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The purpose of this paper is to provide an evaluation of the findings first put forward in the article Tracking Service Failures and Employee Recovery Efforts with the benefit of hindsight, and to offer directions for further research and developments in the research area.

Research directions which emanated from the publication of the article have been examined in light of current service(s) marketing theory and practice. As a result, promising current and future strands of research have been identified.

The original study yielded the initial steps into what has become a systematic step-by-step process that outlines the development and implementation of a service recovery program that now includes failure identification; failure attribution; recovery strategy selection; recovery implementation; and tracking, monitoring and evaluating effectiveness. Subsequent research has linked organistic and mechanistic components of a recovery program to important customer and financial outcomes and the development of a service recovery audit.

The original study served as a starting point for the development of a set of implications for services marketing practitioners. Specifically, as a result of the original research, a programmatic approach to service recovery was developed that includes the systematic process of failure identification; failure attribution; recovery strategy selection; (4) recovery implementation; and tracking, monitoring and evaluating effectiveness.

The original article was highly rated, and generated discussion and important further research. It has value as a part of the history of service(s) marketing research. The retrospective analysis by the author(s) gives a unique insight into processes and thinking associated with understanding key aspects that contribute to the historical development of service(s) marketing, and provides substantial food for thought for future research directions.

States that current pricing strategies used in the service industries are often too simplistic and ineffective in the face of complex environmental conditions. Introduces the Pricing Differentiation Premium Model, which includes in the firm′s pricing strategy its ability to differentiate itself from competitors. Discusses possible strategies for influencing differentiation premiums which can improve the pricing discretion of the service provider.

Historically, firms have dedicated an abundance of resources in the pursuit of customer satisfaction and its corresponding favorable consequences. However, research indicates that customer satisfaction may not necessarily result in the outcomes pursued. This paper aims to focus on the concept of customer delight and explore antecedents and consequences of interest to the service firm. More specifically, the proposed model explores the linkages of employee effort, employee expertise and the firm’s tangibles to customer surprise and joy which in turn lead to customer delight and per cent of budget spent.

Data were collected from a grocery store. The hypothesized relationships were tested using structural equation modeling.

Results from this study yield new insights into the dual pathways leading to customer delight through joy and surprise. That is, joy and tangibles lead to both joy and surprise, whereas expertise leads to joy alone. Both joy and surprise are completely mediated through delight to per cent of budget spent. Interestingly, higher frequency customers experience a stronger relationship from joy to delight.

The findings have implications for the ongoing debate on the viability of customer delight and extending the theoretical understanding of why customer delight represents such a powerful force in the service environment.

By providing specific variables that impact both joy and surprise, management can develop tactics to develop delight initiatives.

This is the first study proposing multiple paths to customer delight. Further, this is the first study to link needs based and disconfirmation into a single model.

This study was undertaken to investigate service failures relating to problems with the management of the servicescape. Of the 1,370 failure critical incidents collected, 123 were identified as servicescape failures. The three primary types of servicescape failures most likely to occur, listed in order of frequency, include cleanliness issues, mechanical problems, and facility design issues. The study also identifies eight servicescape subfailure type categories and discusses failure ratings, recovery strategies, recovering ratings and customer retention rates.

An equity theory‐based contingency framework is presented to further our understanding of customer evaluations of the service failure/recovery process. Six contingencies are presented that are proposed to influence the relative importance of interactional and distributive justice on consumer‐based service recovery evaluations. The six contingencies include: depth of the relationship, proximity of the relationship, duration of the encounter, degree of customization, switching costs, and the criticality of consumption. Relevant research propositions are developed and discussed.

Considers the impact of multi‐faceted measures of job satisfaction on customer‐oriented behaviours demonstrated by service providers. Reveals how overall job satisfaction, together with specific satisfaction related to supervision, colleagues, promotion and work are positively related to customer‐orientation, while satisfaction with pay is not of significance in this case. Discusses recommendations for management and suggestions for further research.

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.

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 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.

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.

This paper aims to explore whether demographic differences between diverse customers and service providers impact service failure and recovery perceptions.

The critical incidents technique was used to gather data on service failures and recovery. Chi‐square test of independence and analysis of variance was used to test the hypotheses.

Results from the main study provide little support to the notion that different service failure types or service recovery efforts are being applied when demographic differences exist. However, a post‐hoc analysis focusing on respondents who felt that their demographic differences had impacted their encounter revealed that ethnic differences impacted service failure and recovery perceptions the most.

One limitation is the use of quota sampling that may limit the generalizability of the results. However, due to the exploratory nature of the study and the need for representative cases, this technique was viewed as an effective sampling technique for the purposes of the study.

The post‐hoc results suggest that future diversity training should include employee‐customer diversity, especially in the case of age and ethnicity. Further, that managing perceptions is important so that customers do not feel that they are treated any differently based on a visible demographic variable.

In general, the exploration of customer‐employee demographic differences in the services marketing literature is still somewhat nascent. This paper is unique in that it specifically examines several demographic differences between customers and employees in terms of service failure and recovery perceptions.

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.

Proposes to provide practicing managers and academic researchers with a framework that will help them to understand better the nature of domestic inter‐cultural service encounters.

Social identity theory is used to demonstrate how salient identity cues such as physiognomy, linguistic, and behavioral differences are likely to influence customer expectations during initial and subsequent encounters between domestic customers and culturally distant service providers.

The framework developed, and the associated propositions, provide practicing managers with insights into how domestic service customers are likely to respond to domestic inter‐cultural service encounters.

Domestic intercultural service encounters have special practical implications for staffing policy and training requirements in service organizations (e.g. there may be ethical and legal challenges for service organizations that refuse to hire service providers unless they can demonstrate competence in the domestic language, customs, etc., or because of visible salient cultural identity cues).

Existing service encounter frameworks do not address the role that cultural identity plays in service exchange relationships. The value of this paper is that it uses cultural identity theory to extend an existing model that examines the nature and determinants of customer expectations of service. This extension enhances managers' understanding of service exchange relationships.