Guest preferences for service recovery procedures: conjoint analysis

2018 ◽  
Vol 1 (3) ◽  
pp. 276-288 ◽  
Author(s):  
Seung Hyun Lee
Keyword(s):  
Conjoint Analysis ◽  
Online Survey ◽  
Service Failure ◽  
Service Recovery ◽  
Survey Method ◽  
Web Based ◽  
Content Type ◽  
Service Failures ◽  
Service Failure And Recovery ◽  
Upper Level

Purpose The ongoing challenge for hospitality firms is not to avoid service failures completely but rather to find effective ways of recovering from them. The purpose of this paper is to adopt conjoint analysis to examine guest preferences for service recovery actions that are taken simultaneously and the effect of such actions in the context of hotels in order to seek answers to the following research questions: what type of compensation bundle is most preferred by guests? and How effective are compensations in terms of recovery satisfaction, especially with regard to subsequent behavioral intentions? Design/methodology/approach In order to study guest preferences for compensation, choice-based conjoint (CBC) experiments were used. The CBC survey method involves presenting respondents with several hypothetical scenarios that include numerous combinations of compensation attributes. The survey sample was recruited through web-based panels run by a marketing firm. The online survey was designed and built in the Sawtooth Software platform. Conjoint analysis was carried out. Findings The conjoint analysis results show that among the different compensation attributes, consumers preferred discounts the most, followed by corrective actions and loyalty points. Among the discount levels, consumers favored “free one night certificate for a future stay” over “100 percent off one night’s room bill.” Regarding loyalty points, consumers desire more points than fewer points. In terms of correction levels, consumers appear to desire an “upgrade to a suite” over just moving to another room or having the original room cleaned. Moreover, consumers prefer that service recovery be handled by upper-level management. Research limitations/implications Several limitations should be discussed. For example, the type of service failure studied was limited to a booked room not being clean upon check-in. Different types and magnitudes of service failures may result in a different set of preferences for compensation bundles. In addition, the compensation attributes and levels were limited in scope even though they were obtained from interviews with managers at midsize hotels. Other attributes and attribute levels can be included in future studies. Originality/value Although an abundant number of studies have been done regarding service failure and recovery, the extent to which service recovery needs to be carried out before it translates into actual recovery remains unanswered. Using conjoint analysis, the study identified exactly which bundle of compensation items was most preferred by guests.

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.

Consumer attitude towards service failure and recovery in higher education

2015 ◽  
Vol 23 (1) ◽  
pp. 67-85 ◽  
Author(s):  
Hardeep Chahal ◽  
Pinkey Devi
Keyword(s):  
Higher Education ◽  
Service Failure ◽  
Service Recovery ◽  
Consumer Attitude ◽  
Quantitative Methodology ◽  
Content Type ◽  
Computer Lab ◽  
Service Failures ◽  
Service Failure And Recovery

Purpose – This paper aims to explore consumer attitude towards service failure and recovery in the higher education in general and with respect to teaching, examination, library, computer lab, administration and infrastructure in particular. Design/methodology/approach – The data are collected from 120 students of three undergraduate colleges of University of Jammu using purposive sampling. Findings – The findings reveal that all recovery efforts pertaining to teaching, examination, library, computer lab, administration and infrastructure are significant in overcoming the respective service failures. Research limitations/implications – The present study is limited to address service failure and service recovery relationship with respect to teaching, examination, library, computer lab, administration and infrastructure and limited to three undergraduate colleges operating in Jammu city only. The sample of the study is small which needs to be considered before generalizing the results. Originality/value – This study makes a maiden attempt to identify service failure issues with respect to teaching, examination, library, computer lab, administration and infrastructure using quantitative methodology in higher education and role of service recovery strategies in monitoring and reducing service failure.

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.

Complaint behaviour in multichannel retailing: a cross-stage approach

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Marta Frasquet ◽  
Marco Ieva ◽  
Cristina Ziliani
Keyword(s):  
Online Survey ◽  
Latent Class ◽  
Service Failure ◽  
Service Recovery ◽  
Content Type ◽  
Multichannel Retailing ◽  
Synergy Effects ◽  
Lock In Effect ◽  
Lock In ◽  
Post Purchase

PurposeThis paper analyses how the purchase channel and customer complaint goals affect the sequential choice of post–purchase complaint channels when customers experience a service failure followed by a service recovery failure (double deviation).Design/methodology/approachAn online survey involving a scenario manipulation was conducted with 577 apparel shoppers. The study employs multi-group latent class analysis to estimate latent customer segments within both online and offline groups of shoppers and compare latent classes between the two groups.FindingsThe results show that the purchase channel has a lock-in effect on the complaint channel, which is stronger for offline buyers. Moreover, there is evidence of channel synergy effects in the case of having to complain twice: shoppers who complain in store in the first attempt turn to online channels in the second complaint attempt, and vice versa. Complaint goals shape the choice of complaint channels and define different shopper segments.Originality/valueThe present study is the first to adopt a cross-stage approach that analyses the dependencies between the purchase channel and the complaint channel used on two subsequent occasions: the first complaint after a service failure and the second following a service recovery failure.

Does relationship matter? – Customers’ response to service failure

2014 ◽  
Vol 24 (2) ◽  
pp. 139-159 ◽  
Author(s):  
Chia-Ching Tsai ◽  
Yung-Kai Yang ◽  
Yu-Chi Cheng
Keyword(s):  
Service Providers ◽  
Service Failure ◽  
Service Recovery ◽  
Exchange Relationships ◽  
Content Type ◽  
Consumer Responses ◽  
Perceived Justice ◽  
Service Failures ◽  
Communal Relationships ◽  
Relationship Norms

Purpose – The purpose of this paper is to examine how service failure affects customers’ negative response and how service recovery affects perceived justice in the context of different relationship norms. Design/methodology/approach – It includes four studies that examine how relationships influence customer reactions to service failures. In study 1, the paper examines how service failures affect customers’ negative reaction. In study 2, the paper examines how service recoveries influence perceived justice. Study 3 and study 4 test the robustness of the results of study 1 and study 2. All studies have a 2×2 between-subjects design. Findings – The results show that individuals in exchange relationships experience a stronger feeling of betrayal than those in communal relationships during service failures. Further, individuals feel more betrayed and show greater negative responses during process failures. They perceive greater justice when offered physical recoveries, which, in turn, contributes to higher service-recovery satisfaction. Research limitations/implications – This study was conducted in Taiwan. Customer reactions to service failures may vary according to cultural and environmental contexts. Practical implications – Service providers are encouraged to cultivate relationships with customers and identify different types of customers to compensate them more effectively, according to their preferences. Originality/value – This study introduces relationship norms to investigate consumer responses to service failures. The main contributions are twofold; it investigates the effect of relationship norms on customer responses to service-failure types and service-recovery types.

The role of collective angst during and after a service failure

2014 ◽  
Vol 28 (3) ◽  
pp. 223-232 ◽  
Author(s):  
Amro A. Maher ◽  
Rana Sobh
Keyword(s):  
Service Providers ◽  
Cultural Distance ◽  
Service Failure ◽  
Content Type ◽  
Service Failures ◽  
Service Failure And Recovery ◽  
The Future ◽  
Future Viability ◽  
The Impact

Purpose – The purpose of this study is to examine the role of collective angst, the concern about the future viability of one’s group, during service failure and recovery. Design/methodology/approach – To test this objective the authors utilize an experiment to examine how Kuwaitis react to service failures when the front-line employee is a foreigner. Findings – The results indicate that collective angst is associated with greater anger following a service failure. The authors also find that collective angst moderates the impact of cultural distance on anger and recommendation intentions following a service-failure recovery attempt. More specifically, cultural distance leads to greater anger and lower intentions to recommend a service establishment for consumers that experience greater collective angst. Originality/value – The research provides the first attempt at examining how local consumers react to foreigner service providers, by examining how concern about the future vitality of one’s national group, in other words collective angst, affects such reactions.

Others service experiences: emotions, perceived justice, and behavior

2014 ◽  
Vol 48 (3/4) ◽  
pp. 552-571 ◽  
Author(s):  
Anna Mattila ◽  
Lydia Hanks ◽  
Chenya Wang
Keyword(s):  
Service Providers ◽  
Service Failure ◽  
Content Type ◽  
Theory Of Justice ◽  
Service Failures ◽  
Service Failure And Recovery ◽  
Quasi Experimental ◽  
And Behavior ◽  
The Impact ◽  
Service Experiences

Purpose – Often, service failures are witnessed by other customers, but little is known about how consumers react to service recovery aimed at other customers. Using the deontic theory of justice, this paper aims to examine consumers' reactions to justice directed toward other customers. Design/methodology/approach – Two studies were conducted to test the hypotheses. Both were 2 x 2 between subjects quasi experimental designs using written scenarios and surveys. The scenarios depicted an observing customer witnessing a service failure and recovery happening to another customer. Findings – Results show that the valence of the recovery attempt impacted the observing customer's reactions and evaluations, and that the observer's processing frame and loyalty status of the victim impacted the observing customer's judgments of fairness and behavioral intentions. Originality/value – These results provide guidance to service providers by shedding light on the impact of service failures and recovery on surrounding customers.

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.

Timing and compensation strategies in service recovery

2018 ◽  
Vol 32 (6) ◽  
pp. 755-766 ◽  
Author(s):  
Xiaofei Tang ◽  
En-Chung Chang ◽  
Xing Huang ◽  
Meng Zhang
Keyword(s):  
Service Industry ◽  
Service Failure ◽  
Negative Emotions ◽  
Service Recovery ◽  
Repurchase Intention ◽  
Employee Behavior ◽  
Combined Model ◽  
Content Type ◽  
Service Failures ◽  
Hotel Service

Purpose A combined model involving the intensity of negative emotions and the strategic combinations (timing and means) of service recovery is developed. The purpose of this paper is to evaluate the performances of these different combinations through customer satisfaction, repurchase intention and fitting curves between the two under hotel service scenarios. Design/methodology/approach A 2 (recovery timing: immediate/delayed) × 2 (recovery means: psychological/economic) × 3 (type of service failure: failure in a delivery system/failure in responding to customer needs/improper employee behavior) between-subject experimental design was used with 456 participants. Findings The results suggest that immediate and economic recovery effectively raises the service recovery evaluations from customers with low-intensity negative emotions, whereas delayed and psychological recovery helps customers with high-intensity negative emotions to give higher evaluations. Originality/value When service failures happen, the strategies for and timing of recovery directly influence customers’ service recovery evaluations. This study sheds light on the role that negative emotions play in the process of service recovery and provides implications for service industry managers.

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

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

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

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