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.

Service recovery satisfaction and customer commitment in the airline business

2019 ◽  
Vol 11 (1) ◽  
pp. 91-108
Author(s):  
Rosemary Matikiti ◽  
Mercy Mpinganjira ◽  
Mornay Roberts-Lombard
Keyword(s):  
Airline Industry ◽  
Structural Equation ◽  
Word Of Mouth ◽  
Service Failure ◽  
Service Recovery ◽  
Positive Word ◽  
Content Type ◽  
Customer Commitment ◽  
Recovery Satisfaction ◽  
Positive Word Of Mouth

Purpose The purpose of this paper is to examine the precursors and outcomes of service recovery satisfaction and customer commitment among airline business customers. Design/methodology/approach Data were collected from airline travellers in South Africa using a structured questionnaire. Structural equation modelling was used to analyse the proposed hypotheses. Findings The results revealed that recovery expectations and perceived equity exert significant influence on levels of recovery satisfaction, which in turn influence overall satisfaction, trust and commitment. The study also revealed that trust and overall satisfaction are antecedents of customer commitment and that customer commitment has a significant positive relationship with positive word of mouth. It was also established that the quality of past service performance moderates the relationship between recovery satisfaction and commitment. Practical implications Airlines are advised to stimulate customer trust in the service delivery process through transparency in the procedures by which they resolve service failures and to remain committed to their service recovery promises to customers. It is also proposed that airlines should secure increased positive word of mouth through offering satisfactory service recovery. Originality/value Very little research in the South African context exists which focusses on the influence of customers satisfaction and commitment in the airline industry. This paper helps in establishing the antecedents of customer commitment after service failure in the airline industry.

Managing negative word-of-mouth: the interplay between locus of causality and social presence

2019 ◽  
Vol 34 (2) ◽  
pp. 137-148
Author(s):  
Yi He ◽  
Ilyoung Ju ◽  
Qimei Chen ◽  
Dana L. Alden ◽  
Hong Zhu ◽  
...  
Keyword(s):  
Social Presence ◽  
Word Of Mouth ◽  
Service Failure ◽  
Interaction Effects ◽  
Negative Word ◽  
Locus Of Causality ◽  
Content Type ◽  
Affective Processes ◽  
Support Seeking ◽  
Service Managers

Purpose This paper aims to describe the results of four studies that examine the interaction effects between locus of causality and social presence on consumers’ emotional response to a service failure and how they subsequently cope with the negative emotional experiences through support-seeking or vindictive negative word-of-mouth (NWOM). Design/methodology/approach To evaluate the research hypotheses, one online content analysis study and three experiments were conducted. Findings The results of the four studies show that when locus of causality information is not available (Studies 1 and 2), consumers are more likely to engage in support-seeking NWOM when there is social presence (versus no social presence). When a service failure is externally/internally attributed, social presence leads to less/more vindictive NWOM (Studies 3 and 4). The results clarify the underlying affective processes (frustration, anger and embarrassment) that account for the unique interaction effects involving locus of causality and social presence on NWOM. Originality/value Despite promising progress in both social presence and service failure research, scholarly attempts aiming to draw the theoretical linkages between these two streams are relatively scarce, and it remains unknown regarding whether and how social presence influences NWOM in the event of service failure. Against this backdrop, this research examines the effects of social presence on consumer NWOM in service failure. The authors further contribute to both research streams by testing the effects of an important set of emotions as mediators, as well by exploring the conditions under which a particular emotion is more predictive of its corresponding outcomes. These findings offer important insights that help service managers effectively mitigate customer NWOM at the point of service delivery.

Do service firm employee and customer relations matter for customer forgiveness in service recovery?

2019 ◽  
Vol 31 (4) ◽  
pp. 1216-1232 ◽  
Author(s):  
Lakhi Muhammad ◽  
Gul-e-Rana Gul-e-Rana
Keyword(s):  
Social Capital ◽  
Structural Equation ◽  
Word Of Mouth ◽  
Customer Relations ◽  
Service Recovery ◽  
Negative Word ◽  
Equation Modeling ◽  
Content Type ◽  
Service Firm ◽  
Cognitive Social Capital

PurposeCustomer forgiveness is gaining importance in service recovery. This study debates that service firm employees and the customers’ relations are supportive resources for the customer while deciding for forgiveness. Accordingly, the purpose of this paper is to test the effects of structural, relational and cognitive social capital on customer forgiveness and thereof the effects of customer forgiveness on negative word of mouth and repatronage intentions.Design/methodology/approachPartial least squares–structural equation modeling was employed to test the hypothesized relations on usable data from 428 banking customers who registered their complaint recently.FindingsResults show that structural, relational and cognitive social capital explained a unique variance in customer forgiveness with significant positive influence, whereas customer forgiveness has a significant positive effect on repatronage intentions and a significant negative influence on negative word of mouth.Originality/valueCustomer forgiveness is a convincing idea in service recovery. This study proposed and empirically verified that social capital in relations of service firm employee and customer relations is important for customer forgiveness to minimize negative word of mouth and enhance repatronage intentions.

Customers’ emotion regulation strategies in service failure encounters

2017 ◽  
Vol 51 (5/6) ◽  
pp. 960-982 ◽  
Author(s):  
M.S. Balaji ◽  
Sanjit Kumar Roy ◽  
Ali Quazi
Keyword(s):  
Emotion Regulation ◽  
Customer Satisfaction ◽  
Word Of Mouth ◽  
Service Failure ◽  
Negative Word ◽  
Perceived Injustice ◽  
Emotion Regulation Strategies ◽  
Content Type ◽  
Repurchase Intentions ◽  
Regulation Strategies

Purpose The purpose of this paper is twofold: first, to determine the role of emotions in customer evaluation of service failures; and second, to examine how customers’ emotion regulation impacts customer satisfaction and behavioural responses (e.g. repurchase intentions and negative word-of-mouth). Design/methodology/approach A scenario-based survey was used to elicit responses in a hospitality setting. Structural equation modelling and hierarchical regression analysis were used to test the proposed hypotheses. Findings Results show that both positive and negative emotions mediate the relationship between perceived injustice and customer satisfaction. The emotion regulation of customers through suppression and reappraisal influences the effects of satisfaction on both negative word-of-mouth and repurchase intentions. Practical implications This study advances service managers’ understanding of customer experience during service failure by demonstrating how emotion regulation influences customer response behaviours. With a better understanding of customers’ emotion regulation strategies, managers and frontline employees can more effectively develop and execute recovery strategies which adapt to customer emotions while eliciting more satisfying outcomes. Originality/value This research is one of the first to examine the moderating role of customers’ emotion regulation strategies in determining their behavioural responses. Conducted in the hospitality services context, this study provides support for relationships among perceived injustice, customer emotions, emotion regulation, customer satisfaction, negative word-of-mouth and repurchase intentions.

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.

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, emotions, and behavioral intentions in the Taiwanese food and beverage industry

2017 ◽  
Vol 28 (4) ◽  
pp. 437-463 ◽  
Author(s):  
Jaime Ortiz ◽  
Tao-Sheng Chiu ◽  
Chih Wen-Hai ◽  
Che-Wei Hsu
Keyword(s):  
Behavioral Intentions ◽  
Word Of Mouth ◽  
Service Failure ◽  
Positive Word ◽  
Content Type ◽  
Perceived Justice ◽  
Blame Attribution ◽  
Failure Severity ◽  
Food And Beverage ◽  
Positive Word Of Mouth

Purpose The research framework of this study is based on tri-component attitude model (cognition-affect-conation) which explores consumers’ positive or negative emotions, as well as various types of thoughts and actions, triggered by their perceived justice in the context of service failure. This study aims to probe the possible mediating and moderating effects caused by the process where consumers form their thoughts and actions. Design/methodology/approach This study conducts a survey to consumers after restaurant dining. This study collects data from 262 respondents and analyzes the data with the structural equation modeling. Findings The results indicate that perceived justice has significant effect on empathy, anger, positive word-of-mouth, repurchase intention and revenge. Empathy has a significant and positive effect on positive word-of-mouth. Anger has significant and positive effects on revenge and avoidance. Empathy is a mediator between perceived justice and positive word-of-mouth. Blame attribution and service failure severity are the moderators in the relationship between perceived justice and empathy/anger. Research limitations/implications Consumers might have experienced the scenarios described in the questionnaire and their responses might be based on recall of their previous dining experiences in other restaurants, thereby resulting in a time lapse problem and affecting the conclusions of this study. Practical implications It is not adequate to gain consumers’ choices just demonstrate favorable customer perceived justice and empathy in today’s industrial highly competitiveness because blame attribution and perception of service failure severity result in different positive and negative emotions and behavioral intentions. Therefore, food and beverage industry must have a various recovery approaches to recover service failure and create a more appealing relationship with consumers. Originality/value This study investigates the relationships among perceived justice, emotions and behavioral intentions which are seldom discussed in the past studies. In addition, this study investigates the mediating effect of empathy in the relationship between perceived justice and positive word-of-mouth. The results of this study indicate that blame attribution and service failure severity are the moderators between perceived justice and emotions (empathy/anger). The mediator of empathy and the moderators of blame attribution and service failure severity can enhance the research gap in the context of service recovery for the tri-component attitude model.

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.

Influence of social capital on customer’s relationship satisfaction in the Pakistani banking industry

2017 ◽  
Vol 29 (5) ◽  
pp. 1036-1054 ◽  
Author(s):  
Lakhi Muhammad ◽  
Batiah Mahadi ◽  
Nazimah Hussin
Keyword(s):  
Social Capital ◽  
Relationship Satisfaction ◽  
Word Of Mouth ◽  
Banking Industry ◽  
Service Recovery ◽  
Negative Word ◽  
Equation Modeling ◽  
Content Type ◽  
Structural Social Capital ◽  
Patronage Intentions

Purpose The purpose of this paper is to investigate the effects of structural social capital, relational social capital and cognitive social on relationship satisfaction, and also to investigate how relationship satisfaction is associated with negative word-of-mouth and re-patronage intentions, in service recovery. Design/methodology/approach A sample of 478 Pakistani banking industry clients, who registered a complaint to their bank recently, answered the survey. Variance-based partial least squares structural equation modeling was employed for data analysis. Findings Results demonstrate that all three facets of social capital have a significant positive impact on relationship satisfaction. However, relationship satisfaction enhances customer re-patronage intentions and restrains negative word-of-mouth intentions. Practical implications Findings are important for service firms, particularly for banks to adjust their service recovery strategies. Originality/value The paper verified the influence of structural social capital, cognitive social capital and relational social capital on relationship satisfaction and tested the influence of relationship satisfaction on negative word-of-mouth and re-patronage intentions.

scholarly journals APOLOGY AND COMPENSATION STRATEGY ON CUSTOMER FORGIVENESS AND NEGATIVE WORD OF MOUTH

2019 ◽  
Vol 21 (1) ◽  
pp. 41-50
Author(s):  
Resekiani Mas Bakar ◽  
Nurul Hidayati ◽  
Inastuti Retno Giffani
Keyword(s):  
Service Provider ◽  
Word Of Mouth ◽  
Service Failure ◽  
Service Recovery ◽  
Negative Word ◽  
The Other ◽  
Service Process ◽  
Recovery Strategy ◽  
Compensation Strategy

The service provider could not totally guarantee the service process without any failure at all. This study aims to measure the influence of service recovery strategy towards customer forgiveness and negative word-of-mouth (WOM) as the effect of service failure. The service recovery strategy is performed in three types of vignette: apology, compensation, and apology-compensation. Vignette was given to 94 participants who have encountered service of airline. The result of ANOVA shows that apology compensation achieves the highest score relates to forgiveness. The interesting result of this study shows that even the customers forgive the service provider due to the service failure they did, this cannot diminish the intention of negative WOM. This study offers an implication to the company in order to pay attention regarding the compensation and the spread of negative WOM to the other customers

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