scholarly journals The effects of Justice Oriented Service Recovery on Customer Satisfaction and Loyalty in Retail Banks in Ethiopia

2014 ◽  
Vol 4 (1) ◽  
pp. 49-58 ◽  
Author(s):  
Efrem Sisay Assefa

The principal objective of this study is to investigate the effects of justice oriented service recovery on customer satisfaction in retail banks in Ethiopia. It also attempts to assess how recovery satisfaction in turn affects customer loyalty.  In order to realize the research objectives, data were collected through survey questionnaire from a total of 400 customers who have experienced service failures and recovered by the banks during the past one year.  The study utilizes the instrument developed by Tax et al. (1998). Findings reveal that, perceived justice namely procedural justice, interactional justice and distributive justice were found to be positively related to recovery satisfaction.  Recovery satisfaction is also positively related with customer loyalty.

2021 ◽  
Vol 9 (4) ◽  
pp. 887-896 ◽  
Author(s):  
Quoc Nghi Nguyen ◽  
Van Tung Huynh ◽  
Van Nam Mai

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.


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.


Author(s):  
Anh Chi Phan ◽  
Ha Thu Nguyen ◽  
Thoa Xuan Thi Pham

This paper presents the results of an empirical study on the relationship between service recovery quality, customer satisfaction and loyalty in Vietnam’s e-retailing. Structural Equation Modelling (SEM) is applied to analyze the data collected from experienced customers in online shopping in Vietnam from November 2018 to March 2019. The results of statistical analysis indicate that interactive fairness, outcome fairness, procedural fairness significantly impact on customer satisfaction which then increases customer loyalty. This study suggests that customer’s ability to locate and interact with technical support on a website and how a company treats the customer would significantly decide satisfaction and loyalty from customer. E-retailers in developing economies should consider service recovery process as the opportunity to gain customers’ purchase intentions.


2019 ◽  
Vol 8 (6) ◽  
pp. 3987
Author(s):  
I Gusti Nyoman Wiradarma ◽  
I Gusti Agung Ketut Gede Suasana

This study aims to determine the effect of service quality on customer loyalty through customer satisfaction as a mediator. Respondents in this study were customers with a minimum level of education at least high school / equivalent who had conducted transactions at Pull & Bear Kuta - Bali more than once in the past year. The research sample was determined by 105 respondents using a sampling technique that is purposive sampling technique. The analysis technique used in this study is path analysis with classical assumption and Sobel test. The results of this study indicate that service quality has a positive and significant effect on customer satisfaction and loyalty, customer satisfaction has a positive influence on customer loyalty, and customer satisfaction is positively and significantly mediates the effect of service quality on customer loyalty. These results confirm that the company is expected to pay attention to the quality of service to improve customer satisfaction so as to create a sense of customer loyalty. Keyword: service quality, customer satisfaction, customer loyalty  


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
George Oppong Appiagyei Ampong ◽  
Aidatu Abubakari ◽  
Majeed Mohammed ◽  
Esther Theresa Appaw-Agbola ◽  
John Agyekum Addae ◽  
...  

PurposeThe study sought to assess the nexus between components of perceived justice and satisfaction, trust and loyalty with service recovery.Design/methodology/approachSurvey data were gathered from a sample of 300 clients from 8 midscale hotels in Ghana. Partial least squares structural equation modeling was used to test the hypothesized relationships.FindingsPerceived distributive justice has no effect on customer satisfaction with service recovery. Interactional justice had the greatest effect on customer satisfaction with service recovery. No significant relationship was found between procedural justice and trust. Also, trust had a significant effect on loyalty post-service recovery.Research limitations/implicationsEmpirical data were taken from one service industry; thus, it is reflective of only that service industry, generalizations should be mindful of our context bounded results.Practical implicationsThe study offers suggestions for managers to leverage the dimensions of perceived justice in order to build trust and loyalty post-service failure. Hotels should treat customers with fairness and respect at every point of contact during the service recovery process. Reward based compensation should be offered to customers to build trust.Originality/valueThe study is among a few to assess service recovery and its link with loyalty from a developing economy context. The study revealed that perceptions of justice with service recovery influences customer loyalty and satisfaction post-service recovery and extend the understanding of service recovery in the Ghanaian hotel sector.


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.


2011 ◽  
Vol 187 ◽  
pp. 67-72
Author(s):  
Qing Min Kong ◽  
Ming Li Zhang

This article introduces the relationship benefits into the research area of customer service recovery of sports medicine. Through data mining, the study has shown that in the sports medicine area, perceived justice have different impact on customer satisfaction and customer loyalty between different relationship benefits customers. For the high relationship benefits customers, distributive justice and interactional justice have significant impact on customer satisfaction and customer loyalty, even if they are dissatisfied, but they will remain loyalty. For the low relationship benefits customers, interactional justice has significant impact on customer satisfaction, and only they remain loyalty when they satisfied. Relationship benefits have the moderating effect in customer service recovery of sports medicine, if customers receive the relationship benefits from sports medicine enterprises, even if the service does not meet their expectations, they would still maintain the relationship with sports medicine enterprises. Our conclusions have the guiding effect for the enterprises, especially for the sports medicine service enterprises.


2019 ◽  
Vol 3 (2) ◽  
pp. 228-244 ◽  
Author(s):  
Muhammad Rezha Pahlawan ◽  
Nurlia Nurlia ◽  
Abdul Rahman Laba ◽  
Erlina Pakki ◽  
Hardiyono Hardiyono

This study aims to determine the effect of Product Quality and Service Quality on Increasing Customer Satisfaction and Loyalty in Makassar Municipal Water Company (PDAM) both directly and through intervening variables or indirect effects. This study uses a quantitative approach conducted with the aim to explain the position of the variables studied and the relationship between one variable with another variable. This research will explain the causal relationship between variables through hypothesis testing. In this study, the analysis method used is path analysis using the SmartPLS program. The results of this study found that directly the product quality had a positive and significant effect on customer satisfaction, service quality had a positive and significant effect on customer satisfaction, product quality had a positive and significant effect on customer loyalty, service quality had a positive and not significant effect on customer loyalty, customer satisfaction positive and significant effect on customer loyalty. The indirect effect of this research is product quality has a positive and significant effect on customer loyalty if mediated by customer satisfaction. Service quality also has a positive and significant effect on customer loyalty if mediated by customer satisfaction.


2017 ◽  
Vol 2 (1) ◽  
pp. 45-52
Author(s):  
Iha Haryani Hatta

The aim of this study was to determine the relationship of the features of the value, satisfaction, and customer loyalty; the effect on the value of customer satisfaction and loyalty; influence of satisfaction on customer loyalty. A total of 200 merchant PT. BANK XYZ as respondents was selected randomly. Analyses were performed using structural equation modeling (SEM). The analysis showed that the feature has a significant influence on customer value, but not for customer satisfaction and loyalty. The values has a significant influence on satisfaction, but not on customer loyalty. Satisfaction has a significant influence on customer loyalty. Discussion and conclusions described in the article. Keywords: features of the value, satisfaction, customer loyalty


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