Designing Complaint Handling and Service Recovery Strategies

10.1142/y0013 ◽  
2017 ◽  
Author(s):  
Jochen Wirtz
Keyword(s):  
Service Recovery ◽  
Complaint Handling ◽  
Recovery Strategies

OYO Rooms: providing affordable hotel stays

2017 ◽  
Vol 7 (3) ◽  
pp. 1-26
Author(s):  
Tripti Ghosh Sharma ◽  
Rohit Jain ◽  
Sahil Kapoor ◽  
Vijeyta Gaur ◽  
Abhishek Roy
Keyword(s):  
Business Model ◽  
Service Recovery ◽  
Consumer Preference ◽  
Subject Area ◽  
Growth Options ◽  
Growth Strategies ◽  
Content Type ◽  
Long Run ◽  
Complaint Handling ◽  
Recovery Strategies

Subject area Strategic Marketing, Marketing Management, Services Marketing. Study level/applicability MBA and Executive MBA. Case overview The case talks about the inception and growth of OYO Rooms, a company that originally started as ORAVEL Stays Ltd. in 2012, as a platform for booking budget and premium accommodations, but graduated to become OYO Rooms, an online aggregator of hotels, with a unique business model of “managing the partial inventory of rooms” in hotels and offering a proposition of affordable, consistent, quality experience to business, leisure and pilgrim travellers. The company received rounds of funding from Greenoaks Capital, Lightspeed Ventures, Sequoia Capital and DSG Consumer Partners. Moreover, unlike its competitors, OYO adapted itself to the fast-changing consumer preference and grew at an enviable pace and by 2016, was present across 190 cities through a network of 6,500 hotels. However, OYO Rooms had to face a multitude of challenges both from the consumer and hotel owners’ ends, primarily service quality concerns from the customers and majorly concerns out of payment irregularities or non-abidance to written contracts from the hoteliers’ end. The dissatisfaction levels increased to an extent that experts started raising questions on the viability of the business. OYO was growing at an aggressive rate but breakeven point was yet to be achieved. Moreover, growing dissatisfaction and switching amongst its customers as well as hoteliers threatened the very existence of the model. The case allows the students to critically analyse the strategies of OYO for deliberation on whether the business model was sustainable in the long run. It also encourages the students to deliberate on the possible growth strategies for OYO as also on the service recovery strategies for OYO. Expected learning outcomes The case has been positioned around the following modules: industry analysis; value of a two-sided business model to both parties; sustainability of a unique business model, against the challenges that it faces; applying the VRIO framework (resource-based view); complaint handling and service recovery strategies; applying the Ansoff’s grid for possible growth options. Supplementary materials Teaching notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes. Subject code CSS 11: Strategy.

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.

When Consumers' Complaints Fall Into Public Domain

2020 ◽  
pp. 124-137
Author(s):  
Daniela Langaro ◽  
Sandra Maria Correia Loureiro ◽  
André Soares
Keyword(s):  
Social Media ◽  
Sentiment Analysis ◽  
Crisis Management ◽  
Service Recovery ◽  
Public Domain ◽  
Hybrid Form ◽  
Response Strategies ◽  
Customer Care ◽  
Recovery Strategies

Despite previous studies having revealed that the content created by users in social media is predominantly positive, recent studies have challenged this understanding revealing by means of sentiment analysis the predominance of negative and neutral brand related content. The current chapter focuses on the new hybrid form of negative e-WOM in which individual´s complaints are directed at firms, which were originally limited to the domain of offline customer care teams. Thus, previous studies are reviewed from the area of crisis management and service recovery strategies with the intent to offer a relevant scope of theoretical propositions that may be considered by managers and researchers while preparing response strategies to deal with this new hybrid form of negative e-WOM. In total, eight theoretical propositions are presented and organized in three groups of guidelines associated to responses´ format, content, and context with fait-holders and hate-holders being considered as part of the negative e-WOM rhetoric.

Does Corporate Image Really Matter in Service Recovery Context?

2017 ◽  
Vol 8 (1) ◽  
pp. 1-14
Author(s):  
Rania Mostafa
Keyword(s):  
Service Sector ◽  
Service Recovery ◽  
Corporate Image ◽  
Hierarchical Regression ◽  
Future Research ◽  
Mobile Service ◽  
Recovery Strategies ◽  
Recovery Satisfaction ◽  
Moderating Role

The purpose of this study is to examine the moderating role of corporate image to the relationship between service recovery strategies and post-recovery satisfaction. Data were collected, using a questionnaire from 182 complaining customers in the mobile service sector. Hierarchical regression analyses demonstrated the moderating role of corporate image between service recovery strategies and post recovery satisfaction. Findings based on disconfirmation paradigm theory revealed that corporate image moderates the effect of apology, problem solving, and speed response on service recovery satisfaction. However, corporate image was not found to have a moderating effect on the courtesy - recovery satisfaction link. Academic and managerial implications, as well as, future research directions are provided.

Gaining satisfaction: the role of brand equity orientation and failure type in service recovery

2020 ◽  
Vol 54 (10) ◽  
pp. 2317-2342
Author(s):  
Ke Ma ◽  
Xin Zhong ◽  
Guanghui Hou
Keyword(s):  
Brand Equity ◽  
Service Recovery ◽  
Experimental Studies ◽  
Mediation Effect ◽  
Mediation Effects ◽  
Content Type ◽  
Failure Type ◽  
Recovery Strategies ◽  
Recovery Satisfaction ◽  
The Relationship

Purpose This study aims to examine the role played by brand equity orientation and failure type in service recovery. Specifically, through the lens of forgiveness, the way brand equity orientation and failure type influence consumer response to recovery is revealed. Design/methodology/approach This research tests a novel model using data collected from 1,589 consumers in two scenario-based experimental studies. The statistical product and service solutions (SPSS) program with the PROCESS tool was used to test the mediation and moderated mediation effects. Findings The research findings suggest that forgiveness plays a mediation role in the relationship between recovery and satisfaction. Brand equity orientation moderates the mediation effect of forgiveness on the relationship between recovery and recovery satisfaction. In addition, failure type also plays an important role and there is a significant three-way interaction effect (service recovery × brand equity orientation × failure type) on recovery satisfaction under certain circumstances. Research limitations/implications Building on the extant literature which focuses on the cognitive process when investigating recovery and consumer reaction, this research advocates the significant role played by the psychological process, namely, the feeling of forgiveness, in explaining the effect of distinct recovery strategies on consumer satisfaction. This research also unveils the effects of brand equity orientation and failure type on recovery outcomes. Practical implications When addressing performance failure, brand equity orientation and failure type need to be identified. Businesses could develop recovery strategies to arouse consumer forgiveness, which would lead to increased recovery satisfaction. When designing recovery strategies, managers need to be mindful of the effects of brand equity orientation and failure type. Originality/value This research is one of the few which reveals the mediating role played by forgiveness on the effect of recovery. Taking brand equity orientation and failure type into consideration, the findings of this research provide new insights into the recovery literature.

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