scholarly journals The Impacts of Perceived Risk and Negative Emotions on the Service Recovery Effect for Online Travel Agencies: The Moderating Role of Corporate Reputation

2021 ◽  
Vol 12 ◽  
Author(s):  
Jiahua Wei

This study explores the impact mechanism of perceived risk and negative emotions on the service recovery effect of an online travel agency (OTA) through a scenario experiment. The results show that: perceived risk has positive and negative impacts on negative emotions and service recovery satisfaction, negative emotions have a negative impact on service recovery satisfaction, and corporate reputation plays a positive moderating role in the relationship between perceived risk and service recovery satisfaction. This study is helpful to better explain the impact mechanism of the service recovery effect of OTAs, and to provide a theoretical reference for improving the service recovery effect of OTAs.

2021 ◽  
Vol 12 ◽  
Author(s):  
Jiahua Wei ◽  
Zhiping Hou ◽  
Xiaorui Zhou

At present, online travel agency (OTA) service failure events emerge continually, which makes the OTA service operation mode face new challenges. This study uses the situational experiment method to explore the effects of OTA employees’ emotional intelligence and emotional labor (surface behavior and deep behavior) on the effect of service recovery. The results show that the emotional intelligence of OTA employees has a positive impact on the surface behavior and deep behavior; the emotional intelligence and deep behavior of employees have a significant positive impact on service recovery satisfaction, but the positive impact of employees’ surface behavior on service recovery satisfaction is not statistically significant; finally, service recovery satisfaction has a positive impact on customer loyalty. This study helps to better explain the mechanism of OTA service recovery effect and provides a theoretical reference for improving the service recovery effect of OTA.


2018 ◽  
Vol 32 (7) ◽  
pp. 835-849 ◽  
Author(s):  
Teresa Fernandes ◽  
Marta Morgado ◽  
Maria Antónia Rodrigues

Purpose Employees’ emotional competencies (EEC) are skills, based on emotional intelligence, used to perceive, understand and regulate customer emotions during a service encounter. In the context of service recovery, these skills are especially important and allow employees to influence consumers’ attitude and behaviours. The purpose of this study is to assess the direct and indirect impacts of EEC in post-recovery satisfaction, trust, word-of-mouth and repurchase intention, considering the moderating role of service (level of employee-customer contact) types. Design/methodology/approach A total of 355 customers who experienced a service failure and subsequent recovery were surveyed using a self-administered questionnaire. EEC was specified as a formative construct, determined by its perceiving, understanding and regulating dimensions. To measure EEC and its impact on selected outcomes, PLS-SEM was used. A multi-group analysis was performed to analyse the moderating role of service type. Findings Results confirm EEC as a formative construct, with a positive direct impact on post-recovery satisfaction, particularly in high-contact customized services. Findings also reveal the mediating role of satisfaction on selected outcomes, and the significant direct impact of EEC on trust, even when controlling for satisfaction. Originality/value EEC remains unexplored in the service recovery literature, and most research fails to understand how EEC role may vary given contextual differences. This study adopts a consumer perspective of EEC in the emotionally charged situation of service recovery, considering the moderating role of service type. The authors further contribute to both literature streams while examining the impact of EEC on post-recovery evaluations. Companies should consider these findings in the recruitment and training of front-line employees to develop better service recovery strategies.


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.


2016 ◽  
Vol 26 (5) ◽  
pp. 534-558 ◽  
Author(s):  
Carla Ruiz-Mafe ◽  
Jose Tronch ◽  
Silvia Sanz-Blas

Purpose The purpose of this paper is to analyse the role of emotions and social influences on loyalty formation towards online travel communities. Design/methodology/approach The individual (perceived risk) and social (subjective norm and social presence) antecedents of emotions as well as the impact of emotions on attitude and loyalty towards online travel communities are tested through structural equation modelling techniques. The sample consists of 385 active users of online travel communities in Spain. Findings Data analysis shows that perceived privacy and security risk elicit negative emotions such as stress, frustration and fear towards the online travel community. Normative influences (subjective norm) and feeling the presence of other community members (social presence) boost positive emotions towards the online travel community. Interpersonal influences have a positive effect on subjective norm but not external influences. Positive and negative emotions affect preferences towards the online travel community (attitudes) as proposed by social impact theory. Subjective norm and attitude have a direct influence on loyalty towards an online travel community, confirming previous research grounded on theory of reasoned action models. Originality/value Despite the crucial impact of consumers’ affective states on loyalty formation, research on social media is mainly focused on the technological nature of consumer information exchanges, neglecting other drivers of consumer behaviour beyond the technology employed. This paper develops a model that integrates the relationships between consumer emotions and their individual (perceived risk) and social (social presence and subjective norm) antecedents and outcome variables (attitude and loyalty). The role of social influences is analysed, assessing the conjoint impact of one-way communication (interpersonal influences and mass media) and Web 2.0 communications (social presence) on positive emotions and loyalty formation towards the online travel community.


2019 ◽  
Vol 58 (5) ◽  
pp. 828-843 ◽  
Author(s):  
Mo Zhang ◽  
Ruoqi Geng

Purpose In accordance with the commitment–trust theory, employee attitudes and behaviours mediate the impact of empowerment on service recovery performance. The purpose of this paper is to extend the self-regulating process model and develop a structural framework that combines empowerment, self-regulation mechanisms (service recovery awareness, job engagement and emotional exhaustion) and post-recovery satisfaction. This framework explores how empowerment can lead to action of frontline employees (FLEs) in service recovery. Design/methodology/approach The authors test the hypotheses by investigating 290 pairs of FLEs and customers, who have service failure experience in the express mail industry, using structure equation modelling. Findings The findings show that empowerment enhances both service recovery awareness and job engagement. On the one hand, service recovery awareness has a positive impact on emotional exhaustion, which has a negative impact on post-recovery satisfaction. On the other hand, job engagement has a positive impact on performance. These results provide the whole picture of the double-edged effects of empowerment on FLEs in service recovery. Practical implications This paper indicates that managers should re-consider approaches to empowerment based on self-regulation process to enhance performance following service failure. Originality/value This study explores the dark side of empowerment in service recovery from a self-regulation perspective.


Author(s):  
Rania Mostafa

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.


2020 ◽  
Vol 37 (7) ◽  
pp. 843-854
Author(s):  
Joseph Lok-Man Lee ◽  
Noel Yee-Man Siu ◽  
Tracy Jun-Feng Zhang

Purpose Can we always expect that service recovery justice leads to satisfaction? Literature has shown that a number of moderating factors impact the recovery justice-satisfaction link in different cultures. However, there is a dearth of research that has indicated the key cultural variables that play a moderating role. This study aims to attempt to fill the research gap by investigating the moderating role of concern for face, belief in fate and brand equity in the relationship between perceived justice and satisfaction in Chinese culture during service recovery. Design/methodology/approach The hypothesized relationships are tested using data from interviews with 600 persons who have recently complained about their telecommunications services. Structural equation modeling is applied in analyzing their responses. Findings Concern for face is found to strengthen the relationship between interactional justice perceptions and satisfaction, but to weaken the relationship between distributive justice perceptions and satisfaction. Belief in fate weakens the link between perceptions of interactional justice and satisfaction. Brand equity positively moderates the relationship between perceptions of interactional justice and satisfaction, but it negatively moderates the relationship between perceptions of distributive justice and satisfaction. Practical implications The cultural variables, namely, face, fate and brand equity, are found to serve as a moderating role in the relationship between recovery justice dimensions and satisfaction. They are more salient when it is related to social element. Face and brand equity, as interpersonal constructs, aggravate the impact of interactional justice on satisfaction. Fate, as non-social factor, weakens the impact of interactional justice on satisfaction. It is argued that managers should provide staff training in product knowledge and customer service as a preventive measure against damage to the brand. Regular customer satisfaction research and benchmarking exercises should be conducted to understand how customers perceive interactional justice. Originality/value This has been the first research to examine the impact of concern for face, belief in fate and brand equity in the relationship between justice perceptions and post-recovery satisfaction during service recovery.


2017 ◽  
Vol 64 (1) ◽  
pp. 97-121 ◽  
Author(s):  
Bagher Asgarnezhad Nouri ◽  
Samira Motamedi ◽  
Milad Soltani

Abstract Behavioral science in the field of finance and investment is among new topics raised in recent years. The relationship between financial sciences and other fields of social sciences such as financial psychology has caused researchers to do many researches regarding the behavior of investors in the financial markets and their reactions to different situations. Based on the theories of financial behavior, shareholders' decision to buy and sell stocks is under the influence of internal and external psychological factors. Through designing and experimental testing of the model of investors' financial behavior in the Tehran Stock Exchange with an emphasis on brand, this study was an attempt to investigate the influence of these factors. To this end, financial, psychological and social factors were considered as the most important external factors influencing the behavior of investors and, considering the mediating role of brand awareness, their impact on perceived risk and perceived return as well as investment intention was tested. The research population consisted of all individual investors in the Tehran Stock Exchange. In order to determine the sample size, considering unlimited population, Cochran formula was used and hence the sample size was determined to be 145. For data collection, standard questionnaire was used. Confirmatory factor analysis was used to test the reliability of the questionnaire and the research hypotheses were tested using path analysis. The results showed that psychological factors have a positive impact on perceived risk and returns. Financial factors had a positive impact on perceived risk but no impact on perceived return. The impact of social factors on perceived risk and perceived return was not confirmed. Moreover, the results showed that brand awareness has a moderating role in the relationship between social factors and perceived risk and return. However, its moderating role was not confirmed in the relationship between the psychological and financial factors and perceived risk and return. Perceived risk had a positive effect on attitude toward the brand. However, the impact of perceived return on attitude toward the brand was not significant. Finally, the attitude toward the brand had a positive effect on shareholders' investment intention.


2020 ◽  
Vol 27 (6) ◽  
pp. 1951-1980
Author(s):  
Sonia Mathew ◽  
Ajay Jose ◽  
Rejikumar G ◽  
Dony Peter Chacko

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.


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