scholarly journals Why service recovery fails

2009 ◽  
Vol 20 (3) ◽  
pp. 253-273 ◽  
Author(s):  
Stefan Michel ◽  
David Bowen ◽  
Robert Johnston
Keyword(s):  
Customer Satisfaction ◽  
Service Failure ◽  
Human Resources Management ◽  
Service Recovery ◽  
Recovery Process ◽  
Content Type ◽  
Information Recovery ◽  
Service Logic ◽  
Recovery Management ◽  
A Company

PurposeThe keys to effective service recovery are familiar to many throughout industry and academia. Nevertheless, overall customer satisfaction after a failure has not improved, and many managers claim their organizations cannot respond to and fix recurring problems quickly enough. Why does service recovery so often fail and what can managers do about it? This paper aims to address these issues.Design/methodology/approachThe objective is to produce an interdisciplinary summary of the growing literature on service recovery, bringing together what each of the author's domain – management, marketing, and human resources management – has to offer. By contrasting those three perspectives using 141 academic sources, nine tensions between customer, process, and employee recovery are discovered.FindingsIt is argued that service recovery often fails due to the unresolved tensions found between the conflicting perspectives of customer recovery, process recovery, and employee recovery. Therefore, successful service recovery requires the integration of these different perspectives. This is summarized in the following definition: “Service recovery are the integrative actions a company takes to re‐establish customer satisfaction and loyalty after a service failure (customer recovery), to ensure that failure incidents encourage learning and process improvement (process recovery) and to train and reward employees for this purpose (employee recovery).”Practical implicationsManagers are not advised to directly address and solve the nine tensions between customer recovery, process recovery, and employee recovery. Instead, concentrating on the underlying cause of these tensions is recommended. That is, managers should strive to integrate service recovery efforts based upon a “service logic”; a balance of functional subcultures; strategy‐driven resolution of functional differences; data‐based decision making from the seamless collection and sharing of information; recovery metrics and rewards; and development of “T‐shaped” employees with a service, not just functional, mindset.Originality/valueThis paper provides an interdisciplinary view of the difficulties to implement a successful service recovery management. The contribution is twofold. First, specific tensions between customer, process and employee recovery are identified. Second, managers are offered recommendations of how to integrate the diverging perspectives.

Service recovery for moderate and high involvement services

2015 ◽  
Vol 29 (5) ◽  
pp. 331-343 ◽  
Author(s):  
Silke Bambauer-Sachse ◽  
Landisoa Eunorphie Rabeson
Keyword(s):  
Customer Satisfaction ◽  
Design Methodology ◽  
Service Failure ◽  
Service Recovery ◽  
Level Of Service ◽  
High Involvement ◽  
Content Type ◽  
Failure Severity ◽  
Future Consumption ◽  
Practical Implications

Purpose – The purpose of this study is to determine which level of tangible compensation for a service failure leads to high levels of customer satisfaction for moderate- versus high-involvement services as well as for different conditions of responsibility for the failure and failure severity. Design/methodology/approach – The study is based on a 4 (tangible compensation: gift, discount, credit for future consumption, refund) × 2 (responsibility for the failure: restaurant vs customer) × 2 (failure severity: low vs high) × 2 (involvement: moderate vs high) design using scenarios in a restaurant context. Findings – The results reveal that, for moderate-involvement services, all types of compensation are equally appropriate, except for when customers are responsible for a severe failure. In this condition, they expect tangible compensation of higher benefit. For high-involvement services, the more severe the failure, the higher the benefit of tangible compensation should be, independent of responsibility. Practical implications – The findings suggest that managers should consider the level of service involvement as well as responsibility for and severity of the failure when choosing the level of tangible compensation. Originality/value – The results of this study provide new insights into how to choose appropriate and efficient service recovery measures.

Successful multi-channel strategy: mixing marketing and logistical issues

2016 ◽  
Vol 37 (2) ◽  
pp. 12-19 ◽  
Author(s):  
Sophie Jeanpert ◽  
Gilles Paché
Keyword(s):  
Service Recovery ◽  
Exploratory Research ◽  
Integration Process ◽  
Content Type ◽  
Global Management ◽  
Channel Strategy ◽  
Recovery Management ◽  
A Company ◽  
Practical Implications ◽  
Improve Service Delivery

Purpose When a company simultaneously manages several distribution channels, there are important issues regarding the sharing of marketing and logistical resources. This paper aims to discuss the integration of sales staff, communication and logistical operations to improve service delivery to multi-channel consumers. Design/methodology/approach The paper is based on a literature review regarding multi-channel strategy to build a conceptual framework. This framework is discussed using three illustrations from the French multi-channel distribution field (King Jouet, Fnac and Darty). Findings The exploratory research underlines the importance of information about how consumers order in different channels. This makes the global management of different channels difficult and threatens marketing and logistical sharing. Practical implications The integration process is becoming increasingly important in service recovery. Companies must therefore facilitate total access to logistical information. This requires an organisational interaction between marketing and the supply chain activities. Originality/value The paper underlines the importance of the integration process in service recovery management, particularly when a defective product must be replaced and a new product be made available to consumers.

scholarly journals Relationship between service recovery, customer satisfaction and customer loyalty: Empirical evidence from e-retailing

2021 ◽  
pp. 1-10
Author(s):  
Anh Chi Phan ◽  
Ha Thu Nguyen ◽  
Thoa Xuan Thi Pham
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Developing Economies ◽  
Service Recovery ◽  
Recovery Process ◽  
Purchase Intentions ◽  
The Relationship ◽  
A Company ◽  
Customer Satisfaction And Loyalty

This paper presents the results of an empirical study on the relationship between service recovery quality, customer satisfaction and loyalty in Vietnam’s e-retailing. Structural Equation Modelling (SEM) is applied to analyze the data collected from experienced customers in online shopping in Vietnam from November 2018 to March 2019. The results of statistical analysis indicate that interactive fairness, outcome fairness, procedural fairness significantly impact on customer satisfaction which then increases customer loyalty. This study suggests that customer’s ability to locate and interact with technical support on a website and how a company treats the customer would significantly decide satisfaction and loyalty from customer. E-retailers in developing economies should consider service recovery process as the opportunity to gain customers’ purchase intentions.

Exploring customer loyalty following service recovery: a replication study in the Ghanaian hotel industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
George Oppong Appiagyei Ampong ◽  
Aidatu Abubakari ◽  
Majeed Mohammed ◽  
Esther Theresa Appaw-Agbola ◽  
John Agyekum Addae ◽  
...  
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Service Industry ◽  
Service Recovery ◽  
Interactional Justice ◽  
Recovery Process ◽  
Equation Modeling ◽  
Content Type ◽  
Perceived Justice

PurposeThe study sought to assess the nexus between components of perceived justice and satisfaction, trust and loyalty with service recovery.Design/methodology/approachSurvey data were gathered from a sample of 300 clients from 8 midscale hotels in Ghana. Partial least squares structural equation modeling was used to test the hypothesized relationships.FindingsPerceived distributive justice has no effect on customer satisfaction with service recovery. Interactional justice had the greatest effect on customer satisfaction with service recovery. No significant relationship was found between procedural justice and trust. Also, trust had a significant effect on loyalty post-service recovery.Research limitations/implicationsEmpirical data were taken from one service industry; thus, it is reflective of only that service industry, generalizations should be mindful of our context bounded results.Practical implicationsThe study offers suggestions for managers to leverage the dimensions of perceived justice in order to build trust and loyalty post-service failure. Hotels should treat customers with fairness and respect at every point of contact during the service recovery process. Reward based compensation should be offered to customers to build trust.Originality/valueThe study is among a few to assess service recovery and its link with loyalty from a developing economy context. The study revealed that perceptions of justice with service recovery influences customer loyalty and satisfaction post-service recovery and extend the understanding of service recovery in the Ghanaian hotel sector.

Recovering co-created service failures: the missing link of perceived justice and ethicalness

2019 ◽  
Vol 33 (7) ◽  
pp. 921-935 ◽  
Author(s):  
Shuqin Wei ◽  
Tyson Ang ◽  
Nwamaka A. Anaza
Keyword(s):  
Service Failure ◽  
Service Recovery ◽  
Recovery Process ◽  
Ethical Perceptions ◽  
Content Type ◽  
Perceived Justice ◽  
Service Failures ◽  
Fairness Theory ◽  
The Usa ◽  
Secondary Study

Purpose Drawing on the fairness theory, this paper aims to propose a conceptual framework that investigates how co-creation in the failed service delivery (coproduction intensity) and co-creation in the service recovery affect customers’ evaluation of the firm’s competence, justice and ethicalness, and ultimately their willingness to co-create in the future. Design/methodology/approach Tax services were chosen as the research context. A consumer panel consisting of individuals who live in the USA and have used tax preparation services within the past year was recruited. The first study explores what happens to customers’ ethical perceptions during a failed co-created service encounter. A secondary study investigates what happens to customers’ ethical perceptions in the event that the failed co-created service is recovered. Findings The findings show that customers’ perceptions of the firm’s abilities and ethics are impeded by coproduction intensity but favorably influenced by co-creation of recovery. Practical implications A sense of ethicalness and fairness is violated when co-created service failure occurs, but fortunately, practitioners can count on engaging customers in the service recovery process as co-creators of the solution to positively alter perceived ethicalness and fairness. Originality/value Failed co-created services represent an under-researched area in the marketing literature. Current investigations of co-created service failures have largely approached the notion of fairness from a perceived justice perspective without referencing ethical judgments. However, fairness is grounded in basic ethical assumptions of normative treatment. This research is among the first to highlight the importance of perceived ethicalness in the context of co-created service failure and recovery.

Betrayal? Relationship quality implications in service recovery

2009 ◽  
Vol 23 (6) ◽  
pp. 385-396 ◽  
Author(s):  
Betsy Bugg Holloway ◽  
Sijun Wang ◽  
Sharon E. Beatty
Keyword(s):  
Relationship Quality ◽  
Service Providers ◽  
Negative Impact ◽  
Service Failure ◽  
Service Recovery ◽  
Customer Relationship ◽  
High Quality ◽  
Content Type ◽  
Recovery Management ◽  
Quality Relationships

PurposeThe purpose of this paper is to examine whether high quality relationships buffer or magnify the negative impact of a failed service recovery on subsequent consumer attitudes and behaviors.Design/methodology/approachA total of 264 online shoppers were surveyed using a structured questionnaire. Respondents were asked to imagine themselves in a hypothetical failed service recovery scenario involving a multi‐channel retailer with whom they shop.FindingsResults from a MANCOVA analysis and SEM modeling indicate that, following a failed service recovery incident, high quality relationships present a challenge for the service provider. In accordance with the hypotheses, consumers with a high level of relationship quality will decrease their repurchase intentions to a greater extent; more strongly and negatively adjust their overall relationship quality; and react to the service recovery effort less favorably than those with lower levels of relationship quality.Research limitations/implicationsThe findings suggest that high quality relationships may “raise the bar” of service recovery management, rather than “buffering” firms from service failure.Practical implicationsService providers should consider the potential implications of customer relationship quality in their service recovery management efforts.Originality/valueThe study provides empirical evidence of the “double‐edge” issue of relationship quality in service recovery management, illustrating the need to incorporate this variable in future service failure/recovery research.

To tweet or not to tweet? Exploring the effectiveness of service recovery strategies using social media

2016 ◽  
Vol 36 (9) ◽  
pp. 1014-1036 ◽  
Author(s):  
Ying Fan ◽  
Run Hong Niu
Keyword(s):  
Social Media ◽  
Social Network ◽  
Customer Satisfaction ◽  
Qualitative Data ◽  
Service Recovery ◽  
Recovery Process ◽  
Content Type ◽  
Recovery Strategies ◽  
Failure Severity

Purpose The purpose of this paper is to explore influencing factors that affect the effectiveness of service recovery strategies using social network from operations management perspective. Specifically, the authors study the relationships between social media agent responses to customer complaints, customer emotion changes and customer satisfaction. Furthermore, the authors investigate the roles of recovery speed and failure severity in the service recovery process using social network platform. Design/methodology/approach The results are based on 347 mini cases drawn from the Twitter accounts of a sample of airlines. Grounded theory approach is used to conduct qualitative analysis using NVivo 9, a qualitative data analysis program. A conceptual framework was developed, then tested using χ2 analysis. Findings Agent responses that do not require customers to take further initiatives for problem solving have positive effects on customer emotion alleviation and satisfaction. In contrast, responses that provide further directions poses negative effect on service recovery outcomes. There is a strong positive linkage between customer emotion change and customer satisfaction. Surprisingly, the direct effect of recovery speed on customer emotion and satisfaction is not supported by the data. Rather, it plays a moderating role in affecting the relationship between agent responses and customer satisfaction. The qualitative data further reveals the pivotal role of failure severity, one of key service failure attributes. Research limitations/implications The authors study service businesses’ recovery strategies using social media. A conceptual framework is developed to link agent responses, customer emotion changes and customer satisfaction from the lens of service providers, using an operations-oriented approach. Finding on recovery speed and failure severity reveal that these variables play different roles when service recovery is operated on social media platform as compared to traditional channels. Additionally, relying on tweets as data sources has constrained us from assessing other long-term service recovery outcomes such as loyalty, repurchase intent and word of mouth. The drawback is resulted from the limited information conveyed through tweets, which tends to be short and brief. The study focusses on the airline industry, which limits the generalizability of the findings to other service industries. Practical implications The authors highlight the value and potential of service recovery strategies using social network and provide insights for recovery operations where agent responses should be focussing on real time problem solving. The findings support the benefits of empowering social network agents for service recovery operations. Improving recovery speed should be less of a priority as it serves as a qualifier when service recovery is operated via social network. Given the pivotal role of failure severity, it is critical for social network agents to stand in the shoes of the complaining customers, making imminent assessment of the actual failure severity and taking action accordingly in real time. In the meantime, effective communication through social network may help to lower perceived magnitude of failure by customers, which in turn enhance the effectiveness of other service recovery efforts. Originality/value This study is the first attempt to investigate the service recovery process using social media from an operations-oriented perspective. The results supports the potentials of employing service recovery strategies using social media.

Examining stealing thunder as a new service recovery strategy: impact on customer loyalty

2019 ◽  
Vol 31 (2) ◽  
pp. 931-952 ◽  
Author(s):  
Priyanko Guchait ◽  
Rachel Han ◽  
Xingyu Wang ◽  
JéAnna Abbott ◽  
Yetong Liu
Keyword(s):  
Customer Loyalty ◽  
Interaction Effect ◽  
Positive Impact ◽  
Service Failure ◽  
Service Recovery ◽  
Recovery Process ◽  
Joint Effect ◽  
Recovery Method ◽  
Content Type ◽  
Stealing Thunder

PurposeThis 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/approachThe study adopted a scenario-based between-group experimental design involving 300 customers.FindingsThe 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/valueThis 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.

A customer-dominant logic on service recovery and customer satisfaction

2016 ◽  
Vol 54 (10) ◽  
pp. 2524-2543 ◽  
Author(s):  
Fung Yi Millissa Cheung ◽  
Wai Ming To
Keyword(s):  
Customer Satisfaction ◽  
Service Management ◽  
Service Failure ◽  
Service Recovery ◽  
Equation Modeling ◽  
Recent Experience ◽  
Content Type ◽  
Perceived Justice ◽  
Dominant Logic ◽  
Recovery Processes

Purpose Service recovery is a challenge to organizations because customers will respond to recovery processes and outcomes differently. Yet, there are few studies that examine the antecedents of customer co-recovery. Hence, the purpose of this paper is to adopt a customer-dominant logic to explore the antecedents of customer co-creation of service recovery (CCSR) and its effects on perceived justice and satisfaction. Design/methodology/approach The authors reviewed the service management literature and proposed a theoretical model that links customer involvement with service failure (CISF), customer CCSR, perceived justice, to customer satisfaction with service recovery (CSSR). The sample included 594 customers who had recent experience of service failure and service recovery in Hong Kong. The research model was tested using structural equations modeling. Findings The results of structural equation modeling showed that CISF had an effect on customer CCSR in the form of information sharing and co-production, and this effect influenced customers’ justice perceptions, which in turn affected CSSR. Practical implications The findings supported the notion that service management should be viewed from customer-dominant logic and effective facilitation shall be deployed to engage and support customers in service recovery processes. Originality/value The study contributes to service management by identifying the salient role and form of customer co-creation in making customers feel satisfied with service recovery.

Guilt no longer a sin: the effect of guilt in the service recovery paradox

2015 ◽  
Vol 25 (6) ◽  
pp. 836-853 ◽  
Author(s):  
Yin-Hui Cheng ◽  
Chia-Jung Chang ◽  
Shih-Chieh Chuang ◽  
Ya-Wei Liao
Keyword(s):  
Graduate Students ◽  
Customer Service ◽  
Design Methodology ◽  
Service Failure ◽  
Service Recovery ◽  
Content Type ◽  
Service Failures ◽  
Service Recovery Paradox ◽  
A Company ◽  
Better Than

Purpose – Research on the service recovery paradox (SRP) effect has indicated that after recovery from failures in customer service, customers will commonly rate their satisfaction higher than prior to the service failure. However, thus far there has been little research on the cause of this phenomenon. Accordingly, the purpose of this paper is to explore the effect of “guilt” emotions in the context of consumer service. Design/methodology/approach – Three experiments were conducted to test the hypotheses. Data were collected from 532 undergraduate, graduate students and the general people. Findings – The results of the experiments demonstrate that if customers are compensated for service failures by receiving better than anticipated service, they will commonly experience feelings of “guilt.” In an attempt to alleviate this guilt, customers will project their feelings in evaluating a company, and will rate their customer satisfaction more highly. In doing so, the customer feels relief in reciprocating the kindness of the firm; in this way, the firm wins over the customer’s heart. Originality/value – This is one of the first studies to discuss the effect of guilt in the SRP effect. This research shows that relying on the emotion of “guilt” for receiving exceptional service helps companies to overcome service failures and successfully rebuild their relationships with customers.

Sign in / Sign up

Export Citation Format

Share Document