Experienced Service Failure Research Articles

Consumer response to E-commerce service failure: Leveraging repurchase intentions through strategic recovery policies

The study emphasizes on the impact of online retailers' recovery policies on consumer empowerment and gratification together with repurchase intentions. The research surveyed online shoppers who experienced service failure after which subsequent recovery efforts were made by retailers. The first stage of the study which involved a structural model analysis revealed that consumers' perceptions of the quality of retailers’ recovery policies significantly influence consumer empowerment, consumer gratification and repurchase intentions, and the financial risk associated with a product significantly moderates the relationship between the recovery policies and consumer intentions to repurchase the product. The second stage involved considering six different full-profile hypothetical scenarios. Following this, the study simulated consumer choices by calculating the total utility for each scenario based on the attribute levels. The study then applied a scenario-based probabilistic game model that normalizes these utilities to estimate consumer preference probability. The results indicated that scenarios combining high-value attributes, such as premium upgrades and full refunds, have the highest likelihood of being chosen. The study concludes with proposed managerial strategies for online retailers to enhance customer retention.

Unveiling the mediating mechanisms: service recovery and customer advocacy between app attachment and customers’ responses

PurposeThis study investigates the direct impact of app attachment on service recovery and customer advocacy and their combined impact on recommendation and purchase intention. The mediating mechanisms of service recovery and customer advocacy between app attachment and customer responses are also tested in the context of food delivery apps (FDAs).Design/methodology/approachUtilizing a quantitative approach, the authors surveyed 207 responses from users of FDAs who had experienced service failures. Structural equation modeling in Smart PLS 3.0 was used to analyze the data.FindingsThe results supported direct effects among all constructs in the model. The main contribution of the study confirms the mediating mechanisms of service recovery and customer advocacy between app attachment and customer responses.Research limitations/implicationsPrevious studies have mostly relied on the technology acceptance model (TAM). This theory posits that perceived usefulness and ease of use influence the decision of individuals to use a new technology. Although this theory is valuable in terms of accepting new technologies, it neglects psychological phenomena involving the individual and the technological entity – in this case, the FDA. Thus, our study is unique in applying attachment theory and putting emphasis on the importance of building trust in the relationship between FDAs and their customers. Social exchange theory is applied to explain the importance of overcoming the cost of experiencing a failure through service recovery. Thus, we extend the knowledge regarding psychological individual reactions to mobile technologies in the food context, an important sector within the hospitality market.Practical implicationsFDA managers should invest in developing emotional ties with customers. Specific actions include messaging customers on their birthdays or other festive dates. Short testimonial videos on TikTok or other social media with customers advocating in favor of the company could help spread recommendations and the intentions of other customers using the FDAs. To use these practical recommendations properly, we recommend that FDA managers consider the level of quality service recovery delivered and individuals’ cultures, beliefs and values regarding where the company operates to avoid misunderstandings.Originality/valueThis study is original in proposing a model to FDA operators considering app attachment, service recovery, customer advocacy, recommendation and purchase intention. It further supports the mediating effect of service recovery and customer advocacy between app attachment, recommendation and purchase intention on mobile phones.

The Effect of Service Recovery on Customer Satisfaction, eWOM, and Repurchase Intention in the Online Travel Agent (OTA) Industry in Indonesia with Service Failure Severity as Moderator

Abstract. This study aims to determine the effect of service recovery on service failure severity, customer satisfaction, eWOM, and repurchase intention. This study adopts an online survey method by distributing 196 online questionnaires to Indonesian OTA users who experienced service failures within the past year. The proposed study model undergoes examination using a partial least square-structural equation model (PLS-SEM). The result reveals that service recovery variables positively and significantly affected customer satisfaction, eWOM, and repurchase intention, however, the severity of the service failure did not significantly impact the relationship between service recovery and customer satisfaction. This study aims to provide valuable insight that enables OTA industry practitioners in Indonesia to develop more effective service recovery strategies. It contributes to developing justice theory and the service failure severity factor as moderators of service failures in the Indonesian OTA industry and their effect on customer satisfaction, eWOM, and repurchase intention. Keywords: Service Recovery, Justice Theory, Online Travel Agent, Service Failure Severity, eWOM, Repurchase Intention

Does green self-identity influence the revisit intention of dissatisfied customers in green restaurants?

PurposeThe study aims to examine the customers' revisit intention toward the green restaurants after service failure based upon service failure attributions. The study further intends to investigate the moderating effect of green self-identity on customers' post-service failure behavioral intentions.Design/methodology/approachA self-administered questionnaire was distributed to 327 participants who had experienced service failure while dining in green restaurants. The study draws upon the prevailing literature to examine the relationship among the constructs using structural equation modeling (SEM).FindingsThe findings of the study have confirmed that service failure has an adverse effect on customers' revisit intention toward the green restaurants. However, customers with green self-identity appear less anxious about service failure as findings indicate customers revisit green restaurant even after service failure.Practical implicationsThe study provides a clear indication to the managers of the green restaurants that a better understanding of service failure attributions may facilitate in preventing service failure in a prompt and reasonable manner. It will not only contribute to building the brand reputation, but also ensure that customers stay with the brand for a longer duration.Originality/valueThe study is unique in a way that it is the first of its type to establish a relationship between service failure attributions and customer satisfaction in the emerging South Asian market, such as India in the context of green restaurants. Besides, this is the only study to use green self-identity as a moderator between the relationships of customer satisfaction and revisit intention.

The Role of Customer Complaint Management on Switching Intention and Customer Exit in Fitness Centers

Service failures are common, and the absence of an adequate response may increase switching intentions and customer exit. Thus, it is important to address the influence of customer satisfaction with complaint handling on switching intentions and customer exit. We tested hypotheses using data collected in two stages from a total of 821 customers who experienced service failure in 38 Brazilian gyms. The results indicate that perceptions of justice positively affect satisfaction with complaint handling, which reduces switching intention and customer exit. Moreover, failure severity is shown to increase switching intention and customer exit. Theoretical, methodological, and managerial implications are discussed.

The effect of service failure on customer loyalty through customer forgiveness and service recovery as mediation variables

This paper aims to examine more deeply the role of the customer forgiveness and service recovery variables on the relationship between service failure and loyalty. This research uses a go-car service on a gojek as the object of research. Go-car service was chosen because it is one of the services in Go-jek that has received a lot of criticism from its users. The respondents in this research were Go-Car service users who had experienced service failures when using the service. The determination of the number of samples in this research used a purposive sampling technique with a sample of 200 respondents. The method of collecting data is using a questionnaire, the data is analyzed using PLS-SEM.

The effect of the valence of forgiveness to service recovery strategies and service outcomes in food delivery apps

The literature offers valuable insights into various aspects of service recovery and service outcomes. However, the available findings are limited relative to the size of the ever-expanding service economy. In particular, past studies have left more granular nuances of the association between service recovery strategies and service outcomes, such as the mediating role of forgiveness or the valence of forgiveness, under-explored. Recognising that an improved understanding of recovery from failures is crucial for sustaining positive customer–brand relationships in the service economy, the present study investigates the mediating effect of the valence of forgiveness (both exoneration and resentment) on the association between various service recovery strategies (apology, compensation and voice) and service outcomes (brand trust and negative word of mouth [NWOM]) in the context of food delivery apps (FDAs). We tested the proposed model by analysing data from 294 FDA users who had experienced FDA service failures and recovery efforts in the recent past. The findings suggest that recovery strategies are associated with exoneration, resentment and brand trust but not with NWOM. While exoneration mediates the association of these strategies with both brand trust and NWOM, resentment mediates only the association of these strategies with NWOM. Finally, the severity of previously experienced service failures and the speed of the service provider’s response moderates the association of the valence of forgiveness with brand trust and NWOM. By uncovering the key role of the valence of forgiveness in service recovery, our study offers significant theoretical and practical implications for stakeholders.

The Role of Communication Justice and Assertive Communication in B2C Marketplace Post Recovery Satisfaction

The rapid growth of e-commerce, unfortunately, has not been supported by the improved services. Customers complaints have not been handled properly, due to the lack of non face-to-face communication. In the other hand, customers express their complaints in various ways, such as the assertive way. 317 respondents were collected as a sample of this research, who are B2C online customers in Indonesia, experienced service failure in the last 6 months, submitted a complaint and received a response. Structural Equation Modeling (SEM) was used to analyze. This study proved that there was a positive influence of communication justice on post-recovery satisfaction. However, assertive communication did not influence the post-recovery satisfaction. This research also proved that post-recovery satisfaction has a positive effect on online repurchase intention. This research is expected to contribute to marketing science, and practical contributions are given.

The relationships among service failure, service recovery, customer satisfaction and trust at international hospitals: A Case in Vietnam

The objective of this study is to demonstrate the relationships among the severity of service failure, service recovery, customer satisfaction and loyalty towards the Vietnamese international hospital system. The research data were collected from 303 customers who have used services and experienced service failures at international hospitals. Applying Structural Equation Modeling, the study pointed out that service failure includes three dimensions, which are system failure, request failure, and behavior failure. Meanwhile, service recovery is made up of three dimensions which are distributive justice, procedural justice, and interactional justice. The severity of service failure positively affects service recovery and service recovery puts a powerful impact on customer satisfaction, thereby increasing their trust in international hospitals in Vietnam.

Does service failure criticality affect global travellers' service evaluations? An empirical analysis of online reviews

PurposeIncreased global air travel and competition in the airline industry entail better service delivery and failure management. This study examines how airline type, failure criticality and the traveller's culture influence travellers' airline evaluations of service failure.Design/methodology/approachThe study uses a large data set of customers' online reviews and incorporates quantitative and qualitative feedback from 20 major airlines across the world. Semantic tagging, sentiment and multivariate analyses have been used to analyse the data.FindingsFailure criticality and travellers' cultural backgrounds significantly affect airline evaluations after service failures. Moreover, failure criticality influences evaluations of travellers from individualistic cultures more severely. Contrary to expectations, full-service airlines were evaluated positively after less critical service failures.Practical implicationsThe findings support that customers undergo different emotional states when they experience service failure. Understanding these internal emotional sensitivities and how services would be judged by travellers across cultures can help airlines to better manage their service recovery efforts and to strategise prioritisation of scarce resources.Originality/valueThough airline service failure has been well researched, this study examines the role of culture in service failure evaluations. The study uses a novel method to analyse a large data set of both quantitative and qualitative traveller feedback useful in service recovery management.

An Empirical Study on Service Recovery Satisfaction in an Open and Distance Learning Higher Education Institution in Malaysia

This study investigated the relationships among justice dimensions (distributive, procedural, interpersonal, and informational), university image, service recovery satisfaction, and customer behavioural outcomes (trust, word of mouth, repurchase intention, and loyalty). This study adopted a cross-sectional survey approach and data were collected through a survey of 303 students of Open University Malaysia in Malaysia who experienced service failure and service recovery. The framework was tested via partial least square structural equation modelling, and the results revealed a significant relationship between justice dimensions and service recovery satisfaction in terms of procedural and interpersonal justice. Service recovery satisfaction had a significant effect on all customer behavioural outcomes investigated. University image did not have a moderating effect on the relationship between justice dimensions and service recovery satisfaction. Theoretical and practical implications of the study are discussed in this paper.

전시주최자의 서비스 실패와 회복공정성에 관한 연구 – 전시회 참가업체를 중심으로 -

Customer satisfaction becomes an essential factor as today almost all industries grow as service industries. However, though there is a perfect quality standard, no one can be free from service failure. the objective of this study was to explain among exhibition organizer's service failure, recovery Justice and satisfaction focusing on the exhibition sector. For this purpose, Among 450 questionnaires, 357 respondence were collected. Using a sample of 357 Exhibitors who experienced service failure. we investigate the effects of the dimensions based on literature reviews were employed. The data and hypotheses were examined using structural equation modeling by AMOS. The main findings are as follows. As the result of empirical analysis, first, the severity of the service failure from exhibition organizer had a significant effect on the distributive justice, Procedural justice, interactional justice and the controllability of the service failure from Exhibition Organizer had a significant effect on the procedural justice, interactional justice but controllability factors were found to be not significant on the distributive justice. Second, recovery Justices had positive effects on the recovery satisfaction of exhibitors. Organizer's recovery strategy and exhibitors' recovery justice is important for exhibitors or organizers to meet participants' needs and wants to make the success of the exhibition. Particularly, recovering failure services that are already provided to 69 participants are critical to make current the success or failure of the exhibition while providing participants' satisfaction.

Can the Retailer’s ICT Enhance the Impact of Service Recovery Efforts on Customer Satisfaction?

Service recovery remains a topic of considerable interest for both academics and practitioners. This paper aims to explore the relations between recovery efforts and causal attributions, satisfaction, and both conventional and online word-of-mouth, as well as the moderating role of information and communication technologies (ICT) on the relationship between retailer’s efforts and satisfaction with the service recovery. On a sample of 336 retail customers who experienced service failure, we use SEM and multigroup analysis. As a result of the data analysis, there is evidence supporting the positive impact of attributions and recovery efforts on satisfaction, and the influence of the latter on both conventional and online word-of-mouth. Furthermore, the moderating influence of technology in the “recovery efforts-satisfaction” relationship is evidenced. Practical implications for retail managers and further research are presented.

To fly or not to fly? An empirical study of trust, post-recovery satisfaction and loyalty of Malaysia Airlines passengers

PurposeThe purpose of this paper is to investigate the importance of successful service recovery in the airline sector by examining the interrelationship between perceived justice, recovery satisfaction and overall satisfaction, customer trust and customer loyalty. Furthermore, the research assesses the mediating effect of overall satisfaction and customer trust on customer loyalty.Design/methodology/approachData were collected via an airport intercept survey of Malaysia Airlines passengers who had experienced service failure. In total, 380 responses were used for the final analysis. The study uses partial least squares structural equation modelling technique with SmartPLS 3.0, in order to test and validate the research model and hypotheses posited.FindingsThe results reveal that: recovery satisfaction is significantly affected by procedural and interactional justice; distributive and procedural justice, as well as recovery satisfaction influenced overall satisfaction; customer trust is most influenced by interactional justice, distributive justice and recovery satisfaction; customer loyalty is positively affected by customer trust, overall satisfaction and recovery satisfaction; and the influence amongst recovery satisfaction and customer loyalty is partially mediated by customer trust and overall satisfaction.Originality/valueThe study contributes to a whole conceptual comprehension of the essential determinants of customer loyalty from the combined perspectives of three theories, namely, justice theory, expectancy disconfirmation theory and commitment-trust theory. This study successfully differentiates the three dimensions of perceived justice and assesses them individually to discern and compare their influence on overall satisfaction, recovery satisfaction and trust. In addition, the study finds that the influence of recovery satisfaction on loyalty is partially and sequentially mediated by trust and overall satisfaction.

Voicing out or switching away? A psychological climate perspective on customers’ intentional responses to service failure

This research explores why customers who experience service failure are willing to complain directly to service providers but unlikely to switch to other service providers. We bring in the concept of psychological climate for communication safety (PCCS) to the service failure context and explore how customers’ perception of the social environment as open and supportive for communication affects their complaint and service switching intentions and behaviors. We further identify customer harmony enhancement as an important personality trait predictor of PCCS. Based on two field studies and one scenario-based experimental study, our findings consistently show that PCCS mediates the positive effect of customer harmony enhancement on customer complaint intentions. Customer harmony enhancement exerts a positive indirect effect on customer complaint behavior serially through PCCS and customer complaint intentions. However, our findings relating to customer service switching intentions are inconsistent across the three studies. Theoretical and practical implications are discussed.

Analisis Service Recovery Sebagai Strategi Perbankan Terhadap Kepuasan Nasabah (Studi Pada Bank BTN Kantor Cabang Depok)

The current level of competition in the banking industry is getting stronger and enable banks to do all kind of business to attract customers as much as possible, and make them satisfied. The bank always trying to improved the quality of service in this competition, and one of them is Bank BTN. Bank BTN managed the 6th of the top 10 Bank Service Excellence Monitor. The purpose of this research is to know customer satisfaction through service recovery. This research is quantitative descriptive research. This research used survey method by using questioner. The sample of this research is the customer of Bank BTN who experienced service failure especially ATM. Purposive sampling is used to select respondents, with 60 respondents and using Statistical for Solutions Products and Services (SPSS) as a technique of data analysis. The results of the research revealed that: 1. Distributive justice is positively related to customer satisfaction, 2. Procedural justice is positively related to customer satisfaction, 3. Interactional justice is positively related with customer satisfaction, 4. Distributive justice, procedural justice, interactional justice, together positively related to customer satisfaction.

Deck the Halls With Boughs of Holly to Soften Evaluations of Service Failure

Symbols associated with seasonal religious festivals are periodically displayed by service providers, but do these symbols serve more than just a decorative function? Findings from seven experiments suggest they do. In the presence of such symbols, individuals soften their evaluations of a personally experienced service failure encounter. This effect emerges through the activation of forgiveness but only among those with a religious upbringing and only when the encounter involves service failure (rather than neutral service). The softening of service evaluations in the presence of such symbols is reversed, however, when service failure is observed (rather than directed at the self) and when the recipient of that failure is perceived to be vulnerable. Contextual exposure to symbols associated with seasonal religious festivals therefore presents a double-edged sword for managers; depending upon the service failure recipient, these symbols can harden or soften evaluations of the service failure encounter.

Hotel Service Recovery and Service Quality: Influences of Corporate Image and Generational Differences in the Relationship between Customer Satisfaction and Loyalty

ABSTRACTAs the number of tourists continues to grow globally, the hospitality industry players inevitably face more challenges. High competition among the competitors and the emergence of new technologies such as online booking platforms make the competition more intense among players in the hospitality sector. The quality of services provided is undoubtedly crucial to the success of the hotel. Hence, any service failure has to be addressed appropriately in order to maintain a high level of customer satisfaction and to keep the image of the hotel intact. It is therefore vital that service recovery programs are carefully planned to meet various types of service failures which may inevitably occur. In this study, questionnaires were distributed to customers who had experienced service failures. The aim was to investigate the influence of service quality and service recovery on satisfaction and, ultimately, the effect on customer loyalty. The research also tested the mediating effect of corporate image between the relationship of customer satisfaction and customer loyalty. The findings showed that both service recovery and service quality had a significant impact on customer satisfaction. Similarly, it was found that customer satisfaction induced customer loyalty towards the hotel operator. The result also showed that corporate image mediated partially between the relationship of customer satisfaction and customer loyalty.

Perceived justice and post-recovery satisfaction in banking service failures: Do commitment types matter?

Based on the notion that the types of customer commitment to a service provider may have diverse reasons and effects on the customer’s perceptions, attitudes, and behaviors, this study aims to investigate the different buffering effects of calculative and affective commitments on the perceived justice and post-recovery satisfaction (PRS) relationship. Multiple and hierarchical regression analyses were conducted based on survey data collected from 284 households who experienced service failure in the banking sector. Results revealed that while affective commitment moderates the effects of procedural and interactional justice, calculative commitment increases the impact of distributive and procedural justice on PRS.

The effect of organizational responses to service failures on customer satisfaction perception

This paper explores how organizational responses to service failures affect perceived justice and recovery satisfaction using responses from 410 customers who experienced service failures in Hong Kong. The results indicated that the acknowledgement of and prompt action to fix service failures were positively linked to perceived justice, which in turn affects recovery satisfaction. Moreover, customer relation orientation moderated the relationship between acknowledgement of service failure and justice perceptions of service recovery, while customer task orientation moderated the relationship between prompt action for service recovery and justice perceptions of that recovery.