Understanding the Impact of Service Failure and Recovery Justice on Consumers’ Satisfaction and Repurchase Intention

This research attempts to explore the impacts of different types of justice and their interactions on the satisfaction toward service failure recovery. We attempt to classify justices into hygiene, motivator, or asymmetric variable, based on the concept of asymmetric effect and two factors theory proposed by Herzberg. Specifically, we predict that procedural and distributive justices are hygiene or performance factor and interpersonal justice is motivator. In addition, based on expectancy-disconfirmation theory (EDT), we also attempt to understand the interaction between paired justices by arguing that motivator can generate more effect when hygiene factor or performance factors meet initial expectation. An experiment, with 3x2x2 between-subjects factorial design consisting of three factors to represent different levels of justice provided by online retailer, will be conducted to test the proposed hypotheses. A two-step approach will be used to (1) confirmation the types (hygiene, performance, or motivator) that each justice dimension belongs to, (2) understand the impact of each justice on satisfaction, and (3) test whether motivator will generate more effect when hygiene and performance factor are satisfied

Perceived Justice and Email Service Recovery

This study adds to the limited research of email service recovery. It is perhaps the first non-US study of email service recovery as well as the first study to apply a theoretical perspective ¬– perceived justice – to email service recovery. The results of three annual studies using Australian data resemble US results and support extending perceived justice to service recovery via email. The distributive elements of replying and offering compensation, the procedural element of answering completely and the interactional element of thanking the customer showed significant positive relationships with customer satisfaction, positive word-of-mouth and repurchase intent. Perhaps most importantly for practitioners, the results of a stepwise regression showed that incorporating the simple phrase "thank-you" in the email reply was a strong predictor of successful email service recovery. Finally, this study found that response time might be less critical than previously thought

The Intentional Use of Service Recovery Strategies to Influence Consumer Emotion, Cognition and Behaviour

Service recovery strategies have been identified as a critical factor in the success of. service organizations. This study develops a conceptual frame work to investigate how specific service recovery strategies influence the emotional, cognitive and negative behavioural 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 x 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

A bibliometric investigation of service failure literature and a research agenda

Purpose - This research studies the citations made in service failure literature, and assesses the knowledge construction of this region of exploration to date. Design/methodology/approach - The bibliometric investigation assesses 416 service failure articles in business associated research. Multidimensional scaling (MDS) is employed to uncover the scope of the scholarly impacts that have helped understand the nature of the service failure literature. The establishment of knowledge in the service failure literature is revealed by analysing co-citation data to identify significant topical impacts. Findings - The theoretical model combines five areas with significant propositions for the future improvement of service failure as an area of investigation. The most important research themes in-service failure literature are service failure, service failure communication, the recovery process, recovery offer and intention. Research limitations/implications - Potential research concentrating on the service failure literature could use search terms improved from the literature review, or use a comparable approach whereby a board of well-informed scholars approved the keywords used. Practical implications - This paper is beneficial for any reader who is interested in understanding the components of the perception of justice and recovery and how it improves repurchase intention. Originality/value - The study seeks to influence resource and recovery-based concepts and utilises the five supporting knowledge groups to suggest a plan for future research that fills existing gaps and offers the possibility of expanding and enhancing the service failure literature

Perceptions of Justice after Recovery Efforts in Internet Purchasing: the Impact on Consumer Trust and Loyalty toward Retailing Sites and Online Shopping in General

The main goal of this paper is to extend the traditional theoretical model of service recovery to the online purchasing environment by investigating the impact of perceptions of justice after recovery efforts toward unsatisfactory Internet purchasing on customer trust and loyalty. The authors develop a theoretical model focusing on interrelationships among complaint handling evaluations, quality of prior experience, familiarity, trust, perceived value and loyalty. To test this model, 3,339 customers from all over Brazil who had been engaged in complaint processes about online purchases within the past 6 months answered an online questionnaire. Findings indicate that interpersonal treatment by the e-retailer improves consumer perceptions of the online recovery process. Consumer trust in the firm's website is strongly influenced by satisfaction with complaint handling, familiarity and the quality of prior experiences with the website, while consumer trust in Internet shopping is mainly affected by familiarity and the quality of prior experiences with Internet purchasing. These two dimensions of trust are distinct and represent discrete facets, as they do not impact each other. Moreover, repurchase intentions and word-of-mouth communication are influenced by consumer trust

Service recovery's impact on customers next-in-line

Purpose - Previous research considers service recovery as a one-on-one interaction between a service provider and a complaining customer. However, customers frequently complain at the place where they receive the service, making an investigation of the impact of a service recovery on observing customers necessary. Using observational learning theory and attribution theory as theoretical anchors, this paper examines whether observing a service recovery influences the observing customers' satisfaction and repurchase intentions. In addition, this paper tests whether service quality perceptions mediate, and customers' locus of control attributions moderate these relationships. Design/methodology/approach - Study 1 tests the main hypothesis using a scenario-based experiment in two settings (restaurant, retail). Study 2 further elaborates on these findings using a scenario-based experiment in a hotel setting. Findings - The findings show that the negative consequences of a failed recovery extend beyond the complaining customers to observing customers, whereas the positive consequences of observing a satisfactory recovery do not influence the observing customer when compared to observing a failure-free service delivery. These relationships are driven by the service quality information customers extract from observing a service recovery. In addition, the results indicate that the negative spill-over effects are attenuated if the observing customer gets information about who caused the failure. Originality/value - From a theoretical point of view, this study contributes by outlining service recovery's different impacts on complaining and observing customers: whereas service recovery forms a critical for complaining customers, it only acts as a dissatisfier for observing customers. In addition, it is the first to test a potential explanation for why observing a service recovery leads to lower customer outcomes, and provides insights about how service providers might attenuate the negative spill-over effects of a failed recovery

The Effectiveness of Compensation for Service Recovery:Roles of Perceived Equity and Relationship Level

This present study examined the different equity perceptions depending on consumer-organization relationships. More specifically, this study examined the mediating role of equity perceptions in the relationships between compensation and consumer’s future behavioral intentions. Furthermore, the moderating effects of consumer’s relationship level on perceived equity as well as behavioral intentions were examined

Critical review of the e-loyalty literature: a purchase-centred framework

Over the last few years, the concept of online loyalty has been examined extensively in the literature, and it remains a topic of constant inquiry for both academics and marketing managers. The tremendous development of the Internet for both marketing and e-commerce settings, in conjunction with the growing desire of consumers to purchase online, has promoted two main outcomes: (a) increasing numbers of Business-to-Customer companies running businesses online and (b) the development of a variety of different e-loyalty research models. However, current research lacks a systematic review of the literature that provides a general conceptual framework on e-loyalty, which would help managers to understand their customers better, to take advantage of industry-related factors, and to improve their service quality. The present study is an attempt to critically synthesize results from multiple empirical studies on e-loyalty. Our findings illustrate that 62 instruments for measuring e-loyalty are currently in use, influenced predominantly by Zeithaml et al. (J Marketing. 1996;60(2):31-46) and Oliver (1997; Satisfaction: a behavioral perspective on the consumer. New York: McGraw Hill). Additionally, we propose a new general conceptual framework, which leads to antecedents dividing e-loyalty on the basis of the action of purchase into pre-purchase, during-purchase and after-purchase factors. To conclude, a number of managerial implementations are suggested in order to help marketing managers increase their customers’ e-loyalty by making crucial changes in each purchase stage

The mediating influence of service failure explanation on customer repurchase intention through customers satisfaction

Purpose The purpose of this paper is to examine the effect of explanation on customer satisfaction in the service failure stage. It seeks to better understand the dynamics of consumer repurchase intention through a mediating effect of customer satisfaction. Design/methodology/approach A structured questionnaire was e-mailed to collect the primary data. With three reminders, this study managed to obtain 322 responses from customers who complained about their internet service in Malaysia. Structural equation modelling techniques were applied to examine both direct and mediating effects between variables. Findings Results reveal that all four dimensions of explanation have significant partial mediating effect on repurchase intention through customer satisfaction. Results also disclose that there is no significant relationship between excuse and customer satisfaction in service failure. Among all dimensions, reference and apology have higher influence on repurchase intention through customer satisfaction. Research limitations/implications The results are particularly valuable for managers, as it supports the role of using explanation as a practical tool for fostering positive and profitable outcomes like repeat customer purchases. Practical implications The findings of this study will help organisations rethink their explanation strategies with the eye to foster greater customer repurchase intention. Originality/value The results are particularly valuable for managers, as they support the role of using explanation as a practical tool for fostering positive and profitable outcomes like repeat customer purchases

CUSTOMER SERVICE RECOVERY IN HOSPTALITY: TOWARD AN UNDERSTANDING OF THE ROLE OF THE SERVICE PROVIDER UTILIZING RAWL’S JUSTICE THEORY

The purpose of this study was to gain a deeper understanding of the determinants and outcomes of service recovery and the utility of Rawls’ (1971) justice theory with respect to service recovery in a hospitality context. Specifically, the study examined the dimensionality of the service recovery construct proposed by Tax, Brown and Chandrashekaran (1998) and identified measures of service recovery satisfaction from a multidimensional perspective. In addition, the study incorporated the variables of “trust” and “commitment” in an attempt to better understand the impact of service recovery on the service provider – customer relationship. Finally, this study examined how respondents who identify as culinary travelers differ from non-culinary travelers in the context of service recovery. In order to test the proposed research hypotheses, a quasi-experimental design was employed by having participants respond to a simulated service recovery, following a hypothetical service error. The 2 * 4 factorial between-subject design consisted of two independent variables: service error severity and the perception of justice (distributive justice, interactional justice and procedural justice). Participants were randomly selected to one of eight scenarios involving a hypothetical service error and subsequent recovery experience, and recruited via Amazon’s Mechanical Turk (MTurk) crowdsourcing platform. Data collection was held from March 28th through February 2nd 2018. The results revealed several key findings. First, it was found that respondents’ recovery satisfaction is highest (with the exception of a “baseline” recovery) when presented with a service recovery that prioritizes the perception of distributive justice, and to a lesser extent, the perception of procedural justice. Second, results suggest that while the severity of a service failure can influence the impact of justice on recovery satisfaction, the impact of severity was not found to be as critical as was previously suggested. Third, while recovery satisfaction was found to have a significant impact on overall satisfaction (with the firm), overall satisfaction was found to be a better predictor for post-recovery customer evaluations. Fourth, results indicated that one-time service failures had significant and negative impacts on both trust and commitment. These results provide both theoretical and practical implications for restaurant practitioners in terms of differential service recovery strategies based on practitioner objectives