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1 – 10 of over 33000Dominique A. Keeffe, Rebekah Russell-Bennett and Alastair Tombs
Service recovery strategies have been identified as a critical factor in the success of service organizations. This study develops a conceptual framework to investigate how…
Abstract
Service recovery strategies have been identified as a critical factor in the success of service organizations. This study develops a conceptual framework to investigate how specific service recovery strategies influence the emotional, cognitive and negative behavioral responses of consumers, as well as how emotion and cognition influence negative behavior. Understanding the impact of specific service recovery strategies will allow service providers to more deliberately and intentionally engage in strategies that result in positive organizational outcomes. This study was conducted using a 2×2 between-subjects quasi-experimental design. The results suggest that service recovery has a significant impact on emotion, cognition and negative behavior. Similarly, satisfaction, negative emotion and positive emotion all influence negative behavior but distributive justice has no effect.
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 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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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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Shinyong Jung, Jiyun Kang and Hhye Won Shin
This study aims to explore how professional event associations’ recovery strategies are perceived by members and to measure the consequent influence of the perceived fit of…
Abstract
Purpose
This study aims to explore how professional event associations’ recovery strategies are perceived by members and to measure the consequent influence of the perceived fit of recovery strategies on organizational identification (OI), consistent behavioral intentions and long-term commitment intentions.
Design/methodology/approach
Data were collected from current members of professional event management associations who work not only as event planners but also as service providers in the hospitality and tourism industry. The authors used partial least squares structural equation modeling to test the proposed model.
Findings
The perceived fit between recovery strategy and internal domains, the self in particular, was found to be the most important in exerting effects directly on OI, and its indirect effects are significant on all the behavioral intentions toward the association, while the perceived fit of recovery strategy with external domains, especially the industry, was not significant with any of the other factors.
Practical implications
The findings from the present study provide professional event association leaderships with significant managerial implications in establishing a sustainable business model to retain current members and increase their intentions toward consistent engagement and long-term commitment.
Originality/value
Stepping forward from the strategic management and organizational behavior literature in the private sector, the authors shed light on a crisis recovery mechanism of professional associations in the event industry, to the best of the authors’ knowledge, the first such attempt in the event management literature.
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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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Yuanyuan Guo, Chaoyou Wang and Xiaoting Chen
This study aims to examine the relative effectiveness of functional and financial remedies in influencing customers' negative coping responses in the event of a data breach. It…
Abstract
Purpose
This study aims to examine the relative effectiveness of functional and financial remedies in influencing customers' negative coping responses in the event of a data breach. It also uncovers the different mediating roles played by customers' feelings of anger and fear in the process of data breach recovery. This study thus differs from the literature, which has primarily focused on the impact of financial compensation and apologies for service failures in face-to-face environments.
Design/methodology/approach
Two scenario-based experiments were conducted to empirically validate the model. The authors received 302 copies of the questionnaire, of which 269 were valid.
Findings
This study finds that functional remedies are more effective than financial remedies when sensitive information has been compromised, but there is no significant difference between the effectiveness of the two remedies when nonsensitive information has been compromised. In addition, functional remedies influence negative coping behaviors directly and indirectly; the indirect effect is achieved through the reduction of fear and anger. Contrary to the authors' expectation, financial remedies do not have a direct effect on negative coping behaviors; they can indirectly affect negative coping behaviors by reducing anger but do not affect negative coping behaviors by reducing fear.
Practical implications
This study provides key insights into how to manage customer reactions in the event of a data breach, suggesting the use of carefully designed recovery strategies. Companies must attend to customers' specific emotional responses to manage their negative coping behaviors.
Originality/value
This study extends the limited literature on data breach recovery actions by investigating the different effectiveness of functional and financial remedies in the event of a data breach. It also uncovers how functional and financial recovery strategies affect customers' negative coping behaviors by revealing the different mediating effects of fear and anger.
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Yllka Azemi, Wilson Ozuem and Geoff Lancaster
Despite scholarly effort to understand customers’ recovery evaluation, little progress is evident in deciphering how customers develop online failure/recovery perception. This…
Abstract
Purpose
Despite scholarly effort to understand customers’ recovery evaluation, little progress is evident in deciphering how customers develop online failure/recovery perception. This paper aims to address this issue.
Design/methodology/approach
Social constructivism was the epistemic choice for this study. This approach is holistic and offers a comprehensive understanding of each side of the phenomena. This provided social scientific descriptions of people and their cultural bases and built on, and articulated what was implicit in interpretations of their views.
Findings
Online banking customer groups were identified as: exigent customers, solutionist customers and impulsive customers. Customers’ position in each group determined failure perception, recovery expectation and evaluation, and post-recovery behaviour. Comparisons were observed and discussed in relation to Albania and Kosovo. It was suggested that banks should expand their presence in social media platforms and offer a means to manage online customer communication and spread of online WOM.
Research limitations/implications
For exigent customers, the failure/recovery responsibility is embedded within the provider. This explains their high sensitivity and criteria to define a failure.
Practical implications
Online banking customers’ request of a satisfactory recovery experience included: customer notifications, customer behaviour, customer determination, and the mediator of request. 10;Providers should examine customer failure/recovery experiences in cooperation with other banks which should lead to a higher order understanding of customer withdrawal and disengagement activities.
Social implications
Post-recovery behaviour is linked to the decline of online banking usage, switching to new providers, and the spread of negative online and off-line word-of-mouth.
Originality/value
This is the first empirical study on online service failure and recovery strategy to provide information on customers’ unique preferences and expectations in the recovery process. Online customers are organised into a threefold customer typology, and explanation for the providers’ role in the online customer failure-recovery perception construct is presented.
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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