Perceived justice and CSR after service recovery

Abstract

PurposeThe purpose of this paper is to examine the relationships between perceived justice and perceived corporate social responsibility (CSR) and the impact of perceived justice and CSR perceptions on customers’ behavioral responses, such as satisfaction and repatronage intention after service recovery. The authors also investigate the moderating role of service failure severity in the relationship between perceived justice and perceived CSR.Design/methodology/approachThe data were collected using individually completed questionnaires. The proposed model was tested using structural equation modeling, and the moderation effects of failure severity in the relationship between perceived justice and perceived CSR were analyzed using stepwise multiple regression models.FindingsThe results suggest a path from satisfaction to CSR perceptions, which indicates that the link between CSR perceptions and satisfaction is reversed in the context of service recovery. The authors further reveal recovery satisfaction in two ways: It has a direct influence on repatronage intentions as well as an indirect influence via perceived CSR. Finally, the results demonstrate that the severity of a service failure intensifies the impact of distributive and procedural justice perceptions on perceived CSR, and perceived CSR serves as a partial mediator in the path from recovery satisfaction to repatronage intentions.Research limitations/implicationsThe results demonstrate that perceived justice of service recovery affects perceived CSR after a service failure and that the severity of a service failure moderates the impact of justice perceptions on perceived CSR. However, the possibility of intercausal relationships among distributive, procedural and interactional justice may need to be further explored in future research.Practical implicationsGiven that the impact of distributive and procedural justice on CSR perceptions has become more critical as the severity of service failure increases, companies should prioritize allocating a fair amount of monetary compensation in a timely manner, particularly for those who experience a severe service failure.Originality/valueThe authors propose a model of perceived justice – perceived CSR – repatronage intentions within the service recovery context in an attempt to deepen the understanding of the antecedents of repatronage intention and the relationship between repatronage intention and recovery satisfaction following service recovery encounters by introducing perceived justice and CSR. Moreover, the authors discover the moderating effect of service failure severity on the relationship between justice perceptions and perceived CSR.