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.

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.

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.

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.

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.

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.

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.

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.

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.

Are tattoos still a taboo?

2019 ◽  
Vol 31 (2) ◽  
pp. 874-889 ◽  
Author(s):  
Marie Ozanne ◽  
Michael J. Tews ◽  
Anna S. Mattila
Keyword(s):  
Customer Service ◽  
Service Failure ◽  
Mediation Process ◽  
Content Type ◽  
Customer Perceptions ◽  
Service Failures ◽  
Aesthetic Labor ◽  
Agency And Communion ◽  
Failure Scenario ◽  
The Impact

PurposeAs tattoos increase in popularity, questions persist regarding their impact on customer perceptions. To help shed light into this issue, this paper aims to explore the impact of tattooed restaurant servers in the context of service failures. Through the agency and communion theory, the authors propose that a female server with tattoos induces higher levels of negative word of mouth (WOM) intention than her male counterpart. Furthermore, the authors propose that perceived competence mediates this effect.Design/methodology/approachThrough a 2 (tattoos status: yes, no) × 2 (server’s gender: male, female) experimental design, a panel of consumers were exposed to a restaurant service failure scenario with a photograph of a server. Depending on the condition, the server was either a male or female and had (or not) a tattoo on their left arm and neck. The same tattoo design was used for both genders.FindingsThe findings indicate that, in a service failure context, customers’ propensity to generate negative WOM does not differ across tattooed (vs non-tattooed) servers. However, contrary to the expectations of the authors, people tend to react more negatively to a male (vs female) server with tattoos.Originality/valueResearch on tattoos in the customer service context is scant, especially in hospitality. Furthermore, no previous study on tattoos has empirically tested a mediation process explaining differences in customer perceptions. Contrary to previous findings, this study demonstrates that an exposure to male (vs female) tattooed servers increases customers’ propensity to generate negative WOM. In other words, the type of profession coupled with the employees’ gender might influence customer perceptions. Furthermore, as customers’ propensity to generate negative WOM did not increase when served by a tattooed (vs non-tattooed) employee, managers in aesthetic labor industries, such as the foodservice business, can be more accepting of employees with tattoos.

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