The Role of Service Recovery in Online Privacy Violation

2019 ◽  
pp. 1498-1527
Author(s):  
Bidyut B Hazarika ◽  
James Gerlach ◽  
Lawrence F. Cunningham
Keyword(s):  
Perceived Risk ◽  
Service Failure ◽  
Service Recovery ◽  
Interactional Justice ◽  
Online Privacy ◽  
Repurchase Intentions ◽  
Consumer Complaints ◽  
Recovery Strategies ◽  
Privacy Violation

In this study, the authors address the question of whether firms may successfully pursue service recovery strategies after severe online privacy violations. The study treats online privacy violations as a service failure and uses justice theory to measure repurchasing intention after consumer complaints in three different scenarios. The three scenarios differ in the sense that the accountability and the outcome of the service failure are different. The results indicate that despite the different instances of online privacy violation in each scenario, the service recovery efforts consistently created satisfaction with service recovery, significantly increased consumer trust, decreased perceived risk and increased repurchase intentions. The study finds that that both distributive and procedural justice plays an important role in online service recovery while interactional justice did not have any impact. Finally, even in cases of severe online privacy violation service recovery plays an important role generating repurchase intentions.

The Role of Service Recovery in Online Privacy Violation

2018 ◽  
Vol 14 (4) ◽  
pp. 1-27
Author(s):  
Bidyut B Hazarika ◽  
James Gerlach ◽  
Lawrence Cunningham
Keyword(s):  
Perceived Risk ◽  
Service Failure ◽  
Service Recovery ◽  
Interactional Justice ◽  
Online Privacy ◽  
Consumer Trust ◽  
Repurchase Intentions ◽  
Consumer Complaints ◽  
Privacy Violation

In this study, the authors address the question of whether firms may successfully pursue service recovery strategies after severe online privacy violations. The study treats online privacy violations as a service failure and uses justice theory to measure repurchasing intention after consumer complaints in three different scenarios. The three scenarios differ in the sense that the accountability and the outcome of the service failure are different. The results indicate that despite the different instances of online privacy violation in each scenario, the service recovery efforts consistently created satisfaction with service recovery, significantly increased consumer trust, decreased perceived risk and increased repurchase intentions. The study finds that that both distributive and procedural justice plays an important role in online service recovery while interactional justice did not have any impact. Finally, even in cases of severe online privacy violation service recovery plays an important role generating repurchase intentions.

scholarly journals The Impact of Service Recovery Strategies and Justice Theory upon Customer Satisfaction in Airline Industry of Pakistan.

2019 ◽  
pp. 25-38
Author(s):  
Muhammad Hassan Waheed ◽  
Naimat Ullah Khan
Keyword(s):  
Customer Satisfaction ◽  
Procedural Justice ◽  
Airline Industry ◽  
Service Failure ◽  
Service Recovery ◽  
Interactional Justice ◽  
Justice Theory ◽  
Recovery Strategies ◽  
Front Desk ◽  
The Impact

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.

Would compensation be necessary? The importance of service recovery strategy in e-retail delivery problems

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erlinda Nusron Yunus
Keyword(s):  
Service Failure ◽  
Service Recovery ◽  
Recovery Strategy ◽  
Content Type ◽  
Repurchase Intentions ◽  
Subsequent Test ◽  
Service Failures ◽  
Recovery Strategies ◽  
Online Shoppers ◽  
The Impact

PurposeThis study examines the different effects of service recovery strategies on customers' future intentions when online shoppers were experiencing delivery failures. Two types of problem severity are evaluated: wrong-product delivery (issues with the product quality or quantity) and late delivery. This study also investigates the impact of service criticality on the relationship between service recovery strategies and customers' future intentions.Design/methodology/approachThis study employs experimental research with 123 online shoppers as participants. Following the results, a subsequent test is conducted to examine the effect of participants' demographics on future intentions. Finally, the current study elaborates the findings using qualitative research, interviewing both sides impacted by the service failures: online shoppers and e-retail managers.FindingsThe findings show that complementing product replacement with monetary compensation is the most effective strategy to improve repurchase intention after a dissatisfaction moment. This effect is indifferent to service criticality and severity. Age influences the participants' repurchase intentions, in which younger people are less tolerant of service failures. In contrast, gender and education level do not provide any differences. To prevent delivery failures, managers participating in this study suggest several best practices regarding systems and infrastructure, people and coordination and collaboration with logistics partners.Research limitations/implicationsThe study mainly examines a limited type of service and service failures. Further studies are encouraged to expand the variables and scenarios, as well as to employ more distinctive methods, to enrich the findings related to recovery strategy in the e-commerce industry.Practical implicationsGiven proper compensation, service failure could create momentum for online retailers to boost customer loyalty. This study suggests that managers design the most effective service recovery to win customers back to the business.Originality/valueThis paper enriches the literature related to a service recovery strategy, particularly within the online shopping context.

THE INFLUENCE OF PERCEIVED JUSTICE IN SERVICE RECOVERY ON COMPLAINANT SATISFACTION AND WORD-OF-MOUTH INTENTION AT HOTEL IN JAKARTA

2018 ◽  
Vol 23 (3) ◽  
pp. 218-235
Author(s):  
Murni Setyawati
Keyword(s):  
Positive Relationship ◽  
Word Of Mouth ◽  
Service Failure ◽  
Service Recovery ◽  
Interactional Justice ◽  
Perceived Justice ◽  
Recovery Satisfaction ◽  
Managerial Implications ◽  
The Relationship

The purpose of this study is to assess the relative influences of distributive (DJ), procedural (PJ), and interactional (IJ) justices on customer satisfaction with service recovery and to examine the relationship between recovery satisfaction and word-of-mouth intention. On-site surveys were administered to collect data from hotel guests who stayed and experienced a service failure at five-star hotels. The effects of procedural and interactional justice have a positive relationship with complainant satisfaction and word-of-mouth intention. The results also confirmed the role of complainant satisfaction on word-of-mouth intention. Managerial implications of these findings are briefly discussed. Keywords: service failure, service recovery, perceived justice, complainant satisfaction, word-of-mouth intention

scholarly journals Customer’s repurchase intensions following service recovery: A conceptual model

2021 ◽  
Vol 124 ◽  
pp. 09006
Author(s):  
Muhammad Mazhar ◽  
Ting Ding Hooi
Keyword(s):  
Service Failure ◽  
Service Recovery ◽  
Effective Strategy ◽  
Recovery Strategy ◽  
Repurchase Intentions ◽  
Comprehensive Service ◽  
Customer Defection ◽  
Recovery Strategies ◽  
Key Driver ◽  
Financial Transactions

An effective strategy of service recovery that prevents customer defection after service failure is a powerful managerial instrument. The values that a customer associates and considers with repurchasing after service recovery has changed due to globalization. Although service recovery has been identified as a key driver to retain the customers, yet the effectiveness of service recovery is unclear. The literature did not offer a comprehensive service recovery strategy that can be implemented universally. Owing to varying comments on the effectiveness of service recovery, its generalizability is questionable. Grudge produced in the response of service failure that cannot be compensated with financial transactions. This study will check whether service recovery has any impact on customer’s repurchase intentions when customer has grudges and available substitutes. The findings of this research will help the managers and practitioners to allocate their resources in a proper way. Furthermore, this study will help to understand money or extrinsic compensation is not everything. Therefore, there will be some consideration beyond the materialist compensation. It will open up new avenues for researchers to view service recovery strategies with a different angle.

scholarly journals ANTECEDENCE DAN CONSEQUENCES DARI SATISFACTION WITH RECOVERY TERHADAP FUTURE COMPLAINT INTENTIONS

2008 ◽  
Vol 1 (2) ◽  
pp. 16
Author(s):  
Franciskus Maya Praba
Keyword(s):  
Customer Satisfaction ◽  
Distributive Justice ◽  
Procedural Justice ◽  
Customer Service ◽  
Service Failure ◽  
Service Recovery ◽  
Interactional Justice ◽  
Perceived Justice ◽  
Customer Complaint ◽  
Complaint Intentions

<p>The background of this research is managers need to analyze that customer service failure can arise customer complaint. It must be managed by service recovery to get customer satisfaction. Future complaint intentions has relationship with customer satisfaction. Every company need to investigate which is the compatible perceived justice to applied. The objective of this research is to investigate service recovery effects toward customer satisfaction, especially perceived justice ( interactional, procedural, distributive ) and how justice effects customer satisfaction and future complaint intentions. The design of this research applies to customer Bank BCA in Semarang which is has variants occupation and the questionnaires were spreaded away to 100 respondents by using purposive sampling. The result of this research are interactional justice and procedural justice has more influence on future complaint intentions. Despite, distributive justice and satisfaction with recovery decrease future complaint intentions.</p><p><strong>Keywords: Antacedence, satisfaction with recovery, future complaint intentions</strong></p>

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 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.

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