Service Failure Situation Research Articles

The Effects of Service Recovery Actions on Customers' Post‐Recovery Responses to Online Travel Agencies (OTAs): The Moderating Role of Price

ABSTRACTThe main purpose of this study is to investigate the impacts of service recovery actions on customers' post‐recovery responses to initial service failure and a double deviation and to investigate the moderating effect of price on the relationship between recovery actions and these responses. The findings show that active recovery actions led to more favorable post‐recovery responses than passive actions in both initial and double deviation situations. No moderating effect of price was found between recovery actions and customers' post‐recovery responses. From an academic perspective, this study helps researchers understand how customers positively perceive recovery actions that reflect procedural and interactional justice in service failure situations. The findings also suggest that practitioners of OTAs should engage in active recovery actions that include prompt communication on the progress of the incident (i.e., procedural justice) and a sincere apology (interactional justice) to alleviate customers' negative responses due to service failures.

A protective buffer or a double-edged sword? Investigating the effect of “parasocial guanxi” on consumers’ complaint intention in live streaming commerce

The buyer-seller relationship in live streaming commerce is crucial especially in service failure situations, yet it has been underexplored. In this paper, we reconceptualized the relationship between consumers and sellers in live streaming commerce as “parasocial guanxi”, which consists of ganqing (emotional attachment), xinren (trust) and reciprocal value. The effects of parasocial guanxi on consumer dissatisfaction and complaint intention in service failure situations were further investigated based on the expectation confirmation theory. Our study involved 425 valid questionnaires and employed the partial least squares structural equation method (PLS-SEM). The findings are mixed: on one side, parasocial guanxi acts as a buffer, mitigating dissatisfaction and complaint intention in the face of product or service problems and reducing the impact of disconfirmation on consumer dissatisfaction. On the other side, it may also increase the likelihood of dissatisfied consumers complaining. Furthermore, the buffering effect weakens as consumers make more frequent purchases. The findings have important theoretical and practical implications for understanding the buyer-seller relationship in live streaming commerce.

Illusion of control in service failure situations: customer satisfaction/dissatisfaction, complaints, and behavioural intentions

Illusion of control in service failure situations: customer satisfaction/dissatisfaction, complaints, and behavioural intentions

Teddy-bear effect in service recovery

The extent of the widely demonstrated babyface effect in other disciplines remains understudied in hospitality-based service failure situations. By addressing this research gap, our pioneer study based on the Stereotype Content Model adopts four scenario-based experiments (text and video) with results revealing that a babyfaced (vs. mature faced) service provider has a more positive effect on consumer forgiveness and recovery satisfaction. However, the babyface effect diminishes while the mature face effect increases as service failure severity increases. Furthermore, warmth or competence inference is found to play a mediating role depending on service failure severity. This paper not only extends the well-documented babyface effect into tourism and hospitality but also provides cost-effective service recovery strategies by involving service providers' facial traits.

Hospitality employees’ affective experience of shame, self-efficacy beliefs and job behaviors: The alleviating role of error tolerance

Service management researchers have clearly demonstrated that customers experience various emotions in service failure situations. In comparison, hospitality employees’ emotional experiences in such situations, are relatively unknown, as they are often required to hide experienced emotions and express emotions in ways consistent with industry standards. To address this gap, we examine the typical emotional experience of shame in the wake of service failure and explain how it influences employees’ job behaviors—service recovery performance and organizational citizenship behavior—via self-efficacy beliefs. Furthermore, we draw on social information processing to introduce error tolerance as a social persuasion buffer that mitigates the negative effects of shame on self-efficacy perceptions. Survey data collected from 217 subordinate-supervisor dyads employed in restaurant settings reveal that shame experienced weakened employees’ self-efficacy beliefs, and these weakened beliefs were in turn negatively associated with job behaviors. Finally, error tolerance significantly moderated the relationship between shame and self-efficacy.

Expressing gratitude versus empathetic apology: which one is better to use as an initial recovery strategy after a service failure?

PurposeThe main purpose of this work is to evaluate the different psychological impacts of two initial verbal recovery strategies (gratitude vs empathetic apology) on the consumers' loyalty after a service failure. The proposed theoretical model also appraises the mediating role of two emotional responses (consumer forgiveness, consumer anger) and consumer self-esteem and the moderating role of self-oriented perfectionism.Design/methodology/approachTwo studies (i.e. an experimental design and a field study) are considered for this investigation to assess the effectiveness of gratitude expression versus empathetic apology on post-recovery loyalty and test the effects of mediators and the moderator applied between the verbal recovery strategies and post-recovery loyalty.FindingsThe results of Study 1 revealed the supremacy of gratitude to empathetic apology in maintaining consumers' loyalty after service failure recovery. The better impact of gratitude expressed in increasing post-recovery loyalty is mediated through the elevation of consumers' forgiveness, the reduction of consumers' anger and consumers' self-esteem. The findings of Study 2 indicated that gratitude increases more post-recovery loyalty through individuals with a high level of self-oriented perfectionism.Research limitations/implicationsFuture research could examine other service failure situations, different types of service recovery, mediators or moderators, which contribute to the service marketing literature.Practical implicationsAfter a service failure, using gratitude expressions to consumers often makes them feel better and more valuable.Originality/valueThis work increases service providers' knowledge in using proper expressions after a service failure to help elevate consumers' positive reactions resulting in maintaining their loyalty.

The impact of linguistic style on customer satisfaction: a cross-cultural empirical study in Ecuador

PurposeDrawing on the dual process theory and the cultural dimension of power distance, the current research investigates the impact of a specific service clue—the linguistic style of address forms (salutation) in hotel manager letters to guests—on customer satisfaction in a hotel context in Ecuador.Design/methodology/approachFollowing an experimental design research approach, this research conducted a series of two studies to examine how customers' cultural values (high vs low power distance), linguistic style of address forms (formal vs casual) and service valence (service success vs service failure) together influenced customer satisfaction. Specifically, Study 1 examined the service success condition, and Study 2 investigated the service failure condition.FindingsThe research results show that, in the service success condition, customers follow their distinct cultural orientations (high vs low power distance) when responding to the different linguistic styles (formal vs casual). On the other hand, in the service failure situation, as customers desire for expressions of respect that can be reflected in a formal address form, the level of satisfaction is lower when the casual address form is used in guest communications, regardless of customers' cultural orientations in power distance.Originality/valueThis research adds to existing cross-cultural service research, particularly in terms of service valence, and provides practical implications for enhancing service providers' cultural awareness and sociolinguistic competence to effectively communicate with customers from diverse cultural backgrounds.

No laughing matter, or a secret weapon? Exploring the effect of humor in service failure situations

Several psychological studies indicate that, in certain situations, humor can reduce tension and lead to a feeling of relief. In the literature on service management, however, the effect of humor in appeasing disgruntled consumers when services break down is almost unexplored. This paper seeks to answer the question: Can humor have a positive effect in such situations, leading to greater “leniency” on the part of the injured party, or does it intensify the consumer's negative experience of the service? We do this by analyzing consumer reactions to humor as a tool for “service recovery”. We conduct a number of vignette experiments, the results of which confirm the positive effects of self-deprecating humor on customers, but at the same time show that the humor has to be experienced as particularly funny, otherwise it is less effective than traditional service recovery tools, such as a sincere apology or financial (or other) compensation.

Moderating Effect of the Power-Distance Belief on the Relationship between Employees' Service Failures and Customers' Behavioral Outcomes in the Sport Service Industry.

This study was designed to examine the moderating effects of the power–distance belief (PDB) on the relationship between employees’ service failures and customers’ transactional and non-transactional outcomes in a fitness center context. To test the relationships among these variables, we employed two pretests and a main experiment. In Pretest 1, a critical incident technique (CIT) was used to identify the employees’ service failure situations in fitness centers. Then, in Pretest 2, we developed two written scenarios that described employees’ service failures according to low and high severity and confirmed the differences between these two scenarios with a manipulation check. In the main experiment, we employed scenarios to examine the relationships among service failures’ severity, PDB, and customers’ non-transactional and transactional outcomes. We used Hayes’ PROCESS macro to test the PDB’s single moderating effect on the relationship between the service failures’ severity and the customers’ responses. According to the results, the moderating effect on the relationship between the service failures’ severity and fitness center customers’ non-transactional and transactional behaviors was confirmed. We extended the understanding of fitness center customers’ reactions, depending upon individual PDB to service failures, by comparing low- and high-service failure situations. Our findings also suggest that segmenting fitness center customers may help managers recognize that their customers’ varying responses depend on PDB.

Role of brand attachment in customers’ evaluation of service failure

PurposeThis paper aims to examine the role of brand attachment as a relevant construct in customers’ evaluation after they face a service failure which impacts future consumer behaviors. It mainly answers the research question: does brand attachment cushion or amplify the effect of service failure on customers’ negative emotions?Design/methodology/approachA 2 × 2 × 2 experimental design was conducted. Data analysis was performed with ANOVA and moderated mediation.FindingsCustomer’s feelings toward a brand (brand attachment) that existed before a service failure occurred can regulate customer’s negative emotions especially when consumer attribute service failure to a controllable cause. This process minimizes the effect of service failure in customer’s satisfaction and consequently increase customer behaviors like word of mouth and loyalty intentions.Research limitations/implicationsAdding perceived intentionality as a service failure’s attribution could provide another layer of explanation of customer behavior. Also, an expanded study using a sector characterized by higher cost of change and permanent consumption could provide result’s generalizability.Practical implicationsBrand attachment should be included in the customer service strategy. In a service failure situation, brand attachment becomes part of the “service customer policy” helping customers to regulate their negative emotions.Originality/valueThis study fills the knowledge gap regarding the role of customers’ positive emotions toward brands when a service failure occurs. The current study extends branding literature by differentiating brand attachment role from coping tactics.

Effect of Customers’ Psychological Power on Service Expectation and Response to Service Failure in a Restaurant Context

Purpose: The old axion to put the customers first (e.g., customers are king, customers are always right) has been taken for granted in the service sector. In addition, many companies in South Korea are providing customer-first education for employees at their contact points to strengthen their competitiveness. However, excessive increase in the psychological power of the customer can lead to a problem of abuse of power, called 'Gap-jil.' Despite these concerns, most companies hardly discard policies to give high priority to customers because of the assumption that it enhances customer satisfaction leading to organizational performance. However, in recent years, some franchise catering companies have posted warnings about the abuse of power by customers, and a movement to pursue a power-balancing between service providers and their customers is spreading. Research design, data, and methodology: This research is conducted to reconsider the principle of the customer-first perspective and to create a basis for arguments that can solve the problem of abuse of power, which is recognized as a serious social problem. In this research, we test and analyze the effect of customers' psychological power in the context of a restaurant on expectation for service and response to service failure. Result: The result of an experimental study shows that the effect of psychological power on customer satisfaction can be somewhat negative. Also, customers with high psychological power are more likely to have high service expectations. Especially high psychological power of customers causes a difference in the expectation level of human factors such as employee attitude, while the difference in expectations of non-human factors such as restaurant atmosphere was not statistically significant. In addition, when customers with high psychological power encounter service failure situation, they are more likely to feel disappointment and regret with a service provider. Meanwhile, the effect of psychological power on complaining behaviors are not significant. Conclusions: The findings of this research provide meaningful implications that the service providers should reconsider their existing corporate culture and management policies that put customers first. In addition, the result of this research is provided meaningful opportunities to review the management philosophy for the company's customers and the education philosophy for the employee education.

The mitigating effect of matching regulatory focus with arousal‐inducing stimuli in service failure situations

AbstractService failures are pivotal touchpoints that can reduce customer satisfaction, encourage negative word‐of‐mouth, and ultimately impact a firm's market share. We advance a novel perspective that after a service failure occurs, matching incidental arousal‐inducing stimuli to one's regulatory orientation can make the negative experience stemming from the service failure less deleterious. In three experiments (two stock out scenarios and one involving a rude salesperson), after a service failure, promotion‐focused and prevention‐focused individuals were exposed to high versus low arousal‐inducing stimuli. Three approaches available to retailers were used to manipulate arousal levels: background pictures (Study 1), colors (Study 2), and music (Study 3). When high (low) incidental arousal‐inducing stimuli were presented to those with a promotion (prevention) focus, this raised satisfaction, loyalty, and referral for brands compared to when promotion (prevention)‐focused individuals were exposed to low (high) arousal‐inducing stimuli. Changes in self‐rated arousal and affect valence levels (arousal and valence levels were measured after the service failure and then after exposure to the incidental arousal‐inducing stimuli) mediated the effect on these consumer behaviors. These insights extend theory by considering the combined effect of regulatory focus and affect. They also have practical relevance.

그린 레스토랑에 대한 소비자인식: 그린활동의 후광효과

Although green practices are considered distinguished green restaurants from others, customers’ awareness that restaurants have implemented such practices tends to influence their evaluations of those restaurants’ performance in aspects unrelated to green practices. The purpose of the study is to identify the halo effects of green practices on overall customer satisfaction in green restaurants. Specifically, we collected online review from Yelp.com in April 2016 using Python. We collected 82 online reviews, 828 from 218 green-certified restaurants. The results showed that customers who recognized the restaurant’s use of local/organic ingredients shared significantly more about the restaurants’ good service. Moreover, significant moderating effects were only found in service failure situations but not in successful service delivery situations. To our knowledge, this is the first empirical study to investigate halo effects in the context of consumer satisfaction.

How does an Intelligence Chatbot Affect Customers Compared with Self-Service Technology for Sustainable Services?

To gain competitive advantages and sustainable service innovation, hotels are considering artificial intelligence technologies (AI), including robots, kiosks for service automation and chatbots. However, due to the change of the service process and unfamiliar communication interface, hotel customers may have difficulties in adopting the new change. In this paper, we tried to find out if the failure of AI-based services would affect customers’ perception. For this, we designed the experiment by separating AI (i.e., chatbot) services and self-service technology (SST, i.e., pad) services and service failures and successful cases, respectively. As a result, SST showed more positive perceptions and revisit intention in the successful service situation. The service failure situation showed no differences between chatbot and SST. In addition, novelty and the need for interaction characteristics of customers showed significant differences between groups in terms of service success and failure, respectively. Additionally, we explored negative word-of-mouth (WOM) to learn further effects by service failures and successes.

The Study on the Relationship between Service Provider’s Authenticity and Customer Voice in Service Failure Situation

The Study on the Relationship between Service Provider’s Authenticity and Customer Voice in Service Failure Situation

Examining the joint impact of relationship norms and service failure severity on consumer responses

ABSTRACT This study investigates consumers’ attitudinal and behavioral outcomes after service failure encounters with companies with which they have previously established good relationships. It indicates that conformity with or violation of relationship norms guides consumers’ decision making, and that their subsequent attitudinal and behavioral outcomes further depend on the severity of the service failure. Through a 2 (relationship norm types: exchange vs. communal) × 2 (service failure severity: minor vs. major) between-subjects experiment, the study shows that when the prior relationship norms are exchange-based, consumers demonstrate similar attitudes toward the minor and major failures. However, when these relationship norms are communally-based, consumers respond relatively positively in the minor failure situation, but they display more negative attitudes in the major failure situation. This study contributes to public relations literature regarding the role of company-consumer relationships in service failure situations.

Integrating justice dimensions and expectation-confirmation model in measuring customer satisfaction and continuance intention in private higher education in Malaysia: a conceptual model

In providing a better service in higher education institutions, the aim of implementing online services is to manage customers more efficiently. Higher education institutions often focus on doing it right the first time and tend to ignore the importance of service recovery through justice dimensions when a service failure occurs. Service failure brings many disadvantages to the institutions and this is where justice dimensions through distributive, procedural, interpersonal and informational justice play an important role. The expectation-confirmation model (ECM) is suggested for examining customer satisfaction and continuance intention in the use of online services in the service failure context. The relationships among justice dimensions, ECM, customer satisfaction and continuance intention are given less attention compared to service quality in private higher education institutions in Malaysia. Therefore, the purpose of this paper is to examine customer satisfaction and continuance intention at the post-consumption phase in service failure situation.

의료 서비스의 실패 상황에서 서비스 회복 보상과 진정성이 서비스 이용 행동에 미치는 영향

의료 서비스의 실패 상황에서 서비스 회복 보상과 진정성이 서비스 이용 행동에 미치는 영향

친밀한 침묵의 영향에 관한 연구: 서비스실패상황에서 유대강도와 고객의 친사회적 침묵, 친사회적 발언의 관계

본 연구는 관계마케팅을 통한 유대강도가 실패상황에서 친사회적 침묵(prosocial silence)과 친사회적 발언(prosocial voice)에 미치는 영향, 그리고 이러한 친사회적 침묵과 친사회적 발언이 고객반응에 미치는 영향에 대해 검토하고자 한다. 또한 비록 유대강도가 높다하더라도 실패상황에서 친사회적 발언을 친사회적 침묵보다 더 많이 하게 하는 중요한 요소로 발언요청을 제시하고자 하며 이의 영향에 대해 검토하고자 한다.BR 연구결과 실패상황에서 유대강도가 높을 경우 친사회적 침묵이 친사회적 발언보다 더 높은 것으로 나타났고, 친사회적 침묵은 친사회적 발언보다 고객의 전환의도와 부정적 구전의도를 덜 감소시키는 것으로 나타났다. 또한 유대강도가 높은 상황에서 기업의 발언요청의 정도에 따라 친사회적 침묵과 친사회적 발언이 상이한 것으로 나타났는데, 발언요청이 높은 경우가 낮은 경우에 비해 고객으로 하여금 친사회적 침묵보다 친사회적 발언을 더 많이 하게 하는 것으로 나타났다.BR 이러한 연구결과는 관계마케팅을 통한 고객과의 강한 유대강도는 실패발생시 침묵을 유발할 수 있으며 이는 오히려 부정적 결과를 초래할 수 있음을 제시하고 있다. 따라서 ‘친밀한 고객의 선한 침묵’은 기업관점에서 결코 긍정적이 아님을 의미하고 있다. 본 연구는 강한 유대강도의 긍정적 측면을 강화시키면서 실패상황에 침묵하지 않도록 할 수 있는 방안에 대한 논의를 통해 이론적, 실무적 시사점을 제시하고 있다.

의료서비스 실패상황에서의 고객반응, 서비스회복성과 및 서비스만족도 간의 관계에 관한 연구

의료서비스 실패상황에서의 고객반응, 서비스회복성과 및 서비스만족도 간의 관계에 관한 연구