The Impact of Service Recovery on Repurchase Intentions: A Moderated Mediation Model

Abstract

The purpose of this paper is to fill an important gap in literature by exploring the moderating role of customer emotions and the mediation of perceived fairness on service recovery effecting repurchase intentions. Based on the data of 200 valid questionnaires collected from oversees Pakistani in China, this paper used SPSS v.21.0 for data processing and analysis in which the reliability test was conducted and the hypothesis testing of direct and indirect effect was done on SPSS extension called Process v.2.3 developed by Hayes (2013). Results reveal that all variables of the study significantly correlate with each other, the service recovery has a significant impact on repurchase intentions. Results also disclose that perceived fairness mediates the effect of service recovery on repurchase intentions while moderation of customer emotions supporting the existence of moderated mediation. The findings of this study are particularly valuable for managers, it allows them to enhance the understanding on the aspect of service recovery that leads to repurchase and will help management to make an effective retention/repurchase strategies in service recovery situations.