Effective Service Recovery Research Articles

Service Employee Responses to Angry Customer Complaints

Service employees’ emotional and behavioral responses to angry customer complaints were examined to help firms improve their service recovery performance. Role-played complaints were conducted in a field experiment set in fast-food restaurants. Actors played customers who complained in an angry fashion to service employees. Employees’ immediate emotional (i.e., expressed anger) and delayed behavioral responses (i.e., restitution offered) were observed. A follow-up scenario-based experimental study was used to retest the hypotheses and add controls to rule out potential rival explanations. In both studies, level of customer status (low vs. high; true experimental design) and strength of a restaurant’s service climate (weak vs. strong; quasi-experimental design) were manipulated. The findings confirm that employees in a weak service climate expressed more anger and were less likely to offer restitution to low- compared to high-status customers. In contrast, in a strong service climate, employee responses were less dependent on customer status and converged at a low level of anger and high probability of restitution offered. Furthermore, the consistent immediate affective and delayed behavioral responses suggest that a strong service climate is internalized by frontline employees. This study contributes to service theory by establishing a customer status main effect on both affective and conative employee responses and by confirming service climate as a boundary condition for the customer status main effect. A key implication for managers is that establishing a strong service climate is important for achieving effective service recovery in increasingly diverse societies.

Gender differences in the intentions to voice complaints across different service failure modes

ABSTRACTThe present study investigates the joint impact of the service failure mode (interpersonal service versus self-service technology) and gender on consumers’ intention to voice their complaints. Results from a quasi-experiment suggest that female consumers are more likely to voice their dissatisfaction following a self-service technology failure rather than an interpersonal failure. However, the service failure mode fails to influence male consumers’ complaint intentions. Moreover, our findings indicate that motivation to help is the mechanism behind female consumers’ complaint behaviors, thus mediating the effect of service failure mode on complaint intention. Therefore, hospitality practitioners might want to pay attention to the differences in each gender’s complaint behaviors across different service failure modes and provide effective service recovery solutions across the two genders.

The Structural Relationship among Service Failure, Service Recovery, Emotional Reaction and Recovery Satisfaction in the Airline Service

Background/Objectives: This study was conducted to present a more effective service recovery strategy through a study on the effects of service recovery efforts in response to service failure. Methods/Statistical Analysis: A total of 300 copies of the survey were distributed. Among them, 243 copies (81%) were retrieved. Excluding 58 copies (19.3%) that had insufficient responses, a total of 185 copies (61.7%) were used for analysis. Data analysis was performed using the SPSS 21.0 and AMOS 22.0. Confirmatory factor analysis was conducted to validate the measured variables and the structure model covariance structure analysis was used to test the hypothesis. Findings: First, in the relation between the severity/controllability of service failure and service recovery, severity received a negative effect from tangible efforts and psychological efforts with the former affecting to a greater degree. As such, hypotheses 1-1 and 1-2 were adopted. Second, tangible efforts out of service recovery effort types had a significant effect on positive emotions (1-3), but no effect on negative emotions (1-4). In particular, psychological efforts had a significant effect on both positive and negative emotions. Third, tangible efforts had a significant effect on positive emotions (2-1). However, such tangible compensation appeared not to have an effect on negative emotions (2-2). In contrast, psychological efforts had a significant effect on both positive emotions and negative emotions (2-3, 2-4). Fourth, of the customers’ emotional responses, positive emotions affected satisfaction with the recovery, while negative emotions did not affect satisfaction with recovery (3-1, 3-2). Application/Improvements: It is meaningful to develop response methods for customers by service recovery type. This study seeks to provide a basic set of data for developing such methods by service recovery

Discount reference moderates customers' reactions to discount frames after online service failure

This paper aims at investigating customers' reactions to discounts as service recovery offered in context of an online store. It argues that customers prefer dollar-off discounts to percentage-off discounts. The present research also argues that for discounts on price of one item out of several items, customers evaluate dollar-off discounts more positively (i.e., higher satisfaction and lower anger), while for discounts on the total price, customers react similarly to percentage-off and dollar-off discounts. Two online experiments confirm these arguments. This research discusses the importance of discount reference in online service recovery and represents effective service recovery regarding discount reference and discount frame as its practical implications.

Three dimensions of service recovery: examining relationship and impact

Purpose: The aim of the paper is to evaluate the interrelationship between process recovery, employee recovery and customer recovery in a financial services call centre. We also investigate how process recovery affects customer recovery via employees- the bridge between organisation and customers. Design/methodology/approach: A case study based approach is adopted in this study, and data triangulation is achieved through multiple data collection methods including semi-structured interviews, employees’ survey, and company reports. Justice theory is the theoretical lens considered to understand the ‘service recovery’ phenomenon. Findings: The research helps in understanding the relationship of process and employee recovery with customer recovery. Findings suggest that service recovery could be used for complaint management as well as in understanding and addressing the gaps in internal operations and employee skill-sets. Factors such as training, operating systems, empowerment, incentives, and feedback, were identified as critical in providing effective service recovery. Process improvement is necessary to control complaints by conducting root cause analysis and learning from failure. Research limitations/implications: Findings are limited to a case company in financial services sector and thus limits its generalisability to other context. Questionnaire distributed to employees only included important dimensions of service recovery, which would be further developed in future research. Relevance/contribution: This paper explores the specific reverse exchange strategies, termed in this paper as service recovery, and analyses the different factors responsible for better performance in the exchange process. The paper highlights how the imbalance in the process and employee recovery dimensions can impact on customer recovery. Closing the customer complaint loop by using the service recovery perspective may help organization to not only deal with complaints in a better way but also prevent such complaints in the future.

Relationship intention and satisfaction following service recovery: The mediating role of perceptions of service recovery in the cell phone industry

In an industry characterised by fierce competition, cell phone network providers find it increasingly difficult to retain their customers after service failure. It is therefore essential for cell phone network providers to offer effective service recovery when they attempt to restore customer satisfaction following service failure. As it has been argued that relationships between customers and service providers should be considered a key determinant of the service recovery required to restore post-recovery attitudes and behavioural intentions, the purpose of this study was to determine the relationships between South African cell phone customers’ relationship intentions, their perceptions of service recovery and their satisfaction following service recovery. Personal in-home interviews were conducted to collect data from 605 cell phone customers residing in the Johannesburg metropolitan area. In addition to the significant positive relationships found between cell phone users’ relationship intentions, perceived service recovery and satisfaction after service recovery, this study found that perceived service recovery played a mediating role in the relationship between relationship intention and satisfaction following service recovery. The study concludes that, although a direct relationship exists between relationship intention and satisfaction following service recovery, perceived service recovery plays an additional indirect complementary role in this relationship. It is recommended that, in addition to focusing their relationship efforts on customers with relationship intentions, cell phone network providers also offer positively perceived service recovery to these customers, as this would lead to greater satisfaction following service recovery.

The Impact of Bank Responses to Recovery Service Satisfaction

In the context of harsh competition in the retail banking sector in Vietnam, how to retain existing customers through effective responses to service failure has become a critical focus point of bank executives. Satisfactory responses to customer complaints may help to increase repurchases and positive word of mouth about the bank. Understanding the effects of organizational responses to customer complaint helps commercial banks develop more effective service recovery strategies and enhance customer satisfaction. This research explores the impacts of organizational responses to customer complaints in the Saigon Commercial Bank (SCB). The study investigates the impact of apologies, attentiveness, explanation, facilitation, promptness and redress on satisfaction with service recovery. The effect of recovery satisfaction on post purchase behavioral intentions (repurchase intentions and positive word of mouth intentions) is also examined. Structural equation model analysis reveals that organizational responses including apologies, attentiveness, explanation, promptness and redress have a significantly positive relationship of satisfaction with service recovery.

Relationship intention and satisfaction following service recovery : the mediating role of perceptions of service recovery in the cell phone industry

In an industry characterised by fierce competition, cell phone network providers find it increasingly difficult to retain their customers after service failure. It is therefore essential for cell phone network providers to offer effective service recovery when they attempt to restore customer satisfaction following service failure. As it has been argued that relationships between customers and service providers should be considered a key determinant of the service recovery required to restore post-recovery attitudes and behavioural intentions, the purpose of this study was to determine the relationships between South African cell phone customers’ relationship intentions, their perceptions of service recovery and their satisfaction following service recovery. Personal in-home interviews were conducted to collect data from 605 cell phone customers residing in the Johannesburg metropolitan area. In addition to the significant positive relationships found between cell phone users’ relationship intentions, perceived service recovery and satisfaction after service recovery, this study found that perceived service recovery played a mediating role in the relationship between relationship intention and satisfaction following service recovery. The study concludes that, although a direct relationship exists between relationship intention and satisfaction following service recovery, perceived service recovery plays an additional indirect complementary role in this relationship. It is recommended that, in addition to focusing their relationship efforts on customers with relationship intentions, cell phone network providers also offer positively perceived service recovery to these customers, as this would lead to greater satisfaction following service recovery.

Service Recovery Activities and Customer Satisfaction: Mediating Role of Justice Dimensions: A Case Study of China

Customer satisfaction and its contribution to service quality improvement, especially through effective service recovery programs, are not new to researchers. Several studies have identified the impact of service recovery activities on customer post-recovery satisfaction mostly in Western countries, and very few have examined how Asian consumers react to service recovery efforts, especial in China. It implicates that the impact of a hotel’s service recovery strategies is derived from three justice dimensions. Customer perception of overall distributive justice is influenced by apology, while providing cognitive control (i.e., keeping customers informed) affects procedural justice. Finally, the manner in which service personnel treat a customer (politeness, respect, and courtesy) during the recovery process affects perceptions of interactional justice. Finally, all three forms of justice (distributive, procedural, and interactional) positively impact overall service recovery satisfaction.

The CURE scale: a multidimensional measure of service recovery strategy

Purpose– This paper aims to address the gaps in service recovery strategy assessment. An effective service recovery strategy that prevents customer defection after a service failure is a powerful managerial instrument. The literature to date does not present a comprehensive assessment of service recovery strategy. It also lacks a clear picture of the service recovery actions at managers’ disposal in case of failure and the effectiveness of individual strategies on customer outcomes.Design/methodology/approach– Based on service recovery theory, this paper proposes a formative index of service recovery strategy and empirically validates this measure using partial least-squares path modelling with survey data from 437 complainants in the telecommunications industry in Egypt.Findings– The CURE scale (CUstomer REcovery scale) presents evidence of reliability as well as convergent, discriminant and nomological validity. Findings also reveal that problem-solving, speed of response, effort, facilitation and apology are the actions that have an impact on the customer’s satisfaction with service recovery.Practical implications– This new formative index is of potential value in investigating links between strategy and customer evaluations of service by helping managers identify which actions contribute most to changes in the overall service recovery strategy as well as satisfaction with service recovery. Ultimately, the CURE scale facilitates the long-term planning of effective complaint management.Originality/value– This is the first study in the service marketing literature to propose a comprehensive assessment of service recovery strategy and clearly identify the service recovery actions that contribute most to changes in the overall service recovery strategy.

Online Complaining Behavior in Mainland China Hotels: The Perception of Chinese and Non-Chinese Customers

Examining hotel customer feedback is vital for effective service recovery and improvement. The main objective of this study is to analyze online complaints about hotels in Mainland China and to examine the relationship between culture and other factors that affect the intention to complain online. Content analysis was performed for 822 complaints about hotels in major Chinese cities drawn from TripAdvisor and Ctrip. Complaints made by Chinese and non-Chinese customers were compared and 11 major complaint categories were identified. A two-way contingency table analysis demonstrated that traveler age, hotel price, and travel partner significantly influenced the online complaints made.

From dissatisfied customers to evangelists of the firm: A study of the Spanish mobile service sector

This paper takes a closer look at factors which serve as a catalyst for transforming initially dissatisfied customers into evangelists of the firm; that is, customers who spread positive word-of-mouth about a company, its products and/or services—and recommend them to other consumers. We propose a conceptual model, rooted in relationship marketing theory, which identifies a set of factors that afford a better understanding of post-service recovery customer transformation processes. The proposed model is empirically tested in the context of mobile telecommunications services using a structural equation modeling approach. Our findings reveal that when companies are capable of designing effective service recovery processes—where customers perceive effort and justice in the outcome—initial dissatisfaction can turn to brand loyalty, long-term commitment and, above all, readiness to speak positively about the company and its products. Finally, the main implications for marketing practice are discussed.

레스토랑 서비스 제공 단계별 실패에 따른 서비스 회복 노력과 행동의도에 관한 연구

A multistage approach for service recovery enables restaurant managers to do the most effective recovery strategies to reduce customer dissatisfaction and lead to positive behavioral intentions. The purpose of this study was to identify the most effective service recovery strategies in terms of service stage and examine the relationship between service strategies and behavioral intentions. A total of 227 diners examined the customer perceptions to recovery strategies (tangible strategy and intangible strategy) following service failures in each of the four stages:1) reservation and parking, 2) seating and ordering, 3) meal consumption, and 4) payment and exit. The one-way ANOVA showed that intangible strategies were relatively more effective than tangible strategies regardless of service stages. Free meal or free dessert were most effective in service stage 1 and stage 2 whereas correct the failure and reperformance of service found to be the most effective service recovery strategy. Regarding the association between service recovery strategies and behavioral intentions, multiple regression analysis showed that intangible strategies influenced diners' likelihood of positive behavioral intentions whereas tangible strategies lead to diners' willingness to positive behavioral intentions only in service stage 1. The findings enable restaurant practitioners to improve service recovery activities from a service stage perspective.

An Analysis of Relationship between Typology of Service Failure and Effective Service Recovery in Internet Shopping: Focusing on Moderating Effect of Consumer Characteristics

An Analysis of Relationship between Typology of Service Failure and Effective Service Recovery in Internet Shopping: Focusing on Moderating Effect of Consumer Characteristics

An integrated service recovery system (ISRS)

PurposeAppropriate management of service failures involves a complex organizational response that allows an effective internal and external recovery, learn from mistakes and introduce future service innovations. Empirical evidence on the organizational recovery practices more suitable to achieve these objectives, leading to superior performance, is limited. The present work seeks to extend the existing literature by identifying the potential dimensions that constitute an integrated service recovery system (ISRS), introducing a strategic, proactive and relational approach to service failure and recovery management, and by proposing a causal model linking the ISRS with performance.Design/methodology/approachThe ISRS dimensions and their attributes are derived from an extensive literature review and suggestions from academics and business experts. Structural equations modeling is used to test a model linking the ISRS (conceptualized as a second order construct), with client, employee and business performance indicators, using data from a Spanish sample of 151 Knowledge‐Intensive Business Services (KIBS).FindingsResults confirm that the firms' ability to approach service recovery from a strategic, proactive and relational perspective allows improving performance among clients and employees, that is, the external and internal recovery to occur, which leads to a superior competitive performance.Practical implicationsThe ISRS scale can provide managers with a diagnostic tool to analyze their recovery practices and to further improve their competitiveness in the long term.Originality/valueThe need to assess the integrative nature of effective service recovery systems has been claimed theoretically. An empirical study showing the link between comprehensive service recovery practices and performance was lacking.

Creating Positive Word-of-Mouth Promotion Through Service Recovery Strategies

Although an effective service recovery strategy is crucial to improving customer satisfaction, few researchers have undertaken empirical studies on how service recovery strategies can promote a gradational positive response from consumers. This study further investigates previous research by proposing an integrative model which examines the hierarchical influence underlying various service recovery strategies and the subsequent effects on relationships quality and positive word-of-mouth. A total of 402 undergraduate students who had experienced a service failure recovery with a restaurant were recruited to participate in this study. The results show that various forms of perceived justice influence trust or/and commitment, which in turn lead to positive word-of-mouth promotion.

Post‐recovery customer relationships and customer partnerships in a restaurant setting

PurposeThe purpose of this study is to develop and test an integrative model that explores the structural relationships among perceived justice, service recovery satisfaction, post‐recovery customer relationships, and post‐recovery customer partnerships.Design/methodology/approachThe self‐administered survey was distributed to restaurant customers who had experienced service recovery in the previous six months. Path analysis was performed to estimate the research model and to test the research hypotheses.FindingsThe study findings advance the understanding of the beneficial effects of effective service recovery on long‐term relationships and on partnership building with the customers.Research limitations/implicationsThis study examines post‐recovery customer relationships and post‐recovery customer partnerships as outcome variables of service recovery satisfaction. Future research should be followed to deepen the understanding of the two consequence variables in different contexts of the hospitality industry.Practical implicationsThe proposed model may help restaurant service providers to understand many facets of the service recovery process by identifying the range of recovery strategies.Originality/valueThe proposed model extends the conventional justice‐based model and provides a starting point for investigating the structural relationships among the variables from a holistic perspective. Such information may offer richer insights into the structure, processes, and outcomes of service recovery satisfaction.

MANAGING SERVICE RECOVERY PROCESSES: THE ROLE OF CUSTOMER'S AGE / VARTOTOJŲ AMŽIAUS ĮTAKA PASLAUGŲ VERTINIMUI

Research and practice show that effective management of service recovery processes boosts customer satisfaction. Under this assumption, the purpose of this paper is to analyze a set of factors which may determine satisfaction with recovery processes and loyalty. We also analyze the role of age as potential moderating. Segmenting customers' samples by age may potentially contribute to more effective service recovery process management. Older customers seem to be more loyal when dealing with service providers than younger customers, while younger customers are more demanding in terms of companies' efforts. Implications for both literature and practice are included at the front-end of the paper. Santrauka Tiek moksliniai tyrimai, tiek ir praktika rodo, kad grąžinimo procesų valdymo veiksmingumas skatina klientų pasitenkinimą. Remiantis šia prielaida, straipsnio tikslas yra išanalizuoti veiksnius, turinčius įtakos klientų pasitenkinimo lygiui ir lojalumui. Taip pat analizuojamas ir vartotojų amžiaus rodiklis, jo potencialo kaita. Atsižvelgiant į tai, klientai buvo sugrupuoti pagal amžių ir buvo analizuojama, kaip vieni ar kiti procesai juos veikia. Atliktas tyrimas parodė, kad vyresnio amžiaus klientai yra labiau ištikimi nei jaunesni, o jaunesni klientai yra reiklesni įmonių teikiamoms paslaugoms.

Service recovery in a cruise line context – A study on the Norwegian coastal voyage (Hurtigruten)

This paper reports on a study on service recovery carried out on the prestigious Norwegian Coastal Voyage (NCV) or the Hurtigruten which is the brand name. The exploration is based on a collection of 51 service failure incidents of which 16 were recovered by the service provider. This paper describes the service recovery actions made by the service provider and discusses components of effective service recovery by focusing on the role of service employees.

레스토랑에서의 서비스 실패 정도가 회복 공정성, 긍정 감정, 재방문 의도에 미치는 영향 -한국 고객과 미국 고객 비교를 중심으로-

The purpose of this study was to compare the effects of service failure magnitude on perceived justice, positive emotion, and revisit intention at restaurants between a collectivist culture(Korea) and an individualistic culture(United States). The results showed that the higher a customer's perception of service failure magnitude, the lower the perceived recovery justices in both cultures. The distributive, procedural, and interactional justices had a favorable effect on positive emotions in both cultures. Other findings revealed that interactional justice was the best predictor of revisit intention in Korea, while distributive justice was the best determinant of revisit intention in the United States. This research suggests that global restaurant managers need to understand how cultural orientation influences consumer perceptions of service failures in order to develop a highly targeted and effective service recovery.