scholarly journals APOLOGY AND COMPENSATION STRATEGY ON CUSTOMER FORGIVENESS AND NEGATIVE WORD OF MOUTH

2019 ◽  
Vol 21 (1) ◽  
pp. 41-50
Author(s):  
Resekiani Mas Bakar ◽  
Nurul Hidayati ◽  
Inastuti Retno Giffani
Keyword(s):  
Service Provider ◽  
Word Of Mouth ◽  
Service Failure ◽  
Service Recovery ◽  
Negative Word ◽  
The Other ◽  
Service Process ◽  
Recovery Strategy ◽  
Compensation Strategy

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

Moral judgment and perceived justice in service recovery

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ke Ma ◽  
Xin Zhong
Keyword(s):  
Moral Judgment ◽  
Word Of Mouth ◽  
Service Failure ◽  
Service Recovery ◽  
Negative Word ◽  
Mediation Effects ◽  
Content Type ◽  
Perceived Justice ◽  
Study Approach ◽  
Monetary Compensation

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.

scholarly journals Proactive Complaint Management: Effects of Customer Voice Initiation on Perceived Justices, Satisfaction, and Negative Word-of-Mouth

SAGE Open ◽  
2021 ◽  
Vol 11 (3) ◽  
pp. 215824402110407
Author(s):  
Phimai Nuansi ◽  
Piya Ngamcharoenmongkol
Keyword(s):  
Word Of Mouth ◽  
Service Failure ◽  
Service Recovery ◽  
Negative Word ◽  
Analysis Of Covariance ◽  
Customer Complaint ◽  
Customer Evaluation ◽  
Customer Evaluations ◽  
Research Findings ◽  
Voice Service

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.

scholarly journals PENGARUH SERVICE FAILURE SEVERITY TERHADAP KEPUASAN, KEPERCAYAAN, KOMITMEN DAN NEGATIF WORD OF MOUTH

2010 ◽  
Vol 3 (1) ◽  
pp. 53
Author(s):  
Linda Desafitri RB
Keyword(s):  
Word Of Mouth ◽  
Service Failure ◽  
Service Recovery ◽  
Recovery Process ◽  
Negative Word ◽  
Interactive Effects ◽  
Main Effect ◽  
Failure Severity ◽  
Customer Trust

<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>

scholarly journals Understanding service recovery satisfaction from a service encounter perspective: A pilot study

2007 ◽  
Vol 38 (2) ◽  
pp. 41-51 ◽  
Author(s):  
C. Boshoff
Keyword(s):  
Social Psychology ◽  
Pilot Study ◽  
Service Provider ◽  
Word Of Mouth ◽  
Service Recovery ◽  
Negative Word ◽  
Service Encounter ◽  
The Social ◽  
Psychology Theory ◽  
Physical Features

When a service provider fails to meet the expectations of customers during a so-called service encounter, the resultant disconfirmation can lead to a series of negative outcomes such as defection and negative word-of-mouth. Often, however, errant firms are afforded a second opportunity by complaining customers to rectify their misdemeanours – a practice referred to as service recovery. Service marketers’ understanding of service recovery is, however, limited. This study investigates service recovery from a service encounter perspective by considering the influence of what the complaining customer can visually see during the encounter. The underlying premise of the study is that, during the service encounter the complaining customer is exposed to stimuli such as the physical features and appearance of the service provider and these features can influence their assessment of the service firm’s efforts to resolve their complaint.By drawing on social psychology theory this study investigates whether what a complaining customer sees during the service encounter (what the service provider looks like) influences their satisfaction with the service recovery efforts of the firm. The empirical results of this pilot study do not support the general contention of the social psychology theories investigated in this study.

EXPRESS: Religious Belief, Religious Priming, and Negative Word-of-Mouth in Everyday Service Failure Encounters

2021 ◽  
pp. 002224372110111
Author(s):  
Riza Casidy ◽  
Adam Duhachek ◽  
Vishal Singh ◽  
Ali Tamaddoni
Keyword(s):  
Social Exchange ◽  
Religious Belief ◽  
Word Of Mouth ◽  
Service Failure ◽  
Online Reviews ◽  
Negative Word ◽  
Mediating Role ◽  
Fairness Norms ◽  
Strategic Variable

This research examines the effects of religious belief and religious priming on negative word-of-mouth (NWOM) behavior. Drawing on social exchange and norm paradigms, we theorize and find evidence of the unique effects of religious belief and religious priming on NWOM in everyday service failure encounters. Specifically, we find that religious belief is associated with higher NWOM, driven by a greater sensitivity to violations of fairness norms, which in turn reduces forgiveness. However, exposure to religious priming attenuates NWOM among more religious consumers by reducing sensitivity to violations of fairness norms, which in turn enhances forgiveness. A field study involving over 1.2 million online reviews of actual restaurant experiences, in addition to four lab studies, provides support for our theorized effects. Our study sheds light on the religion–forgiveness discrepancy by establishing the mediating role of sensitivity to fairness violations on the relationship between religion and forgiveness in the NWOM context. Further, our results demonstrate the importance of religion as a strategic variable in the management of service failure experiences, providing theoretical implications for the literature on the effects of religion on consumer behavior.

The CURE scale: a multidimensional measure of service recovery strategy

2014 ◽  
Vol 28 (4) ◽  
pp. 300-310 ◽  
Author(s):  
Rania Mostafa ◽  
Cristiana R. Lages ◽  
Maria Sääksjärvi
Keyword(s):  
Service Failure ◽  
Service Recovery ◽  
Telecommunications Industry ◽  
Comprehensive Assessment ◽  
Response Effort ◽  
Recovery Strategy ◽  
Content Type ◽  
Path Modelling ◽  
Individual Strategies ◽  
Formative Index

Purpose – This paper aims to address the gaps in service recovery strategy assessment. An effective service recovery strategy that prevents customer defection after a service failure is a powerful managerial instrument. The literature to date does not present a comprehensive assessment of service recovery strategy. It also lacks a clear picture of the service recovery actions at managers’ disposal in case of failure and the effectiveness of individual strategies on customer outcomes. Design/methodology/approach – Based on service recovery theory, this paper proposes a formative index of service recovery strategy and empirically validates this measure using partial least-squares path modelling with survey data from 437 complainants in the telecommunications industry in Egypt. Findings – The CURE scale (CUstomer REcovery scale) presents evidence of reliability as well as convergent, discriminant and nomological validity. Findings also reveal that problem-solving, speed of response, effort, facilitation and apology are the actions that have an impact on the customer’s satisfaction with service recovery. Practical implications – This new formative index is of potential value in investigating links between strategy and customer evaluations of service by helping managers identify which actions contribute most to changes in the overall service recovery strategy as well as satisfaction with service recovery. Ultimately, the CURE scale facilitates the long-term planning of effective complaint management. Originality/value – This is the first study in the service marketing literature to propose a comprehensive assessment of service recovery strategy and clearly identify the service recovery actions that contribute most to changes in the overall service recovery strategy.

Customer Dissemination of Negative Word-of-Mouth: Influence of Expected or Unexpected Events

2014 ◽  
Vol 42 (10) ◽  
pp. 1675-1687 ◽  
Author(s):  
Ming-Hone Tsai ◽  
Chienhao Liao ◽  
Ren Gih Hsieh
Keyword(s):  
Experimental Design ◽  
Significant Interaction ◽  
Word Of Mouth ◽  
Service Failure ◽  
Intimate Relationship ◽  
Negative Word ◽  
Factorial Experimental Design ◽  
Unexpected Events ◽  
Relationship Type ◽  
Relationship Types

We examined how expected or unexpected costs affect restaurant customers' attitudes toward the dissemination of negative word-of-mouth (WOM) when service failure occurs. A 2 (customer punishment: expected and unexpected) × 3 (relationship type: encounter, pseudo, and intimate) mixed factorial experimental design was adopted to examine the dissemination of negative WOM. The results indicated that service failure exerted significant and nonsignificant primary effects on expected punishment and relationship type, respectively. A significant interaction was observed between expected punishment and both encounter and intimate relationship types, but not between expected punishment and the pseudo relationship type. In sum, expected punishment and relationship type influenced negative WOM.

Service recovery satisfaction and customer commitment in the airline business

2019 ◽  
Vol 11 (1) ◽  
pp. 91-108
Author(s):  
Rosemary Matikiti ◽  
Mercy Mpinganjira ◽  
Mornay Roberts-Lombard
Keyword(s):  
Airline Industry ◽  
Structural Equation ◽  
Word Of Mouth ◽  
Service Failure ◽  
Service Recovery ◽  
Positive Word ◽  
Content Type ◽  
Customer Commitment ◽  
Recovery Satisfaction ◽  
Positive Word Of Mouth

Purpose The purpose of this paper is to examine the precursors and outcomes of service recovery satisfaction and customer commitment among airline business customers. Design/methodology/approach Data were collected from airline travellers in South Africa using a structured questionnaire. Structural equation modelling was used to analyse the proposed hypotheses. Findings The results revealed that recovery expectations and perceived equity exert significant influence on levels of recovery satisfaction, which in turn influence overall satisfaction, trust and commitment. The study also revealed that trust and overall satisfaction are antecedents of customer commitment and that customer commitment has a significant positive relationship with positive word of mouth. It was also established that the quality of past service performance moderates the relationship between recovery satisfaction and commitment. Practical implications Airlines are advised to stimulate customer trust in the service delivery process through transparency in the procedures by which they resolve service failures and to remain committed to their service recovery promises to customers. It is also proposed that airlines should secure increased positive word of mouth through offering satisfactory service recovery. Originality/value Very little research in the South African context exists which focusses on the influence of customers satisfaction and commitment in the airline industry. This paper helps in establishing the antecedents of customer commitment after service failure in the airline industry.

scholarly journals Exposing Pinocchio customers: investigating exaggerated service stories

2016 ◽  
Vol 27 (2) ◽  
Author(s):  
Lloyd C. Harris ◽  
Raymond P Fisk ◽  
Hana Sysalova
Keyword(s):  
Exploratory Study ◽  
Design Methodology ◽  
Word Of Mouth ◽  
Service Failure ◽  
Experimental Studies ◽  
Organizational Outcomes ◽  
Negative Word ◽  
Cognitive Mechanisms ◽  
Consumption Experience ◽  
Practical Implications

Purpose While the links between customer word-of-mouth and desirable organizational outcomes have been widely studied, the possibility that customers might routinely exaggerate their consumption experience stories has been neglected. Design/methodology/approach The first exploratory study examined exaggerated and unexaggerated word-of-mouth and the targets of such activities. The second exploratory study focused on customer-exaggerated negative word-of-mouth and its drivers. The two experimental studies generated deeper insights into attributions of service failure and exaggerated negative word-of-mouth. Findings This research explicitly addresses customer exaggeration regarding service consumption and the reasons customers engaged in such behaviors. Study 1 focused on the scope and targets of exaggerated word-of-mouth, and Study 2 concentrated on identifying the drivers of exaggerated negative word-of-mouth. Studies 3 and 4 experimentally elucidated the cognitive mechanisms leading to exaggeration. Research limitations/implications Contributions include deeper understanding of the phenomenon of exaggerated negative word of mouth and developing and testing a model of the factors associated with consumers’ exaggerated negative word-of-mouth. Practical implications Implications include possible organizational and public policy actions to prevent Pinocchio customers from exaggerated negative word-of-mouth. Originality/value This paper explores the nature and scope of exaggerated customer word-of-mouth and contributes insights in four ways. First, this research explores the scope of consumer exaggeration during word-of-mouth storytelling and the intended targets of such communications. Second, this research focuses on exaggerated negative word-of-mouth and develops a conceptual model of the drivers of such activity. Third, the theory is tested and contributes empirical insights into exaggerated negative word-of-mouth. Fourth, through experiments, insights are gained into the cognitive mechanisms leading to exaggeration and the effects of attribution differences in personal versus service provider blame.

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