A customer-dominant logic on service recovery and customer satisfaction

2016 ◽  
Vol 54 (10) ◽  
pp. 2524-2543 ◽  
Author(s):  
Fung Yi Millissa Cheung ◽  
Wai Ming To
Keyword(s):  
Customer Satisfaction ◽  
Service Management ◽  
Service Failure ◽  
Service Recovery ◽  
Equation Modeling ◽  
Recent Experience ◽  
Content Type ◽  
Perceived Justice ◽  
Dominant Logic ◽  
Recovery Processes

Purpose Service recovery is a challenge to organizations because customers will respond to recovery processes and outcomes differently. Yet, there are few studies that examine the antecedents of customer co-recovery. Hence, the purpose of this paper is to adopt a customer-dominant logic to explore the antecedents of customer co-creation of service recovery (CCSR) and its effects on perceived justice and satisfaction. Design/methodology/approach The authors reviewed the service management literature and proposed a theoretical model that links customer involvement with service failure (CISF), customer CCSR, perceived justice, to customer satisfaction with service recovery (CSSR). The sample included 594 customers who had recent experience of service failure and service recovery in Hong Kong. The research model was tested using structural equations modeling. Findings The results of structural equation modeling showed that CISF had an effect on customer CCSR in the form of information sharing and co-production, and this effect influenced customers’ justice perceptions, which in turn affected CSSR. Practical implications The findings supported the notion that service management should be viewed from customer-dominant logic and effective facilitation shall be deployed to engage and support customers in service recovery processes. Originality/value The study contributes to service management by identifying the salient role and form of customer co-creation in making customers feel satisfied with service recovery.

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.

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.

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.

“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.

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.

scholarly journals ANTECEDENCE DAN CONSEQUENCES DARI SATISFACTION WITH RECOVERY TERHADAP FUTURE COMPLAINT INTENTIONS

2008 ◽  
Vol 1 (2) ◽  
pp. 16
Author(s):  
Franciskus Maya Praba
Keyword(s):  
Customer Satisfaction ◽  
Distributive Justice ◽  
Procedural Justice ◽  
Customer Service ◽  
Service Failure ◽  
Service Recovery ◽  
Interactional Justice ◽  
Perceived Justice ◽  
Customer Complaint ◽  
Complaint Intentions

<p>The background of this research is managers need to analyze that customer service failure can arise customer complaint. It must be managed by service recovery to get customer satisfaction. Future complaint intentions has relationship with customer satisfaction. Every company need to investigate which is the compatible perceived justice to applied. The objective of this research is to investigate service recovery effects toward customer satisfaction, especially perceived justice ( interactional, procedural, distributive ) and how justice effects customer satisfaction and future complaint intentions. The design of this research applies to customer Bank BCA in Semarang which is has variants occupation and the questionnaires were spreaded away to 100 respondents by using purposive sampling. The result of this research are interactional justice and procedural justice has more influence on future complaint intentions. Despite, distributive justice and satisfaction with recovery decrease future complaint intentions.</p><p><strong>Keywords: Antacedence, satisfaction with recovery, future complaint intentions</strong></p>

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.

Moral judgment and perceived justice in service recovery

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ke Ma ◽  
Xin Zhong
Keyword(s):  
Moral Judgment ◽  
Word Of Mouth ◽  
Service Failure ◽  
Service Recovery ◽  
Negative Word ◽  
Mediation Effects ◽  
Content Type ◽  
Perceived Justice ◽  
Study Approach ◽  
Monetary Compensation

PurposeThe purpose of this study is to examine the effect of perceived justice and consumer's moral judgment of a service failure on recovery outcomes.Design/methodology/approachThe research model is examined by adopting a field study approach followed by an experiment. The SPSS program with the PROCESS tool was used to analyze the simple moderation and moderated mediation effects.FindingsThe research findings show that consumer's moral judgment of a service failure moderates the relationship between service recovery (psychological compensation vs monetary compensation) and recovery outcomes (recovery satisfaction, negative word of mouth and repurchase intention). Moreover, the conditional indirect effect of service recovery on recovery outcomes through perceived justice is significant when service failure is seen as less moral. Specifically, consumers report lower perceived justice and react negatively to recovery measures when service failure is seen as less moral. In contrast, when consumers perceive a service failure as moral, a psychological compensation outperforms a monetary compensation, lessening negative word of mouth (NWOM).Originality/valueThese findings provide important insights into recovery measure development when considering consumer moral perspectives.

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.

Perceived justice, service satisfaction and behavior intentions following service recovery efforts in a South African retail banking context

2017 ◽  
Vol 35 (2) ◽  
pp. 241-253 ◽  
Author(s):  
Daniel J. Petzer ◽  
Christine F. De Meyer-Heydenrych ◽  
Göran Svensson
Keyword(s):  
South African ◽  
Service Failure ◽  
Service Recovery ◽  
Interactional Justice ◽  
Retail Banking ◽  
Service Satisfaction ◽  
Research Model ◽  
Content Type ◽  
Perceived Justice ◽  
Customer Complaint

Purpose The interactional and distributive dimensions of perceived justice as one of its objectives are to reveal the link between perceived justice and service satisfaction (SS). The purpose of this paper is to consider the influence of the perceived justice that South African retail bank customers experience based on the service recovery efforts of these banks in response to their complaints, the customers’ SS, and, consequently, the behavioral intention (BI) toward these banks. Design/methodology/approach This study focuses on the perceived justice construct where a service failure has occurred followed by a customer complaint and a resultant service provider response. In total, 281 respondents completed a structured self-administered questionnaire. Findings The study found that interactional and distributive justice (DJ) experienced in response to the service recovery efforts of a bank significantly and positively influence SS, and that SS in turn significantly and positively influences the BI of these customers. However, it was found that interactional and DJ had no direct effect on BI. Research limitations/implications The research model tested addresses the interfaces between service receivers’ perception of interactional justice, distributional justice and SS as well as the interface between SS and BI. The tested research model indicates that both are interrelated through SS. Practical implications It is evident from the findings that retail banks should utilize the service encounter that follows a customer complaint as a desirable prospect to implement strategies to recover from service failures in an effort to bring about perceived justice that will ultimately influence customers’ levels of SS and BI. Originality/value This study makes a complementary contribution to previous studies and existing theory building a nomological framework of constructs in service encounters consisting of service receivers’ perceived justice, SS and BI.

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