Effects of complaint behaviour and service recovery satisfaction on consumer intentions to repurchase on the internet

2014 ◽  
Vol 24 (5) ◽  
pp. 608-628 ◽  
Author(s):  
Tammo H.A. Bijmolt ◽  
Eelko K.R.E. Huizingh ◽  
Adriana Krawczyk
Keyword(s):  
Empirical Studies ◽  
Service Recovery ◽  
The Internet ◽  
Negative Experiences ◽  
Content Type ◽  
Repurchase Intentions ◽  
Complaint Handling ◽  
Recovery Satisfaction ◽  
Consumer Intentions ◽  
The Impact

Purpose – The purpose of this paper is to investigate the impact of complaint behaviour and service recovery satisfaction on consumer intentions to repurchase through internet channels. Design/methodology/approach – Using survey data from large consumer samples from 15 European countries, the authors classify consumers according to: whether they had negative experiences with online purchases, whether they complained, and whether they were satisfied with the complaint handling. A logistic regression analysis assesses the effects of these experiences on repurchase intentions. Findings – Remarkable differences arise among the consumers with respect to intentions to repurchase on the internet. Consumers with negative experiences who complained expressed higher repurchase intentions than consumers with no reason to complain and also than consumers who had negative experiences but did not complain. Yet the highest repurchase intentions arose among consumers who complained and expressed satisfaction with the complaint handling, in support of the service recovery paradox in an online setting. Originality/value – This project is one of the first empirical studies of the consequences of dissatisfaction and complaints related to online purchase behaviour.

Empowerment in service recovery: the role of self-regulation process of frontline employee

2019 ◽  
Vol 58 (5) ◽  
pp. 828-843 ◽  
Author(s):  
Mo Zhang ◽  
Ruoqi Geng
Keyword(s):  
Emotional Exhaustion ◽  
Positive Impact ◽  
Service Failure ◽  
Self Regulation ◽  
Service Recovery ◽  
Job Engagement ◽  
Content Type ◽  
Regulation Process ◽  
Recovery Satisfaction ◽  
The Impact

Purpose In accordance with the commitment–trust theory, employee attitudes and behaviours mediate the impact of empowerment on service recovery performance. The purpose of this paper is to extend the self-regulating process model and develop a structural framework that combines empowerment, self-regulation mechanisms (service recovery awareness, job engagement and emotional exhaustion) and post-recovery satisfaction. This framework explores how empowerment can lead to action of frontline employees (FLEs) in service recovery. Design/methodology/approach The authors test the hypotheses by investigating 290 pairs of FLEs and customers, who have service failure experience in the express mail industry, using structure equation modelling. Findings The findings show that empowerment enhances both service recovery awareness and job engagement. On the one hand, service recovery awareness has a positive impact on emotional exhaustion, which has a negative impact on post-recovery satisfaction. On the other hand, job engagement has a positive impact on performance. These results provide the whole picture of the double-edged effects of empowerment on FLEs in service recovery. Practical implications This paper indicates that managers should re-consider approaches to empowerment based on self-regulation process to enhance performance following service failure. Originality/value This study explores the dark side of empowerment in service recovery from a self-regulation perspective.

The impact of switching costs on customer complaint behavior and service recovery evaluation

2018 ◽  
Vol 28 (4) ◽  
pp. 458-483 ◽  
Author(s):  
Maxi Bergel ◽  
Christian Brock
Keyword(s):  
Switching Costs ◽  
Service Failure ◽  
Service Recovery ◽  
Control Variable ◽  
Response Styles ◽  
Content Type ◽  
Complaint Handling ◽  
Customer Dissatisfaction ◽  
Complaint Behavior ◽  
The Impact

PurposeThe purpose of this paper is to examine the impact of three different dimensions of switching costs on customer dissatisfaction response styles as well as on the evaluation of service recovery.Design/methodology/approachStudy 1 is a scenario-based experiment and Study 2 uses a critical incident technique combined with survey-based measures of switching costs, dissatisfaction responses and perceived complaint handling.FindingsThe results of these studies highlight the need to consider the different effects of switching costs. Not only do different switching costs lead to varying customer dissatisfaction responses, they also have differential moderator effects on the interrelationships between customer-perceived recovery justice and service recovery satisfaction.Research limitations/implicationsService failure severity was an influential control variable. Future studies should investigate how the type, context and severity of service failure influence customers’ complaint behavior. Furthermore, participants had trouble differentiating between their relations toward their service provider in general and one particular employee. Hence, further research should explore the relationship between customers and frontline employees.Practical implicationsThe authors encourage managers to take a closer look at the switching cost dimensions of their service industry. This may lead practitioners to promote differentiated strategies for complaint stimulation and complaint handling.Originality/valueThis is the first study to simultaneously explore all three dimensions of switching costs when examining their impact on customers’ dissatisfaction response styles as well as the moderating effects in the recovery process. In doing so, this study reveals some hitherto uncovered effects.

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.

Would compensation be necessary? The importance of service recovery strategy in e-retail delivery problems

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erlinda Nusron Yunus
Keyword(s):  
Service Failure ◽  
Service Recovery ◽  
Recovery Strategy ◽  
Content Type ◽  
Repurchase Intentions ◽  
Subsequent Test ◽  
Service Failures ◽  
Recovery Strategies ◽  
Online Shoppers ◽  
The Impact

PurposeThis study examines the different effects of service recovery strategies on customers' future intentions when online shoppers were experiencing delivery failures. Two types of problem severity are evaluated: wrong-product delivery (issues with the product quality or quantity) and late delivery. This study also investigates the impact of service criticality on the relationship between service recovery strategies and customers' future intentions.Design/methodology/approachThis study employs experimental research with 123 online shoppers as participants. Following the results, a subsequent test is conducted to examine the effect of participants' demographics on future intentions. Finally, the current study elaborates the findings using qualitative research, interviewing both sides impacted by the service failures: online shoppers and e-retail managers.FindingsThe findings show that complementing product replacement with monetary compensation is the most effective strategy to improve repurchase intention after a dissatisfaction moment. This effect is indifferent to service criticality and severity. Age influences the participants' repurchase intentions, in which younger people are less tolerant of service failures. In contrast, gender and education level do not provide any differences. To prevent delivery failures, managers participating in this study suggest several best practices regarding systems and infrastructure, people and coordination and collaboration with logistics partners.Research limitations/implicationsThe study mainly examines a limited type of service and service failures. Further studies are encouraged to expand the variables and scenarios, as well as to employ more distinctive methods, to enrich the findings related to recovery strategy in the e-commerce industry.Practical implicationsGiven proper compensation, service failure could create momentum for online retailers to boost customer loyalty. This study suggests that managers design the most effective service recovery to win customers back to the business.Originality/valueThis paper enriches the literature related to a service recovery strategy, particularly within the online shopping context.

The role of employee emotional competence in service recovery encounters

2018 ◽  
Vol 32 (7) ◽  
pp. 835-849 ◽  
Author(s):  
Teresa Fernandes ◽  
Marta Morgado ◽  
Maria Antónia Rodrigues
Keyword(s):  
Service Recovery ◽  
Group Analysis ◽  
Direct Impact ◽  
Content Type ◽  
Service Type ◽  
Recovery Satisfaction ◽  
Positive Direct ◽  
The Impact ◽  
Moderating Role

Purpose Employees’ emotional competencies (EEC) are skills, based on emotional intelligence, used to perceive, understand and regulate customer emotions during a service encounter. In the context of service recovery, these skills are especially important and allow employees to influence consumers’ attitude and behaviours. The purpose of this study is to assess the direct and indirect impacts of EEC in post-recovery satisfaction, trust, word-of-mouth and repurchase intention, considering the moderating role of service (level of employee-customer contact) types. Design/methodology/approach A total of 355 customers who experienced a service failure and subsequent recovery were surveyed using a self-administered questionnaire. EEC was specified as a formative construct, determined by its perceiving, understanding and regulating dimensions. To measure EEC and its impact on selected outcomes, PLS-SEM was used. A multi-group analysis was performed to analyse the moderating role of service type. Findings Results confirm EEC as a formative construct, with a positive direct impact on post-recovery satisfaction, particularly in high-contact customized services. Findings also reveal the mediating role of satisfaction on selected outcomes, and the significant direct impact of EEC on trust, even when controlling for satisfaction. Originality/value EEC remains unexplored in the service recovery literature, and most research fails to understand how EEC role may vary given contextual differences. This study adopts a consumer perspective of EEC in the emotionally charged situation of service recovery, considering the moderating role of service type. The authors further contribute to both literature streams while examining the impact of EEC on post-recovery evaluations. Companies should consider these findings in the recruitment and training of front-line employees to develop better service recovery strategies.

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.

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.

Best-value supply chains and firms’ competitive performance: empirical studies of their linkage

2015 ◽  
Vol 35 (12) ◽  
pp. 1688-1709 ◽  
Author(s):  
Xun Li ◽  
Qun Wu ◽  
Clyde W. Holsapple
Keyword(s):  
Supply Chains ◽  
Competitive Advantage ◽  
Empirical Studies ◽  
Abnormal Returns ◽  
Competitive Performance ◽  
Content Type ◽  
Long Run ◽  
Best Value ◽  
Multiple Method ◽  
The Impact

Purpose – Best-value supply chains characterized by agility, adaptability, and alignment, have become a crucial strategic means for firms to create and sustain competitive advantage in today’s turbulent environment. The purpose of this paper is to investigate linkage between best-value supply chains and firms’ competitive performance. Design/methodology/approach – In Study 1, survey data from 76 firms is used to test the impact of the three qualities of best-value supply chains on firms’ competitive performance. In Study 2, to test if a firm’s competitive advantage can be sustained through building best-value supply chains, a long-run performance analysis is conducted, which is based on a stock portfolio of firms identified from the American Marketing Association’s annual list of “Supply Chain Top 25.” Findings – The results of Study 1 indicate that the three qualities of best-value supply chains are positively related to firms’ competitive performance. The results of Study 2 show that firms having best-value supply chains generate significant and positive abnormal returns for shareholders over time. Originality/value – This is a multiple-method research, providing two-level empirical evidence to the investigation of theoretical linkage between best-value supply chains and firms’ competitive performance.

“Actions speak louder than words”: an impact of service recovery antecedents on customer delight in quick-service restaurants

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Durgesh Agnihotri ◽  
Kushagra Kulshreshtha ◽  
Vikas Tripathi ◽  
Pallavi Chaturvedi
Keyword(s):  
Social Media ◽  
Customer Satisfaction ◽  
Structural Equation ◽  
Service Recovery ◽  
Equation Modeling ◽  
Role Clarity ◽  
Content Type ◽  
Customer Delight ◽  
Quick Service ◽  
The Impact

PurposeThe purpose of this study is to conceptualize and analyze a framework that provides greater understanding toward the impact of service recovery antecedents such as role clarity, customer service orientation, employee empowerment and employee relational behavior on customer satisfaction and customer delight in the context of quick-service restaurants (QSRs).Design/methodology/approachA self-administered questionnaire was distributed to 408 participants who had experienced service recovery efforts by leading QSRs on social media. The current paper draws upon the prevailing literature to test a series of research hypotheses through structural equation modeling.FindingsThe findings of the study have confirmed that antecedents of service recovery are good to describe customer satisfaction and customer delight in the setting of QSRs. Besides, the study provides an understanding on how monetary compensation moderates the relationship between customer delight and customer satisfaction.Practical implicationsThis study carries an understanding on how frontline employees must operate in a non-conventional and innovative way to resolve customers' issues and show commitment with truthfulness to provide excellent services to make customers feel delightful.Originality/valueThis is a unique study to understand the role of service recovery antecedents to describe customer satisfaction and customer delight in the social media environment. In addition, the results support the possibilities of implementing prompt service recovery efforts using social media.

When service providers fail: outsourcing help and consumer attitudes

2018 ◽  
Vol 39 (5) ◽  
pp. 22-30
Author(s):  
Aaron Gazley ◽  
Hamish Simmonds
Keyword(s):  
Design Methodology ◽  
Service Providers ◽  
Home Country ◽  
Service Failure ◽  
Service Recovery ◽  
Content Type ◽  
Consumer Ethnocentrism ◽  
The Impact ◽  
Practical Implications ◽  
Delivery Channel

Purpose The purpose of this paper is to investigate the effect of outsourcing and offshoring on brand loyalty in a service recovery context. In addition, the effect that consumer ethnocentrism has on these relationships is examined. Design/methodology/approach An experiment was designed using a series of service recovery scenarios that manipulated whether the recovery effort was conducted by an in-house/outsourced or local/offshored party. Findings The study shows that while outsourcing service recovery within the home country has no effect on loyalty, outsourcing to an offshore location does. In addition, the effect of offshoring of loyalty is greater for consumers who hold ethnocentric tendencies. Practical implications This research suggests the need to consider the delivery channel of service recovery to recover a service failure and retain customer loyalty. The results show that outsourcing within a local country may be effective, but the risks associated with offshoring are much greater. Originality/value Despite previous attempts to understand outsourcing and offshoring in a range of service scenarios, their role in service recovery is not well understood. Similarly, the impact that ethnocentrism might have on this process is overlooked. This paper therefore responds to calls within business theory, practice and consults for further study in this under-researched area.

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