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.

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.

Why didn’t it work out? The effects of attributions on the efficacy of recovery strategies

2015 ◽  
Vol 25 (6) ◽  
pp. 700-724 ◽  
Author(s):  
Víctor Iglesias ◽  
Concepción Varela-Neira ◽  
Rodolfo Vázquez-Casielles
Keyword(s):  
Design Methodology ◽  
Empirical Investigation ◽  
Service Failure ◽  
Service Recovery ◽  
Retail Banking ◽  
Content Type ◽  
Final Sample ◽  
Customer Defection ◽  
Recovery Strategies ◽  
Practical Implications

Purpose – The purpose of this paper is to analyze the effects of attributions on the efficacy of service recovery strategies in preventing customer defection following a service failure. Design/methodology/approach – The empirical investigation is carried out on the retail banking industry with a final sample of 448 real cases of customer retention or defection after a service failure. Findings – The results of the study not only highlight the relevance of intentionality as an additional factor in explaining customer defection, but also show the effects of some attributional dimensions (intentionality and controllability) on the efficacy of some recovery strategies (redress, apology and explanation) applied by companies to prevent post-complaint customer defection. Practical implications – The efficacy of the recovery strategies depends on the causal attributions that the customer makes about the service failure. Originality/value – This study analyzes not only the effects of traditional dimensions of attribution (stability and controllability), but also the additional effect that intentionality attributions may have on actual customer defection (not intentions). Moreover, it analyzes their effects on the effectiveness of recovery strategies in preventing customer defection. Most of these effects have never been empirically analyzed in the literature.

scholarly journals Which cues cause consumers to perceive brands as more global? A conjoint analysis

2015 ◽  
Vol 32 (6) ◽  
pp. 606-626 ◽  
Author(s):  
Sarah De Meulenaer ◽  
Nathalie Dens ◽  
Patrick De Pelsmacker
Keyword(s):  
Cluster Analysis ◽  
Conjoint Analysis ◽  
Consumer Culture ◽  
Design Methodology ◽  
Product Category ◽  
Relative Importance ◽  
Brand Name ◽  
High Involvement ◽  
Content Type ◽  
Practical Implications

Purpose – The purpose of this paper is to investigate how the globalization (vs localization) of different cues (advertising copy, brand name, spokesperson, brand logo) influences consumers’ perceived brand globalness. Design/methodology/approach – The authors conducted conjoint analyses for two products differing in product category involvement (chocolates vs computer) with 200 consumers from the Netherlands. Additionally, based on cluster analysis, the authors divide respondents into two groups: local vs global consumer culture individuals, and the authors compare the results of the conjoint analysis for these two clusters. Findings – Advertising copy is most important in determining perceived brand globalness. The spokesperson and the brand logo determine perceived brand globalness more strongly for a low-involvement product, whereas the brand name is more important for a high-involvement product. Further, the spokesperson and the brand logo are relatively more important for global consumer culture individuals, while local consumer culture individuals find the brand name and advertising copy relatively more important. Practical implications – The most important cue to position a brand as global is the advertising copy. Brand managers of a low-involvement product and/or targeting global-minded consumers should concentrate on the spokesperson and the brand logo to position their brand. Managers of a high-involvement product and/or targeting local-minded people should focus on the brand name. Originality/value – While a number of researchers have emphasized the importance of perceived brand globalness for international consumer behavior, the present study is the first to the authors’ knowledge to investigate the relative importance of different cues in creating perceptions of brand globalness.

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.

Establishing an ISO 10001-based promise in inpatients care

2015 ◽  
Vol 28 (2) ◽  
pp. 100-114
Author(s):  
Mohammad Ashiqur Rahman Khan ◽  
Stanislav Karapetrovic
Keyword(s):  
Health Care ◽  
Customer Satisfaction ◽  
Design Methodology ◽  
The Other ◽  
Content Type ◽  
Health Care Settings ◽  
Research Participants ◽  
Program Manager ◽  
Practical Implications ◽  
Specific Health

Purpose – The purpose of this paper is to explore ISO 10001:2007 in planning, designing and developing a customer satisfaction promise (CSP) intended for inpatients care. Design/methodology/approach – Through meetings and interviews with research participants, who included a program manager, unit managers and registered nurses, information about potential promises and their implementation was obtained and analyzed. A number of promises were drafted and one was finally selected to be developed as a CSP. Findings – Applying the standard required adaptation and novel interpretation. Additionally, ISO 10002:2004 (Clause 7) was used to design the feedback handling activities. A promise initially chosen for development turned out to be difficult to implement, experience that helped in selecting and developing the final promise. Research participants found the ISO 10001-based method useful and comprehensible. Practical implications – This paper presents a specific health care example of how to adapt a standard’s guideline in establishing customer promises. The authors show how a promise can be used in alleviating an existing issue (i.e. communication between carers and patients). The learning can be beneficial in various health care settings. Originality/value – To the knowledge, this paper shows the first example of applying ISO 10001:2007 in a health care case. A few activities suggested by the standard are further detailed, and a new activity is introduced. The integrated use of ISO 10001:2007 and 10002:2004 is presented and how one can be “augmented” by the other is demonstrated.

scholarly journals Internet banking and customer satisfaction in Pakistan

2015 ◽  
Vol 7 (1) ◽  
pp. 24-36 ◽  
Author(s):  
Syed Ali Raza ◽  
Syed Tehseen Jawaid ◽  
Ayesha Hassan
Keyword(s):  
Customer Satisfaction ◽  
Web Sites ◽  
Design Methodology ◽  
Internet Banking ◽  
Unique Contribution ◽  
Content Type ◽  
Quality Dimensions ◽  
Service Quality Dimensions ◽  
Practical Implications

Purpose – This study aims to determine the effects of service quality dimensions on customer satisfaction in Pakistan by using the SERVQUAL model. Design/methodology/approach – A survey research questionnaire of 30 items has been adopted, and the data of 400 respondents were collected from the users of Internet banking of different banks located in Karachi city of Pakistan. Findings – The reliability analysis shows that all dimensions are reliable. Results of the factor analysis confirm the grouping of adopted questioner. At last, the regression analysis indicates a significant positive relationship between assurance, tangibility, reliability and responsiveness with customer satisfaction. Conversely, empathy shows a positive but insignificant effect on the customer satisfaction. Practical implications – It is recommended that the management of online banks has to focus on making the design and content of the Web sites more visually appealing to grab the attention of existing customers, as well as to attract new customers. The management has to take effective measures to further enhance the security and safety of online bank accounts, so that customers can maintain long-term relationships with the usage of online banking. Online banks have to provide more reliable services to the customers at heart to make the customers more comfortable and confident. The management should develop more effective systems to quickly solve the issues of customers. Originality/value – This paper makes a unique contribution to the literature with reference to Pakistan, being a pioneering attempt to investigate the customer satisfaction in the banking industry of Pakistan by using a large sample and advance statistical techniques.

Influence of perceived quality on customer satisfaction in different stages of services

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chunchang Xie ◽  
Ziqi Sun
Keyword(s):  
Linear Regression ◽  
Customer Satisfaction ◽  
Design Methodology ◽  
Perceived Quality ◽  
Service Firms ◽  
Formation Model ◽  
Content Type ◽  
Preparation Stage ◽  
Credence Services ◽  
Practical Implications

Purpose In response to the call for research on customer experience across the customer journey, this study aims to analyze and compare the effects of perceived quality on customer satisfaction among the different stages of search, experience and credence services. Design/methodology/approach This paper constructs a formation model of customer satisfaction based on service stages. Data on perceived quality and customer satisfaction in different stages of search, experience and credence services was collected through experiments and practical survey and the model was empirically tested through multiple linear regression. Findings The results show that perceived quality in the preparation and departure stages of search and credence services has a greater influence on customer satisfaction than in the delivery stage. While compared to the preparation stage, the perceived quality in the delivery and departure stages of experience service has a greater influence on customer satisfaction. Practical implications This research will help service firms optimize the allocation of service resources according to the importance of different service stages within the three indicated service types, promoting customer satisfaction. Originality/value This is the first study of its kind to compare the effects of perceived quality on customer satisfaction among the stages of search, experience and credence services.

Revisiting the service recovery paradox in the restaurant industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jong-Hyeong Kim ◽  
Wenxuan Du ◽  
Hyewon Youn
Keyword(s):  
Experimental Study ◽  
Field Study ◽  
Design Methodology ◽  
Service Management ◽  
Service Recovery ◽  
Restaurant Industry ◽  
Content Type ◽  
Service Failures ◽  
Service Recovery Paradox ◽  
Practical Implications

PurposeThe service recovery paradox (SRP) refers to a particular effect whereby an excellent recovery can turn angry and frustrated customers into loyal ones. Researchers who have studied the SRP have reported mixed findings, with some providing evidence in its support and others not finding any such evidence. To address this discrepancy, this study aims to investigate the SRP.Design/methodology/approachThis study re-examined the phenomenon of the SRP with a field study and provided further evidence in a subsequent experimental study in which the failure and recovery conditions were carefully manipulated.FindingsThe results of this study suggest that the SRP was observed in neither the field study nor the scenario experiment.Practical implicationsThis study can influence the current service management of restaurants with regard to service failures in several ways.Originality/valueThis research is a pioneering effort to examine the SRP by conducting both a field study and a scenario experiment.

Increasing employability

2019 ◽  
Vol 27 (4) ◽  
pp. 7-10
Keyword(s):  
Case Studies ◽  
Human Resource ◽  
Design Methodology ◽  
Reading Time ◽  
Business World ◽  
High Involvement ◽  
Content Type ◽  
Improved Outcomes ◽  
Pertinent Information ◽  
Practical Implications

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Increasing employability is important for both individuals and organizations in a fast-paced and changing business world. Increased learning helps employees improve their skills, abilities, and knowledge, which in turn increases their competence and confidence, and increases their perception of their employability, as well as the perception of their supervisors. Organizations can invest in their employees by providing high-involvement human resource practices which encourage involvement, support, trust, and autonomy. This in turn increases positive learning behaviors, which leads to increased employability and thus improved outcomes for employees and the organization as a whole. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Tweeting your way out of disaster

2017 ◽  
Vol 33 (8) ◽  
pp. 17-19
Keyword(s):  
Customer Service ◽  
Design Methodology ◽  
Reading Time ◽  
Service Failure ◽  
Content Type ◽  
Pertinent Information ◽  
Customer Services ◽  
A Company ◽  
Practical Implications ◽  
Do So

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Social media now rules our online lives. It is an inescapable part of our modern existence, and as such, it is being embraced by companies to allow them to survive in the digital age. Twitter is becoming the go-to destination for customer service issues, mainly because of its public and instantaneous nature. Customers are able to make use of a huge audience and the potential for brand damage to a company by using Twitter to complain about a service failure. The costs are now so great that companies need to seriously consider and invest in their Twitter customer services. Success here can not only mitigate brand damage, but also improve it, whereas failure to do so can be catastrophic. Twitter is now the key to how well a company can do globally. Practical implications The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

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