scholarly journals Service failures as organisational crises in business travel: Origins and operational strategies as perceived by events professionals

2017 ◽  
Vol 11 (3) ◽  
pp. 480-502 ◽  
Author(s):  
Cisil Andirin ◽  
Miguel Moital ◽  
Carla Pinto Cardoso

Justified purpose of the topic: Research on crisis management in the meetings industry only focused on the process of crisis preparedness and the perception of meeting planners towards crises, with little research carried out on the strategies adopted to manage crisis within the meetings industry. Objective: This paper explores crisis management perceptions and practices by meetings professionals from two perspectives: origins of crisis and crisis management strategies. Methodology: The study adopted an exploratory perspective through interviewing 11 Turkish meeting planners who were asked to revisit past crisis experiences through the critical incident technique. Results: Meetings were shown to be highly prone to smaller scale, operational crisis in particular. Therefore, to meeting planners crises are more about service failures than major disruptive events that question the organisation’s existence as per the traditional definition of crisis. Crises are classified using a matrix that considers the source of the crisis (internal/external) and the degree of control (controllable/non-controllable). Meeting planners tend to attribute crises events to others than themselves and perceive them as mostly uncontrollable, related third party suppliers (including venues/hotels) and clients. Crisis management strategies employed in each of the four phases of crisis (prevention/preparation, coping, recovery and learning) were carried out at an individual level, with little formalisation at the organisational level evident. Negative perceptions about the need for formalisation were reflected in the rejection of developing crisis management plans. Originality: This paper contributes to the literature by demonstrating that crisis management frameworks can be employed to examine crises that are essentially service failures. As a consequence, the distinction between the notions of service failure and crisis may be artificial rather than real. Therefore, researchers planning studies on crises-service failure should consider looking at both literatures in order to integrate both bodies of knowledge.

Author(s):  
Hyunseok Song ◽  
Kevin K. Byon

This study was designed to examine the moderating effects of the power–distance belief (PDB) on the relationship between employees’ service failures and customers’ transactional and non-transactional outcomes in a fitness center context. To test the relationships among these variables, we employed two pretests and a main experiment. In Pretest 1, a critical incident technique (CIT) was used to identify the employees’ service failure situations in fitness centers. Then, in Pretest 2, we developed two written scenarios that described employees’ service failures according to low and high severity and confirmed the differences between these two scenarios with a manipulation check. In the main experiment, we employed scenarios to examine the relationships among service failures’ severity, PDB, and customers’ non-transactional and transactional outcomes. We used Hayes’ PROCESS macro to test the PDB’s single moderating effect on the relationship between the service failures’ severity and the customers’ responses. According to the results, the moderating effect on the relationship between the service failures’ severity and fitness center customers’ non-transactional and transactional behaviors was confirmed. We extended the understanding of fitness center customers’ reactions, depending upon individual PDB to service failures, by comparing low- and high-service failure situations. Our findings also suggest that segmenting fitness center customers may help managers recognize that their customers’ varying responses depend on PDB.


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.


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.


2022 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Simoni F. Rohden ◽  
Celso Augusto de Matos

Purpose E-commerce has experienced huge growth in emerging countries, but analysis of service failure/recovery for online retailers has been limited in this context. Hence, this study aims to investigate customers’ reactions to service failures in e-commerce and the influence of cultural dimensions on complaint intentions. Design/methodology/approach A survey was conducted with 553 customers from Brazil, India and China. A model was proposed and tested using structural equation modeling. Findings Results indicate that satisfaction with service recovery (SSR) increases repurchase intentions and reduces third-party complaints and negative word-of-mouth. This study also shows that the reactions of consumers to service failures in online situations are influenced by their cultural orientation (i.e. individualism, uncertainty avoidance and power distance) and contingent factors (i.e. relationship level, switching costs and the severity of the failure). Originality/value This study shows that the extent to which consumers from emerging countries complain after a service failure in online purchases will depend on their cultural orientation, previous experiences with the retailer, switching costs and the severity of the failure.


2014 ◽  
Vol 6 (4) ◽  
pp. 238-257 ◽  
Author(s):  
Haithem Zourrig ◽  
Kamel Hedhli ◽  
Jean Charles Chebat

Purpose – This paper aims to investigate the cultural variability in assessing the severity of a service failure. Design/methodology/approach – Two separate studies were conducted. The first investigates differences in the perception of service failures across two cultural pools of subjects (allocentrics versus idiocentrics) and within a same country. The second contrasts two levels of comparisons: a cross-cultural values’ level and a cross-country level, to assess differences in the perception service failures’ severity. Findings – Results showed that cultural values differences, when investigated at the individual level (i.e. idiocentrism versus allocentrism) are more significant to understand the influence of culture on the perception of severity, that is, allocentrics perceive more severity in the service failure than idiocentrics. However, a cross-country comparison (i.e. USA versus Puerto Rico) does not show significant differences. Research limitations/implications – Customers may assess, with different sensitivities, the severity of a service failure. These differences are mainly explained by differences in cultural values’ orientations but not differences across countries. Even originating from a same country, customers could perceive with different degrees the seriousness of a same service failure as they may cling to different cultural values. Hence, it is increasingly important to examine the cultural differences at the individual-level rather than a country level. Practical implications – Firms serving international markets as well as multiethnic ones would have advantage to understand cultural differences in the perception of the severity at the individual level rather than at the societal or country level. This is more helpful to direct appropriate service recovery strategies to customers who may have higher sensitivity to the service failure. Originality/value – Little is known about the effect of culture on the severity evaluation, although investigating cross-cultural differences in the assessment of severity is relevant to understand whether offenses are perceived more seriously in one culture than another and then if these offenses will potentially arise confrontational behaviors or not.


2020 ◽  
Vol 44 (2) ◽  
pp. 403-425 ◽  
Author(s):  
Marie-Christin Papen ◽  
Florian U. Siems ◽  
Werner H. Kunz

Marketing research shows that customer relationship management can reduce consequences of service failures. The question is how long a former customer engagement can still have an effect on a current critical incident. In extreme cases, this means whether and how interactions between company and customer during childhood can still influence the effects of a service failure. This article proposes that engagement with a company during childhood (childhood engagement) can affect later perceptions of the relationship. An experiment with 152 participants showed that perceived controllability and childhood engagement moderated the effect of disappointment on repurchase intention. Customers with childhood engagement evaluate a service failure more favorably than customers without childhood experiences. Furthermore, customers are likely to react negatively if the responsibility for the failure is attributed to the company. Accordingly, from a managerial perspective, childhood engagement and credible communication can prevent the ending of a customer relationship after a failure.


2016 ◽  
Vol 42 (7) ◽  
pp. 1067-1085 ◽  
Author(s):  
Melissa A. Baker ◽  
Kawon Kim

While customer-to-customer interactions are frequent in hospitality and tourism settings, very little research investigates the effects of other customers and other customer-generated service failures. Using the critical incident technique, this research builds on theory and provides important managerial implications in the areas of other customers, attributions, and service failure. Results find that customers experience emotions, including anger, frustration, and sympathy. In addition, even though customers attribute that the other customers are responsible for the failure, they still formed negative perceptions and behaviors toward the firm. Third, results find that management often did nothing to recover from the failure, which further exacerbated negative perceptions and behaviors.


Author(s):  
Tatiana V. Kakatunova ◽  
M. V. Maksimkin ◽  
E. A. Sorokin

The features of the formation of the anti-crisis management system for special-purpose enterprises are considered. Anti-crisis management strategies in industry are proposed


2020 ◽  
pp. 144-150
Author(s):  
V.A. Morozov

This article focuses on the aspects of human resource management strategies in crisis management, as well as the comparison of classical and modern ways to overcome the consequences of crises for human capital. The possible consequences of ongoing and possible crises, as well as ways to prevent and overcome them, are investigated. Personnel strategies in human resource management are disclosed. The presentation of strategic human resource management in a crisis period is given.


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