Correlates of justice encounter in service recovery and word-of-mouth publicity

Hart O Awa,Ogwo E Ogwo,Ojiabo Ukoha,Len Tiu Wright

doi:10.1080/23311975.2016.1179613

Abstract

AbstractThis paper examines word-of-mouth publicity as an outcome of consumer perception of equitable recovery programs. Survey data were drawn from 317 teachers of Federal Government Colleges and 79 executives of mobile telephone firms in the southeastern and south–south zones; this sample came from locations where Global Systems for Mobile Communications and Code Data Multiple Access networks have interface. Using the partial least square to analyze the data, the path coefficients with their respective t-values greater than 1.96 confirm that the justice dimensions have statistically significant relationship with word-of-mouth. Thus, the manipulation of justice dimensions in the events of service failure affects customers’ advocacy behavior. The study recommends proactive and relational approaches in dealing with customer issues as well as fair and equitable recovery and complaint handling programs to suit the needs of the complainants, get them satisfied, and to cause them to progress in the loyalty ladder.

Highlights

Actual service performance falling short of customer ideals is increasingly becoming a common phenomenon in the services industry even amidst developers’ precautionary and exceptional efforts, and has predominantly informed the growing theoretical modeling and empirical inquiries as well as debates on managing complaints (Chebat & Slusarczyk, 2005; Edmondson, 2011; Kim, Kim, & Kim, 2009; Smith, Karwan, & Markland, 2012)
Scholars (Casado, Nicolau, & Mas, 2011; Gronroos, 2007; Smith et al, 2012) posit that service recovery is an instrument of competitive advantage that attempts to rectify customer issues during and after the service encounter and before and after complaints
Similar questions appeared in both questionnaires to sample opinions on critical issues bordering on the hypotheses; the questionnaires predominantly focus on some key questions that relate to what causes customer disgusts, why disgusted customers decide to complain, fairness of firm’s responses and feelings of satisfaction, how often they discuss their disgusts with friends and others, and the key response factor that douses their plights

Summary

Introduction

Actual service performance falling short of customer ideals is increasingly becoming a common phenomenon in the services industry even amidst developers’ precautionary and exceptional efforts, and has predominantly informed the growing theoretical modeling and empirical inquiries as well as debates on managing complaints (Chebat & Slusarczyk, 2005; Edmondson, 2011; Kim, Kim, & Kim, 2009; Smith, Karwan, & Markland, 2012). Scholars (Casado, Nicolau, & Mas, 2011; Gronroos, 2007; Smith et al, 2012) posit that service recovery is an instrument of competitive advantage that attempts to rectify customer issues during and after the service encounter and before and after complaints. On accounts that it costs 5 to 7 times more to generate new customers than to keep incumbents (Hart, Heskett, & Sasser, 1990; Wilson, Zeithaml, Bitner, & Gremler, 2008) and as little as 5% improvement in customer retention raises profitability to almost 100% (Coyles & Gokey, 2005; Reichheld & Sasser, 1990), organizations attempt to reposition their recovery programs to retain incumbent customers. Subscribers further judge the possible fairness of the provider’s response deals. Oliver (1996) posits that subscribers want fairness, rightness, or deservingness in comparison to other entities, whether real or imaginary, individual or collective, person or non-person

Methods

Findings

Discussion

Conclusion