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Article
Publication date: 1 May 1995

K. Douglas Hoffman, Scott W. Kelley and Holly M. Rotalsky

Demonstrates a method for examining service failures and recoverystrategies in service industries and provides a typology of servicefailures and recoveries in the…

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11184

Abstract

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.

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Journal of Services Marketing, vol. 9 no. 2
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 1 December 2006

Katherine E. Harris, Lois A. Mohr and Kenneth L. Bernhardt

The purpose of this paper is to examine the differences in consumers' attributions of blame for service failures and its affect on their expectations for recovery in both…

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6562

Abstract

Purpose

The purpose of this paper is to examine the differences in consumers' attributions of blame for service failures and its affect on their expectations for recovery in both online and offline settings.

Design/methodology/approach

A sample of non‐student adults participated in a 2 (service type) by 2 (shopping medium) experimental design testing the affects of on‐ and offline shopping on consumers' attributions of blame for a service failure. Specifically, regression is employed to test the effects of on/offline medium on blame and expected service failure recovery in both the airline and banking industries.

Findings

Empirical support is found for the hypotheses that online subjects blame themselves more for service failures, and, in turn, expect less of a recovery than offline consumers. The on/offline medium is shown to have a mediated effect on expected service failure recovery through blame in the airline data. In the bank data, on/offline medium has a significant affect on blame, and blame has a significant affect on expected service failure recovery, though on/offline medium does not show a mediated affect on expected service failure recovery.

Practical implications

Because online customers tend to blame themselves more for service failures, managers may be able to offer less of service failure recovery online than offline. Furthermore, online customers may be more willing to recover for themselves, thereby saving the firm money and placing customers more in control of their service experience.

Originality/value

This study allows for the possibility of consumers' blaming themselves for service failures and, to our knowledge, this is the first study to examine how attribution for service failure affects expected service failure recovery in both on‐ and offline settings. Managers should find our results useful in developing service failure recovery strategies.

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Journal of Services Marketing, vol. 20 no. 7
Type: Research Article
ISSN: 0887-6045

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Article
Publication date: 11 November 2021

Erlinda Nusron Yunus

This study examines the different effects of service recovery strategies on customers' future intentions when online shoppers were experiencing delivery failures. Two…

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Originality/value

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

Details

International Journal of Productivity and Performance Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1741-0401

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Article
Publication date: 25 October 2021

Marcus Wardley

This paper aims to examine the effects of a general service recovery effort in consumers who were not victims of the service failure.

Abstract

Purpose

This paper aims to examine the effects of a general service recovery effort in consumers who were not victims of the service failure.

Design/methodology/approach

This study uses a 2 × 2 between-subjects design comparing a service failure announcement with apology and an anniversary event announcement, either with a 15% discount or no discount on purchase intentions.

Findings

A service recovery effort involving an apology and 15% discount leads to higher purchase intention in consumers who were not victims of the service failure in comparison to a control. The unexpected apology generates surprise, which amplifies the effect of the discount, leading to higher purchase intention.

Practical implications

The results of this study suggest that apologizing and offering a discount for a minor service failure can have positive effects on consumers who were not victims of the service failure. Thus, if a company is unsure which consumers have been affected by a service failure, this study shows that issuing a general apology for the failure does not have negative effects in unaffected consumers.

Originality/value

To the best of the author’s knowledge, this paper is the first to examine the effects of a service recovery effort in consumers who were not victims of the service failure and the first to find evidence of a service recovery paradox in unaffected consumers.

Details

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

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Article
Publication date: 29 September 2021

Shampy Kamboj, Manika Sharma and Bijoylaxmi Sarmah

This study seeks to observe the association between mobile banking failures, use of m-banking and customer engagement to determine the contribution of user satisfaction…

Abstract

Purpose

This study seeks to observe the association between mobile banking failures, use of m-banking and customer engagement to determine the contribution of user satisfaction towards m-banking as mediator between the aforementioned relationship.

Design/methodology/approach

This study proposes a Mobile Banking Failure Model (MBFM) by integrating four failure dimensions (functional, system, information and service) based on Tan's failure model and DeLone and Mclean's Information Success model. In this paper, data was gathered from 338 respondents, who were the customers of banks and regular users of m-banking services of their respective banks in India. A survey method was employed to collect data. Structure equation modelling (SEM) was used to analyse the collected data.

Findings

The results suggest that all m-banking failure dimensions (functional, system, information and service) affect the use of m-banking, which in turn affects user satisfaction towards m-banking and customer engagement. Additionally, this study found that user satisfaction towards m-banking acts as a partial mediator between the use of m-banking and customer engagement.

Research limitations/implications

The banking failure and its use by customers have been examined in the context of mobile banking in India only and thereby limits the generalization of results to other industry and country contexts.

Practical implications

The results of this paper will guide bank managers and policy planners in implementing MBFM in the Indian banking context, specifically for their m-banking apps.

Originality/value

The use of m-banking, user satisfaction towards m-banking and customer engagement have been added as three supportive variables to the basic Tan's failure model and DeLone and Mclean's Information Success model to examine the impact of m-banking failure on bank customers' usage behaviour. This is a novel addition to the extant literature, as most empirical works in this domain are from industries other than banking (specifically m-banking) and with differing contexts.

Details

International Journal of Bank Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0265-2323

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Article
Publication date: 2 August 2021

Mauricio Palmeira, Minjung Koo and Hyun-Ah Sung

This paper aims to examine how observers evaluate a company that provides service failure (or excellence) to an immoral versus a moral customer. This study introduces the…

Abstract

Purpose

This paper aims to examine how observers evaluate a company that provides service failure (or excellence) to an immoral versus a moral customer. This study introduces the concept of deservingness to the service literature and suggests that observers appreciate when a company delivers “justice” – either bad service to an immoral customer or good service to a moral customer – and thus evaluate the company more favorably.

Design/methodology/approach

This paper presents three online studies using scenarios (ns = 205, 199 and 181) and one lab study (n = 89) using a confederate to manipulate customer morality.

Findings

Across four studies, this study finds that a service failure has a less negative impact on observers’ company evaluations when observers consider the target customer immoral, and thus deserving of the bad outcome. Conversely, the positive impact of observing service excellence is enhanced when observers consider the target customer to be moral, and thus deserving of a good outcome. This effect occurs because the perception of deservingness leads observers to experience more positive feelings about the service outcome and these positive feelings transfer over to observers’ evaluations of the service provider.

Research limitations/implications

The mechanism shares some similarities with the concept of immanent justice reasoning, whereby individuals draw a causal link between someone’s prior immoral behavior and an unrelated negative outcome. However, the studies go one step further by showing that such causal reasoning, at least on a moral level, can impact the judgments of the other party (in this case, the company involved in the service outcome).

Practical implications

Service providers need to be particularly attentive when serving customers who are viewed in a positive light, as an observed failure that affects a moral customer can be particularly damaging to company evaluations. Conversely, companies should make efforts to publicize when exceptional service is given to nice, admirable customers, as this is particularly effective at improving evaluations.

Originality/value

Researchers have examined how allocations of responsibility affect observers' evaluation of service encounters. This paper adds deservingness as an alternate mechanism and examines service excellence as well.

Details

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

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Article
Publication date: 15 June 2021

Jong-Hyeong Kim, Wenxuan Du and Hyewon Youn

The service recovery paradox (SRP) refers to a particular effect whereby an excellent recovery can turn angry and frustrated customers into loyal ones. Researchers who…

Abstract

Purpose

The service recovery paradox (SRP) refers to a particular effect whereby an excellent recovery can turn angry and frustrated customers into loyal ones. Researchers who have studied the SRP have reported mixed findings, with some providing evidence in its support and others not finding any such evidence. To address this discrepancy, this study aims to investigate the SRP.

Design/methodology/approach

This study re-examined the phenomenon of the SRP with a field study and provided further evidence in a subsequent experimental study in which the failure and recovery conditions were carefully manipulated.

Findings

The results of this study suggest that the SRP was observed in neither the field study nor the scenario experiment.

Practical implications

This study can influence the current service management of restaurants with regard to service failures in several ways.

Originality/value

This research is a pioneering effort to examine the SRP by conducting both a field study and a scenario experiment.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

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Article
Publication date: 11 January 2021

Bengü Sevil Oflaç, Ursula Y. Sullivan and Zeynep Kaya Aslan

This paper aims to examine the relationships between locus of attribution, recovery justice perceptions, recovery satisfaction and repurchase intention after a B2B service failure.

Abstract

Purpose

This paper aims to examine the relationships between locus of attribution, recovery justice perceptions, recovery satisfaction and repurchase intention after a B2B service failure.

Design/methodology/approach

Structural equation modeling was used to analyze 300 customer surveys from hospitality businesses. The connections between the selected variables were explored through path analysis using AMOS 24.

Findings

Based on the results, the more that business customers blame their wholesalers after a service failure, the less they perceive the procedures in the recovery process as fair. Findings also indicate that in the recovery process, interactional connections through fair treatment and inclusion of customer opinions are important to achieve high recovery satisfaction levels. Moreover, if business customers perceive the monetary compensation provided as fair, their recovery satisfaction increases, and recovery satisfaction then helps to retain these business customers after a service failure.

Research limitations/implications

Starting from the locus of blame, this study highlights the after-failure calculation that business customers make in considering their recovery justice perceptions and the resulting satisfaction level.

Practical implications

The findings have relevance for B2B relationships. This study provides practical processes for failure and recovery management in B2B settings, especially for wholesale providers who function as resellers rather than as manufacturers.

Originality/value

The contributions from this study are largely due to examining B2B service failure and recovery as a process that starts at the pre-recovery stage with the locus of attribution followed by recovery justice perceptions. Whereas other studies have focused more on justice perceptions, the authors go back a step in the recovery process to better understand the antecedents of repurchase intention in B2B transactions.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 8
Type: Research Article
ISSN: 0885-8624

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Article
Publication date: 12 January 2021

Ke Ma and Xin Zhong

The purpose of this study is to examine the effect of perceived justice and consumer's moral judgment of a service failure on recovery outcomes.

Abstract

Purpose

The purpose of this study is to examine the effect of perceived justice and consumer's moral judgment of a service failure on recovery outcomes.

Design/methodology/approach

The research model is examined by adopting a field study approach followed by an experiment. The SPSS program with the PROCESS tool was used to analyze the simple moderation and moderated mediation effects.

Findings

The research findings show that consumer's moral judgment of a service failure moderates the relationship between service recovery (psychological compensation vs monetary compensation) and recovery outcomes (recovery satisfaction, negative word of mouth and repurchase intention). Moreover, the conditional indirect effect of service recovery on recovery outcomes through perceived justice is significant when service failure is seen as less moral. Specifically, consumers report lower perceived justice and react negatively to recovery measures when service failure is seen as less moral. In contrast, when consumers perceive a service failure as moral, a psychological compensation outperforms a monetary compensation, lessening negative word of mouth (NWOM).

Originality/value

These findings provide important insights into recovery measure development when considering consumer moral perspectives.

Details

Marketing Intelligence & Planning, vol. 39 no. 4
Type: Research Article
ISSN: 0263-4503

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Article
Publication date: 19 February 2021

Hyounae (Kelly) Min and Jeff Joireman

The purpose of this study is to examine how customer race (Black vs White) influences the extent to which customers attribute an ambiguous service failure (i.e. subtle…

Abstract

Purpose

The purpose of this study is to examine how customer race (Black vs White) influences the extent to which customers attribute an ambiguous service failure (i.e. subtle degradation of service) to discrimination and how perceived discrimination relates to customer anger and on-site coping behaviors (vindictive complaining, problem-solving complaining and avoidance). This study further investigated how customer race affects the strength of relationships among perceived discrimination, anger and these three coping behaviors.

Design/methodology/approach

This study used a video-based simulation in which participants watched a subtle service failure from the customer’s viewpoint before completing a survey. A total of 421 participants – 210 Blacks and 211 Whites – were recruited through Qualtrics. Multigroup structural equation modeling (SEM) analysis was used to test hypotheses.

Findings

Compared with White customers, Black customers were more likely to attribute a service failure to discrimination and exhibited a stronger relationship between perceived discrimination and anger. In addition, increasing anger in White customers tended to lead to more active coping strategies (i.e. vindictive complaining, problem-solving complaining). For Black customers, increasing anger tended to lead to vindictive complaining at a similar level to White customers. However, the impact of anger on problem-solving complaining – known to be a more beneficial coping strategy – was stronger among White customers than among Black customers.

Practical implications

This study advances hospitality practitioners’ understanding of how customers respond on-site to a service failure that can be interpreted as discrimination. The varying effects of race on customer-coping behavior are also identified. In addition, this study offers practical advice to develop organizational strategies to dissuade customers from attributing service failure to discrimination and to respond effectively to customer-coping behaviors.

Originality/value

Complementing and extending past research documenting the prevalence and causes of racial discrimination in service settings, the present study advances prior work by developing and testing a comprehensive structural model linking race with coping responses via perceived discrimination and anger, and by exploring how race affects the strength of relationships among perceived discrimination, anger and coping strategies.

Details

International Journal of Contemporary Hospitality Management, vol. 33 no. 3
Type: Research Article
ISSN: 0959-6119

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