Service recovery and innovation on customer satisfaction amidst massive typhoon-induced disruptions: The mediating role of SERVQUAL

Abstract

The adverse impact of unprecedented natural disasters on certain service operations is inevitable, particularly in cases of massive disruptions. Managing these services during disruptive events is critical in retaining existing customers. This work offers a structural model that explains customer satisfaction (CS) by incorporating the mediating role of the SERVQUAL model with service innovation (SI) and service recovery (SR) as its antecedents. The proposed model is empirically tested in the case study of Typhoon Odette in the Philippines, with 584 study participants utilizing a convenient sampling technique in data gathering. Seven hypothesized paths were tested using Partial Least Squares Structural Equation Modeling, including the mediating role of SERVQUAL on SI to CS and SR to CS. Results support the following hypotheses indicating positive relationships: SI on CS, SI on SERVQUAL, SR on SERVQUAL, and SERVQUAL on CS, with the partial mediation of SERVQUAL on SI to CS and full mediation of SR to CS. The case does not support the relationship between SR and CS. The theoretical underpinning of these results suggests that the satisfaction of customers has shifted to the “human” aspects of CS, setting aside product-related attributes (e.g., restoration of Internet access) given massive disruptions. Consequently, SR efforts may not immediately lead to CS without those efforts directly addressing the dimensions of SERVQUAL. Thus, SI efforts, especially SR initiatives (i.e., clearing of debris, restoration of cables, deployment of resources), must be directed at satisfying the intricacies of SERVQUAL to affect CS. Some managerial insights are outlined in the study.