Application of Fairness Theory to Service Failures and Service Recovery

2003 ◽  
Vol 5 (3) ◽  
pp. 251-266 ◽  
Author(s):  
Janet R. Mccoll-Kennedy ◽  
Beverley A. Sparks
Keyword(s):  
Service Recovery ◽  
Service Failures ◽  
Fairness Theory

Recovering co-created service failures: the missing link of perceived justice and ethicalness

2019 ◽  
Vol 33 (7) ◽  
pp. 921-935 ◽  
Author(s):  
Shuqin Wei ◽  
Tyson Ang ◽  
Nwamaka A. Anaza
Keyword(s):  
Service Failure ◽  
Service Recovery ◽  
Recovery Process ◽  
Ethical Perceptions ◽  
Content Type ◽  
Perceived Justice ◽  
Service Failures ◽  
Fairness Theory ◽  
The Usa ◽  
Secondary Study

Purpose Drawing on the fairness theory, this paper aims to propose a conceptual framework that investigates how co-creation in the failed service delivery (coproduction intensity) and co-creation in the service recovery affect customers’ evaluation of the firm’s competence, justice and ethicalness, and ultimately their willingness to co-create in the future. Design/methodology/approach Tax services were chosen as the research context. A consumer panel consisting of individuals who live in the USA and have used tax preparation services within the past year was recruited. The first study explores what happens to customers’ ethical perceptions during a failed co-created service encounter. A secondary study investigates what happens to customers’ ethical perceptions in the event that the failed co-created service is recovered. Findings The findings show that customers’ perceptions of the firm’s abilities and ethics are impeded by coproduction intensity but favorably influenced by co-creation of recovery. Practical implications A sense of ethicalness and fairness is violated when co-created service failure occurs, but fortunately, practitioners can count on engaging customers in the service recovery process as co-creators of the solution to positively alter perceived ethicalness and fairness. Originality/value Failed co-created services represent an under-researched area in the marketing literature. Current investigations of co-created service failures have largely approached the notion of fairness from a perceived justice perspective without referencing ethical judgments. However, fairness is grounded in basic ethical assumptions of normative treatment. This research is among the first to highlight the importance of perceived ethicalness in the context of co-created service failure and recovery.

scholarly journals An Empirical Investigation of the Effect of Interaction Justice Perception on Consumer Intentions after Complaining

2007 ◽  
Vol 2 (1) ◽  
Author(s):  
Mahesh S. Bhandari ◽  
Michael J. Polonsky
Keyword(s):  
Direct Effect ◽  
Empirical Investigation ◽  
Service Recovery ◽  
Consumer Perceptions ◽  
Future Research ◽  
Failure Type ◽  
Service Failures ◽  
Justice Perception ◽  
Consumer Intentions ◽  
The Impact

This study examined how apology as interaction justice impacts on consumer perceptions of service recovery attempt. Data was collected using hypothetical scenarios. Two types of service failures were proposed and the impact of recovery action on each failure type was compared. Findings include that there is direct effect of recovery action on consumer future intentions in both type of failures. Implications and direction to the future research were proposed.

scholarly journals Satisfaction with service recovery: Its measurement and its outcomes

2003 ◽  
Vol 34 (3) ◽  
pp. 9-16 ◽  
Author(s):  
C. Boshoff ◽  
G. Staude
Keyword(s):  
Service Failure ◽  
Service Recovery ◽  
Service Firms ◽  
Validity And Reliability ◽  
Service Failures ◽  
Recovery Satisfaction ◽  
Growth Prospects ◽  
Survival And Growth ◽  
Effective Service

Persistent poor service delivery will have a harmful impact on the survival and growth prospects of service firms. The literature contends that, if service failures occur, there are strategies that service firms can employ to return customers to a state of satisfaction. Very little scholarly research has been done, however, to assess the satisfaction of customers after service firms have tried to recover from service failure. Although anecdotal evidence suggest it, no empirical research has been done to confirm that effective service recovery will ensure ‘overall’ satisfaction, or the long-term loyalty of complaining customers.The purpose of this study is to assess the validity and reliability of an instrument purported to measure satisfaction with service recovery (RECOVSAT), and to determine which dimensions of service recovery satisfaction are the most important predictors of overall satisfaction and loyalty.

Retrospective: tracking service failures and employee recovery efforts

2016 ◽  
Vol 30 (1) ◽  
pp. 7-10 ◽  
Author(s):  
K. Douglas Hoffman ◽  
Scott W. Kelley ◽  
Holly M. Rotalsky
Keyword(s):  
Service Recovery ◽  
Original Study ◽  
Theory And Practice ◽  
Strategy Selection ◽  
Recovery Strategy ◽  
Research Directions ◽  
Content Type ◽  
Service Failures ◽  
Recovery Program ◽  
Failure Identification

Purpose The purpose of this paper is to provide an evaluation of the findings first put forward in the article Tracking Service Failures and Employee Recovery Efforts with the benefit of hindsight, and to offer directions for further research and developments in the research area. Design/methodology/approach Research directions which emanated from the publication of the article have been examined in light of current service(s) marketing theory and practice. As a result, promising current and future strands of research have been identified. Findings The original study yielded the initial steps into what has become a systematic step-by-step process that outlines the development and implementation of a service recovery program that now includes failure identification; failure attribution; recovery strategy selection; recovery implementation; and tracking, monitoring and evaluating effectiveness. Subsequent research has linked organistic and mechanistic components of a recovery program to important customer and financial outcomes and the development of a service recovery audit. Practical/implications The original study served as a starting point for the development of a set of implications for services marketing practitioners. Specifically, as a result of the original research, a programmatic approach to service recovery was developed that includes the systematic process of failure identification; failure attribution; recovery strategy selection; (4) recovery implementation; and tracking, monitoring and evaluating effectiveness. Originality/value The original article was highly rated, and generated discussion and important further research. It has value as a part of the history of service(s) marketing research. The retrospective analysis by the author(s) gives a unique insight into processes and thinking associated with understanding key aspects that contribute to the historical development of service(s) marketing, and provides substantial food for thought for future research directions.

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.

Effects of online service failure on customers' intentions to complain online

2020 ◽  
Vol 48 (10) ◽  
pp. 1-16
Author(s):  
Xing'an Xu ◽  
Luqi Wang ◽  
Lilei Wang ◽  
Kaini Xue
Keyword(s):  
Service Failure ◽  
Service Recovery ◽  
Interactive Effects ◽  
Hainan Province ◽  
Online Service ◽  
Public And Private ◽  
Service Failures ◽  
Consumer Perspective ◽  
Failure Types ◽  
Complaint Intentions

Dissatisfied customers are increasingly voicing complaints through social media following online service failures; therefore, it is important to clarify the motivational determinants of customers' online complaint intentions (COCI). We investigated in 3 studies the influence and interaction effects of service failure types, attributions about these failures, scope of impact of the failures, and customer inoculation on both public and private online complaint intentions. Participants were 451 college students from Hainan Province, China. The results show that service failure types, service failure attributions, scope of impact of the service failure, and customer inoculation each had distinct effects on COCI and how customers complain online, and that these factors also had interactive effects on online complaint actions. Our finding that the form of COCI can predict service failure attributes offers implications for the implementation of enterprise service recovery from a consumer perspective.

Revisiting the service recovery paradox in the restaurant industry

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jong-Hyeong Kim ◽  
Wenxuan Du ◽  
Hyewon Youn
Keyword(s):  
Experimental Study ◽  
Field Study ◽  
Design Methodology ◽  
Service Management ◽  
Service Recovery ◽  
Restaurant Industry ◽  
Content Type ◽  
Service Failures ◽  
Service Recovery Paradox ◽  
Practical Implications

PurposeThe service recovery paradox (SRP) refers to a particular effect whereby an excellent recovery can turn angry and frustrated customers into loyal ones. Researchers who have studied the SRP have reported mixed findings, with some providing evidence in its support and others not finding any such evidence. To address this discrepancy, this study aims to investigate the SRP.Design/methodology/approachThis study re-examined the phenomenon of the SRP with a field study and provided further evidence in a subsequent experimental study in which the failure and recovery conditions were carefully manipulated.FindingsThe results of this study suggest that the SRP was observed in neither the field study nor the scenario experiment.Practical implicationsThis study can influence the current service management of restaurants with regard to service failures in several ways.Originality/valueThis research is a pioneering effort to examine the SRP by conducting both a field study and a scenario experiment.

Why are Generation Y consumers the most likely to complain and repurchase?

2017 ◽  
Vol 28 (3) ◽  
pp. 520-540 ◽  
Author(s):  
Raquel Reis Soares ◽  
Ting Ting (Christina) Zhang ◽  
João F. Proença ◽  
Jay Kandampully
Keyword(s):  
Generation X ◽  
Generation Y ◽  
Generational Differences ◽  
Service Management ◽  
Service Recovery ◽  
Key Factors ◽  
Content Type ◽  
Service Failures ◽  
Service Recovery Paradox ◽  
Complaint Behavior

Purpose The purpose of this paper is twofold: to examine generational differences in complaint and post-recovery behaviors after service failures and recoveries, and to investigate the key factors that relate to Generation Y consumers’ responses. Design/methodology/approach In a two-stage approach, Study 1 investigates generational differences in the complaint and repurchase behaviors of a vast sample of more than 36,000 customers. Study 2 examines which factors influence Generation Y consumers’ decisions to complain and to repurchase. Findings Across four generational cohorts (the Silent Generation, Baby Boomers, Generation X, and Generation Y), consumers in Generation Y are the most likely to complain about service failures and repurchase after a satisfactory service recovery. The service recovery paradox thus is a generational feature. Generation Y’s unique characteristics – being tech savvy, heavily influenced by peers, and untrusting of brands – relate closely to their complaint and repurchase patterns. These prolific users of social media tend to stay with a service provider after experiencing satisfactory recovery but are more inclined to complain. Originality/value This study contributes to service management literature by revealing generational differences in customers’ complaint behavior and responses to recovery efforts, while also testing repurchase behavior rather than just behavioral intentions. This study provides valuable insights into the unique factors that influence Generation Y consumers’ complaint and post-recovery responses.

Beyond a Single Firm and Internal Focus Service Failure/Recovery: Multiple Providers and External Service Recoveries

2020 ◽  
pp. 004728752097444
Author(s):  
Karin Weber ◽  
Cathy H. C. Hsu
Keyword(s):  
Service Providers ◽  
Service Failure ◽  
Service Recovery ◽  
Failure Recovery ◽  
Future Research ◽  
Consumer Evaluations ◽  
Service Failures ◽  
Behavior Study ◽  
The One ◽  
And Behavior

Moving beyond the traditional focus on single service providers and internal service recoveries, this article extends service failure/recovery research by examining the effect on consumer evaluations and behavior of (1) a series of service failures that involve multiple entities in the creation of customer experiences; (2) an external service recovery, that is, a recovery implemented by a firm other than the one that caused the service failure; and (3) a joint service provider recovery, in contrast to the prevalent focus on a single firm service recovery. Employing two experiments, findings confirmed that a firm unaffiliated with the firm that caused the service failure benefits more from an external service recovery than an affiliated firm. Surprisingly, external recoveries by affiliated entities themselves, and compared to the internal recovery by the entity that caused the failure, did not significantly impact consumer evaluations and behavior. Study implications and future research directions are discussed.

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