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Open Access
Article
Publication date: 20 September 2022

Rana Muhammad Umar and Salman Saleem

Employees' emotional competence (EEC) is gaining increasing attention in service failure and recovery research. This study investigates the mediating role of consumer…

Abstract

Purpose

Employees' emotional competence (EEC) is gaining increasing attention in service failure and recovery research. This study investigates the mediating role of consumer forgiveness between perceived EEC and recovery satisfaction among casual dining consumers. Additionally, this study examines the effect of perceived EEC on recovery satisfaction across process failure vs outcome failure.

Design/methodology/approach

A critical incident technique (CIT) in conjunction with a self-administered online survey was carried out. Using the snowball sampling technique, a total of 204 useable responses were collected. To test the hypotheses, this study used partial least squares structural equation modeling (PLS-SEM).

Findings

The study finds that perceived EEC influences service recovery satisfaction. Additionally, the study identifies the mediating role of consumer forgiveness in the relationship between perceived EEC and recovery satisfaction. Multi-group moderation analysis shows that the relationship between perceived EEC and recovery satisfaction is weaker in process failures as compared to outcome failures.

Practical implications

Based on obtained results, this study recommends that after service failure consumer forgiveness and subsequent recovery satisfaction can be obtained with perceived EEC. To do so, managers need to incorporate emotional competence while recruiting and training the employees. Moreover, managers need to train employees on failure types and respective recovery strategies. Lastly, the study suggests that in emerging markets managers should pay greater emphasis on process failure, because such failure decreases customer satisfaction greatly than outcome failure.

Originality/value

To the authors' knowledge, this is the first study that investigates the impact of perceived EEC on consumer forgiveness which subsequently determines the recovery satisfaction in the emerging markets. It extends the application of the emotional contagion and affect infusion theories by exposing the effect of perceived EEC on recovery satisfaction through consumer forgiveness. In addition, the study provides insights that the influence of perceived ECC on recovery satisfaction significantly varies across service failure types.

Details

British Food Journal, vol. 124 no. 13
Type: Research Article
ISSN: 0007-070X

Keywords

Article
Publication date: 6 November 2019

Amrul Asraf Mohd-Any, Dilip S. Mutum, Ezlika M. Ghazali and Lokmanulhakim Mohamed-Zulkifli

The purpose of this paper is to investigate the importance of successful service recovery in the airline sector by examining the interrelationship between perceived…

2026

Abstract

Purpose

The purpose of this paper is to investigate the importance of successful service recovery in the airline sector by examining the interrelationship between perceived justice, recovery satisfaction and overall satisfaction, customer trust and customer loyalty. Furthermore, the research assesses the mediating effect of overall satisfaction and customer trust on customer loyalty.

Design/methodology/approach

Data were collected via an airport intercept survey of Malaysia Airlines passengers who had experienced service failure. In total, 380 responses were used for the final analysis. The study uses partial least squares structural equation modelling technique with SmartPLS 3.0, in order to test and validate the research model and hypotheses posited.

Findings

The results reveal that: recovery satisfaction is significantly affected by procedural and interactional justice; distributive and procedural justice, as well as recovery satisfaction influenced overall satisfaction; customer trust is most influenced by interactional justice, distributive justice and recovery satisfaction; customer loyalty is positively affected by customer trust, overall satisfaction and recovery satisfaction; and the influence amongst recovery satisfaction and customer loyalty is partially mediated by customer trust and overall satisfaction.

Originality/value

The study contributes to a whole conceptual comprehension of the essential determinants of customer loyalty from the combined perspectives of three theories, namely, justice theory, expectancy disconfirmation theory and commitment-trust theory. This study successfully differentiates the three dimensions of perceived justice and assesses them individually to discern and compare their influence on overall satisfaction, recovery satisfaction and trust. In addition, the study finds that the influence of recovery satisfaction on loyalty is partially and sequentially mediated by trust and overall satisfaction.

Details

Journal of Service Theory and Practice, vol. 29 no. 5/6
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 9 October 2009

Celso Augusto de Matos, Carlos Alberto Vargas Rossi, Ricardo Teixeira Veiga and Valter Afonso Vieira

The paper seeks to investigate, in a context of service failure and recovery, how consumer satisfaction is affected by problem severity and company responsiveness, how…

8776

Abstract

Purpose

The paper seeks to investigate, in a context of service failure and recovery, how consumer satisfaction is affected by problem severity and company responsiveness, how satisfaction influences repatronage intentions, word‐of‐mouth, and complaint intentions, and how consumer attitude toward complaining (ATC) moderates these relationships.

Design/methodology/approach

An integrated model is proposed, following recent developments in the service recovery literature. This model is tested using data from a survey with 204 complaining customers.

Findings

Service recovery affected satisfaction more strongly for consumers with high ATC, indicating a moderating role of ATC. This moderator was also supported in the link between satisfaction and complaining intentions. Also, failure severity and perceived justice influenced satisfaction, which affected repurchase intentions, word‐of‐mouth, and complaining intentions.

Practical implications

Service managers should consider the differences between customers with low versus high ATC when providing recovery for a service failure. For instance, the importance of responsiveness in service recovery is even greater for those customers with high ATC, and those customers with low ATC have their complaint decision more dependent on their satisfaction level. Also, it is important to improve the customers' perceived fairness in the complaint resolution process.

Originality/value

This paper investigates the key antecedents and consequences of satisfaction in a context of service failure and recovery by integrating previous research in a comprehensive model. ATC is proposed and tested as a moderator when complainers and non‐complainers are compared in the level of the strength of the relationships. Previous research has not found a moderation effect in this level.

Details

Journal of Services Marketing, vol. 23 no. 7
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 24 August 2020

Ke Ma, Xin Zhong and Guanghui Hou

This study aims to examine the role played by brand equity orientation and failure type in service recovery. Specifically, through the lens of forgiveness, the way brand…

Abstract

Purpose

This study aims to examine the role played by brand equity orientation and failure type in service recovery. Specifically, through the lens of forgiveness, the way brand equity orientation and failure type influence consumer response to recovery is revealed.

Design/methodology/approach

This research tests a novel model using data collected from 1,589 consumers in two scenario-based experimental studies. The statistical product and service solutions (SPSS) program with the PROCESS tool was used to test the mediation and moderated mediation effects.

Findings

The research findings suggest that forgiveness plays a mediation role in the relationship between recovery and satisfaction. Brand equity orientation moderates the mediation effect of forgiveness on the relationship between recovery and recovery satisfaction. In addition, failure type also plays an important role and there is a significant three-way interaction effect (service recovery × brand equity orientation × failure type) on recovery satisfaction under certain circumstances.

Research limitations/implications

Building on the extant literature which focuses on the cognitive process when investigating recovery and consumer reaction, this research advocates the significant role played by the psychological process, namely, the feeling of forgiveness, in explaining the effect of distinct recovery strategies on consumer satisfaction. This research also unveils the effects of brand equity orientation and failure type on recovery outcomes.

Practical implications

When addressing performance failure, brand equity orientation and failure type need to be identified. Businesses could develop recovery strategies to arouse consumer forgiveness, which would lead to increased recovery satisfaction. When designing recovery strategies, managers need to be mindful of the effects of brand equity orientation and failure type.

Originality/value

This research is one of the few which reveals the mediating role played by forgiveness on the effect of recovery. Taking brand equity orientation and failure type into consideration, the findings of this research provide new insights into the recovery literature.

Details

European Journal of Marketing, vol. 54 no. 10
Type: Research Article
ISSN: 0309-0566

Keywords

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…

3970

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

Keywords

Article
Publication date: 28 November 2019

Rosemary Matikiti, Mercy Mpinganjira and Mornay Roberts-Lombard

The purpose of this paper is to examine the precursors and outcomes of service recovery satisfaction and customer commitment among airline business customers.

Abstract

Purpose

The purpose of this paper is to examine the precursors and outcomes of service recovery satisfaction and customer commitment among airline business customers.

Design/methodology/approach

Data were collected from airline travellers in South Africa using a structured questionnaire. Structural equation modelling was used to analyse the proposed hypotheses.

Findings

The results revealed that recovery expectations and perceived equity exert significant influence on levels of recovery satisfaction, which in turn influence overall satisfaction, trust and commitment. The study also revealed that trust and overall satisfaction are antecedents of customer commitment and that customer commitment has a significant positive relationship with positive word of mouth. It was also established that the quality of past service performance moderates the relationship between recovery satisfaction and commitment.

Practical implications

Airlines are advised to stimulate customer trust in the service delivery process through transparency in the procedures by which they resolve service failures and to remain committed to their service recovery promises to customers. It is also proposed that airlines should secure increased positive word of mouth through offering satisfactory service recovery.

Originality/value

Very little research in the South African context exists which focusses on the influence of customers satisfaction and commitment in the airline industry. This paper helps in establishing the antecedents of customer commitment after service failure in the airline industry.

Details

African Journal of Economic and Management Studies, vol. 11 no. 1
Type: Research Article
ISSN: 2040-0705

Keywords

Open Access
Article
Publication date: 4 May 2022

Andreas Edström, Beatrice Nylander, Jonas Molin, Zahra Ahmadi and Patrik Sörqvist

The service recovery paradox (SRP) is the phenomenon that happens when customer satisfaction level post-service failure and recovery surpasses the customer satisfaction

Abstract

Purpose

The service recovery paradox (SRP) is the phenomenon that happens when customer satisfaction level post-service failure and recovery surpasses the customer satisfaction level achieved at error-free service. The aim of this study was to identify how large the size of compensation has to be at recovery for customer satisfaction to surpass that of error-free service (i.e. to identify a threshold value for SRP). The purpose of this is to inform managers how to restore customer satisfaction yet avoid overcompensation.

Design/methodology/approach

The paper covers two studies. Study 1 used the novel approach of asking participants who had experienced a service failure in the hotel industry what amount of money (recovery) would make them more satisfied than in the case of error-free service. Study 2 then tested the compensation levels expressed by Study 1 participants to be sufficient for the service recovery paradox to occur.

Findings

Study 1 indicated that the threshold for the SRP was (on average) around 1,204 SEK, or just over 80% of the original room reservation price of 1,500 SEK (approx. $180). Study 2 found that (on average) the customer satisfaction of participants who received 1,204 SEK in compensation for service failure marked the point where it surpassed that of error-free service. Participants who received 633 SEK were less satisfied; participants who received 1,774 SEK were more satisfied.

Research limitations/implications

The findings are context-specific. Future research should test the findings' generalizability.

Practical implications

The approach used in this paper could provide managers with a tool to guide their service recovery efforts. The findings could help hotel managers to make strategic decisions to restore customer satisfaction yet avoid overcompensation, given a legitimate service failure in which the organization is at fault.

Originality/value

Numerous previous studies have investigated the occurrence or absence of the SRP at predetermined compensation levels. This paper used a novel approach to find a quantitative threshold at which the magnitude of the recovery effort makes customer satisfaction surpass that of error-free service.

Details

Journal of Service Theory and Practice, vol. 32 no. 7
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 15 April 2022

Muhammad Asghar Ali, Ding Hooi Ting, Ahmad Shahrul Nizam Isha, Muhammad Ahmad-Ur-Rehman and Shoukat Ali

The purpose of this study/paper is first to determine the impact of perceived recovery justice (PRJ) (as a second-order construct) on recovery satisfaction and repurchase…

Abstract

Purpose

The purpose of this study/paper is first to determine the impact of perceived recovery justice (PRJ) (as a second-order construct) on recovery satisfaction and repurchase intentions; secondly, to investigate the mediating impact of customer affection and recovery satisfaction (on the relationship between PRJ and repurchase intentions and satisfaction and repurchase intentions, respectively); and thirdly, to examine the moderating effect of gender on the relationships between PRJ–recovery satisfaction–repurchase intentions.

Design/methodology/approach

The authors used a self-administrated survey technique for data collection. Afterwards, partial least square structural equation modelling was used to evaluate the data from 300 respondents (the automotive insurance industry in Punjab, Pakistan).

Findings

The findings show that PRJ, recovery satisfaction and customer affection positively predict repurchase intentions. PRJ also indirectly predicts repurchase intentions through the mediating effect of recovery satisfaction. Gender has a contingent effect on the PRJ–customer satisfaction–repurchase intentions relationship, such that the effect is higher for females than males. These findings have important theoretical and practical implications. To counter service failure, this study helps to draft effective strategies and policies for the insurance industry to make customers loyal patrons.

Practical implications

These findings have important theoretical and practical implications. To counter service failure, this study helps to draft effective strategies and policies for the insurance industry to make customers loyal patrons.

Originality/value

This study also tested a novel relationship, in that the authors used customer affection as a mediating factor between the satisfaction and repurchase intentions relationship. Moreover, the authors also tested the moderating role of gender in PRJ–recovery satisfaction–repurchase intentions associations.

Details

Journal of Asia Business Studies, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1558-7894

Keywords

Article
Publication date: 8 February 2021

Duy Binh Luong, Kuang-Wen Wu and Thi Huong Giang Vo

This study aims to identify the factors of service recovery strategy that affect customer satisfaction. In addition, this study aims to explore the relationship between…

Abstract

Purpose

This study aims to identify the factors of service recovery strategy that affect customer satisfaction. In addition, this study aims to explore the relationship between consumer satisfaction with service recovery and electronic word of mouth (e-WOM) in the online context.

Design/methodology/approach

A self-administered questionnaire is designed and administered through an online survey. This study evaluates the proposed framework through structural equation modeling with online survey data from 425 samples in the context of online buying.

Findings

The results show that explanation, effort, response speed, problem-solving and apology are the components predicting service recovery strategy. These factors have impacts on customer satisfaction with service recovery and also generate e-WOM about service recovery experiences. This study significantly contributes to not only practical insights but also the expansion of expectation confirmation theory and social exchange theory regarding online service failures.

Research limitations/implications

Samples from non-internet shoppers are not collected because this study focuses on consumers referring to purchase online. Testing this conceptual model for other populations, such as non-online consumers, including the moderating effect of gender, age and education on the relationships proposed in the model may be an interesting extension. Moreover, this study does not distinguish different types of online retailers.

Practical implications

This study highlights the significant effect of customer satisfaction with service recovery on e-WOM. That is, managers should focus on not only making customers satisfied with their initial purchase but also enhancing customer satisfaction with service recovery in case the service failure occurs to encourage positive interaction among customers. This case will also improve the organizational image of a firm.

Originality/value

This study contributes to the identification of service recovery actions that focus on the roles of employees in dealing with service failures and their impacts on customer satisfaction in the online shopping context. In addition, the findings provide a greater understanding of the importance of customer satisfaction on e-WOM.

Details

Journal of Services Marketing, vol. 35 no. 8
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 1 May 1997

Christo Boshoff

As the importance of service quality, as both marketing strategy and competitive advantage, gains more and more recognition, efforts to recover from poor service delivery…

12603

Abstract

As the importance of service quality, as both marketing strategy and competitive advantage, gains more and more recognition, efforts to recover from poor service delivery are receiving increased attention. Yet, much of the literature is based on anecdotal accounts rather than theoretical conceptualizations or rigorous empirical assessment. At least one retailing study has shown that more than 70 per cent of customers who complain can be persuaded to continue shopping with the offending retailer provided that some effort is made to recover. Little, however, is known about which strategies to employ or how these strategies interact to influence customer perceptions and attitudes, especially in a services environment. Assesses, from a management perspective, the impact three service recovery options (decisions) can have on customer satisfaction: time/speed; level of atonement; and who should be involved in service recovery. Finds that level of atonement (a tangible offering) emerged as the most dominant main effect followed by time/speed, while the organizational position of the person involved in service recovery was not significant as a main effect.

Details

International Journal of Service Industry Management, vol. 8 no. 2
Type: Research Article
ISSN: 0956-4233

Keywords

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