Abstract
This study explores how customer perception of online shopping brands plays a key role in moderating the relationship between service recovery and perceived justice. We incorporated brand equity at the organizational level and brand identity at the individual level into the relationship between online service recovery and customer-perceived justice. The findings are as follows: (a) online service recovery has a positive effect on customer-perceived justice; (b) brand equity at the organizational level has a negative influence on the relationships that courtesy and compensation have with perceived justice; (c) brand identity at the individual level has a negative influence on the relationships that courtesy and compensation have with perceived justice; and (d) hierarchical linear modeling can precisely measure the relationship between organizations and customers.
Highlights
We introduced a moderating mechanism to examine cross-level relationships: (1) a moderating model at the individual level: brand identity affects the relationship between service recovery and customer-perceived justice; (2) a moderating model at the organizational level: brand equity affects the relationship between service recovery and customer-perceived justice
This study explored the influence of various service recovery approaches on customer-perceived justice
The results showed these service recovery approaches had significant positive effects on the perceived justice of online shoppers (H1, Hypothesis 2 (H2), Hypothesis 3 (H3), and Hypothesis 4 (H4))
Summary
To thrive and sustain amid fierce competition, service providers must make service recovery to ensure customers have a satisfactory shopping experience. Customer-switching cost is low in an online shopping environment; customers will switch products or service providers if recovery quality falls short of customer expectation. Online businesses should attach more importance to service recovery compared with brick-and-mortar stores [2]. Previous studies of service recovery focused on brick-and-mortar retailing, whereas research on online-shopping service recovery is scant [3]. We used the perceived justice theory as the framework of this study to investigate the justice that online shoppers perceive after receiving service recovery and subsequent service recovery satisfaction
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