Abstract
The present studies examined observer responses to failed recoveries following a service failure in a restaurant setting. Study 1 demonstrated that, relative to a neutral response, a negative server response increased desire for revenge and negative firm attitudes, which reduce tipping and return intentions, but revealed no benefits of a positive server response. Study 2 highlighted the full buffering effect of management apology on firm-related outcomes (attitudes, return intentions) which did not extend to employee-related outcomes (desire for revenge, tipping). Study 2 also supported a structural model in which negative server responses generate perceived deontic injustice, which predicts desire for revenge and firm attitudes, which in turn predict tipping and return intentions. By including outcomes more directly reflecting “revenge seeking” (tipping), and testing the most comprehensive structural model to date, the present work contributes to a fuller understanding of how customers respond to observed service failures.
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