Difficulty is a possibility: turning service recovery into e-WOM

Abstract

PurposeThis study aims to identify the factors of service recovery strategy that affect customer satisfaction. In addition, this study aims to explore the relationship between consumer satisfaction with service recovery and electronic word of mouth (e-WOM) in the online context.Design/methodology/approachA self-administered questionnaire is designed and administered through an online survey. This study evaluates the proposed framework through structural equation modeling with online survey data from 425 samples in the context of online buying.FindingsThe results show that explanation, effort, response speed, problem-solving and apology are the components predicting service recovery strategy. These factors have impacts on customer satisfaction with service recovery and also generate e-WOM about service recovery experiences. This study significantly contributes to not only practical insights but also the expansion of expectation confirmation theory and social exchange theory regarding online service failures.Research limitations/implicationsSamples from non-internet shoppers are not collected because this study focuses on consumers referring to purchase online. Testing this conceptual model for other populations, such as non-online consumers, including the moderating effect of gender, age and education on the relationships proposed in the model may be an interesting extension. Moreover, this study does not distinguish different types of online retailers.Practical implicationsThis study highlights the significant effect of customer satisfaction with service recovery on e-WOM. That is, managers should focus on not only making customers satisfied with their initial purchase but also enhancing customer satisfaction with service recovery in case the service failure occurs to encourage positive interaction among customers. This case will also improve the organizational image of a firm.Originality/valueThis study contributes to the identification of service recovery actions that focus on the roles of employees in dealing with service failures and their impacts on customer satisfaction in the online shopping context. In addition, the findings provide a greater understanding of the importance of customer satisfaction on e-WOM.