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Demonstrates a method for examining service failures and recovery strategies in service industries and provides a typology of service failures and recoveries in the restaurant industry. Based on 373 critical incidents collected from restaurant customers, uses the critical incident technique (CIT) to identify 11 unique failure types and eight different recovery strategies. Additional data regarding the magnitude of the service failure, the service recovery rating, the lapsed time since the failure/recovery incident, and customer retention rates were also collected. Presents this information along with managerial and research implications.

The authors propose focusing on e‐commerce service failure and recovery through the presentation of failure and recovery strategies employed by e‐commerce service firms.

The authors employ the critical incident technique using 377 customer responses to present ten e‐tail failures and 11 e‐tail recovery strategies used by e‐commerce service firms. The authors also present data on post‐recovery satisfaction levels and propensity to switch behavior.

Findings indicate that: e‐tail customers experience different types of service failure relative to traditional retail settings; e‐tail firms employ a different series of recovery strategies relative to traditional retail settings; and post‐recovery switching by e‐tail customers can be high even with satisfying experiences.

This paper strengthens the existing failure and recovery literature by presenting data on the largest growing sector of the service industry. These findings will have value to traditional firms looking to expand to e‐commerce channels in addition to e‐commerce firms currently experiencing customer dissatisfaction.

The purpose of this paper is to analyze the effects of attributions on the efficacy of service recovery strategies in preventing customer defection following a service failure.

The empirical investigation is carried out on the retail banking industry with a final sample of 448 real cases of customer retention or defection after a service failure.

The results of the study not only highlight the relevance of intentionality as an additional factor in explaining customer defection, but also show the effects of some attributional dimensions (intentionality and controllability) on the efficacy of some recovery strategies (redress, apology and explanation) applied by companies to prevent post-complaint customer defection.

The efficacy of the recovery strategies depends on the causal attributions that the customer makes about the service failure.

This study analyzes not only the effects of traditional dimensions of attribution (stability and controllability), but also the additional effect that intentionality attributions may have on actual customer defection (not intentions). Moreover, it analyzes their effects on the effectiveness of recovery strategies in preventing customer defection. Most of these effects have never been empirically analyzed in the literature.

Despite scholarly effort to understand customers’ recovery evaluation, little progress is evident in deciphering how customers develop online failure/recovery perception. This paper aims to address this issue.

Social constructivism was the epistemic choice for this study. This approach is holistic and offers a comprehensive understanding of each side of the phenomena. This provided social scientific descriptions of people and their cultural bases and built on, and articulated what was implicit in interpretations of their views.

Online banking customer groups were identified as: exigent customers, solutionist customers and impulsive customers. Customers’ position in each group determined failure perception, recovery expectation and evaluation, and post-recovery behaviour. Comparisons were observed and discussed in relation to Albania and Kosovo. It was suggested that banks should expand their presence in social media platforms and offer a means to manage online customer communication and spread of online WOM.

For exigent customers, the failure/recovery responsibility is embedded within the provider. This explains their high sensitivity and criteria to define a failure.

Online banking customers’ request of a satisfactory recovery experience included: customer notifications, customer behaviour, customer determination, and the mediator of request. 10;Providers should examine customer failure/recovery experiences in cooperation with other banks which should lead to a higher order understanding of customer withdrawal and disengagement activities.

Post-recovery behaviour is linked to the decline of online banking usage, switching to new providers, and the spread of negative online and off-line word-of-mouth.

This is the first empirical study on online service failure and recovery strategy to provide information on customers’ unique preferences and expectations in the recovery process. Online customers are organised into a threefold customer typology, and explanation for the providers’ role in the online customer failure-recovery perception construct is presented.

This study examines the different effects of service recovery strategies on customers' future intentions when online shoppers were experiencing delivery failures. Two types of problem severity are evaluated: wrong-product delivery (issues with the product quality or quantity) and late delivery. This study also investigates the impact of service criticality on the relationship between service recovery strategies and customers' future intentions.

This study employs experimental research with 123 online shoppers as participants. Following the results, a subsequent test is conducted to examine the effect of participants' demographics on future intentions. Finally, the current study elaborates the findings using qualitative research, interviewing both sides impacted by the service failures: online shoppers and e-retail managers.

The findings show that complementing product replacement with monetary compensation is the most effective strategy to improve repurchase intention after a dissatisfaction moment. This effect is indifferent to service criticality and severity. Age influences the participants' repurchase intentions, in which younger people are less tolerant of service failures. In contrast, gender and education level do not provide any differences. To prevent delivery failures, managers participating in this study suggest several best practices regarding systems and infrastructure, people and coordination and collaboration with logistics partners.

The study mainly examines a limited type of service and service failures. Further studies are encouraged to expand the variables and scenarios, as well as to employ more distinctive methods, to enrich the findings related to recovery strategy in the e-commerce industry.

Given proper compensation, service failure could create momentum for online retailers to boost customer loyalty. This study suggests that managers design the most effective service recovery to win customers back to the business.

This paper enriches the literature related to a service recovery strategy, particularly within the online shopping context.

Focuses on an empirical investigation of service failures and service recovery in retail banking. Different types of failures, and the recovery strategies used by Greek banks to respond to them, were identified using the critical incident technique. A survey questionnaire was then developed to measure customers’ perceptions of the magnitude of service failures and the effectiveness of service recovery strategies. A number of research hypotheses were tested relating to customers’ evaluations of particular banking failures and recovery strategies, their previous experience of failures, demographic variables, and relationships with their banks. Service failures were found to be of varying importance and different service recovery strategies more effective for particular failures; further, customers with long relationships or high deposits with their banks were more demanding with respect to service recovery.

This paper aims to focus on non‐internet‐based self‐service technologies through the presentation of failure and recovery strategies employed by service firms using self‐service forms of interaction.

The paper employs the critical incident technique using 508 customer responses to present nine failures and nine recovery strategies used by self‐service technology firms. It presents data on post‐recovery satisfaction levels and propensity to switch behavior. The paper also compares findings in the non‐internet self‐service technology context to findings from e‐tail and bricks and mortar settings.

Findings indicate that: non‐internet self‐service technology customers experience different types of service failure relative to traditional retail and e‐tail settings; non‐internet self‐service technology firms employ a different series of recovery strategies relative to traditional retail and e‐tail settings; and post‐recovery switching by customers can be high even with satisfying experiences.

This paper strengthens the existing failure and recovery literature by presenting data on the largest growing sector of the service industry, self‐service technologies, and the largest sector within self‐service technologies (non‐internet purchases). These findings will have value to traditional firms looking to expand to their channels in addition to firms currently experiencing customer dissatisfaction.

This paper aims to explore whether demographic differences between diverse customers and service providers impact service failure and recovery perceptions.

The critical incidents technique was used to gather data on service failures and recovery. Chi‐square test of independence and analysis of variance was used to test the hypotheses.

Results from the main study provide little support to the notion that different service failure types or service recovery efforts are being applied when demographic differences exist. However, a post‐hoc analysis focusing on respondents who felt that their demographic differences had impacted their encounter revealed that ethnic differences impacted service failure and recovery perceptions the most.

One limitation is the use of quota sampling that may limit the generalizability of the results. However, due to the exploratory nature of the study and the need for representative cases, this technique was viewed as an effective sampling technique for the purposes of the study.

The post‐hoc results suggest that future diversity training should include employee‐customer diversity, especially in the case of age and ethnicity. Further, that managing perceptions is important so that customers do not feel that they are treated any differently based on a visible demographic variable.

In general, the exploration of customer‐employee demographic differences in the services marketing literature is still somewhat nascent. This paper is unique in that it specifically examines several demographic differences between customers and employees in terms of service failure and recovery perceptions.

This paper aims to address the gaps in service recovery strategy assessment. An effective service recovery strategy that prevents customer defection after a service failure is a powerful managerial instrument. The literature to date does not present a comprehensive assessment of service recovery strategy. It also lacks a clear picture of the service recovery actions at managers’ disposal in case of failure and the effectiveness of individual strategies on customer outcomes.

Based on service recovery theory, this paper proposes a formative index of service recovery strategy and empirically validates this measure using partial least-squares path modelling with survey data from 437 complainants in the telecommunications industry in Egypt.

The CURE scale (CUstomer REcovery scale) presents evidence of reliability as well as convergent, discriminant and nomological validity. Findings also reveal that problem-solving, speed of response, effort, facilitation and apology are the actions that have an impact on the customer’s satisfaction with service recovery.

This new formative index is of potential value in investigating links between strategy and customer evaluations of service by helping managers identify which actions contribute most to changes in the overall service recovery strategy as well as satisfaction with service recovery. Ultimately, the CURE scale facilitates the long-term planning of effective complaint management.

This is the first study in the service marketing literature to propose a comprehensive assessment of service recovery strategy and clearly identify the service recovery actions that contribute most to changes in the overall service recovery strategy.

The purpose of this paper is to investigate the effects of organizational justice‐based recovery strategies and the mode of communication used following a service failure on key organizational variables including customer satisfaction, loyalty, and complaining behavior.

A scenario‐based experiment was used to depict a service failure and recovery experience involving a fictitious cellular phone provider. The scenario manipulated the type of organizational justice‐based recovery strategy and the mode of communication used during the recovery process. Surveys were used to measure participants' reactions to the experience.

The results of the study suggest no difference between the effect of justice‐based strategies on overall customer satisfaction or loyalty. However, participants who communicated in‐person or with a toll‐free number were more satisfied with the communication than those who used e‐mail. Customers were more likely to engage in informal negative word‐of‐mouth behavior than formally complaining to the company.

Future research should investigate the length of the recovery process, whether or not the problem was successfully solved, and the effect of customers' communication mode preference. Scenario‐based experiments need to be replicated using real life service encounters/simulations.

Implications for organizations developing recovery strategies include: the cost of the recovery effort; utilizing multiple channels to increase formal complaining; and differences between in‐person and technological strategies.

The present study investigated both service recovery and communication mode using an experimental manipulation.