Exploring customer loyalty following service recovery: a replication study in the Ghanaian hotel industry

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
George Oppong Appiagyei Ampong ◽  
Aidatu Abubakari ◽  
Majeed Mohammed ◽  
Esther Theresa Appaw-Agbola ◽  
John Agyekum Addae ◽  
...  
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Service Industry ◽  
Service Recovery ◽  
Interactional Justice ◽  
Recovery Process ◽  
Equation Modeling ◽  
Content Type ◽  
Perceived Justice

PurposeThe study sought to assess the nexus between components of perceived justice and satisfaction, trust and loyalty with service recovery.Design/methodology/approachSurvey data were gathered from a sample of 300 clients from 8 midscale hotels in Ghana. Partial least squares structural equation modeling was used to test the hypothesized relationships.FindingsPerceived distributive justice has no effect on customer satisfaction with service recovery. Interactional justice had the greatest effect on customer satisfaction with service recovery. No significant relationship was found between procedural justice and trust. Also, trust had a significant effect on loyalty post-service recovery.Research limitations/implicationsEmpirical data were taken from one service industry; thus, it is reflective of only that service industry, generalizations should be mindful of our context bounded results.Practical implicationsThe study offers suggestions for managers to leverage the dimensions of perceived justice in order to build trust and loyalty post-service failure. Hotels should treat customers with fairness and respect at every point of contact during the service recovery process. Reward based compensation should be offered to customers to build trust.Originality/valueThe study is among a few to assess service recovery and its link with loyalty from a developing economy context. The study revealed that perceptions of justice with service recovery influences customer loyalty and satisfaction post-service recovery and extend the understanding of service recovery in the Ghanaian hotel sector.

“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.

The effect of experience quality on customer perceived value and customer satisfaction and its impact on customer loyalty

2020 ◽  
Vol 32 (6) ◽  
pp. 1525-1540
Author(s):  
Andriani Kusumawati ◽  
Karisma Sri Rahayu
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Perceived Value ◽  
Statistical Technique ◽  
Equation Modeling ◽  
Content Type ◽  
Customer Perceived Value ◽  
Perceived Values ◽  
The Relationship

PurposeTo test the effect of experience quality on customer perceived value and customer satisfaction and its impact on customer loyalty to the visitors of natural nuanced outdoor cafés in the hilly areas of Joyo Agung, Malang.Design/methodology/approachThis study uses four variables, namely experience quality, customer perceived value, customer satisfaction, and customer loyalty. The population used in this research was all customers or visitors who buy and enjoy the products and services provided by the natural outdoor cafés in Malang. This study used structural equation modeling (SEM) as inferential statistical technique.Findings1) Quality experience has a significant effect on customer perceived value, customer satisfaction, and customer loyalty; 2) customer perceived value has a significant effect on customer satisfaction and customer loyalty; and 3) customer satisfaction has a significant effect on customer loyalty.Originality/valueBased on the results of previous research and the phenomenon that has been described previously, the research gaps found in this study are: (1) the relationship between experience quality and customers’ perceived values. (2) There are differences in the relationship between experience quality and customer satisfaction found in the research, which examines the effect of experience quality on customer loyalty. (3) Experience quality and customer loyalty variables still differ in the research concerning the effect of experience quality on customer loyalty. (4) The influence of customer satisfaction and customer loyalty is still different in the research results regarding the effect of customer satisfaction on customer loyalty.

Role of the perceived justice of service recovery: A comparison of first-time and repeat visitors

2017 ◽  
Vol 19 (1) ◽  
pp. 98-111 ◽  
Author(s):  
Peng Chen ◽  
Yeong Gug Kim
Keyword(s):  
Procedural Justice ◽  
Structural Equation ◽  
Positive Emotion ◽  
Negative Emotion ◽  
Service Recovery ◽  
Interactional Justice ◽  
Equation Modeling ◽  
Perceived Justice ◽  
First Time

The objectives of this study are to determine the effects of perceived justice on customers’ emotional response, which influences customer behavior, and to identify any distinction between first-time and repeat visitors’ perspectives of service recovery. After 550 self-administered questionnaires were distributed, 477 usable questionnaires were obtained. The relationships among seven constructs (distributive justice, procedural justice, interactional justice, positive emotion, negative emotion, overall satisfaction, and word-of-mouth intention) were measured using structural equation modeling, and the moderating role of first-time and repeat visitors in the relationships among constructs was determined. Although there are no significant relationships between procedural justice or interactional justice and negative emotion, other paths were significant. In addition, the moderating function of first-time and repeat visitors had significant impact on the relationships of positive emotion and negative emotion with overall satisfaction.

Predictors of customer loyalty in the Pakistani banking industry: a moderated-mediation study

2016 ◽  
Vol 34 (3) ◽  
pp. 411-430 ◽  
Author(s):  
Muhammad Abid Saleem ◽  
Sadaf Zahra ◽  
Rashid Ahmad ◽  
Hina Ismail
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Integral Model ◽  
Equation Modeling ◽  
Survey Method ◽  
Content Type ◽  
Research Framework ◽  
Mediational Role

Purpose – The purpose of this paper is to develop an original framework to explore the effects of social influence (SI), market orientation (MO) and service quality (SQ) with moderating effect of emotional intelligence (EI) on customer loyalty (CL) and to discuss the mediational role of customer satisfaction. Design/methodology/approach – This study applies six original concepts – SI, MO, SQ, EI, customer satisfaction to develop an integral model to enhance CL. In addition, this research employs an empirical study by means of the questionnaire survey method to verify the hypotheses and to explore its managerial implications. Structural equation modeling has been applied to verify the research framework. Findings – The empirical results show that MO, SI and SQ significantly affect CL with presence of customer satisfaction as a mediator. Furthermore, this study demonstrates that the direct relationships between MO and SI on CL are not supported. However indirect paths present full mediation except in case of SQ where mediation was partial. Moreover, EI was found to enhance the partially mediated relationship between SQ and CL with mediational role customer satisfaction. Hence, banks should invest resources to increase MO, SI and SQ to increase customer satisfaction and CL. Originality/value – This study summarizes the literature on customer satisfaction and relationship marketing into a new managerial framework of CL. It utilizes new arrangement of four construct – SI, MO, and SQ with EI – to develop an original framework to enhance CL. Although past research has highlighted the relevant issues about CL, none explores it with MO and moderating role of EI on SQ. Therefore, this paper develops the research framework of CL to fill the research gap specifically in Pakistani context.

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

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

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

To fly or not to fly? An empirical study of trust, post-recovery satisfaction and loyalty of Malaysia Airlines passengers

2019 ◽  
Vol 29 (5/6) ◽  
pp. 661-690 ◽  
Author(s):  
Amrul Asraf Mohd-Any ◽  
Dilip S. Mutum ◽  
Ezlika M. Ghazali ◽  
Lokmanulhakim Mohamed-Zulkifli
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Interactional Justice ◽  
Final Analysis ◽  
Mediating Effect ◽  
Three Dimensions ◽  
Content Type ◽  
Perceived Justice ◽  
Recovery Satisfaction ◽  
Customer Trust

Purpose The purpose of this paper is to investigate the importance of successful service recovery in the airline sector by examining the interrelationship between perceived justice, recovery satisfaction and overall satisfaction, customer trust and customer loyalty. Furthermore, the research assesses the mediating effect of overall satisfaction and customer trust on customer loyalty. Design/methodology/approach Data were collected via an airport intercept survey of Malaysia Airlines passengers who had experienced service failure. In total, 380 responses were used for the final analysis. The study uses partial least squares structural equation modelling technique with SmartPLS 3.0, in order to test and validate the research model and hypotheses posited. Findings The results reveal that: recovery satisfaction is significantly affected by procedural and interactional justice; distributive and procedural justice, as well as recovery satisfaction influenced overall satisfaction; customer trust is most influenced by interactional justice, distributive justice and recovery satisfaction; customer loyalty is positively affected by customer trust, overall satisfaction and recovery satisfaction; and the influence amongst recovery satisfaction and customer loyalty is partially mediated by customer trust and overall satisfaction. Originality/value The study contributes to a whole conceptual comprehension of the essential determinants of customer loyalty from the combined perspectives of three theories, namely, justice theory, expectancy disconfirmation theory and commitment-trust theory. This study successfully differentiates the three dimensions of perceived justice and assesses them individually to discern and compare their influence on overall satisfaction, recovery satisfaction and trust. In addition, the study finds that the influence of recovery satisfaction on loyalty is partially and sequentially mediated by trust and overall satisfaction.

scholarly journals Relationship between service recovery, customer satisfaction and customer loyalty: Empirical evidence from e-retailing

2021 ◽  
pp. 1-10
Author(s):  
Anh Chi Phan ◽  
Ha Thu Nguyen ◽  
Thoa Xuan Thi Pham
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Developing Economies ◽  
Service Recovery ◽  
Recovery Process ◽  
Purchase Intentions ◽  
The Relationship ◽  
A Company ◽  
Customer Satisfaction And Loyalty

This paper presents the results of an empirical study on the relationship between service recovery quality, customer satisfaction and loyalty in Vietnam’s e-retailing. Structural Equation Modelling (SEM) is applied to analyze the data collected from experienced customers in online shopping in Vietnam from November 2018 to March 2019. The results of statistical analysis indicate that interactive fairness, outcome fairness, procedural fairness significantly impact on customer satisfaction which then increases customer loyalty. This study suggests that customer’s ability to locate and interact with technical support on a website and how a company treats the customer would significantly decide satisfaction and loyalty from customer. E-retailers in developing economies should consider service recovery process as the opportunity to gain customers’ purchase intentions.

Customer loyalty in the fast food restaurants of Bangladesh

2019 ◽  
Vol 121 (11) ◽  
pp. 2791-2808 ◽  
Author(s):  
Mohammed Belal Uddin
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Fast Food ◽  
Structural Equation ◽  
Principal Component ◽  
Business Strategies ◽  
Equation Modeling ◽  
Content Type ◽  
Loyal Customer ◽  
Fast Food Restaurants

Purpose The purpose of this paper is to investigate the factors influencing the satisfaction of customer and customer loyalty in the fast food restaurant industry. A theoretical model, including hypotheses, has been proposed in this study. Design/methodology/approach Data were assembled using convenient sampling method. The hypothesized model was verified with the data from 204 respondents. Principal component analysis and structural equation modeling approach were applied to analyze data. Findings The results (significant at p<0.01 and p<0.05) exhibited that food quality, price and service quality were positively linked to customer satisfaction. Customer satisfaction was positively associated with customer loyalty. The empirical results found a contrary association between the location and environment of restaurant and customer satisfaction. Practical implications The managers and owners of fast food restaurants may use the results of this study to confirm customer satisfaction and loyalty of the customer. With loyal customer groups, their businesses can be sustained and gradually grown up. Originality/value This study will provide guidelines for the management of fast food restaurants to formulate their business strategies in the competitive market. It will give a signal to the managers to stay focused on customer relationship management as the ultimate goal of the business.

scholarly journals Freight Forwarding Company: The Effect of Service Failure, Recovery, Satisfaction, and Customer Loyalty

2021 ◽  
Vol 14 (2) ◽  
pp. 179
Author(s):  
Adi Yudi ◽  
Endang Ruswanti
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Quantitative Methods ◽  
Service Failure ◽  
Service Recovery ◽  
Sampling Technique ◽  
Simple Random Sampling ◽  
Equation Modeling ◽  
The Impact

This study will examine the relationship between the impact of service failure and service recovery on customer satisfaction and loyalty. The research objective was to determine the effect of service failure can be up to customer loyalty. The object of this research is customers who use expedition services located in Jakarta. This research method uses quantitative methods using a questionnaire measuring instrument. The sampling technique used is simple random sampling. To analyze the data using SEM (Structural Equation Modeling) analysis tools with Lisrel. The results of this study conclude that, first, service failure affects service recovery. Secondly, service recovery affects customer loyalty. Third, service recovery affects customer satisfaction, and the last fourth of customer satisfaction also affects customer loyalty.

scholarly journals Service recovery, customer satisfaction and customer loyalty: evidence from Malaysia’s hotel industry

2019 ◽  
Vol 11 (2) ◽  
pp. 187-203 ◽  
Author(s):  
Boon Liat Cheng ◽  
Chin Chuan Gan ◽  
Brian C. Imrie ◽  
Shaheen Mansori
Keyword(s):  
Customer Satisfaction ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Service Recovery ◽  
Hotel Industry ◽  
Tourism Industry ◽  
Business Strategies ◽  
Content Type ◽  
Constant Rate ◽  
The Impact

Purpose The purpose of this study is to investigate the impact of service recovery dimensions on customer satisfaction and, subsequently, on customer loyalty in the context of the hotel industry. Design/methodology/approach A self-administered questionnaire was distributed to 500 respondents who had the experiences of staying in the hotels in Malaysia. The structural equation modelling technique was used to study the relationship between the model and the developed hypotheses. Findings The findings revealed that service recovery dimensions are significantly related to customer satisfaction and have a positive relationship between customer satisfaction and customer loyalty. Practical implications As the main sector in the hospitality business, hotels play a vital role in the tourism industry. Therefore, the developments in tourism and hotels go hand in hand, as they are mutually dependent on each other. With significant yearly developments in the tourism industry and at a constant rate, hotel operators should reconsider their business strategies to achieve customer loyalty and sustain their businesses. In view of that, the findings of this study not only benchmarks better hotel services but also provides an improved understanding of service recovery that will effectively aid hotel operators in handling service failures; otherwise, customer dissatisfaction may occur if poor service recovery strategies are implemented. Originality/value The intense competition in the service industry has driven companies to place extra attention on service recovery so as to ensure continuous success. With a yearly significant development in the tourism industry at a constant rate, hotel providers (one of the major beneficiaries) are driven to reconsider their business strategies to achieve customer loyalty and sustain their business.

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