Gaining satisfaction: the role of brand equity orientation and failure type in service recovery

2020 ◽  
Vol 54 (10) ◽  
pp. 2317-2342
Author(s):  
Ke Ma ◽  
Xin Zhong ◽  
Guanghui Hou
Keyword(s):  
Brand Equity ◽  
Service Recovery ◽  
Experimental Studies ◽  
Mediation Effect ◽  
Mediation Effects ◽  
Content Type ◽  
Failure Type ◽  
Recovery Strategies ◽  
Recovery Satisfaction ◽  
The Relationship

Purpose This study aims to examine the role played by brand equity orientation and failure type in service recovery. Specifically, through the lens of forgiveness, the way brand equity orientation and failure type influence consumer response to recovery is revealed. Design/methodology/approach This research tests a novel model using data collected from 1,589 consumers in two scenario-based experimental studies. The statistical product and service solutions (SPSS) program with the PROCESS tool was used to test the mediation and moderated mediation effects. Findings The research findings suggest that forgiveness plays a mediation role in the relationship between recovery and satisfaction. Brand equity orientation moderates the mediation effect of forgiveness on the relationship between recovery and recovery satisfaction. In addition, failure type also plays an important role and there is a significant three-way interaction effect (service recovery × brand equity orientation × failure type) on recovery satisfaction under certain circumstances. Research limitations/implications Building on the extant literature which focuses on the cognitive process when investigating recovery and consumer reaction, this research advocates the significant role played by the psychological process, namely, the feeling of forgiveness, in explaining the effect of distinct recovery strategies on consumer satisfaction. This research also unveils the effects of brand equity orientation and failure type on recovery outcomes. Practical implications When addressing performance failure, brand equity orientation and failure type need to be identified. Businesses could develop recovery strategies to arouse consumer forgiveness, which would lead to increased recovery satisfaction. When designing recovery strategies, managers need to be mindful of the effects of brand equity orientation and failure type. Originality/value This research is one of the few which reveals the mediating role played by forgiveness on the effect of recovery. Taking brand equity orientation and failure type into consideration, the findings of this research provide new insights into the recovery literature.

scholarly journals Mediating Service Recovery Satisfaction in the Relationship between Internet Service Recovery and Customer Loyalty

2017 ◽  
Vol 12 (10) ◽  
pp. 24
Author(s):  
Mauro Sciarelli ◽  
Abdelhakim A. Nagm ◽  
Mona I. Dakrory ◽  
Mario Tani ◽  
Mohamed A. Khashan
Keyword(s):  
Customer Loyalty ◽  
Service Providers ◽  
Service Failure ◽  
Service Recovery ◽  
Internet Service ◽  
Mediating Role ◽  
Recovery Strategies ◽  
Recovery Satisfaction ◽  
Customer's Loyalty ◽  
The Relationship

This current study purposes to identify the relationships between service recovery strategies, service recovery satisfaction, and both dimensions of customer loyalty in regard to Internet providers using the partial least squares (PLS-SEM) approach on a sample of 430 internet customers in Egypt.This study contributes insights into how seven service recovery strategies affected customer loyalty with its both attitudinal and behavioral dimensions directly and indirectly via service recovery satisfaction. These insights are helpful for service managers faced with service failure and academicians interested in how service providers respond to service failures and customer dissatisfaction in the B2C context.The results of this study show that some SR strategies positively influence both service recovery satisfaction and customer loyalty toward internet providers. Furthermore, service recovery satisfaction positively influencing the customer loyalty. In addition, SRS plays a mediating role in the relationship between SR strategies and customer loyalty. The results highlight that internet service providers should implement SR strategies quickly and with an empathetic manner to satisfy customers and to encourage customer's loyalty. Finally, some implications and further research directions were presented.

Face, fate and brand equity: service recovery justice and satisfaction

2020 ◽  
Vol 37 (7) ◽  
pp. 843-854
Author(s):  
Joseph Lok-Man Lee ◽  
Noel Yee-Man Siu ◽  
Tracy Jun-Feng Zhang
Keyword(s):  
Distributive Justice ◽  
Brand Equity ◽  
Service Recovery ◽  
Interactional Justice ◽  
Content Type ◽  
Cultural Variables ◽  
Justice Perceptions ◽  
The Impact ◽  
The Relationship ◽  
Moderating Role

Purpose Can we always expect that service recovery justice leads to satisfaction? Literature has shown that a number of moderating factors impact the recovery justice-satisfaction link in different cultures. However, there is a dearth of research that has indicated the key cultural variables that play a moderating role. This study aims to attempt to fill the research gap by investigating the moderating role of concern for face, belief in fate and brand equity in the relationship between perceived justice and satisfaction in Chinese culture during service recovery. Design/methodology/approach The hypothesized relationships are tested using data from interviews with 600 persons who have recently complained about their telecommunications services. Structural equation modeling is applied in analyzing their responses. Findings Concern for face is found to strengthen the relationship between interactional justice perceptions and satisfaction, but to weaken the relationship between distributive justice perceptions and satisfaction. Belief in fate weakens the link between perceptions of interactional justice and satisfaction. Brand equity positively moderates the relationship between perceptions of interactional justice and satisfaction, but it negatively moderates the relationship between perceptions of distributive justice and satisfaction. Practical implications The cultural variables, namely, face, fate and brand equity, are found to serve as a moderating role in the relationship between recovery justice dimensions and satisfaction. They are more salient when it is related to social element. Face and brand equity, as interpersonal constructs, aggravate the impact of interactional justice on satisfaction. Fate, as non-social factor, weakens the impact of interactional justice on satisfaction. It is argued that managers should provide staff training in product knowledge and customer service as a preventive measure against damage to the brand. Regular customer satisfaction research and benchmarking exercises should be conducted to understand how customers perceive interactional justice. Originality/value This has been the first research to examine the impact of concern for face, belief in fate and brand equity in the relationship between justice perceptions and post-recovery satisfaction during service recovery.

Brand equity, online reviews, and message trust: the moderating role of persuasion knowledge

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fayez Ahmad ◽  
Francisco Guzmán
Keyword(s):  
Brand Equity ◽  
Experimental Studies ◽  
Online Reviews ◽  
Review Literature ◽  
Online Review ◽  
Persuasion Knowledge ◽  
Content Type ◽  
Mediating Role ◽  
The Relationship

Purpose This paper aims to investigate whether a message from a brand with stronger brand equity generates more trust than a message from a brand with lower brand equity, and thus is more likely to encourage consumers to write online reviews. This paper also explores what happens when consumers become aware that brands are trying to persuade them to write a review. Design/methodology/approach Through three experimental studies, where participants were randomly assigned to a brand that has either a stronger or weaker brand equity, participants’ intention to write reviews was measured. Trust in the message was measured to study its mediating role, and persuasion knowledge of the participants was manipulated to investigate its moderating effect. Findings The findings confirm that consumers are more likely to write online reviews when a message comes from a brand that has stronger brand equity, trust in the message mediates the relationship between brand equity and consumer intention to write an online review, and persuasion knowledge has a differential effect on consumer intention to write reviews. Originality/value The study adds to the brand equity and online review literature by providing evidence that a higher level of consumer trust on brands that have stronger brand equity leads to an increased intention to write a review for the brand. It also shows that consumers’ awareness of the motive of the brand is more beneficial for brands with strong brand equity, contributing to persuasion knowledge literature.

Building members' trust in a producer company through social capital

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Deepak Chamola ◽  
Ajoy Kumar Dey ◽  
Arunaditya Sahay ◽  
Rahul Singh
Keyword(s):  
Social Capital ◽  
Factor Analysis ◽  
Social Capital Theory ◽  
Mediation Effect ◽  
Perceived Benefits ◽  
Mediation Effects ◽  
Content Type ◽  
Perceived Benefit ◽  
The Relationship

PurposeThe paper contributes to the long-standing interest in studying the relationship of social capital and trust. It examines the relationship between social capital and trust in a producer company and the role of perceived benefits as a mediating variable.Design/methodology/approachA multistage sampling was done to collect data from 395 farmer members from five producer companies spread over three states of India. Through exploratory factor analysis (EFA) and confirmatory factor analysis (CFA) latent constructs were mapped, and composite reliability and construct validity were established. PROCESS macro of Statistical Product and Service Solutions (SPSS) was used to probe relationship between social capital and member's trust and mediation effect of perceived benefit.FindingsThe authors’ research findings establish that the social capital has a positive and significant relationship with members' trust in a producer company and perceived benefit mediates this relationship.Research limitations/implicationsThe paper contributes to reduce complexity of social capital theory by differentiating sources and benefits of social capital. It opens up the avenues of testing theoretically valid mediation effects of many other constructs.Originality/valueThe role of member's perceived benefits as a mediator between social capital and members' trust is a new knowledge to the literature of social capital.

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.

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.

Brand positioning and business performance of alcoholic beverage firms in an emerging market context: the mediation effect of brand equity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Leeford Edem Kojo Ameyibor ◽  
Peter Anabila ◽  
Yvonne Kabeya Saini
Keyword(s):  
Brand Equity ◽  
Business Performance ◽  
Emerging Market ◽  
Alcoholic Beverage ◽  
Mediation Effect ◽  
Alcoholic Beverages ◽  
Brand Positioning ◽  
Content Type ◽  
The Relationship ◽  
Practical Implications

Purpose This study aims to investigate the relationship between brand positioning and business performance, as well as the mediation effect of brand equity between them within the context of Ghana’s alcoholic beverages industry. Design/methodology/approach A sample of 196 staff across four alcoholic beverage firms in Accra, Ghana was selected using a judgemental sampling technique. A structural equation modelling approach using partial least squares was used to conduct the analyses to answer the research hypotheses. Findings All the hypotheses were confirmed in line with extant literature. Specifically, the study found a positive relationship between brand positioning and business performance. The study also found that brand equity partially mediates the relationship between brand positioning and business performance. Practical implications The study serves as a useful guide to strategy and policy formulation in branding in general and specifically on how brand positioning can be effectively deployed as a key strategy to enhance business performance. Originality/value The study has practical implications not only for the marketing and sale of alcoholic beverages in Ghana to achieve financial performance but also for lasting competitive advantage.

scholarly journals How transformational leadership predicts employees’ affective commitment and performance

2018 ◽  
Vol 67 (9) ◽  
pp. 1901-1917 ◽  
Author(s):  
Neuza Ribeiro ◽  
İlhami Yücel ◽  
Daniel Gomes
Keyword(s):  
Transformational Leadership ◽  
Affective Commitment ◽  
Individual Performance ◽  
Mediation Effect ◽  
Equation Modeling ◽  
Mediation Effects ◽  
Content Type ◽  
And Performance ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this paper is to examine the impact of transformational leadership (TL) on employees’ individual performance (IP) through the mediating role of affective commitment (AC). More specifically, it aims to understand how TL relates to employees’ AC, TL relates to employees’ IP, employees’ AC relates to IP and employees’ AC mediates the relationship between TL and employees’ IP.Design/methodology/approachA total of 476 Turkish healthcare professionals participated in this study. The mediation effect of AC in the relationship between TL and employees’ IP was tested by structural equation modeling.FindingsThe results indicate that AC mediates the relationship between TL and employees’ IP. In others words, transformational leaders promote employees’ AC which, in turn, increases their IP.Practical implicationsThis study suggests that organizations should select, develop and invest in leaders who adopt a TL style because they build a climate of admiration, loyalty, respect, participation and involvement for employees which will in turn enhance their commitment and performance.Originality/valueThis study responds to calls for research studies to explore the mediating mechanism in the TL process (Judgeet al., 2006), as the mediation effects explain the conditions in which TL is related to the favorable outcomes.

Perceived justice and CSR after service recovery

2019 ◽  
Vol 33 (2) ◽  
pp. 206-219 ◽  
Author(s):  
Suna La ◽  
Beomjoon Choi
Keyword(s):  
Procedural Justice ◽  
Service Failure ◽  
Service Recovery ◽  
Content Type ◽  
Perceived Justice ◽  
Recovery Satisfaction ◽  
Failure Severity ◽  
Justice Perceptions ◽  
The Impact ◽  
The Relationship

PurposeThe purpose of this paper is to examine the relationships between perceived justice and perceived corporate social responsibility (CSR) and the impact of perceived justice and CSR perceptions on customers’ behavioral responses, such as satisfaction and repatronage intention after service recovery. The authors also investigate the moderating role of service failure severity in the relationship between perceived justice and perceived CSR.Design/methodology/approachThe data were collected using individually completed questionnaires. The proposed model was tested using structural equation modeling, and the moderation effects of failure severity in the relationship between perceived justice and perceived CSR were analyzed using stepwise multiple regression models.FindingsThe results suggest a path from satisfaction to CSR perceptions, which indicates that the link between CSR perceptions and satisfaction is reversed in the context of service recovery. The authors further reveal recovery satisfaction in two ways: It has a direct influence on repatronage intentions as well as an indirect influence via perceived CSR. Finally, the results demonstrate that the severity of a service failure intensifies the impact of distributive and procedural justice perceptions on perceived CSR, and perceived CSR serves as a partial mediator in the path from recovery satisfaction to repatronage intentions.Research limitations/implicationsThe results demonstrate that perceived justice of service recovery affects perceived CSR after a service failure and that the severity of a service failure moderates the impact of justice perceptions on perceived CSR. However, the possibility of intercausal relationships among distributive, procedural and interactional justice may need to be further explored in future research.Practical implicationsGiven that the impact of distributive and procedural justice on CSR perceptions has become more critical as the severity of service failure increases, companies should prioritize allocating a fair amount of monetary compensation in a timely manner, particularly for those who experience a severe service failure.Originality/valueThe authors propose a model of perceived justice – perceived CSR – repatronage intentions within the service recovery context in an attempt to deepen the understanding of the antecedents of repatronage intention and the relationship between repatronage intention and recovery satisfaction following service recovery encounters by introducing perceived justice and CSR. Moreover, the authors discover the moderating effect of service failure severity on the relationship between justice perceptions and perceived CSR.

The relationship between perceptions of learning climate and employee innovative behavior and proficiency

2017 ◽  
Vol 46 (8) ◽  
pp. 1454-1474 ◽  
Author(s):  
Liat Eldor
Keyword(s):  
Public Sector ◽  
Working Environment ◽  
Mediation Effect ◽  
Learning Climate ◽  
Mediation Process ◽  
Job Engagement ◽  
Innovative Behavior ◽  
Role Performance ◽  
Content Type ◽  
The Relationship

Purpose The purpose of this paper is to examine the relationship between perceptions of learning climate and employee innovative behavior and proficiency. Design/methodology/approach Using robust analysis techniques on data from a sample of 419 employees and their supervisors from four different business and public sector organizations, the author tested the proposed relationships, as mediated by job engagement. Moreover, this mediation effect was examined in the light of sector of employment differences (business vs public). Findings The results were generally consistent with the hypothesized conceptual scheme, in that the indirect relationship between perceptions of learning climate and employees’ innovative behavior and proficiency was mediated by job engagement. However, with regard to sector employment differences, this mediation process was demonstrated among business sector employees only to the relationship between perceptions of learning climate and innovative behavior. When proficiency was included in the mediation model, this mediation effect was evident among public sector employees. Originality/value The research on perceptions of learning climate lacks empirical evidence on its implications for employees’ innovative behavior and proficiency. Although scholars contend that employees’ perceptions of learning climate should enhance their in-role and extra-role performance behaviors, these arguments are mainly non-empirical. Understanding whether perceptions of learning have an impact on employee intra- and extra-role performance behaviors is important, considering that the majority of workplace learning occurs through daily ongoing means that are part of the working environment and previous research results show that structured learning and formal training are less effective in improving employees’ performance at work.

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