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Article
Publication date: 17 November 2014

Haithem Zourrig, Kamel Hedhli and Jean Charles Chebat

– This paper aims to investigate the cultural variability in assessing the severity of a service failure.

Abstract

Purpose

This paper aims to investigate the cultural variability in assessing the severity of a service failure.

Design/methodology/approach

Two separate studies were conducted. The first investigates differences in the perception of service failures across two cultural pools of subjects (allocentrics versus idiocentrics) and within a same country. The second contrasts two levels of comparisons: a cross-cultural values’ level and a cross-country level, to assess differences in the perception service failuresseverity.

Findings

Results showed that cultural values differences, when investigated at the individual level (i.e. idiocentrism versus allocentrism) are more significant to understand the influence of culture on the perception of severity, that is, allocentrics perceive more severity in the service failure than idiocentrics. However, a cross-country comparison (i.e. USA versus Puerto Rico) does not show significant differences.

Research limitations/implications

Customers may assess, with different sensitivities, the severity of a service failure. These differences are mainly explained by differences in cultural values’ orientations but not differences across countries. Even originating from a same country, customers could perceive with different degrees the seriousness of a same service failure as they may cling to different cultural values. Hence, it is increasingly important to examine the cultural differences at the individual-level rather than a country level.

Practical implications

Firms serving international markets as well as multiethnic ones would have advantage to understand cultural differences in the perception of the severity at the individual level rather than at the societal or country level. This is more helpful to direct appropriate service recovery strategies to customers who may have higher sensitivity to the service failure.

Originality/value

Little is known about the effect of culture on the severity evaluation, although investigating cross-cultural differences in the assessment of severity is relevant to understand whether offenses are perceived more seriously in one culture than another and then if these offenses will potentially arise confrontational behaviors or not.

Details

International Journal of Quality and Service Sciences, vol. 6 no. 4
Type: Research Article
ISSN: 1756-669X

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Article
Publication date: 18 January 2013

M.S. Balaji and Aditi Sarkar

The aim of this study is to examine the role of level of failure severity and recovery efforts in customer response behavior. Specifically, the paper investigates how…

Abstract

Purpose

The aim of this study is to examine the role of level of failure severity and recovery efforts in customer response behavior. Specifically, the paper investigates how severity of failure influence the relationship between recovery efforts and outcome variables of recovery disconfirmation, satisfaction, loyalty and negative word‐of‐mouth.

Design/methodology/approach

A 2×2 between subjects experimental design was carried out. Written scenarios were used to manipulate the level of severity and recovery efforts. Responses were collected from 103 participants on pre‐validated scale measures.

Findings

The results of the study yield significant findings of impact of failure severity and recovery effort on dependent variables in the Indian context. The findings indicate significant interaction effects on satisfaction, loyalty and negative word‐of‐mouth.

Originality/value

Prior studies on failure and recovery have mostly kept failure constant even though the magnitude of failure can range from low to high. This study examines the effect of level of failure severity and recovery efforts in customer response behavior. Further, this study extends prior research in recovery by investigating the variables of interest in the eastern cultural context such as India.

Details

International Journal of Emerging Markets, vol. 8 no. 1
Type: Research Article
ISSN: 1746-8809

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Article
Publication date: 1 March 2004

Seungoog Weun, Sharon E. Beatty and Michael A. Jones

Previous research has found that interactional justice and distributive justice are critical factors influencing customer satisfaction after a service recovery. In…

Abstract

Previous research has found that interactional justice and distributive justice are critical factors influencing customer satisfaction after a service recovery. In addition, previous service recovery research has found that satisfaction is an important determinant of key outcome variables such as trust, commitment, and negative word‐of‐mouth. The current study extends previous research by investigating the role of service failure severity within the existing framework of service recovery research. The results indicate that service failure severity has a significant influence on satisfaction, trust, commitment, and negative word‐of‐mouth. The results also provide partial support for a moderating influence of service failure severity. Implications and areas for future research are discussed.

Details

Journal of Services Marketing, vol. 18 no. 2
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 5 September 2016

Ying Fan and Run Hong Niu

The purpose of this paper is to explore influencing factors that affect the effectiveness of service recovery strategies using social network from operations management…

Abstract

Purpose

The purpose of this paper is to explore influencing factors that affect the effectiveness of service recovery strategies using social network from operations management perspective. Specifically, the authors study the relationships between social media agent responses to customer complaints, customer emotion changes and customer satisfaction. Furthermore, the authors investigate the roles of recovery speed and failure severity in the service recovery process using social network platform.

Design/methodology/approach

The results are based on 347 mini cases drawn from the Twitter accounts of a sample of airlines. Grounded theory approach is used to conduct qualitative analysis using NVivo 9, a qualitative data analysis program. A conceptual framework was developed, then tested using χ2 analysis.

Findings

Agent responses that do not require customers to take further initiatives for problem solving have positive effects on customer emotion alleviation and satisfaction. In contrast, responses that provide further directions poses negative effect on service recovery outcomes. There is a strong positive linkage between customer emotion change and customer satisfaction. Surprisingly, the direct effect of recovery speed on customer emotion and satisfaction is not supported by the data. Rather, it plays a moderating role in affecting the relationship between agent responses and customer satisfaction. The qualitative data further reveals the pivotal role of failure severity, one of key service failure attributes.

Research limitations/implications

The authors study service businesses’ recovery strategies using social media. A conceptual framework is developed to link agent responses, customer emotion changes and customer satisfaction from the lens of service providers, using an operations-oriented approach. Finding on recovery speed and failure severity reveal that these variables play different roles when service recovery is operated on social media platform as compared to traditional channels. Additionally, relying on tweets as data sources has constrained us from assessing other long-term service recovery outcomes such as loyalty, repurchase intent and word of mouth. The drawback is resulted from the limited information conveyed through tweets, which tends to be short and brief. The study focusses on the airline industry, which limits the generalizability of the findings to other service industries.

Practical implications

The authors highlight the value and potential of service recovery strategies using social network and provide insights for recovery operations where agent responses should be focussing on real time problem solving. The findings support the benefits of empowering social network agents for service recovery operations. Improving recovery speed should be less of a priority as it serves as a qualifier when service recovery is operated via social network. Given the pivotal role of failure severity, it is critical for social network agents to stand in the shoes of the complaining customers, making imminent assessment of the actual failure severity and taking action accordingly in real time. In the meantime, effective communication through social network may help to lower perceived magnitude of failure by customers, which in turn enhance the effectiveness of other service recovery efforts.

Originality/value

This study is the first attempt to investigate the service recovery process using social media from an operations-oriented perspective. The results supports the potentials of employing service recovery strategies using social media.

Details

International Journal of Operations & Production Management, vol. 36 no. 9
Type: Research Article
ISSN: 0144-3577

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Article
Publication date: 1 February 2021

Sascha Raithel, Alexander Mafael and Stefan J. Hock

There is limited insight concerning a firm’s remedy choice after a product recall. This study aims to propose that failure severity and brand equity are key antecedents of…

Abstract

Purpose

There is limited insight concerning a firm’s remedy choice after a product recall. This study aims to propose that failure severity and brand equity are key antecedents of remedy choice and provides empirical evidence for a non-linear relationship between pre-recall brand equity and the firm’s remedy offer that is moderated by severity.

Design/methodology/approach

This study uses field data for 159 product recalls from 60 brands between January 2008 to February 2020 to estimate a probit model of the effects of failure severity, pre-recall brand equity and remedy choice.

Findings

Firms with higher and lower pre-recall brand equity are less likely to offer full (vs partial) remedy compared to medium level pre-recall brand equity firms. Failure severity moderates this relationship positively, i.e. firms with low and high brand equity are more sensitive to failure severity and then select full instead of partial remedy.

Research limitations/implications

This research reconciles contradictory arguments and research results about failure severity as an antecedent of remedy choice by introducing brand equity as another key variable. Future research could examine the psychological process of managerial decision-making through experiments.

Practical implications

This study increases the awareness of the importance of remedy choice during product-harm crises and can help firms and regulators to better understand managerial decision-making mechanisms (and fallacies) during a product-harm crisis.

Originality/value

This study theoretically and empirically advances the limited literature on managerial decision-making in response to product recalls.

Details

Journal of Product & Brand Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1061-0421

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Article
Publication date: 29 January 2018

Alexa K. Fox, George D. Deitz, Marla B. Royne and Joseph D. Fox

Online consumer reviews (OCRs) have emerged as a particularly important type of user-generated information about a brand because of their widespread adoption and influence…

Abstract

Purpose

Online consumer reviews (OCRs) have emerged as a particularly important type of user-generated information about a brand because of their widespread adoption and influence on consumer decision-making. Much of the existing OCR research focuses on quantifiable OCR features such as star ratings and volume. More research that examines the influence of review elements, aside from numeric ratings, such as the verbatim text, particularly in services contexts is needed. The purpose of this research is to investigate the impact of service failures on consumer arousal and emotions.

Design/methodology/approach

The authors present three behavioral experiments that manipulate service failure and linguistic elements of OCRs by using galvanic skin response, survey measures and automated facial expression analysis.

Findings

Negative OCRs lead to the greatest levels of arousal when consumers read OCRs. Service failure severity impacts anger, and referential cohesion, an observable property of text that helps a reader better understand ideas in the text, negatively moderates the relationship between service failure severity and anger.

Originality/value

The authors are among the first to empirically test the effect of emotional contagion in a user-generated content context, demonstrating that it can occur when consumers read such content, even if they did not experience the events being described. The research uses a self-report and physiological measures to assess consumer perceptions, arousal and emotions related to service failures, increasing the robustness of the literature. These findings contribute to the marketing literature on OCRs in service failures, physiological measures of consumers’ emotions, the negativity bias and emotional contagion in a user-generated content context.

Details

European Journal of Marketing, vol. 52 no. 1/2
Type: Research Article
ISSN: 0309-0566

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Article
Publication date: 18 May 2012

Namin Kim and Francis M. Ulgado

The present study compares two types of compensation – i.e. on‐the‐spot and delayed – and tries to reveal how and when firms can utilize delayed compensation effectively…

Abstract

Purpose

The present study compares two types of compensation – i.e. on‐the‐spot and delayed – and tries to reveal how and when firms can utilize delayed compensation effectively. For this, failure severity is considered how these two types of compensation affect satisfaction and repurchase intentions.

Design/methodology/approach

A scenario‐based experiment in the hotel and restaurant industries was used with a sample of 292 students.

Findings

The results show that failure severity acts as a moderating variable in a recovery process of compensation‐satisfaction‐repurchase intention. The more severe consumers perceive the failure is, the more they depend on satisfaction to decide repurchase intentions. The two types of compensation are also moderated by failure severity on their effects on satisfaction and repurchase intentions. On‐the‐spot compensation leads to more satisfaction and repatronage intentions when failures are severe, but the results are not as straightforward when failures are insignificant. Under such a condition, while delayed compensation does not engender customer satisfaction with recovery as much as on‐the‐spot compensation, repatronage intentions for both types of compensation were similar in the hotel industry and even higher in restaurant services.

Research limitations/implications

Industry differences such as ease of visit, frequency of visit, competition factors, and primary value (e.g. hedonic versus utilitarian) are expected to influence the effects of on‐the‐spot versus delayed compensation.

Practical implications

The study provides practitioners with the implication that the timing of compensation should be approached strategically according to the severity of failure and recovery outcomes they expect to achieve.

Originality/value

The present study tries to focus on compensation, one of the most commonly used recovery strategies, and tries to find the effects of different timings of it.

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Article
Publication date: 13 November 2017

Nor Asiah Omar, Zuraidah Zainol, Chan Kuan Thye, Nordiana Ahmad Nordin and Muhamad Azrin Nazri

Managing trust recovery in case of violation of halal products should be seen in light of the severity of violation as perceived by the consumer. This study aims to…

Abstract

Purpose

Managing trust recovery in case of violation of halal products should be seen in light of the severity of violation as perceived by the consumer. This study aims to investigate how the severity of violation on halal directly impact negative consumer behavior (avoidance, boycott and revenge), and its moderating effect on the relationship between trust recovery and avoidance, boycott and revenge.

Design/methodology/approach

In total, 212 questionnaires were distributed amongst customers who were aware and/or had experienced the violation of a halal product in Klang Valley, Malaysia – each of whom were selected using convenience sampling methods. Data were analyzed using descriptive statistics and structural equation modelling techniques, were partial least squares (PLS) software was used to measure the direct and indirect relationships between the variables.

Findings

The results of this investigation showed that trust recovery and negative consumer behavior are negatively related; severity is positively related to avoidance, boycott and revenge; and severity moderates the relationship between trust recovery and avoidance.

Research limitations/implications

Empirically, it was found that severity and trust recovery are a significant component that influence negative consumption behavior. This study has significant implications alongside research implications despite some limitations.

Practical implications

In a severe violation case, a company needs to ensure that the strategy to fix the problem is genuine and trustworthy, as consumer trust on the recovery action by company is significance to influence customer avoidance in consuming the company’s product.

Originality/value

The uniqueness of this study exists in the fact that it is the first known one to concentrate on halal violation and examine the moderating effect of severity of halal violation on the relationship between trust recovery and negative consumer behaviors (avoidance, boycott and revenge).

Details

Journal of Islamic Marketing, vol. 8 no. 4
Type: Research Article
ISSN: 1759-0833

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Article
Publication date: 20 June 2016

Sreejesh S. and Anusree M.R.

The purpose of the paper is to examine the conditional role of webcare as a service failure recovery strategy on customers’ hotel booking intentions in presence of…

Abstract

Purpose

The purpose of the paper is to examine the conditional role of webcare as a service failure recovery strategy on customers’ hotel booking intentions in presence of different levels of observed severity and review agreement. Furthermore, the study also examines the mechanism through which webcare can shape the adverse effect of observed severity and review agreement on hotel booking intentions.

Design/methodology/approach

A 2 (severity: high or low) × 2 (agreement: high or low) × 2 (webcare: webcare or no webcare) between-subject experimental design was conducted to collect responses. Analyses of variance and moderated mediation analysis were performed to analyze the study data.

Findings

Prospective customers who observed high severe service failure from a review reported less booking intention. Further, customers’ observed agreement strengthened these behaviors, i.e. customers who are exposed to high severe service failure in high-agreement condition reported low booking intention, as compared to those who exposed to low review agreement condition. Furthermore, results supported the fact that use of appropriate webcare plays a significant role to shape or mitigate the negative effect of severity and agreement on hotel booking intentions via perceived trust.

Originality/value

This is the first in its stream of studies that examined how webcare can be used to tackle the adverse effects of observed severity and agreement, so that perceived trust would be formed to create hotel booking intention.

Details

Tourism Review, vol. 71 no. 2
Type: Research Article
ISSN: 1660-5373

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Article
Publication date: 16 October 2007

Chensong Dong

This paper aims to provide a cost effective failure mode and effects analysis tool to overcome the disadvantages of the traditional FMEA that the cost due to failure is…

Abstract

Purpose

This paper aims to provide a cost effective failure mode and effects analysis tool to overcome the disadvantages of the traditional FMEA that the cost due to failure is not defined.

Design/methodology/approach

The method presented in this paper is based on the fuzzy utility theory. It uses utility theory and fuzzy membership functions for the assessment of severity, occurrence, and detection. The utility theory accounts for the nonlinear relationship between the cost due to failure and the ordinal ranking. The application of fuzzy membership functions better represents the team opinions. The Risk Priority Index (RPI) is developed for the prioritization of failure modes.

Findings

The advantages of the FUT‐based FMEA are demonstrated through cases studies. It shows that it can take the cost due to failure into account when prioritizing failure modes.

Originality/value

The FUT‐based FMEA presented in this paper provides a convenient cost‐effective tool for failure analysis. It improves the performance FMEA in the risk and failure analysis for product design and manufacturing/assembly process.

Details

International Journal of Quality & Reliability Management, vol. 24 no. 9
Type: Research Article
ISSN: 0265-671X

Keywords

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