Integrating Justice Theory and Service Quality Concept to Evaluate Customer Recovery Satisfaction

Author(s):  
TIFFANY ADELAINE G. TAN

Service failure happens despite management’s effort to prevent it; therefore,appropriate handling of such situation is crucial to a company’s business strategy.The study extended the service quality concept in the recovery context toprovide a complete picture of what influence customer satisfaction in servicerecovery programs. A self-administered survey questionnaire was used to collectdata from selected graduate schools and the general public in Metro Manila,Philippines. To test the hypotheses, confirmatory factor analysis (CFA) was used.The justice theory provides an explanation on the way customers evaluate andrespond to service recovery while the concept of service quality rationalizes whatcustomers look for in a service. It is argued that even if the context changesfrom service to service recovery, customer satisfaction is still a consequenceof a quality service. Results showed that all the recovery attributes (reliability,responsiveness and assurance) directly affect customer’s recovery satisfaction. Theinfluence of these attributes on behavioral intentions (repurchase and word-ofmouthcommunication) is mediated bythe customer’slevelof satisfaction withtherecoveryperformance.Keywords: Customer Relations Management, service failure, service recovery, recoverysatisfaction, justice theory,servicequality,descriptivedesign, Philippines

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.


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.


2015 ◽  
Vol 29 (5) ◽  
pp. 331-343 ◽  
Author(s):  
Silke Bambauer-Sachse ◽  
Landisoa Eunorphie Rabeson

Purpose – The purpose of this study is to determine which level of tangible compensation for a service failure leads to high levels of customer satisfaction for moderate- versus high-involvement services as well as for different conditions of responsibility for the failure and failure severity. Design/methodology/approach – The study is based on a 4 (tangible compensation: gift, discount, credit for future consumption, refund) × 2 (responsibility for the failure: restaurant vs customer) × 2 (failure severity: low vs high) × 2 (involvement: moderate vs high) design using scenarios in a restaurant context. Findings – The results reveal that, for moderate-involvement services, all types of compensation are equally appropriate, except for when customers are responsible for a severe failure. In this condition, they expect tangible compensation of higher benefit. For high-involvement services, the more severe the failure, the higher the benefit of tangible compensation should be, independent of responsibility. Practical implications – The findings suggest that managers should consider the level of service involvement as well as responsibility for and severity of the failure when choosing the level of tangible compensation. Originality/value – The results of this study provide new insights into how to choose appropriate and efficient service recovery measures.


2009 ◽  
Vol 20 (3) ◽  
pp. 253-273 ◽  
Author(s):  
Stefan Michel ◽  
David Bowen ◽  
Robert Johnston

PurposeThe keys to effective service recovery are familiar to many throughout industry and academia. Nevertheless, overall customer satisfaction after a failure has not improved, and many managers claim their organizations cannot respond to and fix recurring problems quickly enough. Why does service recovery so often fail and what can managers do about it? This paper aims to address these issues.Design/methodology/approachThe objective is to produce an interdisciplinary summary of the growing literature on service recovery, bringing together what each of the author's domain – management, marketing, and human resources management – has to offer. By contrasting those three perspectives using 141 academic sources, nine tensions between customer, process, and employee recovery are discovered.FindingsIt is argued that service recovery often fails due to the unresolved tensions found between the conflicting perspectives of customer recovery, process recovery, and employee recovery. Therefore, successful service recovery requires the integration of these different perspectives. This is summarized in the following definition: “Service recovery are the integrative actions a company takes to re‐establish customer satisfaction and loyalty after a service failure (customer recovery), to ensure that failure incidents encourage learning and process improvement (process recovery) and to train and reward employees for this purpose (employee recovery).”Practical implicationsManagers are not advised to directly address and solve the nine tensions between customer recovery, process recovery, and employee recovery. Instead, concentrating on the underlying cause of these tensions is recommended. That is, managers should strive to integrate service recovery efforts based upon a “service logic”; a balance of functional subcultures; strategy‐driven resolution of functional differences; data‐based decision making from the seamless collection and sharing of information; recovery metrics and rewards; and development of “T‐shaped” employees with a service, not just functional, mindset.Originality/valueThis paper provides an interdisciplinary view of the difficulties to implement a successful service recovery management. The contribution is twofold. First, specific tensions between customer, process and employee recovery are identified. Second, managers are offered recommendations of how to integrate the diverging perspectives.


2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Canan Saricam

Abstract The sportswear industry has a growing market globally. In the sportswear retail market, where the primary focus is on providing customers the product, but provision of the necessary ancillary service also takes place, the service quality and its relation to customer satisfaction and customer loyalty are important. With an attempt to find out this relationship, the data for this study was obtained from 251 people living in Turkey. The service quality was described as a second-order construct with the dimensions proposed in SERVQUAL scale. Confirmatory factor analysis and structural equation modeling were used to analyze and validate the model. The findings showed that the service quality, together with the relevant dimensions, tangibles, reliability, and assurance, has an influence on the customer satisfaction but not on the customer loyalty. Nonetheless, it was confirmed the customer satisfaction has an impact on the customer loyalty.


2008 ◽  
Vol 1 (2) ◽  
pp. 16
Author(s):  
Franciskus Maya Praba

<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>


2014 ◽  
Vol 2 (2) ◽  
pp. 8-12
Author(s):  
Sanaullah Nazir ◽  
Sheraz Khan ◽  
Raja Ahmed Jamil ◽  
Qazi Shujaat Mehmood

Customer satisfaction is an imperative element of the success for all businesses. One of the biggest challenges of a marketer is how to satisfy and retain the customers. The purpose of this study is to find the impact of customer relationship management on customer satisfaction.  A total of 130 participants was selected through purposive sampling from the different hotels of Islamabad city. Data was collected from the participants by using standardized questionnaires. Results revealed that there is a significant positive impact of different elements of customer relationship management (service quality, access to services and service features) on customer satisfaction and businesses cannot succeed without focusing on customer relationship management in this era.


2018 ◽  
Vol 9 (1) ◽  
pp. 1
Author(s):  
Usep Suhud ◽  
Sheila Maryam Bajunaid

This research aimed to investigate consumers’ intention to repurchase jamu at Jamu Café. Service quality, customer satisfaction, and Word-of-Mouth (WOM) were selected as the predictor variables. In total, 200 participants who purchased jamu at the café were selected conveniently. Data were analyzed using exploratory and confirmatory factor analyses as well as Structural Equation Model (SEM). As a result, service quality influences customer satisfaction significantly. As customers are satisfied, they do word-of-mouth and repurchase. On the other hand, WOM has an insignificant impact on repurchase intention.


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.


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