Abstract

Providing a consistently high level of service recovery performance is important to minimize the negative impact of service failure, such as negative word-of-mouth and plunging satisfaction. Thus, examining factors that promote service recovery performance is important. Service providers’ perception of the customers influences their service performance; and yet, its implications for service recovery performance have not been well understood. By applying McGregor’s classification of employee types to service consumers, this study examines whether a service provider’s perception of type Y customers influences their service recovery performance. Across a survey to 150 service providers, this study revealed that service recovery performance increases (decreases) when the customers are perceived to have a high (low) level of type Y characteristics (responsible and capable of directing and controlling themselves). In line with attachment theory, when the service providers perceive a high level of type Y customers, they are motivated to establish a strong rapport with the customers and hence, increase the service recovery performance to prevent the customers from leaving the company. More importantly, service providers’ perception of customers is positively influenced by their customer orientation. Therefore, management can promote customer orientation in order to promote service providers’ positive perceptions of the customers, rapport with the customers, and service recovery performance.

Full Text
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