Service recovery in unaffected consumers: evidence of a recovery paradox

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marcus Wardley
Keyword(s):  
Purchase Intention ◽  
Service Failure ◽  
Service Recovery ◽  
Negative Effects ◽  
Content Type ◽  
Positive Effects ◽  
Service Recovery Paradox ◽  
Recovery Effort ◽  
A Minor ◽  
A Company

Purpose This paper aims to examine the effects of a general service recovery effort in consumers who were not victims of the service failure. Design/methodology/approach This study uses a 2 × 2 between-subjects design comparing a service failure announcement with apology and an anniversary event announcement, either with a 15% discount or no discount on purchase intentions. Findings A service recovery effort involving an apology and 15% discount leads to higher purchase intention in consumers who were not victims of the service failure in comparison to a control. The unexpected apology generates surprise, which amplifies the effect of the discount, leading to higher purchase intention. Practical implications The results of this study suggest that apologizing and offering a discount for a minor service failure can have positive effects on consumers who were not victims of the service failure. Thus, if a company is unsure which consumers have been affected by a service failure, this study shows that issuing a general apology for the failure does not have negative effects in unaffected consumers. Originality/value To the best of the author’s knowledge, this paper is the first to examine the effects of a service recovery effort in consumers who were not victims of the service failure and the first to find evidence of a service recovery paradox in unaffected consumers.

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.

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.

The service recovery paradox in B2B relationships

2018 ◽  
Vol 33 (3) ◽  
pp. 291-302 ◽  
Author(s):  
Denis Hübner ◽  
Stephan M. Wagner ◽  
Stefan Kurpjuweit
Keyword(s):  
Service Providers ◽  
Service Failure ◽  
Service Recovery ◽  
Future Research ◽  
Content Type ◽  
Subjective Perceptions ◽  
Service Recovery Paradox ◽  
Operating Level ◽  
B2b Relationships ◽  
Exploratory Model

Purpose This study aims to explore the service recovery paradox (SRP) in business to business (B2B) relationships. Previously, this phenomenon has been identified in consumer-facing industries. The research advances the marketing literature by highlighting the ways in which the antecedents of the service recovery paradox differ between B2B and consumer markets. Design/methodology/approach This research draws upon findings on the SRP in the consumer setting and service failure literature in business to consumer and B2B contexts. For the analysis, interview data were collected from 43 informants among clients and service providers in the aftermath of a service failure. Findings The authors propose an exploratory model of the SRP for B2B relationships. In the B2B setting the propensity of eliciting the SRP depends on (1) the characteristics of the service failure, (2) the attributes of the service recovery and (3) the shared subjective perceptions among boundary spanners. Practical implications Empowered operating-level employees, straightforward communication, immediate responses and action plans that ensure future conformance are the key factors to turn service failures into increased customer satisfaction. Originality/value This study is the first to transfer the SRP from consumer marketing into the B2B domain. Moreover, it derives an exploratory model of the SRP, which can be refined by future research.

The bright and dark sides of humorous response to online customer complaint

2020 ◽  
Vol 54 (8) ◽  
pp. 2013-2047 ◽  
Author(s):  
Hyunju Shin ◽  
Lindsay R.L. Larson
Keyword(s):  
Negative Impact ◽  
Service Failure ◽  
Traditional Approach ◽  
Service Recovery ◽  
Experimental Studies ◽  
Corporate Image ◽  
Negative Effects ◽  
Content Type ◽  
Customer Complaints ◽  
Customer Complaint

Purpose Displaying a sense of humour provides various interpersonal benefits including reducing tension and promoting conflict resolution, but should a firm use humour in response to publicly viewable online customer complaints after a service failure? The purpose of this study is to demonstrate that a firm’s use of humour in response to negative online consumer reviews has both positive and negative effects on perceptions of corporate image from a customer-as-onlooker perspective. Design/methodology/approach Three experimental studies are conducted and analysis of variance is used to empirically test the hypotheses. Findings Although humorous responses have an unfavourable influence on perceived trustworthiness of the firm, they have a favourable influence on perceived excitingness of the firm. The former influence is tied to lower perceived firm sincerity, whereas the latter is tied to higher perceived firm innovativeness and coolness. Furthermore, humour within the customer complaint itself is shown to moderate the influence of humorous responses on perceptions of the firm. Finally, regardless of the type of humour used (i.e. affiliative or aggressive humour) in the humorous response, the positive effect of humorous response remains strong, although aggressive humour further aggravates the negative impact of humorous response on trustworthiness. Research limitations/implications The experimental set-up may limit external validity of the study, and the research is limited to the variables examined. Practical implications Humorous response is identified as a non-traditional approach to online customer complaints that poses a double-edged sword for managers of service organizations. Firms should avoid using humour in online service recovery if perceptions of trustworthiness are critical or if complaints are written in a neutral tone. However, such responses may be successfully used when a firm wants to position itself as exciting and if complaints are also humorous. Finally, firms are advised to avoid aggressive humour. Originality/value The present research represents one of the few studies in marketing to examine the potential of injecting humour into complaint management and service recovery. In addition, this study considers the consumer-as-onlooker perspective inherent in social media.

Silver lining of envy on social media? The relationships between post content, envy type, and purchase intentions

2018 ◽  
Vol 28 (4) ◽  
pp. 1142-1164 ◽  
Author(s):  
Ruoyun Lin
Keyword(s):  
Social Media ◽  
Purchase Intention ◽  
Purchase Intentions ◽  
Negative Effects ◽  
Media Report ◽  
Content Type ◽  
Positive Effects ◽  
Malicious Envy ◽  
Material Purchases ◽  
Benign Envy

Purpose The purpose of this paper is to explore the prevalence of benign and malicious envy on social media, and to examine the relationships between shared content (experiential vs material purchases), envy type (benign vs malicious), and purchase intention (toward the same vs a superior object). Design/methodology/approach Three studies (N=622) were conducted to ask participants to recall the last time they experienced envy due to browsing social media, report an envy-triggering post about either an experiential or a material purchase shared by others and read a post about a friend’s newly bought MacBook in either an experiential or a material phrasing. The degrees of benign and malicious envy were measured, as well as the future purchase intentions toward the same and a superior object. Findings The results showed that most of the envious emotions were actually benign envy. Although there was no main effect of purchase type on envy type, both experiential purchases and phrasings were less likely to be perceived as showing off, and therefore triggered less malicious envy. Furthermore, benign envy was positively associated with the purchase intention of the same envied purchase, and malicious envy was positively associated with the purchase intention of something even superior. Originality/value As browsing other’s social news sometimes evokes envy, people were concerned about the negative effects of envy on consumers. However, this paper addressed the positive effects of envy which comes along with a motivation of moving up. This positive motivation can also be utilized for social media advertising.

Taj: I will prevail. Exemplifying customer service in times of crisis

2012 ◽  
Vol 2 (8) ◽  
pp. 1-11
Author(s):  
Rik Paul
Keyword(s):  
Customer Service ◽  
Service Failure ◽  
Service Recovery ◽  
Code Of Conduct ◽  
Subject Area ◽  
Service Industries ◽  
Content Type ◽  
Service Recovery Paradox ◽  
Taj Mahal ◽  
The Relationship

Subject area Marketing Study level/applicability The case is suitable for MBA/MS students. Case overview The famous Taj Mahal Palace and Towers became the centre of one of the most deadly terrorist attacks in the Indian sub continent on the night of 26 November 2008, which became famous as “26/11”. Terrorists created havoc shooting guests on sight and throwing grenades. The attacks lasted for three days but all of the four terrorists who entered Taj were killed. The terrorists had killed 160 people across Mumbai. Of these, 36 died at the Taj Mahal Palace and Towers, Mumbai. The dead included 14 guests, most of whom were foreign nationals. However, due to the selfless and extraordinary behavior of the employees and the staff of Taj, many guests were saved. They put forth an extraordinary example justifying the Indian code of conduct towards guests, “Atithi Devo Bhav” meaning “Guest is God”. In spite of knowing back exits and hiding spots, the employees did not flee, instead helping guests. The employees' behavior during the crisis saved the lives of nearly300 guests. This gesture of Taj employees was much talked about, but it was amusing even for the management to explain why they behaved in that manner. The condition of Taj after the attacks was so disastrous that it would have been profitable to leave the hotel as it was rather than reopening it. This, however, would have dented the Taj brand as a whole, as well as the spirit of all employees and staff who had behaved bravely. Taj started its restoration and reopened a part of the Taj Mahal Palace and Towers on 21 December 2008. It became operational by August 2010. The case provides an opportunity to closely examine employee behavior in an extreme crisis situation, and the possible reasons and motivation behind such exceptional behavior which ultimately helped to sustain the Taj brand. However, the scope of the case can also be extended to illustrate recovery efforts typical to service industries. Expected learning outcomes The case is designed to enable students to understand: the employees role in service delivery; the service profit chain; the relationship between profitability, customer loyalty, employee satisfaction and loyalty, and productivity; service failure; service recovery; and the service recovery paradox. Supplementary materials Teaching notes are available. Please consult your librarian for access.

Exploring privacy and trust for employee monitoring

2015 ◽  
Vol 115 (1) ◽  
pp. 88-106 ◽  
Author(s):  
Shuchih Ernest Chang ◽  
Anne Yenching Liu ◽  
Sungmin Lin
Keyword(s):  
Organizational Culture ◽  
Employee Performance ◽  
Full Time ◽  
Negative Effects ◽  
Content Type ◽  
Positive Effects ◽  
Study Results ◽  
Employee Monitoring ◽  
Communication Privacy ◽  
The Relationship

Purpose – The purpose of this paper is to evaluate privacy boundaries and explores employees’ reactions in employee monitoring. Design/methodology/approach – The research used the metaphor of boundary turbulence in the Communication Privacy Management (CPM) theory to demonstrate the psychological effect on employees. The model comprised organizational culture, CPM, trust, and employee performance in employee monitoring to further investigated the influence exerted by organizational culture and how employees viewed their trust within the organization when implementing employee monitoring. Variables were measured empirically by administrating questionnaires to full-time employees in organizations that currently practice employee monitoring. Findings – The findings showed that a control-oriented organizational culture raised communication privacy turbulence in CPM. The communication privacy turbulence in CPM mostly had negative effects on trust in employee monitoring policy, but not on trust in employee monitoring members. Both trust in employee monitoring policy and trust in employee monitoring members had positive effects on employee commitment and compliance to employee monitoring. Research limitations/implications – This research applied the CPM theory in workplace privacy to explore the relationship between employees’ privacy and trust. The results provide insights of why employees feel psychological resistance when they are forced to accept the practice of employee monitoring. In addition, this study explored the relationship between CPM and trust, and offer support and verification to prior studies. Practical implications – For practitioners, the findings help organizations to improve the performance of their employees and to design a more effective environment for employee monitoring. Originality/value – A research model was proposed to study the impacts of CPM on employee monitoring, after a broad survey on related researches. The validated model and its corresponding study results can be referenced by organization managers and decision makers to make favorable tactics for achieving their goals of implementing employee monitoring.

Explanation information and source in service recovery initiatives

2014 ◽  
Vol 28 (4) ◽  
pp. 311-318 ◽  
Author(s):  
Thomas Baker ◽  
Tracy Meyer
Keyword(s):  
Source Credibility ◽  
Positive Impact ◽  
Service Failure ◽  
Empirical Studies ◽  
Service Recovery ◽  
Positive Outcome ◽  
Frontline Employees ◽  
Full Account ◽  
Content Type ◽  
Service Failure And Recovery

Purpose – The purpose of this paper is to specifically consider two interactional aspects that are likely to contribute to the success of an explanation of why a service failed: the adequacy of information provided and role of the person providing the information. Design/methodology/approach – Two empirical studies were conducted using a between-subjects 2 (information: low vs high) × 2 (employee: frontline vs manager) experimental design. The first study was designed to better understand when the information provided might have a more positive impact on the customer. The second study was conducted to understand why the effects exist. Findings – In Study 1, an interaction effect was seen that suggests that the most positive outcome is when the manager (vs the frontline employee) provides a full explanation (vs limited explanation) of the mishap. Results from Study 2 indicate that source credibility is in play. Research limitations/implications – Participants were asked to respond to service failure and recovery scenarios using the same service context. The means of the outcome variables suggest that the recovery effort could be improved upon with other methods. Practical implications – Contrary to suggestions that frontline employees be responsible to resolve service failures, our studies reveal that service recovery initiatives involving an explanation only are best received when the manager provides the customer a full account of what went wrong. Originality/value – This research provides empirical evidence of when and why more information regarding the cause of a service failure is most positively received by the customer.

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.

The effect of consumers' religiosity on consumer ethics: the mediating role of ethical ideology

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Denni Arli ◽  
Fandy Tjiptono
Keyword(s):  
Consumer Ethics ◽  
Ethical Ideology ◽  
Negative Effects ◽  
Content Type ◽  
Mediating Role ◽  
Positive Effects ◽  
Central Java ◽  
Consumer Ethics Scale ◽  
The Impact

PurposeReligious doctrines generally encourage people to behave ethically. However, in daily life, individuals notice inconsistencies between religious beliefs and behavior, leading them to ask, in the context of commerce, why religious consumers would behave unethically. The purpose of this study was to investigate the impact of consumers' intrinsic and extrinsic religiosity on their ethical behavior. Specifically, the moderating effect of ethical ideology on the relationship between Indonesian consumers' religiosity and their ethics was examined by means of a survey.Design/methodology/approachThe data derived from the questionnaire were complemented by convenience samples of Indonesians living in Daerah Istimewa Yogyakarta (DIY) in central Java. The researchers distributed 600 questionnaires in two major shopping malls and several housing areas in the region, of which 467 were completed and returned, for an overall response rate of 77.8%.FindingsThe results indicated that the participants' intrinsic religiosity negatively impacted their ethical beliefs and was mediated by their idealistic ethical ideology. The present study also found that idealism had negative effects on three of the four dimensions of the consumer ethics scale (CES) (actively benefiting, passively benefiting and questionable behavior), while relativism had positive effects on two of the dimensions (passively benefiting and questionable behavior.Research limitations/implicationsOne limitation of the present study was that the analysis did not distinguish among the religions practiced by the respondents to the questionnaire.Originality/valueThis is one of the first few studies investigating the mediating role of ethical ideology in a religious society. This study contributes to the literature on these issues in theoretical and managerial terms by extending the Hunt-Vitell theory (1986) to the context of consumer ethics.

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