The relationship of service failure severity, service recovery justice and perceived switching costs with customer loyalty in the context of e-tailing

Abstract

Given that e-tailing service failure is inevitable, a better understanding of how service failure and recovery affect customer loyalty represents an important topic for academics and practitioners. This study explores the relationship of service failure severity, service recovery justice (i.e., interactional justice, procedural justice, and distributive justice), and perceived switching costs with customer loyalty; as well, the moderating relationship of service recovery justice and perceived switching costs on the link between service failure severity and customer loyalty in the context of e-tailing are investigated. Data collected from 221 useful respondents are tested against the research model using the partial least squares (PLS) approach. The results indicate that service failure severity, interactional justice, procedural justice and perceived switching costs have a significant relationship with customer loyalty, and that interactional justice can mitigate the negative relationship between service failure severity and customer loyalty. These findings provide several important theoretical and practical implications in terms of e-tailing service failure and recovery.