Service Recovery and Post Purchase Behavior: an Experimental Study (original) (raw)
Related papers
Tourism and Hospitality Research
The purpose of this research is to identify the impact of airline passengers’ perception of service recovery output/process on their satisfaction and loyalty. We want to identify the direct and indirect effects of service recovery on airline passenger loyalty by distinguishing the output and the process of the service recovery. A questionnaire was distributed to airline passengers who had a problem during their last airline flight. As we had several latent variables, we used partial least squares, a variance-based structural equation modeling method. As findings, we observed that in general, clients were not satisfied with the way that the service has been recovered. The most frequent reason for complaining was a problem due to flight delay, followed by a problem with the baggage, overbooking, and flight cancellation. Nevertheless, the findings reveal the positive impact of service recovery’s output/process qualities on customer satisfaction and customer loyalty. The output quality ...
An experimental investigation of customer reactions to service failure and recovery encounters
Journal of Service Research, 1998
University. Her research is in the areas of customer assessments of services, customer satisfaction and retention, service failure and recovery, and customer-service provider relationships. Ruth N. Bolton is Associate Professor of Marketing and the Harvey Sanders Professor of Retailing and Services Marketing at the Maryland Business School, University of Maryland. Her current research focuses on how organizations can grow the value of their customer base by improving service and increasing customer satisfaction. She received her B.Comm. (Hon.) from Queen's University at Kingston, and M.Letters and other leading journals. Abstract Service failure and recovery encounters represent critical •moments of truth• in a service organization's relationship with its customers. Despite a substantial amount of •lip service• given to the importance of service recovery and the dramatic effect that service failures and failed recoveries can have on a firm's ability to satisfy and keep customers, few empirical studies have addressed the influence of service failure/recovery encounters on customers' overall assessments of a service organization. Furthermore, most of the research in this area has been exploratory and non-generalizable. This study develops a simple model which addresses the following questions: (1) How does a customer's satisfaction with a service failure and recovery encounter affect his/her cumulative satisfaction judgments and repatronage intentions? (2) To what extent do a customer's prior assessments of overall satisfaction and repatronage intentions formed before the service failure and recovery encounter ''carry over'' to influence his/her subsequent overall satisfaction and repatronage intentions? (3) Can a highly satisfying service failure and recovery encounter enhance a customer's overall satisfaction with a service organization and increase his/her repatronage intentions? The model is operationalized with data from two experiments conducted in different service settings (restaurants and hotels) in which actual customers experienced a hypothetical service failure and recovery encounter at an organization they had recently patronized.
Apology and Compensation Strategy on Customer Forgiveness and Negative Word of Mouth
Jurnal Manajemen dan Kewirausahaan
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
Consumer responses to compensation, speed of recovery and apology after a service failure
International Journal of Service Industry Management, 2004
This experimental study examined how the three dimensions of fairness (distributive, procedural and interactional) influence consumers' attributional processes, their post-recovery satisfaction and behavioral responses (repatronage intent and negative word-of-mouth) in a service failure context that does not involve monetary costs to the consumer. Our results indicate that recovery outcomes (e.g. compensation), procedures (e.g. speed of recovery) and interactional treatment (e.g. apology) have a joint effect on post-recovery satisfaction. Specifically, our findings suggest that compensation may not enhance satisfaction when the recovery process is well-executed (an immediate response combined with an apology). Similarly, compensation failed to lessen dissatisfaction with a poor recovery process (a delayed response without apology). It thus seems that compensation is a poor substitute for a good recovery process. However, offering compensation was effective in increasing satisfaction in mixed-bag recovery situations (delayed recovery with an apology, or immediate recovery without apology). Furthermore, we found that service recovery satisfaction acted as a full mediator between service recovery attributes (compensation, recovery speed and apology) and behavioral intentions (repurchase intent and negative WOM). Finally, our findings suggest that consumer attributions for stability and controllability for the failure vary across recovery efforts. Managerial implications for these findings are discussed.
Service recovery satisfaction and customer commitment in the airline business
African Journal of Economic and Management Studies, 2019
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 servi...
2014
Service failures seem to be inevitable given the heterogeneous nature of services. In many cases, it is the service recovery efforts performed by service providers after a service failure that affect customer satisfaction. A model is proposed that considers the impact of service failures and service recovery efforts on customer satisfaction within restaurants. The findings indicate that while the severity of the service failure does not impact the preference for recovery efforts, recovery efforts do impact customer satisfaction. In addition, an analysis of various demographic factors suggests that gender plays a role in these variables.
Effects of Service Recovery on Customer Satisfaction and Relationship Retention in Catering Industry
The Anthropologist, 2014
The raise of consumer awareness in modern competitive catering markets presents that the discontented customers are likely to express the discontentment through word of mouth. Consumers would directly or indirectly express when the quality of the service process does not conform to the expectation. Service recovery therefore cannot be avoided and neglected in catering industry, and it relates to the service performance and the customer retention. It was found in the past research that, when there was a service failure, the perceived justice of customers towards the service recovery policies of an enterprise could enhance the customer satisfaction and promote the reliability towards the catering enterprise so that they would be willing to retain the transactional relationship. For this reason, this study would like to discuss the relations between service recovery and relationship retention and explore the mediating effects of customer satisfaction. The customers of Noble Family in northern Taiwan, as the research samples, are distributed 500 copies of questionnaires. Total 267 valid copies were retrieved, with the retrieval rate 53%. The research findings are concluded as-1. Service recovery presents significant correlations with customer satisfaction. 2. Customer satisfaction shows remarkable correlations with relationship retention. 3. Service recovery reveals notable correlations with relationship retention. 4. Customer satisfaction appears partial mediating effects on the correlations between service recovery and relationship retention.
Impact of Service Recovery on Word-of-mouth and Behavioural
2015
Service recovery process is considered to provide the service provider with a second chance to reinforce relationships with the customers. It is considered the second encounter by several authors. Prudently, a successful service recovery should have a positive impact on the satisfaction of customers. However one may argue that a successful service recovery process may not always lead to satisfaction on the part of the customers. The customer may not want to continue purchases from the store after such service failure. This study was conducted on the recovery efforts undertaken by retail stores reveals that successful service recovery has a very low effect on overall satisfaction of the firm, which in turn has high influence on word-of-mouth intents and purchase intention of the customer. Key-Words: Service encounter, Service recovery, Satisfaction, Word-of-mouth, Purchase intents, SEM.