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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

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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…

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1323

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

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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…

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8331

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

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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…

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3717

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: 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

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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. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 24 June 2020

Sonia Mathew, Ajay Jose, Rejikumar G and Dony Peter Chacko

The study focuses on the core issue faced by bankers on how to retain existing customers who have encountered an e-service failure and who are skeptical about the justice…

Abstract

Purpose

The study focuses on the core issue faced by bankers on how to retain existing customers who have encountered an e-service failure and who are skeptical about the justice received through the service recovery process. It further endeavors to create an internal bench-marking model for assessing e-service recovery satisfaction.

Design/methodology/approach

By the experimental study, the authors confirm a measurement model using structural equation modeling for examining the impact of perceived service recovery quality antecedents on e-service recovery satisfaction moderated by perceived justice. In total, responses from 399 e-banking customers, who had experienced a e-service failure, were recorded using a 5-point Likert scale with a structured questionnaire.

Findings

The perceived e-service recovery quality antecedents identified were perceived information quality, digital commitment, perceived employee performance and perceived service orientation of organization. The empirical results revealed that “perceived information quality” was the most significant predictor of e-service recovery satisfaction. Perceived justice moderates the relation between perceived service recovery quality and e-service recovery satisfaction.

Research limitations/implications

The research does not contemplate the e-service recovery satisfaction of customers who have undergone multiple service failures.

Practical implications

The conclusions of the investigation suggest that the four antecedents of perceived e-service recovery quality model are suitable instruments for creating benchmarks for e-service recovery satisfaction for banks, and that perceived justice moderates the relationship between e-service recovery quality and e-service recovery satisfaction. Therefore, policymakers in banks can use this model to assess the e-service recovery quality, and they ought to enhance the perceived justice feel of the customers who have experienced a service failure.

Originality/value

There remains scarcity of empirical research focusing on perceived information quality and digital commitment as antecedents of perceived e-service recovery quality and its effect on e-service recovery satisfaction in the banking context. Furthermore, similar studies within the banking sector have rarely considered perceived justice as a moderator variable. Hence, this paper attempts to accomplish the research gap by empirically testing the e-service recovery satisfaction level of a large sample of the population toward four antecedents of perceived e-service recovery quality rendered by banks and create a benchmark model to ascertain e-service recovery satisfaction.

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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…

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12194

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

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Article
Publication date: 14 September 2015

Beatriz Moliner-Velázquez, María-Eugenia Ruiz-Molina and Teresa Fayos-Gardó

The purpose of this paper is, first, to analyze the direct effects of the relationship chain “causal attributions and recovery efforts → satisfaction with service recovery

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4331

Abstract

Purpose

The purpose of this paper is, first, to analyze the direct effects of the relationship chain “causal attributions and recovery efforts → satisfaction with service recovery → conventional and online word-of-mouth intentions” and, second, to study the moderating role of age in the relationship between satisfaction and subsequent word-of-mouth. Consumer assessment and behavior associated with service recovery is a topic of considerable interest for both academics and practitioners.

Design/methodology/approach

From an empirical perspective, this paper uses a sample of 336 individuals who experienced service failure at a retail store to estimate a structural equation model. Additionally, a multigroup analysis allows testing the existence of a moderating effect of age on the hypothesized relations.

Findings

Results allow to confirm the direct effects of causal attributions and recovery efforts on satisfaction with service recovery, and the impact of the latter, in turn, on conventional and online word-of-mouth intentions. Furthermore, the multigroup analysis reveals that age moderates the relationship between satisfaction and online word-of-mouth.

Practical implications

In service recovery situations, retailers should concentrate their efforts at providing evidence of the failure as temporary and inevitable as well as offering material or economic compensation.

Originality/value

This paper contributes to the identification of the most relevant variables influencing customer satisfaction with service recovery in a retail context. In addition to this, these results provide support to the importance of age on online word-of-mouth behavior.

Details

Journal of Consumer Marketing, vol. 32 no. 6
Type: Research Article
ISSN: 0736-3761

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Article
Publication date: 12 February 2018

Wen-Chin Tsao

This study investigated distributive justice (DJ), procedural justice (PJ) and interactional justice (IJ) in the recovery of service in the hotel industry as well as their…

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1347

Abstract

Purpose

This study investigated distributive justice (DJ), procedural justice (PJ) and interactional justice (IJ) in the recovery of service in the hotel industry as well as their effects on post-recovery satisfaction and the subsequent behavior of customers. This study also sought to elucidate the moderating effects of star ratings on these influences.

Design/methodology/approach

A field experiment design with 424 consumers using structural equation modeling was adopted to test the study hypotheses.

Findings

DJ, PJ and IJ were all shown to have a significantly positive effect on post-recovery satisfaction, which in turn has a significantly positive effect on customer loyalty and significantly negative effect on customer defection. Analysis on the moderating effects of star ratings also revealed that the relationship between DJ and post-recovery satisfaction during recovery efforts is stronger for hotels with higher star ratings than for hotels with lower star ratings. During recovery, post-recovery satisfaction was shown to be more effective in reducing customer defection from hotels with lower star ratings than from hotels with higher star ratings.

Practical implications

This study provides a reference by which hotels can match their service recovery mechanism to their star rating to retain customers and increase customer loyalty in the event of service failure.

Originality/value

This study confirms the importance of IJ in the service recovery processes in the hotel industry and provides verification that the star rating of a hotel plays a crucial role as a moderator between recovery effort and recovery effectiveness.

Details

International Journal of Contemporary Hospitality Management, vol. 30 no. 2
Type: Research Article
ISSN: 0959-6119

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