Service Failure and Recovery: The Impact of Relationship Factors on Customer Satisfaction

2003 ◽  
Vol 31 (2) ◽  
pp. 127-145 ◽  
Author(s):  
Ronald L. Hess Jr. ◽  
Shankar Ganesan ◽  
Noreen M. Klein
2017 ◽  
Vol 26 (8) ◽  
pp. 889-910 ◽  
Author(s):  
Seyed Shahin Sharifi ◽  
Mauricio Palmeira ◽  
Junzhao Ma ◽  
Gerri Spassova

2019 ◽  
pp. 25-38
Author(s):  
Muhammad Hassan Waheed ◽  
Naimat Ullah Khan

With the rapid growth of the services industry in Pakistan which is more than fifty percent of GDP, organizations focus more on their service recovery strategies to keep high the level of customer satisfaction. The basic theme of this research is to judge the customer satisfaction with respect to the elements of Justice Theory (Distributional, Interactional and Procedural Justice) and Service Recovery Strategies, SRS (Apology, Compensation, and Speed). For this purpose, the data is collected with the help of a questionnaire from 115 passengers at Peshawar Airport Pakistan. The results show that all three elements of SRS (Compensation, Speed, and Apology) and two components of Justice Theory (Interactional and Distributive) have a significant positive relationship with customer satisfaction. The only element that has shown insignificant value is procedural justice. The results also indicate that the compensation element of service recovery and interactional justice of Justice Theory have a higher impact on customer after facing a service failure from any Airline company during traveling. The findings suggests that companies should invest more in their front desk employees and should have a recovery strategy that has a major focus on compensation – an element of justice theory – for losses.


2014 ◽  
Vol 28 (3) ◽  
pp. 223-232 ◽  
Author(s):  
Amro A. Maher ◽  
Rana Sobh

Purpose – The purpose of this study is to examine the role of collective angst, the concern about the future viability of one’s group, during service failure and recovery. Design/methodology/approach – To test this objective the authors utilize an experiment to examine how Kuwaitis react to service failures when the front-line employee is a foreigner. Findings – The results indicate that collective angst is associated with greater anger following a service failure. The authors also find that collective angst moderates the impact of cultural distance on anger and recommendation intentions following a service-failure recovery attempt. More specifically, cultural distance leads to greater anger and lower intentions to recommend a service establishment for consumers that experience greater collective angst. Originality/value – The research provides the first attempt at examining how local consumers react to foreigner service providers, by examining how concern about the future vitality of one’s national group, in other words collective angst, affects such reactions.


2014 ◽  
Vol 48 (3/4) ◽  
pp. 552-571 ◽  
Author(s):  
Anna Mattila ◽  
Lydia Hanks ◽  
Chenya Wang

Purpose – Often, service failures are witnessed by other customers, but little is known about how consumers react to service recovery aimed at other customers. Using the deontic theory of justice, this paper aims to examine consumers' reactions to justice directed toward other customers. Design/methodology/approach – Two studies were conducted to test the hypotheses. Both were 2 x 2 between subjects quasi experimental designs using written scenarios and surveys. The scenarios depicted an observing customer witnessing a service failure and recovery happening to another customer. Findings – Results show that the valence of the recovery attempt impacted the observing customer's reactions and evaluations, and that the observer's processing frame and loyalty status of the victim impacted the observing customer's judgments of fairness and behavioral intentions. Originality/value – These results provide guidance to service providers by shedding light on the impact of service failures and recovery on surrounding customers.


2017 ◽  
Vol 2 (2) ◽  
pp. 136
Author(s):  
Mia Antika

 The objectives of this research is to examine the impact of service recovery toward trust, and customer loyalty. To look at the connection between service recovery and customer loyalty this research used justice perspective that included procedural justice, interactional justice and distributive justice. The setting of this research was information technology business. The research was conducted in area of Surakarta regency with the customer phone operator as research respondent. This research used convinience sampling and employed 150 respondent that grouped by complaint and non-complaint customer. Regression analysis  was used in this research to analyse the data. Research indicated that procedural justice have significant impact toward customer satisfaction. In contrast, distributive and interactional justive did not significant impact toward customer satisfaction. This research also found that trust and customer satisfaction significantly impact toward trust and customer loyalty. In addition, this result found that non-complaint respondent were more trust and  loyalty than  customer who complaint to service which provided by phone operator. This indicated that service recovery did not enable to recover service failure.


2012 ◽  
Vol 5 (2) ◽  
pp. 87-100 ◽  
Author(s):  
Jeanne Ellyawati ◽  
Bernardinus M. Purwanto ◽  
Basu Swastha Dharmmesta

This study examines the impact of service failure through the model of service recovery evaluation. The study focuses on the concept of justice theory to determine the influence of emotions on the three dimensions of justice (distributive, procedural, and interactional) for consumer satisfaction. The study considered a sample of 102 retailers in the Yogyakarta region in Indonesia, whose customers had experienced service failure and received service recovery. This study hypothesizes that perceived justice will significantly affect customer satisfaction directly in the context of service recovery satisfaction. It is further hypothesized that there will be a significant indirect effect of perceived justice on customer satisfaction in the context of service recovery satisfaction through emotions. This study employs the hierarchical regression model and shows that perceived justice (distributive, procedural, and interactional) significantly and directly affects customer satisfaction. Further findings indicate that perceived justice also significantly and indirectly affects customer satisfaction. Positive emotions influence the effect of perceived justice on customer satisfaction. Negative emotions only mediate between perceived procedural justice and satisfaction. Thus, negative emotions do not elicit perceived distributive and interactional justice to unsatisfied retailer as consumers. The mediating variables are only partial mediations. The findings hold significant implications for the theory and practice of service recovery management, especially for retailers and service providers.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alei Fan ◽  
Hubert B. Van Hoof ◽  
Xueting Dou ◽  
Ana Lucia Serrano

PurposeDrawing on the dual process theory and the cultural dimension of power distance, the current research investigates the impact of a specific service clue—the linguistic style of address forms (salutation) in hotel manager letters to guests—on customer satisfaction in a hotel context in Ecuador.Design/methodology/approachFollowing an experimental design research approach, this research conducted a series of two studies to examine how customers' cultural values (high vs low power distance), linguistic style of address forms (formal vs casual) and service valence (service success vs service failure) together influenced customer satisfaction. Specifically, Study 1 examined the service success condition, and Study 2 investigated the service failure condition.FindingsThe research results show that, in the service success condition, customers follow their distinct cultural orientations (high vs low power distance) when responding to the different linguistic styles (formal vs casual). On the other hand, in the service failure situation, as customers desire for expressions of respect that can be reflected in a formal address form, the level of satisfaction is lower when the casual address form is used in guest communications, regardless of customers' cultural orientations in power distance.Originality/valueThis research adds to existing cross-cultural service research, particularly in terms of service valence, and provides practical implications for enhancing service providers' cultural awareness and sociolinguistic competence to effectively communicate with customers from diverse cultural backgrounds.


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