and recovery. It contradicts the common belief that FDI would help speed up, not stabilize or dampen the uptake of economic activities during the recovery period. This finding will help policy makers educate the public and set realistic expectations about the economic impact of FDI.

Originality/value

This paper makes original contributions by uncovering the complex and unexpected role of FDI as related to a nation's economic decline and recovery during a financial crisis. The findings have important implications for both international business scholars and public‐policy decision makers.

Details

Multinational Business Review, vol. 19 no. 2
Type: Research Article
ISSN: 1525-383X

Keywords

Article
Publication date: 10 October 2016

JungYun (Christine) Hur and SooCheong (Shawn) Jang

Given the increasing importance of relationship management in service recovery encounters, this study aims to investigate the role of consumer–organization relationship norms…

1799

Abstract

Purpose

Given the increasing importance of relationship management in service recovery encounters, this study aims to investigate the role of consumer–organization relationship norms (communal versus exchange) in connection with the service recovery process.

Design/methodology/approach

Based on a thorough review of the previous literature, the model was developed. Using a scenario-based survey method, a total of 204 usable responses were obtained via self-administered questionnaires in the USA. Anderson and Gerbing’s two-step approach was used to assess the measurement and structural models.

Findings

The findings indicate that consumers’ recovery processes are influenced by relationship norms. For consumers in the communal relationship, perceived social recovery had a greater influence on satisfaction with the service recovery. Consumers in the exchange relationship reacted more sensitively to perceived economic recovery in terms of satisfaction with the service recovery.

Research limitations/implications

The focus of this study is restaurant consumers’ responses to service recovery in the context of an established relationship. Therefore, the results may not be generalizable for other consumers and segments.

Practical implications

The findings have important implications for increasing the understanding of consumer behavior in established relationships and suggesting effective recovery strategies.

Originality/value

This study investigates the effect of different relationship norms that could explain varying consumer responses to service recovery within a high-quality relationship. It also provides directions for improving consumers’ satisfaction with service recovery. This differs from previous studies that mainly focused on relationship quality.

Details

Journal of Services Marketing, vol. 30 no. 7
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 13 April 2023

Yimin Zhu, Jiemin Zhang and Jifei Wu

This study aims to explore the recovery performances of chatbots (vs human employees) and help firms use chatbots to carry out effective service recovery.

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Abstract

Purpose

This study aims to explore the recovery performances of chatbots (vs human employees) and help firms use chatbots to carry out effective service recovery.

Design/methodology/approach

Two experiments were conducted to test the proposed hypotheses.

Findings

The results show that compared with human employees’ recovery, chatbots’ recovery leads to lower customer satisfaction and revisit intention. This effect is more significant for symbolic recovery instead of economic recovery. Perceived distributive and interactional justice mediate the interaction effect of recovery provider and recovery strategy on recovery performance. Using immediate recovery rather than delayed recovery can attenuate chatbots’ poor performances in symbolic recovery.

Originality/value

This study enriches the chatbot research and the service recovery literature by deploying chatbots into the service recovery setting. Using an integrated theoretical model including recovery strategy and recovery timing, this study provides substantive insight into how firms can enhance chatbots’ recovery performances.

研究目的

本研究旨在探索聊天机器人(与人类员工相比)的服务补救表现, 并帮助公司使用聊天机器人进行有效的服务补救。

研究设计/方法/途径

本研究进行了两个实验来检验提出的理论假设

调查发现

结果表明, 与人类员工的服务补救相比, 聊天机器人的服务补救导致顾客满意度和再惠顾意愿降低。 这种效应对于象征补救而非功利补救更为显著。 分配公平和互动公平在服务补救提供者和补救策略的交互作用对补救表现的影响中起到了中介作用。 使用立即补救而不是延迟补救可以减轻聊天机器人象征补救方面的不良表现。

研究原创性/价值

本研究通过将聊天机器人部署到服务补救环境中丰富了聊天机器人研究和服务补救文献。 本研究通过构建包括服务补救策略和补救时机在内的综合理论模型, 为企业如何提高聊天机器人的服务补救表现提供了实质性的见解。

Article
Publication date: 2 July 2020

Yumei Zhang, Xinshen Diao, Kevin Z. Chen, Sherman Robinson and Shenggen Fan

The purpose of this study is to assess the potential economic cost of the COVID-19 pandemic on China's macroeconomy and agri-food system and provide policy recommendations to…

8102

Abstract

Purpose

The purpose of this study is to assess the potential economic cost of the COVID-19 pandemic on China's macroeconomy and agri-food system and provide policy recommendations to stimulate economic growth and agri-food system development.

Design/methodology/approach

An economy-wide multisector multiplier model built on China's most recent social accounting matrix (SAM) for 2017 with 149 economic sectors is used to assess the impact of COVID-19 on China's macroeconomy and agri-food system. SAM multiplier analysis focuses on supply chain linkages and captures the complexity of an interconnected economy.

Findings

The paper finds that both the macroeconomy and agri-food systems are hit significantly by COVID-19. There are three main findings. First, affected by COVID-19, GDP decreased by 6.8% in the first quarter of 2020 compared with that in 2019, while the economic loss of the agri-food system is equivalent to 7% of its value added (about RMB 0.26 trillion). More than 46m agri-food system workers (about 27% of total employment) lost their jobs to COVID-19 in the lockdown phase. The COVID-19 affects the employment of unskilled labor more than that of skilled labor. Second, when the economy starts to recover during the second and third quarters, the growth rate in the value added of the agri-food system turns positive but still modest. Many jobs resume during the period, but the level of agri-food system employment continues to be lower than the base. The agri-food system employment recovery is slower than that of other sectors largely due to the sluggish recovery of restaurants. Agri-food system employment drops by 8.6m, which accounts for about 33% of the total jobs lost. Third, although the domestic economy is expected to be normal in the fourth quarter, external demand still faces uncertainties due to the global pandemic. The agri-food system is projected to grow by 1.1% annually in 2020 with resuming export demand, while only by 0.4% without resuming export demand. These rates are much lower than an annual growth rate of 4.3% for the agri-food system in 2019. The results also show that, without resuming export demand, China's total economy will grow less than 1% in 2020, while, with export demand resumed, the growth rate rises to 1.7%. These rates are much lower than an annual GDP growth rate of 6.1% in 2019.

Practical implications

The results show that continuously reducing economic dependency on exports and stimulating domestic demand are key areas that require policy support. The agri-food system can play an important role in supporting broad economic growth and job creation as SMEs are major part of the AFS. Job creation requires policies to promote innovation by entrepreneurs who run numerous SMEs in China.

Originality/value

This paper represents the first systematic study assessing the impact of COVID-19 on China's agri-food system in terms of value added and employment. The assessment considers three phases of lockdown, recovery and normal phases in order to capture the full potential cost of COVID-19.

Details

China Agricultural Economic Review, vol. 12 no. 3
Type: Research Article
ISSN: 1756-137X

Keywords

Article
Publication date: 17 October 2018

Xiaofei Tang, En-Chung Chang, Xing Huang and Meng Zhang

A combined model involving the intensity of negative emotions and the strategic combinations (timing and means) of service recovery is developed. The purpose of this paper is to…

1794

Abstract

Purpose

A combined model involving the intensity of negative emotions and the strategic combinations (timing and means) of service recovery is developed. The purpose of this paper is to evaluate the performances of these different combinations through customer satisfaction, repurchase intention and fitting curves between the two under hotel service scenarios.

Design/methodology/approach

A 2 (recovery timing: immediate/delayed) × 2 (recovery means: psychological/economic) × 3 (type of service failure: failure in a delivery system/failure in responding to customer needs/improper employee behavior) between-subject experimental design was used with 456 participants.

Findings

The results suggest that immediate and economic recovery effectively raises the service recovery evaluations from customers with low-intensity negative emotions, whereas delayed and psychological recovery helps customers with high-intensity negative emotions to give higher evaluations.

Originality/value

When service failures happen, the strategies for and timing of recovery directly influence customers’ service recovery evaluations. This study sheds light on the role that negative emotions play in the process of service recovery and provides implications for service industry managers.

Details

Journal of Services Marketing, vol. 32 no. 6
Type: Research Article
ISSN: 0887-6045

Keywords

Book part
Publication date: 7 November 2022

Jorge Gutic

This chapter evaluates the extent to which sustainable principles have been included on the destination recovery plans implemented by British Destination Management Organisations…

Abstract

This chapter evaluates the extent to which sustainable principles have been included on the destination recovery plans implemented by British Destination Management Organisations (DMOs) in response to COVID-19 and their subsequent quarantines during the period 2020–2021. The aim of the chapter is to explore if this pause in activities created by the COVID-19 crisis was used by UK DMOs as an opportunity to develop sustainable destination management plans, or alternatively, led them to prioritise financial income as the key driver in their recovery. The chapter also identifies the goals, motivations, performance indicators and strategies applied by those DMOs which developed post-COVID tourism destination recovery plans, with particular focus on those which have decided to include sustainability elements in their plans. The chapter concludes by developing a set of principles that other DMOs could apply when intending to develop sustainable management plans for their destinations in response to future major operational disruptions.

Details

The Emerald Handbook of Destination Recovery in Tourism and Hospitality
Type: Book
ISBN: 978-1-80262-073-3

Keywords

Article
Publication date: 20 March 2024

Ray Sastri, Fanglin Li, Hafiz Muhammad Naveed and Arbi Setiyawan

The COVID-19 pandemic severely impacted tourism, and the hotel and restaurant industry was the most affected sector, which faced issues related to business uncertainty and…

Abstract

Purpose

The COVID-19 pandemic severely impacted tourism, and the hotel and restaurant industry was the most affected sector, which faced issues related to business uncertainty and unemployment during the crisis. The analysis of recovery time and the influence factors is significant to support policymakers in developing an effective response and mitigating the risks associated with the tourism crisis. This study aims to investigate numerous factors affecting the recovery time of the hotel and restaurant sector after the COVID-19 crisis by using survival analysis.

Design/methodology/approach

This study uses the quarterly value added with the observation time from quarter 1 in 2020 to quarter 1 in 2023 to measure the recovery status. The recovery time refers to the number of quarters needed for the hotel and restaurant sector to get value added equal to or exceed the value added before the crisis. This study applies survival models, including lognormal regression, Weibull regression, and Cox regression, to investigate the effect of numerous factors on the hazard ratio of recovery time of hotels and restaurants after the COVID-19 crisis. This model accommodates all cases, including “recovered” and “not recovered yet” areas.

Findings

The empirical findings represented that the Cox regression model stratified by the area type fit the data well. The priority tourism areas had a longer recovery time than the non-priority areas, but they had a higher probability of recovery from a crisis of the same magnitude. The size of the regional gross domestic product, decentralization funds, multiplier effect, recovery time of transportation, and recovery time of the service sector had a significant impact on the probability of recovery.

Originality/value

This study contributes to the literature by examining the recovery time of the hotel and restaurant sector across Indonesian provinces after the COVID-19 crisis. Employing survival analysis, this study identifies the pivotal factors affecting the probability of recovery. Moreover, this study stands as a pioneer in investigating the multiplier effect of the regional tourism and its impact on the speed of recovery.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 8 October 2020

Santanu Sarkar and Ranabir Chakraborty

We were intrigued by the question of whether the convergence of businesses across nations in search of flexibility to survive economic crisis led to a convergence of the annual…

Abstract

Purpose

We were intrigued by the question of whether the convergence of businesses across nations in search of flexibility to survive economic crisis led to a convergence of the annual rate of change of union membership. The question emerged because the convergence theory was controverted, especially when the neo-capitalist idea failed to withstand the test of time during the economic crisis.

Design/methodology/approach

By adopting the model from Bain and Elsheik (1976) and using time-series data from 1990 to 2014 for Finland and India that survived economic crisis during this period, whereby union membership remained steady in Finland but declined in India, we assessed the empirical distinction between the changes in union membership.

Findings

We argued that when hit by an economic crisis, different nations had divergent responses and chose different means of economic recovery because of which the countries have not withstood the crisis in one specific way/direction that at all times, marginalises unions. Our main finding is that in both the countries, the annual rate of change of union membership during the years of economic recovery was determined by the policy response. And, policy responses were determined not only by the causes of economic crisis but also by the strength of unique national institutional configurations and history of the country.

Originality/value

The annual rate of change of union membership during the years of economic recovery was determined by the policy response. And, policy responses were determined not only by the causes of economic crisis but also by the strength of unique national institutional configurations and history of the country.

Details

Employee Relations: The International Journal, vol. 43 no. 3
Type: Research Article
ISSN: 0142-5455

Keywords

Article
Publication date: 1 January 2006

Bronwyn Coate, John Handmer and Wei Choong

The purpose of this paper is to explore the role of NGOs in facilitating economic recovery to the tsunami devastated regions in Southern Thailand. This includes large…

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Abstract

Purpose

The purpose of this paper is to explore the role of NGOs in facilitating economic recovery to the tsunami devastated regions in Southern Thailand. This includes large international NGOs as well as small community based or local NGOs and how these organizations engage with one another as well as with government authorities and of course the local community to aid recovery. In particular, focus will be on how NGOs are able to assist local residents, especially those engaged in the informal sector in rebuilding their livelihoods in a region that has been devastated by a natural disaster.

Design/methodology/approach

The approach taken in the paper has concentrated on analysing the response of various NGOs as well as industry representatives and government authorities in considering how response efforts and recovery initiatives have impacted, and will continue to impact on the lives and livelihoods of those living in affected communities as rebuilding takes place.

Findings

Given that in Thailand just over 70 per cent of the population is employed in the informal sector of the economy one of the key findings of this paper is that central to economic recovery is the need for policy makers directing recovery strategies to reflect measures that are broadly supportive of the informal sector across different industries including tourism and fisheries, and which provides the basis of economic livelihood for a large proportion of the affected Thai population.

Originality/value

The paper shows that recovery strategies must engage with and directly involve the community to ensure long‐term economic recovery that is able to both build local resilience and provide the basis of livelihood support for the future sustainability of the local population.

Details

Disaster Prevention and Management: An International Journal, vol. 15 no. 1
Type: Research Article
ISSN: 0965-3562

Keywords

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