The Internet Shopping Mall's Service Recovery Failure and Fashion Consumer's Service Recovery Dissatisfaction, Purchase Discontinuation Intention, and Negative Word-of-Mouth Intention

2018 ◽  
Vol 68 (7) ◽  
pp. 104-118
Author(s):  
Jong-Ouk Kim
2019 ◽  
Vol 31 (4) ◽  
pp. 1216-1232 ◽  
Author(s):  
Lakhi Muhammad ◽  
Gul-e-Rana Gul-e-Rana

PurposeCustomer forgiveness is gaining importance in service recovery. This study debates that service firm employees and the customers’ relations are supportive resources for the customer while deciding for forgiveness. Accordingly, the purpose of this paper is to test the effects of structural, relational and cognitive social capital on customer forgiveness and thereof the effects of customer forgiveness on negative word of mouth and repatronage intentions.Design/methodology/approachPartial least squares–structural equation modeling was employed to test the hypothesized relations on usable data from 428 banking customers who registered their complaint recently.FindingsResults show that structural, relational and cognitive social capital explained a unique variance in customer forgiveness with significant positive influence, whereas customer forgiveness has a significant positive effect on repatronage intentions and a significant negative influence on negative word of mouth.Originality/valueCustomer forgiveness is a convincing idea in service recovery. This study proposed and empirically verified that social capital in relations of service firm employee and customer relations is important for customer forgiveness to minimize negative word of mouth and enhance repatronage intentions.


Author(s):  
Xiang Ying Mei ◽  
Ingrid K. Bagaas ◽  
Erling K. L. Relling

Customer complaints are unavoidable in any businesses and how firms handle such complaints will affect the public's perception of the company's brand and reputation. While storytelling is being embraced by an increasing number of companies as a different way to communicate their brand, many customers are now also using storytelling as an approach to voice their unfavourable experiences on the social media in regards to a particular unsatisfactory purchase as part of electronic word-of-mouth (eWOM). Such creative and humorous complaints serve as a way to cut through the clutter in order to gain the company's attention. Those companies that embrace such complaints by responding in an equally humorous and creative manner as part of their service recovery process will manage to recover their customers as well as their employees. As such posts are often shared publicly on the Internet, they may become viral and thus can create great positive effect on the company's reputation. Hence, it is important to empower the employees to recover the services using untraditional responses.


Author(s):  
Xiang Ying Mei ◽  
Ingrid K. Bagaas ◽  
Erling K. L. Relling

Customer complaints are unavoidable in any businesses and how firms handle such complaints will affect the public's perception of the company's brand and reputation. While storytelling is being embraced by an increasing number of companies as a different way to communicate their brand, many customers are now also using storytelling as an approach to voice their unfavourable experiences on the social media in regards to a particular unsatisfactory purchase as part of electronic word-of-mouth (eWOM). Such creative and humorous complaints serve as a way to cut through the clutter in order to gain the company's attention. Those companies that embrace such complaints by responding in an equally humorous and creative manner as part of their service recovery process will manage to recover their customers as well as their employees. As such posts are often shared publicly on the Internet, they may become viral and thus can create great positive effect on the company's reputation. Hence, it is important to empower the employees to recover the services using untraditional responses.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ke Ma ◽  
Xin Zhong

PurposeThe purpose of this study is to examine the effect of perceived justice and consumer's moral judgment of a service failure on recovery outcomes.Design/methodology/approachThe research model is examined by adopting a field study approach followed by an experiment. The SPSS program with the PROCESS tool was used to analyze the simple moderation and moderated mediation effects.FindingsThe research findings show that consumer's moral judgment of a service failure moderates the relationship between service recovery (psychological compensation vs monetary compensation) and recovery outcomes (recovery satisfaction, negative word of mouth and repurchase intention). Moreover, the conditional indirect effect of service recovery on recovery outcomes through perceived justice is significant when service failure is seen as less moral. Specifically, consumers report lower perceived justice and react negatively to recovery measures when service failure is seen as less moral. In contrast, when consumers perceive a service failure as moral, a psychological compensation outperforms a monetary compensation, lessening negative word of mouth (NWOM).Originality/valueThese findings provide important insights into recovery measure development when considering consumer moral perspectives.


2017 ◽  
Vol 29 (5) ◽  
pp. 1036-1054 ◽  
Author(s):  
Lakhi Muhammad ◽  
Batiah Mahadi ◽  
Nazimah Hussin

Purpose The purpose of this paper is to investigate the effects of structural social capital, relational social capital and cognitive social on relationship satisfaction, and also to investigate how relationship satisfaction is associated with negative word-of-mouth and re-patronage intentions, in service recovery. Design/methodology/approach A sample of 478 Pakistani banking industry clients, who registered a complaint to their bank recently, answered the survey. Variance-based partial least squares structural equation modeling was employed for data analysis. Findings Results demonstrate that all three facets of social capital have a significant positive impact on relationship satisfaction. However, relationship satisfaction enhances customer re-patronage intentions and restrains negative word-of-mouth intentions. Practical implications Findings are important for service firms, particularly for banks to adjust their service recovery strategies. Originality/value The paper verified the influence of structural social capital, cognitive social capital and relational social capital on relationship satisfaction and tested the influence of relationship satisfaction on negative word-of-mouth and re-patronage intentions.


2019 ◽  
Vol 21 (1) ◽  
pp. 41-50
Author(s):  
Resekiani Mas Bakar ◽  
Nurul Hidayati ◽  
Inastuti Retno Giffani

The service provider could not totally guarantee the service process without any failure at all. This study aims to measure the influence of service recovery strategy towards customer forgiveness and negative word-of-mouth (WOM) as the effect of service failure. The service recovery strategy is performed in three types of vignette: apology, compensation, and apology-compensation. Vignette was given to 94 participants who have encountered service of airline. The result of ANOVA shows that apology compensation achieves the highest score relates to forgiveness. The interesting result of this study shows that even the customers forgive the service provider due to the service failure they did, this cannot diminish the intention of negative WOM. This study offers an implication to the company in order to pay attention regarding the compensation and the spread of negative WOM to the other customers


SAGE Open ◽  
2021 ◽  
Vol 11 (3) ◽  
pp. 215824402110407
Author(s):  
Phimai Nuansi ◽  
Piya Ngamcharoenmongkol

Customer complaint or customer voice has been recognized as a key response to service failure that activates service recovery. This study aims at investigating how managing customer voice affects service recovery evaluation. Building on the concept of initiation, this study conceptualizes three conditions of service recovery, namely, service recovery based on customer-initiated voice, service recovery based on firm-initiated voice, and service recovery based on no voice. Using an experimental design, the present study investigates how customer evaluations of service recovery vary across voice initiation conditions. The multivariate analysis of covariance (MANCOVA) reveals that firm-initiated voice, compared with customer-initiated voice, elevates customer perceived justice and satisfaction while diminishing negative word-of-mouth intention. The research findings emphasize the necessity to activate customer’s voice following a service encounter so that service failure can be identified and addressed, which helps in improving customer evaluation of service recovery attempts.


2010 ◽  
Vol 3 (1) ◽  
pp. 53
Author(s):  
Linda Desafitri RB

<span><em>The background of this research was to investigate the main and interactive effects of the severity </em><span><em>of the service failure, specifically investigate the main effect of service failure severity on satisfaction,</em><span><em>trust, commitment, and negative word of mouth. This investigation of the role of the severity</em><br /><span><em>construct will aid researchers and managers in better understanding and managing the service </em><span><em>recovery process under different conditions.</em><br /><span><em>The objectives of this research is to extends previous research by investigating the role of service </em><span><em>failure severity within the existing framework of customer’s post-recovery evaluation and their </em><span><em>future relationship with a service provider.</em><br /><span><em>The design of this research applies a survey toward unit analysis on customer Auto2000 Jakarta, </em><span><em>which involved 142 respondent.the number of sample being respondent in this research. Meanwhile, </em><span><em>the required data consist of five variables : service failure severity, satisfaction, trust, commitment</em><br /><span><em>and negative word of mouth.</em><br /><span><em>The result of the study concludes that service failure severity has a significant main effect on </em><span><em>satisfaction with service recovery. Despite the positif influence of a strong recovery on </em><span><em>satisfaction,there remained a negatif influence on satisfaction as a result of a more severe service</em><br /><span><em>failure. In addition , the severity of a service failure also had a main effect on customer trust, </em><span><em>commitment and the likelihood of engaging in negative word of mouth after the service failure.</em><br /><span><em>Keywords : </em><span><em>Service failure severity, satisfaction, trust, commitment and negative word of mouth</em></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span></span><br /></span></span>


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