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1 – 10 of over 22000K. 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 restaurant…
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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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…
Abstract
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.
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Víctor Iglesias, Concepción Varela-Neira and Rodolfo Vázquez-Casielles
– The purpose of this paper is to analyze the effects of attributions on the efficacy of service recovery strategies in preventing customer defection following a service failure.
Abstract
Purpose
The purpose of this paper is to analyze the effects of attributions on the efficacy of service recovery strategies in preventing customer defection following a service failure.
Design/methodology/approach
The empirical investigation is carried out on the retail banking industry with a final sample of 448 real cases of customer retention or defection after a service failure.
Findings
The results of the study not only highlight the relevance of intentionality as an additional factor in explaining customer defection, but also show the effects of some attributional dimensions (intentionality and controllability) on the efficacy of some recovery strategies (redress, apology and explanation) applied by companies to prevent post-complaint customer defection.
Practical implications
The efficacy of the recovery strategies depends on the causal attributions that the customer makes about the service failure.
Originality/value
This study analyzes not only the effects of traditional dimensions of attribution (stability and controllability), but also the additional effect that intentionality attributions may have on actual customer defection (not intentions). Moreover, it analyzes their effects on the effectiveness of recovery strategies in preventing customer defection. Most of these effects have never been empirically analyzed in the literature.
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Rania Mostafa, Cristiana R. Lages and Maria Sääksjärvi
This paper aims to address the gaps in service recovery strategy assessment. An effective service recovery strategy that prevents customer defection after a service failure is a…
Abstract
Purpose
This paper aims to address the gaps in service recovery strategy assessment. An effective service recovery strategy that prevents customer defection after a service failure is a powerful managerial instrument. The literature to date does not present a comprehensive assessment of service recovery strategy. It also lacks a clear picture of the service recovery actions at managers’ disposal in case of failure and the effectiveness of individual strategies on customer outcomes.
Design/methodology/approach
Based on service recovery theory, this paper proposes a formative index of service recovery strategy and empirically validates this measure using partial least-squares path modelling with survey data from 437 complainants in the telecommunications industry in Egypt.
Findings
The CURE scale (CUstomer REcovery scale) presents evidence of reliability as well as convergent, discriminant and nomological validity. Findings also reveal that problem-solving, speed of response, effort, facilitation and apology are the actions that have an impact on the customer’s satisfaction with service recovery.
Practical implications
This new formative index is of potential value in investigating links between strategy and customer evaluations of service by helping managers identify which actions contribute most to changes in the overall service recovery strategy as well as satisfaction with service recovery. Ultimately, the CURE scale facilitates the long-term planning of effective complaint management.
Originality/value
This is the first study in the service marketing literature to propose a comprehensive assessment of service recovery strategy and clearly identify the service recovery actions that contribute most to changes in the overall service recovery strategy.
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Lukas P. Forbes, Scott W. Kelley and K. Douglas Hoffman
The authors propose focusing on e‐commerce service failure and recovery through the presentation of failure and recovery strategies employed by e‐commerce service firms.
Abstract
Purpose
The authors propose focusing on e‐commerce service failure and recovery through the presentation of failure and recovery strategies employed by e‐commerce service firms.
Design/methodology/approach
The authors employ the critical incident technique using 377 customer responses to present ten e‐tail failures and 11 e‐tail recovery strategies used by e‐commerce service firms. The authors also present data on post‐recovery satisfaction levels and propensity to switch behavior.
Findings
Findings indicate that: e‐tail customers experience different types of service failure relative to traditional retail settings; e‐tail firms employ a different series of recovery strategies relative to traditional retail settings; and post‐recovery switching by e‐tail customers can be high even with satisfying experiences.
Originality/value
This paper strengthens the existing failure and recovery literature by presenting data on the largest growing sector of the service industry. These findings will have value to traditional firms looking to expand to e‐commerce channels in addition to e‐commerce firms currently experiencing customer dissatisfaction.
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This study examines the different effects of service recovery strategies on customers' future intentions when online shoppers were experiencing delivery failures. Two types of…
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.
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Jo Ann M. Duffy, John M. Miller and James B. Bexley
Through means of an empirical study of service recovery in US retail banking this paper aims to examine the link between satisfaction and various recovery strategies.
Abstract
Purpose
Through means of an empirical study of service recovery in US retail banking this paper aims to examine the link between satisfaction and various recovery strategies.
Design/methodology/approach
A total of 310 bank customers responded to a survey addressing customer demographics, levels of satisfaction, types of recovery strategies, and service recovery employees. Frequencies, chi‐square analysis and correspondence analysis were used to analyze the data.
Findings
The findings show no significant difference in recovery strategies or satisfaction by customer age, gender, or tenure with bank. However, the degree of customer satisfaction was strongly influenced by the type of recovery strategy used by the bank. The results indicate that recovery efforts are best directed toward empathic listening and fixing the problem rather than apologizing or making atonement.
Originality/value
This study of service recovery in US retail banking provides useful information on the link between satisfaction and various recovery strategies.
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Barbara R. Lewis and Sotiris Spyrakopoulos
Focuses on an empirical investigation of service failures and service recovery in retail banking. Different types of failures, and the recovery strategies used by Greek banks to…
Abstract
Focuses on an empirical investigation of service failures and service recovery in retail banking. Different types of failures, and the recovery strategies used by Greek banks to respond to them, were identified using the critical incident technique. A survey questionnaire was then developed to measure customers’ perceptions of the magnitude of service failures and the effectiveness of service recovery strategies. A number of research hypotheses were tested relating to customers’ evaluations of particular banking failures and recovery strategies, their previous experience of failures, demographic variables, and relationships with their banks. Service failures were found to be of varying importance and different service recovery strategies more effective for particular failures; further, customers with long relationships or high deposits with their banks were more demanding with respect to service recovery.
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Arash Ahmadi and Sohrab Fakhimi
The main purpose of this work is to evaluate the different psychological impacts of two initial verbal recovery strategies (gratitude vs empathetic apology) on the consumers'…
Abstract
Purpose
The main purpose of this work is to evaluate the different psychological impacts of two initial verbal recovery strategies (gratitude vs empathetic apology) on the consumers' loyalty after a service failure. The proposed theoretical model also appraises the mediating role of two emotional responses (consumer forgiveness, consumer anger) and consumer self-esteem and the moderating role of self-oriented perfectionism.
Design/methodology/approach
Two studies (i.e. an experimental design and a field study) are considered for this investigation to assess the effectiveness of gratitude expression versus empathetic apology on post-recovery loyalty and test the effects of mediators and the moderator applied between the verbal recovery strategies and post-recovery loyalty.
Findings
The results of Study 1 revealed the supremacy of gratitude to empathetic apology in maintaining consumers' loyalty after service failure recovery. The better impact of gratitude expressed in increasing post-recovery loyalty is mediated through the elevation of consumers' forgiveness, the reduction of consumers' anger and consumers' self-esteem. The findings of Study 2 indicated that gratitude increases more post-recovery loyalty through individuals with a high level of self-oriented perfectionism.
Research limitations/implications
Future research could examine other service failure situations, different types of service recovery, mediators or moderators, which contribute to the service marketing literature.
Practical implications
After a service failure, using gratitude expressions to consumers often makes them feel better and more valuable.
Originality/value
This work increases service providers' knowledge in using proper expressions after a service failure to help elevate consumers' positive reactions resulting in maintaining their loyalty.
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Priyanko Guchait, Rachel Han, Xingyu Wang, JéAnna Abbott and Yetong Liu
This paper aims to examine how stealing thunder, apology and compensation influence customer loyalty in a service failure context, and how trust mediates these relationships.
Abstract
Purpose
This paper aims to examine how stealing thunder, apology and compensation influence customer loyalty in a service failure context, and how trust mediates these relationships.
Design/methodology/approach
The study adopted a scenario-based between-group experimental design involving 300 customers.
Findings
The results indicated that stealing thunder, apology and compensation have a joint effect on customer loyalty. Specifically, this study found a significant positive impact of stealing thunder on loyalty; a two-way interaction effect of compensation and stealing thunder on loyalty; and a three-way interaction effect on loyalty. Additionally, trust mediated the relationship between service recovery attributes (stealing thunder, apology and compensation) and customer loyalty.
Originality/value
This study introduces a new service recovery method called Stealing Thunder, which is commonly used in the fields of law and communication and is the first to assess stealing thunder as a proactive/preemptive strategy to handle service failures and its impact on customer loyalty. The study found that when stealing thunder was present, compensation had no influence on customer loyalty. Moreover, when stealing thunder was present, compensation had no impact on loyalty when apology was not present. However, compensation had a significant effect on loyalty when stealing thunder and apology were not present. This study finds the value of including proactive/preemptive strategies (stealing thunder) along with regular service recovery strategies (e.g. apology and compensation) in the service recovery process. Results show that service recoveries that include stealing thunder help service failure recovery significantly by increasing customer’s trust.
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