The influence of cell phone users' relationship intentions on expectations and perceptions of service recovery

L Kruger,P G Mostert

doi:10.4102/sajbm.v46i1.83

Abstract

With the first-time cell phone user market quickly shrinking, it is becoming increasingly important for South African cell phone network providers to retain customers by building long-term relationships with them and consistently offering quality service. Despite cell phone network providers' best intentions, service failures do occur. Not all customers want to build relationships with cell phone network providers, and therefore it is important to consider the influence of customers' relationship intentions within a service failure and recovery setting. The purpose of the study was to determine the influence of relationship intention on expectations and perceptions of two service recovery scenarios within the cell phone industry. Non-probability convenience sampling was used to collect data from 605 cell phone users residing in Gauteng. Results indicate that as respondents' relationship intentions increase, so do their expectations that their cell phone network providers should take service recovery action. It was also found that respondents with high and moderate relationship intentions perceived service recovery strategies of their cell phone network providers including an acknowledgement, apology, explanation and rectification of the problem more favourable, compared to a service recovery strategy only rectifying the problem, than those respondents with low relationship intentions.

Highlights

The South African cell phone industry is characterised by a declining available market (Van Niekerk, 2012: 101) as competition between cell phone network providers has intensified over the last few years (Independent Communications Authority of South Africa, 2012b: 3)
Interviewer-administered questionnaires were appropriate as the questionnaire for this study contained a service failure scenario and two service recovery scenarios that had to be explained to respondents (Bradley, 2007: 128)
Cell phone network providers need to retain customers in the competitive cell phone industry (Morrisson & Huppertz, 2010: 250), but service failures complicate this undertaking as service failures negatively impact customer retention (Robinson et al, 2011 : 90)

Summary

Introduction

The South African cell phone industry is characterised by a declining available market (Van Niekerk, 2012: 101) as competition between cell phone network providers has intensified over the last few years (Independent Communications Authority of South Africa, 2012b: 3). Customer retention is important to South African cell phone network providers, since customer retention increases service providers' long-term profitability and, their survival (Cant & Erdis, 2012: 938). Service providers attempt to build long-term relationships with customers through relationship marketing strategies in an effort to retain customers (Coulter & Ligas, 2004: 489). Not all customers want long-term relationships with service providers (Hess, Story & Danes, 2011: 22). Service providers should identify those custom ers with relationship intentions, as these customers want to build long-term relationships with them and would be more inclined to be r etained (Kumar, Bohling & Ladda, 2003: 669). South African cell phone network providers are, as with all other service providers, inclined to experience service failures

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