scholarly journals Effectiveness of offline and online rewards in restoring satisfaction and trust

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zonaib Tahir
Keyword(s):  
Experimental Design ◽  
Conceptual Model ◽  
Service Failure ◽  
Service Recovery ◽  
Relative Importance ◽  
Online Service ◽  
Content Type ◽  
The One ◽  
Practical Implications ◽  
Partial Compensation

Purpose This paper aims to compare the relative importance of tangible compensation across the offline and online service mediums, and assess tangible compensation as a trust recovery tactic. Methodology This study is based on a 3 (compensation level: 20%, 50%, 100%) × 2 (compensation type: refund, coupon) × 2 (service medium: offline, online) scenario-based experimental design. Findings The offline and online customers exhibit different satisfaction for the respective values of both the immediate and delayed compensation types. Moreover, offline customers exhibit more trust in the firm when they receive a refund, whereas their online counterparts demonstrate a higher trust when provided with a coupon. Practical implications For a service failure such as the one presented in the experimental study’s scenario, a lower (higher) value coupon will generate more (less) satisfaction compared to providing the same value as a refund. Firms will be better off by providing partial compensation in the form of a coupon, rather than a refund. Originality Unlike most studies of service recovery, this research takes into account the perceived differences of various tangible compensations to provide a comparison of offline and online customers’ recovery preferences. Furthermore, the previous studies have not focused on trust restoration and assessed causes and effects of trust based on trust at one point in time i.e. trust after recovery. While this study has included restored trust as a variable in the conceptual model.

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.

Does online service failure matter to offline customer loyalty in the integrated multi-channel context? The moderating effect of brand strength

2018 ◽  
Vol 28 (6) ◽  
pp. 774-806 ◽  
Author(s):  
Xuhui Wang ◽  
Qilin Zhang
Keyword(s):  
Experimental Design ◽  
Customer Loyalty ◽  
Questionnaire Survey ◽  
Service Failure ◽  
Spillover Effect ◽  
Online Service ◽  
Brand Strength ◽  
Content Type ◽  
Service Mode ◽  
Online Stores

PurposeThe purpose of this paper is to investigate the effect of online service failure on online customer satisfaction and offline customer loyalty, and the moderating role of brand strength is also examined. While extant research on brick and click service mode recognizes the positive spillover effect from offline stores to online stores, this study analyzes the negative spillover effect from online stores to offline stores.Design/methodology/approachThis paper tests the hypotheses by two studies. Study 1 is based on a 2 (failure severity: mild vs severe) × 2 (brand strength: strong vs weak) between-subjects experimental design using scenarios in a brick and click retailer context, while study 2 is based on data collected from a scenario-based questionnaire survey and analyzed through the structural equation modeling.FindingsThe results indicate that participants exposed to severe online service failure show lower online satisfaction as compared to their counterparts exposed to mild online service failure, but they show the similar level of offline loyalty in both degrees of online service failure. Nevertheless, these results are not moderated by brand strength significantly.Research limitations/implicationsAn experimental design and a scenario-based questionnaire survey are used to test the framework. However, the generalizability of the research findings is still limited to a specific study setting. Future research in a different setting is needed to further validate the presented findings.Practical implicationsThe findings suggest that physical service providers should adopt aggressive online expansion strategy to seize the market and pay more attention to online service quality rather than online marketing only.Originality/valueThis is one of few studies to explore the risk of brick and click service mode, and provide a clear understanding of the likely occurrence of online service failure and its impact on online customer satisfaction and offline customer loyalty. It extends prior research by exploring non-existence of negative perceptual effect from online service failure to offline customer loyalty in the short run and weakening brand effect, which contributes to cross-channel spillover effect in the integrated multi-channel context and brand building in the internet era.

Online shopping experience in an emerging e-retailing market

2018 ◽  
Vol 12 (2) ◽  
pp. 193-214 ◽  
Author(s):  
Ernest Emeka Izogo ◽  
Chanaka Jayawardhena
Keyword(s):  
Conceptual Model ◽  
Online Shopping ◽  
Service Failure ◽  
Service Recovery ◽  
Group Behavior ◽  
Shopping Behavior ◽  
Content Type ◽  
Online Retailers ◽  
Wide Range ◽  
Shopping Experience

PurposeWhile e-commerce has been widely cited as the new marketing frontier, thus necessitating the need to deliver seamless shopping experiences across various online channels to achieve success, very few firms have the well withal to clearly tie customer experience investments to marketing outcomes. Theoretically speaking, the understanding of the drivers and outcomes of online shopping experience especially group behavior is imprecise. Therefore, this paper aims to investigate the drivers and outcomes of online shopping experience (OSE).Design/methodology/approachA combination of netnography and conversation analysis was used on a pool of qualitative data generated from the Facebook page of a leading online retailer that has online presence in 11 African countries.FindingsTwo broad categories of OSE under seven drivers and five distinct behavioral outcomes of OSE emerged from the study. The two categories of OSE drivers, though unique, widely fit into the existing frameworks of OSE. The study also indicates that shoppers seize other shoppers’ reviews as a suitable platform to engage in a wide range of behaviors.Research limitations/implicationsThe main theoretical implications include the following: complaint handling is not only a behavioral construct but also a stimulator/driver of online shopping experience; consumer behavior is stimulated more by cognitive drivers; trust is an outcome of OSE which leads to not only electronic word of mouth but also external response to service failure; and shoppers perceive external response to service failure as the last resort and this last resort can be activated by regrets and poor internal response to service failure. The major limitation of this study is that the proposed conceptual model was not empirically tested. Future research is required to validate the model.Practical implicationsThe managerial implications of the findings are that in addition to providing superior shopping experience through enhancing the drivers of OSE identified in this study, online retailers must work assiduously to reduce incidents leading to service failures and promptly undertake service recovery actions whenever service failure occurs. Online retailers especially those operating in emerging markets will therefore benefit from their service recovery investments if they proactively install processes that enable them to promptly and satisfactorily recover failed services.Originality/valueThis paper contributes to service science research by proposing a unique belief-attitude-intention model of the drivers and outcomes of OSE on a relatively underexplored field. The proposed conceptual model advances the stimulus-organism-response framework, theory of planned behavior, satisfaction theories and shopping behavior literature in several directions.

Emotional antecedents and outcomes of service recovery

2014 ◽  
Vol 28 (3) ◽  
pp. 233-243 ◽  
Author(s):  
Kristen Riscinto Kozub ◽  
Martin Anthony O’Neill ◽  
Adrian A. Palmer
Keyword(s):  
Consumer Behaviour ◽  
Service Failure ◽  
Service Recovery ◽  
Hotel Industry ◽  
Recovery Process ◽  
Cognitive Measures ◽  
Content Type ◽  
Luxury Hotel ◽  
Emotional Antecedents ◽  
Practical Implications

Purpose – The purpose of this study was to investigate the service recovery experience in the luxury hotel industry by introducing emotions as a predictor of future behavioural intention and to compare traditional cognitive measures of satisfaction following a recovery process with measures based on affect. Design/methodology/approach – A mixed-methods approach was adopted comprising a main quantitative study, preceded by an exploratory qualitative study. Findings – The study provides further support for the use of emotions in understanding consumer behaviour following a service failure. Research limitations/implications – As an abstract concept, we have only limited physical, measurable manifestation of emotions, and the construct is difficult to operationalise in social sciences research. Furthermore, this research has required retrospective self-reporting of emotions. Practical implications – The use of emotions can provide a better diagnostic tool for understanding attitudes that customers go away with following a service failure, rather than concentrating on cognitive measures of performance. Originality/value – The study has provided further support for the use of emotions in understanding consumer behaviour following a service failure.

How Phillips saw the light

2020 ◽  
Vol 36 (8) ◽  
pp. 29-31
Keyword(s):  
Design Methodology ◽  
Reading Time ◽  
Daily Basis ◽  
Business World ◽  
Content Type ◽  
Freak Show ◽  
The World ◽  
Pertinent Information ◽  
The One ◽  
Practical Implications

Purpose Reviews the latest management developments across the globe and pinpoints 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 The problem with developing a reputation of being something of an oracle in the business world is that all of a sudden, everyone expects you to pull off the trick of interpreting the future on a daily basis. Like a freak show circus act or one-hit wonder pop singer, people expect you to perform when they see you, and they expect you to perform the thing that made you famous, even if it is the one thing in the world you don’t want to do. And when you fail to deliver on these heightened expectations, you are dismissed as a one trick pony, however good that trick is in the first place. 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.

A model of mobile technologies acceptance for knowledge transfer by employees

2017 ◽  
Vol 21 (5) ◽  
pp. 1053-1076 ◽  
Author(s):  
Michal Kuciapski
Keyword(s):  
Knowledge Management ◽  
Knowledge Transfer ◽  
Conceptual Model ◽  
Mobile Devices ◽  
Mobile Technologies ◽  
Intention To Use ◽  
Content Type ◽  
Model Based ◽  
New Variables ◽  
Practical Implications

Purpose Although mobile devices are ubiquitous among employees, their awareness and readiness to use mobile technologies for competence development is still not widespread and therefore requires further exploration. The purpose of this study is to propose a conceptual model based on the unified theory of acceptance and use of technology (UTAUT) to explain the determinants that affect employees’ intention to use mobile devices and software for knowledge transfer during the process of knowledge management. Design/methodology/approach A conceptual model based on the UTAUT with new variables concerning relative usability (RU) and user autonomy (UA) and new connections between the determinants was developed as a result of a subject matter literature review. A structural equation modelling approach was used to validate the model on the basis of data collected via a survey collected from 371 employees from 21 sectors, both public and private. Findings The UTAUT model extended by new variables like RU and UA explains employee acceptance of mobile technologies for knowledge transfer reasonably well. New proposed variables highlighted that the usability of technology compared to other solutions and user autonomy in the selection and the use of applications have the strongest impact on the employees’ intention to use mobile devices and software for knowledge transfer. Research limitations/implications This model explains the 55 per cent behavioral intention of employees to use mobile technologies for knowledge transfer. Even though it is quite high in terms of acceptance theories, some new variables should be explored. Furthermore, study does not verify whether m-learning acceptance for knowledge transfer is sector-specific. Practical implications Mobile technologies used for knowledge transfer by employees should allow for high UA through their ability to select solutions that they find convenient, use of preferred platforms, personalize applications and utilize devices and software in various environments. They should not be simplified and should have the same functionality and efficiency of use as alternative solutions like web and desktop applications, even if additional effort to learn them would be required. Mobile technologies that take into account UA and RU support the process of employees capturing, distributing and effectively using knowledge. Originality/value The elaborated model provides a valuable solution with practical implications for increasing mobile technologies acceptance for knowledge transfer. The study results contribute both to knowledge management and technology acceptance research fields by introducing two new determinants for the acceptance of technologies in knowledge transfer, such as UA and RU with several additional connections between existing UTAUT variables.

Explanation information and source in service recovery initiatives

2014 ◽  
Vol 28 (4) ◽  
pp. 311-318 ◽  
Author(s):  
Thomas Baker ◽  
Tracy Meyer
Keyword(s):  
Source Credibility ◽  
Positive Impact ◽  
Service Failure ◽  
Empirical Studies ◽  
Service Recovery ◽  
Positive Outcome ◽  
Frontline Employees ◽  
Full Account ◽  
Content Type ◽  
Service Failure And Recovery

Purpose – The purpose of this paper is to specifically consider two interactional aspects that are likely to contribute to the success of an explanation of why a service failed: the adequacy of information provided and role of the person providing the information. Design/methodology/approach – Two empirical studies were conducted using a between-subjects 2 (information: low vs high) × 2 (employee: frontline vs manager) experimental design. The first study was designed to better understand when the information provided might have a more positive impact on the customer. The second study was conducted to understand why the effects exist. Findings – In Study 1, an interaction effect was seen that suggests that the most positive outcome is when the manager (vs the frontline employee) provides a full explanation (vs limited explanation) of the mishap. Results from Study 2 indicate that source credibility is in play. Research limitations/implications – Participants were asked to respond to service failure and recovery scenarios using the same service context. The means of the outcome variables suggest that the recovery effort could be improved upon with other methods. Practical implications – Contrary to suggestions that frontline employees be responsible to resolve service failures, our studies reveal that service recovery initiatives involving an explanation only are best received when the manager provides the customer a full account of what went wrong. Originality/value – This research provides empirical evidence of when and why more information regarding the cause of a service failure is most positively received by the customer.

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.

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