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This paper reports on a study investigating key attributes of service recovery strategies in internet shopping mall. In theses day, service recovery has received important attention in the service operation management literature. Service recovery involves those actions designed to resolve problems, alter negative attitudes of dissatisfied consumers and to ultimately retain these customers. The study examined that service recovery strategies (apology, compensation) impact on the customer satisfaction. And customer satisfaction impacts on customer loyalty with SEM (Structural Equation Modeling). This study can be used a strategic implication for internet shopping mall managers to develop successful service recovery strategies.

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.

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).

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.

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.

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.

This study aims to investigate the moderating role of low and high failure severity levels on recovery satisfaction and on behavioral intentions through recovery satisfaction. This research adopted justice theory and regulatory focus theory to provide further explanations on the inconsistencies in the extant literature regarding service failure and responses to service recovery.

This study applied a scenario-based experimental design of two (perceived justice: low vs high) by two (failure severity: low vs high) between-subjects factorial design. Data was collected from 237 mobile phone users recruited via convenience sampling. This study examined the hypothesized relations using Hayes (2018) PROCESS macro version 4.0.

Perceived justice had a higher positive effect on recovery satisfaction at a high failure severity level. The direct effect of perceived justice on behavioral intentions was significant and positive only at a high level of failure severity, whereas the indirect effect of perceived justice on consumers’ positive behavior through recovery satisfaction was more positive at a high level of failure severity.

Justice theory and regulatory focus theory can be used to explain how a well-implemented recovery effort can offset losses that are caused by a highly severe service failure leading to satisfaction and positive responses. However, as this study was conducted within a telecommunication service context, this research needs to be replicated in other areas, including the use of other data collection methods and measurement of consumers’ regulatory focus orientation.

The findings of this study provide managers with valuable insights into the allocation of service providers’ resources for recovery actions according to consumers’ perceived severity levels to regain consumer satisfaction and continued positive behavioral intentions.

Past research on the effect of failure severity levels on recovery satisfaction and consumers’ positive behavioral intentions is scant, and those studies that examined severity levels have shown conflicting results. This study attempted to advance the research by examining the relationship between perceived justice, recovery satisfaction and behavioral intentions at low and high failure severity levels using justice theory and regulatory focus theory. None of the theories have been examined concurrently in the service failure and recovery framework.

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.

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.

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.

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.

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.

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.

By expanding on the work of White and Yanamandram (2007), the purpose of this paper is to examine the direct and indirect influences of switching barriers on the relationship between recovery satisfaction and repurchase intentions in an online auction environment.

Data were collected from 272 customers who had experienced online service recovery in the past six months. Partial-least squares and mediated moderation analysis are employed to test the research model.

The interrelationships among recovery satisfaction, relationship quality, and repurchase intentions are confirmed. Both lost benefit switching costs and inertia moderate the relationship between recovery satisfaction and repurchase intentions. Attractiveness of alternatives mediates the moderating effect of inertia on the relationship between recovery satisfaction and repurchase intentions.

Unlike previous studies, which have treated switching cost as a switching barrier, or used various components to represent switching barriers, this study incorporates switching cost, relationship quality, inertia, and attractiveness of alternatives as four switching barrier factors. This study further examines the direct and indirect effects of switching barriers on the relationship between recovery satisfaction and repurchase intentions.

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.

Building on disconfirmation theory, equity theory and affect‐balance theory, considers antecedents to satisfaction with service recovery. A theoretical model is proposed and tested empirically based on a cross‐sectional national sample of 201 dissatisfied customers complaining of services. The results suggest that perceived performance of service recovery has an impact on equity. Second, disconfirmation of expectations of service recovery and perceived fairness of outcome of service recovery have an impact on satisfaction with service recovery. Finally, negative affect caused by the initial service failure does not have an impact on satisfaction with service recovery.

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.

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.

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.

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.

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.

To do an empirical assessment of the psychometric properties of an instrument that captures the multi‐dimensional nature of satisfaction with service recovery (RECOVSAT) using data (post‐recovery satisfaction ratings) from customers who have actually complained to a service firm.

The methodology is a survey of bank clients who have lodged complaints with a retail bank.

The empirical results suggest that a refined and shorter version of RECOVSAT demonstrates excellent construct validity when used to measure the post‐recovery satisfaction of complaining customers.

RECOVSAT is a valid and reliable instrument that can and should be used by service managers to assess customer satisfaction with their service recovery efforts. Failure to ensure that complaining customers are satisfied with the firm's service recovery efforts, can only lead to serious problems, as the service firm will be letting the customer down for the second time.

Practitioners or service firms can use their customer complaint database to calculate satisfaction with service recovery scores (RECOVSAT scores) for different geographical regions, for different business units or different departments, even per individual employee. These scores can even be linked to remuneration or service level agreements.

First study to empirically assess the psychometric properties of an instrument that captures the multi‐dimensional nature of satisfaction with service recovery using data (post‐recovery satisfaction ratings) from customers who have actually complained to a service firm. Confirmed validity and reliability.

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.

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.

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.

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

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.

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.