Diagnosing Service Success and Failure Incidents in the Consumer-to-Business Sharing Economy

2022 ◽  
Vol 30 (2) ◽  
pp. 0-0

This study uses the critical incident technique to collect and analyze incidents of service failure and success involving a logistics sharing service in which the service providers are individuals. The authors also explore the key factors that affect customer satisfaction, along with the official and ideal recovery strategies. Data is based on interviews with 35 business users in Taiwan in 2017. A card sorting exercise is employed to classify the collected incidents and strategies into categories. The results show that the determinants of success and failure in logistics sharing services include drivers, platform operation, the matching system, and communication. Compensation is the most effective recovery strategy, whereas doing nothing is the least effective. Suggestions based on our results can help managers of the sharing economy to avoid or recover from failures and attain success.

2022 ◽  
Vol 30 (2) ◽  
pp. 1-16
Author(s):  
Shiu-Li Huang ◽  
Ya-Jung Lee

This study uses the critical incident technique to collect and analyze incidents of service failure and success involving a logistics sharing service in which the service providers are individuals. The authors also explore the key factors that affect customer satisfaction, along with the official and ideal recovery strategies. Data is based on interviews with 35 business users in Taiwan in 2017. A card sorting exercise is employed to classify the collected incidents and strategies into categories. The results show that the determinants of success and failure in logistics sharing services include drivers, platform operation, the matching system, and communication. Compensation is the most effective recovery strategy, whereas doing nothing is the least effective. Suggestions based on our results can help managers of the sharing economy to avoid or recover from failures and attain success.


2018 ◽  
Vol 28 (4) ◽  
pp. 410-433 ◽  
Author(s):  
Yit Sean Chong ◽  
Pervaiz K. Ahmed

Purpose The purpose of this paper is to examine the notion of “service transgression” which violates customers’ religious beliefs through observing certain dietary guidelines that shape their religious identity. While service transgression and customer forgiveness are predominantly examined using experimental procedures or questionnaire survey in existing studies, this study adopts an interpretive paradigm to explore the complexities and idiosyncratic narratives of individual perceptions. Design/methodology/approach Detailed narrative accounts of 15 participants consisting of five Muslims, five Buddhists and five Hindus; who are working adults residing in Malaysia were gathered via in-depth interviews. Critical incident technique was employed with interpretive approach being undertaken to uncover key themes that form the essence of experiences in service transgressions. Findings The responses from participants were mainly contingent to the individuals’ interpretations of their religious expectations in the assessment of the incidents. Observations from the interview protocols reveal common themes in the consideration of whether one has indeed transgressed against the religious norms, the assignment of blame and responsibility and reparation of relationships. From the findings of this study, the authors developed a typology of conflict framing categories: “damaged identity”, “identity at risk” and “identity preservation” by considering both dyadic and triadic service relationships in service failure incidents which involve a violation of customers’ religious belief systems. Practical implications The outcome of this study seeks to inform service providers on the impact of service transgression of this nature upon consumers particularly in a multi-faith society. Additionally, this study provides insights into the implementation of service recovery strategies if and when such situation arises. Originality/value By undertaking a narrative enquiry, this study uncovers personal sense making in this phenomenon within the contextual frame of societal and historical norms. The outcome of this study provides insights to service providers on the impact of service transgression upon consumers particularly in a multi-faith context such as Malaysia. Additionally, this study discusses managerial implications associated with the implementation of service recovery strategies if and when such situation arises.


2019 ◽  
Vol 31 (4) ◽  
pp. 1567-1587 ◽  
Author(s):  
JungYun (Christine) Hur ◽  
SooCheong (Shawn) Jang

PurposeThis study aims to investigate how consumer forgiveness is formed by examining rumination and distraction by consumers in hotel service failures.Design/methodology/approachData were collected using a self-administered questionnaire in the USA. A total of 371 usable responses were obtained. Anderson and Gerbing’s two-step approach was used to assess the measurement and structural models.FindingsThis study suggests that rumination and distraction play significant roles in processing consumer forgiveness. Self-focused rumination and distraction increase consumer forgiveness, whereas provocation-focused rumination exacerbates the negative effects of service failure severity on consumer forgiveness. This study also shows that gender differences exist. Men were more likely than women to link self-focused rumination and distraction to their intentions to forgive a service provider.Practical implicationsThis study is helpful for hotel managers to understand the mechanisms of consumer forgiveness in service failures and develop effective recovery strategies. Managers should aim to lessen consumers’ provocation-focused rumination while encouraging self-focused rumination and distraction. In addition, because of the differences in the process of consumer forgiveness between men and women, it is critical to differentiate the two groups in designing targeted recovery strategies for service failures.Originality/valueThis study investigates consumer forgiveness as a behavioral outcome following service failures that may help consumers achieve psychological balance and allow service providers a chance to restore the broken relationship. This study adds new information for understanding consumer responses and provides a basis for effective service management strategies.


2017 ◽  
Vol 12 (10) ◽  
pp. 24
Author(s):  
Mauro Sciarelli ◽  
Abdelhakim A. Nagm ◽  
Mona I. Dakrory ◽  
Mario Tani ◽  
Mohamed A. Khashan

This current study purposes to identify the relationships between service recovery strategies, service recovery satisfaction, and both dimensions of customer loyalty in regard to Internet providers using the partial least squares (PLS-SEM) approach on a sample of 430 internet customers in Egypt.This study contributes insights into how seven service recovery strategies affected customer loyalty with its both attitudinal and behavioral dimensions directly and indirectly via service recovery satisfaction. These insights are helpful for service managers faced with service failure and academicians interested in how service providers respond to service failures and customer dissatisfaction in the B2C context.The results of this study show that some SR strategies positively influence both service recovery satisfaction and customer loyalty toward internet providers. Furthermore, service recovery satisfaction positively influencing the customer loyalty. In addition, SRS plays a mediating role in the relationship between SR strategies and customer loyalty. The results highlight that internet service providers should implement SR strategies quickly and with an empathetic manner to satisfy customers and to encourage customer's loyalty. Finally, some implications and further research directions were presented.


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.


Author(s):  
Masud Ibrahim ◽  
Ssendiwal Abdallahamed ◽  
Diyawu Rahman Adam

This article seeks to explore service recovery strategies adopted by mobile service providers operating in Ghana. The article adopts a quantitative approach design. A sample size of 384 respondents was used for this study comprising mobile phone subscribers in Ghana. The study revealed a significant positive relationship between service recovery based on firm's understanding of customer complaints, firm's fair treatment of customer complaints and customer satisfaction. Furthermore, the study also found a positive correlation between service recovery and customer satisfaction. The article contributes to extant literature on service recovery from developing country perspective.


2020 ◽  
Vol 34 (1) ◽  
pp. 45-55 ◽  
Author(s):  
Steven Kayambazinthu Msosa ◽  
Jeevarathnam P. Govender

Purpose Providing quality service is the goal of many service providers and higher education institutions are not exceptional. However, service failure may occur from time to time which may eventually lead to customer dissatisfaction with the service rendered. The purpose of this paper is to examine service failure incidents in higher education. Design/methodology/approach In this study, three categories of service failure, namely, employee response to service delivery system failure, employee response to customer needs and requests, and unprompted and unsolicited employee actions were used to categorise 45 critical incidents obtained from 30 students at a university of technology. Findings The results showed that service delivery system failures account for the biggest number (51 per cent) of service failure incidents captured in this study. Research limitations/implications The critical incident technique which relies on the respondents’ memory to recall service failure incidents was used to collect information. The drawback is that memory can be fallible and students may end up exaggerating service failure incidents. Practical implications This study can assist higher education institutional managers to understand the nature of service failure incidents that lead to student dissatisfaction. Originality/value This study is unique as it presents service failure incidents from the developing world and further provides the basis for creation of service recovery strategies.


2016 ◽  
Vol 8 (1) ◽  
pp. 17-37
Author(s):  
Carmen Otero-Neira ◽  
Carmen Padin ◽  
Juan Carlos Sosa Varela ◽  
Maria Santos Corrada ◽  
Irma Magana ◽  
...  

Purpose – This paper aims to assess negative emotions in Mexican, Puerto Rican and Spanish service settings in the hospital industry. The paper also attempts to validate previous findings in existing theory and previous studies across three national samples and describes the similarities and differences in negative emotions between Mexican, Puerto Rican and Spanish service settings. Design/methodology/approach – The current study comprised Mexicans, Puerto Ricans and Spaniards who experienced a service failure (i.e. critical incident) in hospital settings within the past year. A descriptive research design was followed, and a self-administered questionnaire was applied to gather the data from respondents. Findings – The three-dimensional construct of negative emotions commonly identified in existing theory and previous studies of negative emotions turned out to be four in the current multinational study. Research limitations/implications – The four-dimensional construct of negative emotions thus revealed is relevant and valuable to research. A number of research limitations are provided, all of which provide opportunities for further research in assessing negative emotions in service settings. Practical implications – Service providers need to manage and deal with the negative emotions in service failures in an appropriate manner. It is necessary that the front-line staff identify and understand the reasons behind service receiver’s negative emotions in service failures, and that they act accordingly to reduce the intensity of critical incidents and the overall negative consequences. Originality/value – The negative emotions assessed provide a fruitful contribution and do not only complement additional facets to existing theory and previous studies of negative emotions in service settings but also fortify the notion that further research is required to gain an enhanced understanding and additional insights into them across countries and cultures, just as it is crucial to manage the occurrence of negative emotions in critical incidents accurately.


2019 ◽  
Vol 38 (1) ◽  
pp. 1-14
Author(s):  
Raphael Odoom ◽  
George Cudjoe Agbemabiese ◽  
Robert E. Hinson

Purpose Given that the peculiar nature of the internet has introduced new dimensions of service delivery as well as new dimensions of service failures and recovery, the purpose of this paper is to investigate and compare the relationships between recovery strategies and recovery satisfaction within offline and online settings. Design/methodology/approach Data for the empirical tests of our hypotheses were collected via offline and online (specifically Facebook and Twitter) samples of customers who have experienced some form of service failure and recovery measures from service providers within the past year. Findings The results indicate that recovery strategies largely influence recovery satisfaction among aggrieved customers. However, these are conditional and not invariant across the two settings. In the authors’ offline setting, in particular, apology did not show a statistically significant impact on recovery satisfaction, even though, along with compensation and explanation, this relationship was significant among the online sample. Originality/value The study offers practical implications for service managers within emerging economies on the various conditions where they can maximise their service recovery efforts (both offline and online) to generate optimum recovery satisfaction.


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