The effect of CSR on consumer behavioral responses after service failure and recovery

2016 ◽  
Vol 28 (5) ◽  
pp. 583-599 ◽  
Author(s):  
Mobin Fatma ◽  
Imran Khan ◽  
Zillur Rahman
Keyword(s):  
Structural Equation ◽  
Service Failure ◽  
Recovery Process ◽  
Equation Modeling ◽  
Content Type ◽  
Service Failures ◽  
Service Failure And Recovery ◽  
Recovery Satisfaction ◽  
One Year ◽  
Corporate Social

Purpose This paper aims to examine the interconnection between the consumer perceived corporate social responsibility (CSR) and its effect on the post-recovery satisfaction and loyalty after service failures. Design/methodology/approach An intercept survey has been conducted during June to August, 2015, in the Delhi NCR area of India. The respondent to the survey includes the hotel customers who have experienced the service failure in the previous one year. The convenience sampling method has been used with the structured questionnaire. To test the proposed model, structural equation modeling is applied. Findings The finding of the present study provides the empirical evidence of the existence of a relationship between perceived CSR and customer post-recovery satisfaction and loyalty influenced by trust. Research limitations/implications The present study has suffered from the recall biases in the survey data. Although the responses were gathered from respondents on the basis of their actual service recovery experience in the preceding year, recall bias may have influenced the responses. The present study highlights a salient role of CSR initiatives, wherein managers can understand the influence of perceived in CSR and analyze the service recover encounters and ensure that recovery process improves the customer perception of CSR. Originality/value This study reinforces the significance of consumer perceived CSR and its effect on post-recovery satisfaction and loyalty after service failures.

Examining the impact of locus and justice perception on B2B service recovery

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bengü Sevil Oflaç ◽  
Ursula Y. Sullivan ◽  
Zeynep Kaya Aslan
Keyword(s):  
Structural Equation ◽  
Service Failure ◽  
Recovery Process ◽  
Equation Modeling ◽  
Repurchase Intention ◽  
Content Type ◽  
Recovery Satisfaction ◽  
Justice Perceptions ◽  
Business Customers ◽  
The Impact

Purpose This paper aims to examine the relationships between locus of attribution, recovery justice perceptions, recovery satisfaction and repurchase intention after a B2B service failure. Design/methodology/approach Structural equation modeling was used to analyze 300 customer surveys from hospitality businesses. The connections between the selected variables were explored through path analysis using AMOS 24. Findings Based on the results, the more that business customers blame their wholesalers after a service failure, the less they perceive the procedures in the recovery process as fair. Findings also indicate that in the recovery process, interactional connections through fair treatment and inclusion of customer opinions are important to achieve high recovery satisfaction levels. Moreover, if business customers perceive the monetary compensation provided as fair, their recovery satisfaction increases, and recovery satisfaction then helps to retain these business customers after a service failure. Research limitations/implications Starting from the locus of blame, this study highlights the after-failure calculation that business customers make in considering their recovery justice perceptions and the resulting satisfaction level. Practical implications The findings have relevance for B2B relationships. This study provides practical processes for failure and recovery management in B2B settings, especially for wholesale providers who function as resellers rather than as manufacturers. Originality/value The contributions from this study are largely due to examining B2B service failure and recovery as a process that starts at the pre-recovery stage with the locus of attribution followed by recovery justice perceptions. Whereas other studies have focused more on justice perceptions, the authors go back a step in the recovery process to better understand the antecedents of repurchase intention in B2B transactions.

Service recovery satisfaction in offline and online experiences

2019 ◽  
Vol 38 (1) ◽  
pp. 1-14
Author(s):  
Raphael Odoom ◽  
George Cudjoe Agbemabiese ◽  
Robert E. Hinson
Keyword(s):  
Service Providers ◽  
Service Failure ◽  
Service Recovery ◽  
Content Type ◽  
Service Failures ◽  
Service Failure And Recovery ◽  
Recovery Strategies ◽  
Recovery Satisfaction ◽  
Empirical Tests ◽  
Service Managers

Purpose Given that the peculiar nature of the internet has introduced new dimensions of service delivery as well as new dimensions of service failures and recovery, the purpose of this paper is to investigate and compare the relationships between recovery strategies and recovery satisfaction within offline and online settings. Design/methodology/approach Data for the empirical tests of our hypotheses were collected via offline and online (specifically Facebook and Twitter) samples of customers who have experienced some form of service failure and recovery measures from service providers within the past year. Findings The results indicate that recovery strategies largely influence recovery satisfaction among aggrieved customers. However, these are conditional and not invariant across the two settings. In the authors’ offline setting, in particular, apology did not show a statistically significant impact on recovery satisfaction, even though, along with compensation and explanation, this relationship was significant among the online sample. Originality/value The study offers practical implications for service managers within emerging economies on the various conditions where they can maximise their service recovery efforts (both offline and online) to generate optimum recovery satisfaction.

Online service failure: how consumers from emerging countries react and complain

2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Simoni F. Rohden ◽  
Celso Augusto de Matos
Keyword(s):  
Structural Equation ◽  
Switching Costs ◽  
Service Failure ◽  
Cultural Orientation ◽  
Emerging Countries ◽  
Cultural Dimensions ◽  
Third Party ◽  
Equation Modeling ◽  
Content Type ◽  
Service Failures

Purpose E-commerce has experienced huge growth in emerging countries, but analysis of service failure/recovery for online retailers has been limited in this context. Hence, this study aims to investigate customers’ reactions to service failures in e-commerce and the influence of cultural dimensions on complaint intentions. Design/methodology/approach A survey was conducted with 553 customers from Brazil, India and China. A model was proposed and tested using structural equation modeling. Findings Results indicate that satisfaction with service recovery (SSR) increases repurchase intentions and reduces third-party complaints and negative word-of-mouth. This study also shows that the reactions of consumers to service failures in online situations are influenced by their cultural orientation (i.e. individualism, uncertainty avoidance and power distance) and contingent factors (i.e. relationship level, switching costs and the severity of the failure). Originality/value This study shows that the extent to which consumers from emerging countries complain after a service failure in online purchases will depend on their cultural orientation, previous experiences with the retailer, switching costs and the severity of the failure.

Identifying brand touchpoints to increase switching costs in the banking industry

2019 ◽  
Vol 38 (3) ◽  
pp. 718-736 ◽  
Author(s):  
Abdullah Sultan
Keyword(s):  
Factor Analysis ◽  
Structural Equation ◽  
Switching Costs ◽  
Service Providers ◽  
Banking Industry ◽  
Service Failure ◽  
Customer Experience ◽  
Equation Modeling ◽  
Exploratory Research ◽  
Content Type

Purpose The purpose of this paper is to study the effect of staged customer experiences on customer switching costs in the banking industry. Design/methodology/approach Brand touchpoints in the banking industry are identified by exploratory research using focus group sessions with bank customers and staff and refined by exploratory factor analysis using an independent sample of bank customers to form the staged customer experience construct. The proposed research model is then validated by confirmatory factor analysis with an independent sample using structural equation modeling. Findings Customer experience in the banking industry consists of four related but distinct stages (i.e. pre-touch, in-touch, post-touch and service failure). The first three stages have direct and indirect effects on switching costs that are partially mediated by relationship quality. Research limitations/implications Customer experience is an industry-specific construct with complicated effects on switching costs. Thus, the staged customer experience construct should be examined in different industries and applications to understand its implications. Practical implications Bank customers demand experiences that achieve desirable results in everyday situations and switch to other service providers easily if this demand is not met. Banks should focus on brand touchpoints that are both important to customers and increase switching costs to keep customers from defecting. Originality/value This research expands upon findings in the customer experience literature by exploring factors that link staged customer experiences with switching costs in the banking industry. In addition, a paradox is identified in the staged customer experience model that requires managers’ attention in order to design an effective customer experience strategy.

Service recovery satisfaction and customer commitment in the airline business

2019 ◽  
Vol 11 (1) ◽  
pp. 91-108
Author(s):  
Rosemary Matikiti ◽  
Mercy Mpinganjira ◽  
Mornay Roberts-Lombard
Keyword(s):  
Airline Industry ◽  
Structural Equation ◽  
Word Of Mouth ◽  
Service Failure ◽  
Service Recovery ◽  
Positive Word ◽  
Content Type ◽  
Customer Commitment ◽  
Recovery Satisfaction ◽  
Positive Word Of Mouth

Purpose The purpose of this paper is to examine the precursors and outcomes of service recovery satisfaction and customer commitment among airline business customers. Design/methodology/approach Data were collected from airline travellers in South Africa using a structured questionnaire. Structural equation modelling was used to analyse the proposed hypotheses. Findings The results revealed that recovery expectations and perceived equity exert significant influence on levels of recovery satisfaction, which in turn influence overall satisfaction, trust and commitment. The study also revealed that trust and overall satisfaction are antecedents of customer commitment and that customer commitment has a significant positive relationship with positive word of mouth. It was also established that the quality of past service performance moderates the relationship between recovery satisfaction and commitment. Practical implications Airlines are advised to stimulate customer trust in the service delivery process through transparency in the procedures by which they resolve service failures and to remain committed to their service recovery promises to customers. It is also proposed that airlines should secure increased positive word of mouth through offering satisfactory service recovery. Originality/value Very little research in the South African context exists which focusses on the influence of customers satisfaction and commitment in the airline industry. This paper helps in establishing the antecedents of customer commitment after service failure in the airline industry.

scholarly journals The relationships among service failure, service recovery, customer satisfaction and trust at international hospitals: A Case in Vietnam

2021 ◽  
Vol 9 (4) ◽  
pp. 887-896 ◽  
Author(s):  
Quoc Nghi Nguyen ◽  
Van Tung Huynh ◽  
Van Nam Mai
Keyword(s):  
Customer Satisfaction ◽  
Structural Equation ◽  
Service Failure ◽  
Service Recovery ◽  
Interactional Justice ◽  
Three Dimensions ◽  
Equation Modeling ◽  
Hospital System ◽  
Service Failures ◽  
And Behavior

The objective of this study is to demonstrate the relationships among the severity of service failure, service recovery, customer satisfaction and loyalty towards the Vietnamese international hospital system. The research data were collected from 303 customers who have used services and experienced service failures at international hospitals. Applying Structural Equation Modeling, the study pointed out that service failure includes three dimensions, which are system failure, request failure, and behavior failure. Meanwhile, service recovery is made up of three dimensions which are distributive justice, procedural justice, and interactional justice. The severity of service failure positively affects service recovery and service recovery puts a powerful impact on customer satisfaction, thereby increasing their trust in international hospitals in Vietnam.

Corporate social responsibility toward stakeholders and customer loyalty: investigating the roles of trust and customer identification with the company

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Niki Glaveli
Keyword(s):  
Corporate Social Responsibility ◽  
Social Responsibility ◽  
Social Exchange ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Equation Modeling ◽  
Content Type ◽  
Corporate Social ◽  
Customer Trust ◽  
The Impact

Purpose This study aims to uncover the underlying multiple intervening mechanisms between corporate social responsibility (CSR) and customer loyalty. Social identity and social exchange theories offer the ground for prediction that the primary outcomes of CSR initiatives are customer–company (C–C) identification and customer trust, which in turn affect customer loyalty. Also, the differential effect of CSR behaviors toward specific stakeholder groups on customer attitudes and behaviors are examined. Design/methodology/approach Data were collected from 333 customers of telecommunication companies in Greece. Structural equation modeling was used to test the postulated relationships. Findings The findings demonstrate that both C–C identification and customer trust intervene in the relationship between customer perceptions of CSR and customer loyalty; however, the identification mechanism is stronger than the trust mechanism in building customer loyalty while C–C identification seems to drive customer trust. Moreover, out of the three CSR components (customers, employees, and society/environment) that were considered as relevant to customers and were investigated, customer-centric activities were found to be the stronger predictor of both C–C identification and customer trust. Also, CSR toward society/environment was found to positively influence C–C identification. Practical implications The findings of this research can assist practitioners in effectively conceptualizing CSR image from a customers’ point of view and designing their company’s CSR and communication strategies to boost positive customer responses and strong long-term relationships. Originality/value The current study provides further insights into the complex relationship between CSR and customer responses and the impact that different CSR activities may have on customers.

Does CSR influence firm performance? A longitudinal study of SME sectors of Pakistan

2019 ◽  
Vol 11 (1) ◽  
pp. 27-53 ◽  
Author(s):  
Muhammad Ikram ◽  
Robert Sroufe ◽  
Muhammad Mohsin ◽  
Yasir Ahmed Solangi ◽  
Syed Zulfiqar Ali Shah ◽  
...  
Keyword(s):  
Longitudinal Study ◽  
Firm Performance ◽  
Structural Equation ◽  
Design Methodology ◽  
Empirical Studies ◽  
Equation Modeling ◽  
Content Type ◽  
Significant Relationships ◽  
Corporate Social ◽  
The Impact

Purpose This study aims to examine whether corporate social responsibility (CSR) activities influence firm performance based on a longitudinal survey for small and medium-sized enterprises (SMEs) in Pakistan. Empirical studies suggest that the SME sector plays an essential role in the economic development of Pakistan and can be considered the backbone of the economy. Design/methodology/approach The data for this study were collected from SMEs located in the cities of Karachi, Lahore and Faisalabad in Pakistan. A well-designed questionnaire was administrated over 240 entrepreneurs to analyze and measure the impact of CSR on financial performance for a 12-month period. The authors used econometric analysis of the data using structural equation modeling. Findings Results reveal significant relationships between CSR and two determinants of firm performance, namely, employee commitment and corporate reputation. Research limitations/implications Findings of the study are important for policymakers, entrepreneurs and other professionals in SMEs sectors both in under-developed and, with further application and exploration, in developing countries. Originality/value There is no single longitudinal study prior to this has been carried out on the relationships of CSR and firm performance in the SME sector in the context of the Pakistani economy. Hence, this study significantly fills an important gap in the research.

Corporate social responsibility and business ethics: conceptualization, scale development and validation

2019 ◽  
Vol 29 (4) ◽  
pp. 431-439
Author(s):  
Dana E. Harrison ◽  
O.C. Ferrell ◽  
Linda Ferrell ◽  
Joe F. Hair, Jr
Keyword(s):  
Corporate Social Responsibility ◽  
Business Ethics ◽  
Social Responsibility ◽  
Convergent Validity ◽  
Structural Equation ◽  
Discriminant Validity ◽  
Equation Modeling ◽  
Content Type ◽  
Initial Item ◽  
Corporate Social

Purpose The purpose of this paper is to theoretically develop and empirically validate separate scales that represent a consumer’s expectations of business ethics (BE) and corporate social responsibility (CSR). Design/methodology/approach A literature review and qualitative research were conducted to generate items for the scales. Initial item reduction was performed qualitatively based on a panel of experts. A follow-up quantitative assessment using an exploratory factor analysis further reduced the items. The scales were then validated using confirmatory composite analysis with partial least squares-structural equation modeling. Findings Separate scales representing consumers’ expectations of BE and CSR behaviors were developed. The scales exhibited reliability, convergent validity, discriminant validity and external validity. Practical implications The separation of these scales into two components will facilitate more precise examination of consumer perceptions of these two components of product and brand images, and how they may impact brand attitudes and brand trust. Originality/value This is the first effort to develop separate scales for consumer expectations of ethics and CSR, and assess their impact on brand outcomes.

Examining the relationship between e-service recovery quality and e-service recovery satisfaction moderated by perceived justice in the banking context

2020 ◽  
Vol 27 (6) ◽  
pp. 1951-1980
Author(s):  
Sonia Mathew ◽  
Ajay Jose ◽  
Rejikumar G ◽  
Dony Peter Chacko
Keyword(s):  
Information Quality ◽  
Banking Sector ◽  
Service Failure ◽  
Service Recovery ◽  
Equation Modeling ◽  
Content Type ◽  
Perceived Justice ◽  
Recovery Satisfaction ◽  
The Impact ◽  
The Relationship

PurposeThe study focuses on the core issue faced by bankers on how to retain existing customers who have encountered an e-service failure and who are skeptical about the justice received through the service recovery process. It further endeavors to create an internal bench-marking model for assessing e-service recovery satisfaction.Design/methodology/approachBy the experimental study, the authors confirm a measurement model using structural equation modeling for examining the impact of perceived service recovery quality antecedents on e-service recovery satisfaction moderated by perceived justice. In total, responses from 399 e-banking customers, who had experienced a e-service failure, were recorded using a 5-point Likert scale with a structured questionnaire.FindingsThe perceived e-service recovery quality antecedents identified were perceived information quality, digital commitment, perceived employee performance and perceived service orientation of organization. The empirical results revealed that “perceived information quality” was the most significant predictor of e-service recovery satisfaction. Perceived justice moderates the relation between perceived service recovery quality and e-service recovery satisfaction.Research limitations/implicationsThe research does not contemplate the e-service recovery satisfaction of customers who have undergone multiple service failures.Practical implicationsThe conclusions of the investigation suggest that the four antecedents of perceived e-service recovery quality model are suitable instruments for creating benchmarks for e-service recovery satisfaction for banks, and that perceived justice moderates the relationship between e-service recovery quality and e-service recovery satisfaction. Therefore, policymakers in banks can use this model to assess the e-service recovery quality, and they ought to enhance the perceived justice feel of the customers who have experienced a service failure.Originality/valueThere remains scarcity of empirical research focusing on perceived information quality and digital commitment as antecedents of perceived e-service recovery quality and its effect on e-service recovery satisfaction in the banking context. Furthermore, similar studies within the banking sector have rarely considered perceived justice as a moderator variable. Hence, this paper attempts to accomplish the research gap by empirically testing the e-service recovery satisfaction level of a large sample of the population toward four antecedents of perceived e-service recovery quality rendered by banks and create a benchmark model to ascertain e-service recovery satisfaction.

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