Service Recovery Outcomes Research Articles

HOSPITAL IMAGE DYNAMICS IN SERVICE RECOVERY: MODERATION OF EMOTIONAL INTELLIGENCE

This conceptual paper contributes to the academic literature by elucidating the interplay between brand image dimensions, service recovery strategies, customer satisfaction, and word-of-mouth communication and revisiting intentions in the context of private hospitals in Thailand. The findings of this study provide a foundation for future research endeavors by offering insights into the potential moderating role of emotional intelligence in shaping service recovery outcomes. Moreover, the alignment of our results with theoretical frameworks such as Expectancy-Confirmation Theory (ECT) and Social Exchange Theory (SET) suggests avenues for exploring similar phenomena in different industries. Practically, our findings offer actionable implications for private hospitals to enhance customer retention by strategically managing brand image dimensions and incorporating emotional intelligence considerations into service recovery efforts. Future research could delve deeper into the nuanced dynamics of these relationships across diverse cultural and organizational contexts, thereby enriching our understanding and offering practical guidelines for service-oriented businesses globally.

Improving Service Recovery Performance through Readiness for Technology Adoption and Structural Empowerment: Evidence from Software Houses of Pakistan

In the rapidly evolving global and Pakistani IT sectors, the challenge of integrating technology adoption with effective service recovery mechanisms has become increasingly prominent. This study addresses the gap in understanding how readiness for technology adoption (RTA), structural empowerment (SE), and top management commitment (TMC) collectively influence Service Recovery Performance (SRP) in Pakistani software houses. Utilizing a quantitative approach, the research quantitatively analyses the relationships between RTA, SE, SRP, and the moderating effect of TMC through a survey of employees within the sector. Findings reveal a positive relationship between RTA and SE, and between SE and SRP, affirming the pivotal role of structural empowerment in mediating the impact of technology readiness on service recovery. Moreover, TMC was found to significantly moderate the SE-SRP relationship, enhancing the effectiveness of empowerment practices in service recovery contexts. These results underscore the importance of cohesive strategies that incorporate technology readiness, employee empowerment, and management support to enhance service recovery outcomes. The study contributes to the literature by providing empirical evidence on the interconnected roles of RTA, SE, and TMC in improving SRP, particularly within the context of emerging markets. For policymakers and business leaders, this research highlights the necessity of fostering an organizational culture that supports technological advancements, empowers employees, and is backed by committed leadership to navigate service recovery challenges effectively, thereby sustaining customer satisfaction and competitive advantage.

Are you willing to forgive AI? Service recovery from medical AI service failure

PurposeAs an emerging technology, medical artificial intelligence (AI) plays an important role in the healthcare system. However, the service failure of medical AI causes severe violations to user trust. Different from other services that do not involve vital health, customers' trust toward the service of medical AI are difficult to repair after service failure. This study explores the links among different types of attributions (external and internal), service recovery strategies (firm, customer, and co-creation), and service recovery outcomes (trust).Design/methodology/approachEmpirical analysis was carried out using data (N = 338) collected from a 2 × 3 scenario-based experiment. The scenario-based experiment has three stages: service delivery, service failure, and service recovery. The attribution of service failure was divided into two parts (customer vs. firm), while the recovery of service failure was divided into three parts (customer vs. firm vs. co-creation), making the design full factorial.FindingsThe results show that (1) internal attribution of the service failure can easily repair both affective-based trust (AFTR) and cognitive-based trust (CGTR), (2) co-creation recovery has a greater positive effect on AFTR while firm recovery is more effective on cognitive-based trust, (3) a series of interesting conclusions are found in the interaction between customers' attribution and service recovery strategy.Originality/valueThe authors' findings are of great significance to the strategy of service recovery after service failure in the medical AI system. According to the attribution type of service failure, medical organizations can choose a strategy to more accurately improve service recovery effect.

Responding to service failures with prevention framed donations

Purpose Service failures are common and companies must decide how best to respond to these incidents. The purpose of this study is to examine service recovery efforts that incorporate a donation component, in addition to financial compensation. More specifically, the relative effectiveness of these recovery efforts was explored according to the regulatory focus framing (i.e. prevention- or promotion-focused) of the donation message. Design/methodology/approach Three experiments are conducted to test the hypotheses. Findings Drawing from regulatory focus theory (Higgins, 1997), the authors determined that prevention framing (e.g. highlighting the negative outcomes avoided by a donation) leads to better service recovery outcomes compared to promotion framing (e.g. highlighting the positive outcomes of a donation) the donation message. Furthermore, warmth (e.g. perceptions of caring and helpfulness) and competence (e.g. perceptions of capability and usefulness) underlie this effect and message trust moderates the effect of regulatory framing on warmth. Research limitations/implications This study offers several theoretical and managerial implications. First, a novel recovery approach that benefits multiple stakeholders was illustrated, particularly when the donation message is prevention (vs promotion) framed. The authors focused on donations in particular, but future researchers should explore other corporate social responsibility activities such as those pertaining to sustainability, ethical labor practices or educational training. Practical implications Companies should consider incorporating donations into service recovery efforts. Moreover, companies should use prevention as opposed to promotion frames in their donation messages. Using a prevention frame enhances perceptions of company warmth and competence. Originality/value Very little research has explored the effectiveness of donations following service failures despite evidence that companies use donations in this context. This research highlights the importance of regulatory focus framing and demonstrates how a donation, paired with financial compensation, is more/less effective according to the framing of the communication. Thus, this research demonstrates a novel effect, identifies its underlying mechanism through warmth and competence and establishes an important boundary condition according to message trust.

Positive psychological capacities: the mystery ingredient in successful service recoveries?

PurposeThis paper aims to explore the influence of frontline employees’ (FLEs’) positive psychological capacities (PPCs) (optimism, hope, resilience and self-efficacy) on service recovery.Design/methodology/approachA model of FLE PPCs is tested using two studies: a field study (Nretail = 205; Nrestaurant = 160) and between-subject experimental design (Neducation = 206) in three service settings.FindingsResults show that positive emotions mediate the relationship between PPCs and problem-solving adaptability, and that authenticity of positive emotions moderates the relationship between positive emotions and interactional justice. Surprisingly, problem-solving adaptability positively influences perceptions of distributive justice and interactional justice. A small interaction effect between positive emotions and problem-solving adaptability also was found.Research limitations/implicationsThe dependent variable (problem-solving adaptability) was measured using an open-ended question evaluated by objective, independent raters rather than a self-reported structured metric, to minimize social desirability bias.Practical implicationsGiven that the customer complaints to the Better Business Bureau in 2016 were close to one million, most of them occurring in the service sector, service firms need continuous research into improving service recovery. This study argues that firms can improve FLEs’ problem-solving adaptability behavior by training existing FLEs to strengthen PPCs, hiring FLEs that have strong PPCs and fostering positive emotions.Originality/valueThis is the first study that examines the effect of PPCs on service recovery outcomes. By incorporating PPCs as antecedents of positive emotions, this paper explains how FLEs can offer a better recovery rather than dictating what they ought to display and say. An explanation of how FLE PPCs influence customer outcomes via the broaden-and-build theory of positive emotions and emotion contagion theory is offered, highlighting a novel path/relationship between FLE positive emotions and problem-solving abilities, and extending emotion contagion to service recovery.

The Effects of Online Incivility and Consumer-to-Consumer Interactional Justice on Complainants, Observers, and Service Providers During Social Media Service Recovery

Using a mixed-methods approach, the current research examines online incivility in relation to service recovery on social media. First, findings from a netnographic investigation suggest consumer-to-consumer (C2C) incivility results in some consumers holding the firm accountable to address uncivil exchanges on a firm-managed communication channel. Based on the netnographic findings, fairness theory, and justice theory, a follow-up experimental study assesses how online incivility negatively affects service recovery outcomes (firm–consumer justice) when a firm chooses (not) to respond to the incivility. Through these two studies, the current paper proposes a new form of justice (C2C interactional justice) and posits that online service recovery extends beyond direct victims of the incivility (first-party justice) to also include observers (third-party justice). This more nuanced view of justice associated with a service recovery is especially significant when considering the traditional relationships of justice with satisfaction, loyalty, positive word-of-mouth, and other desirable firm outcomes. For practitioners, this research suggests that firms must manage C2C interactional justice on corporate social media channels for both complainants and observers to avoid reputational damage and a loss of customers.

To tweet or not to tweet? Exploring the effectiveness of service recovery strategies using social media

PurposeThe purpose of this paper is to explore influencing factors that affect the effectiveness of service recovery strategies using social network from operations management perspective. Specifically, the authors study the relationships between social media agent responses to customer complaints, customer emotion changes and customer satisfaction. Furthermore, the authors investigate the roles of recovery speed and failure severity in the service recovery process using social network platform.Design/methodology/approachThe results are based on 347 mini cases drawn from the Twitter accounts of a sample of airlines. Grounded theory approach is used to conduct qualitative analysis using NVivo 9, a qualitative data analysis program. A conceptual framework was developed, then tested usingχ2analysis.FindingsAgent responses that do not require customers to take further initiatives for problem solving have positive effects on customer emotion alleviation and satisfaction. In contrast, responses that provide further directions poses negative effect on service recovery outcomes. There is a strong positive linkage between customer emotion change and customer satisfaction. Surprisingly, the direct effect of recovery speed on customer emotion and satisfaction is not supported by the data. Rather, it plays a moderating role in affecting the relationship between agent responses and customer satisfaction. The qualitative data further reveals the pivotal role of failure severity, one of key service failure attributes.Research limitations/implicationsThe authors study service businesses’ recovery strategies using social media. A conceptual framework is developed to link agent responses, customer emotion changes and customer satisfaction from the lens of service providers, using an operations-oriented approach. Finding on recovery speed and failure severity reveal that these variables play different roles when service recovery is operated on social media platform as compared to traditional channels. Additionally, relying on tweets as data sources has constrained us from assessing other long-term service recovery outcomes such as loyalty, repurchase intent and word of mouth. The drawback is resulted from the limited information conveyed through tweets, which tends to be short and brief. The study focusses on the airline industry, which limits the generalizability of the findings to other service industries.Practical implicationsThe authors highlight the value and potential of service recovery strategies using social network and provide insights for recovery operations where agent responses should be focussing on real time problem solving. The findings support the benefits of empowering social network agents for service recovery operations. Improving recovery speed should be less of a priority as it serves as a qualifier when service recovery is operated via social network. Given the pivotal role of failure severity, it is critical for social network agents to stand in the shoes of the complaining customers, making imminent assessment of the actual failure severity and taking action accordingly in real time. In the meantime, effective communication through social network may help to lower perceived magnitude of failure by customers, which in turn enhance the effectiveness of other service recovery efforts.Originality/valueThis study is the first attempt to investigate the service recovery process using social media from an operations-oriented perspective. The results supports the potentials of employing service recovery strategies using social media.

Foreign or domestic: who provides better customer service?

Purpose – The purpose of this paper is to investigate the role of customer service employees’ (CSEs) competence and service recovery outcomes on service evaluations of foreign and domestic CSEs. Design/methodology/approach – Three experiments were conducted to test and validate the proposed hypotheses. The participants were told a cover story that they were either listening to (Study 2) or reading (Studies 1 and 3) a real conversation between a customer service representative of a bank and a customer and the authors wanted their views about the service encounter. While country of origin (COO) and competency were common independent variables across three studies, Study 2 included service recovery with a full refund and Study 3 had both full and partial refund and apology offered or not. Findings – Results from three experiments show that while competent CSEs are evaluated the same, regardless of their COO, the domestic CSE is evaluated more negatively than the foreign CSE when both are incompetent. The authors also find that when competent CSEs deliver no service recovery, the foreign CSE evaluations are significantly lower than the domestic one. Study 3 results show that this effect is mediated by participants’ ethnocentric beliefs. Research limitations/implications – For implications, this study provides a deeper understanding of the role of COO in services contexts. Future researchers can utilize the findings to investigate the important role that expectations play in determining service excellence and how it affects the COO effect. Practical implications – The paper provides managers in both offshoring client and provider firms with an understanding of the effects of offshoring on employee evaluations. It discusses the relevance/irrelevance of COO on the customer evaluations of service employees. Originality/value – The study investigates an under researched phenomenon – offshoring of services. This paper is one of the few looking at the role of different interaction factors, such as competence, recovery on service evaluations.

The Impact of Failure Severity, Prior Failure, and Company Control on Service Recovery Outcomes

This study investigates the effects of differential levels of failure severity, prior service failures, and perceived company control on postrecovery satisfaction and negative word-of-mouth. The authors develop a theoretical model and hypotheses drawing on the prevention aspect of regulatory focus theory. The authors test the model via a scenario-based experimental design using the context of academic advising within a university setting. They find that that failure severity and company control are influential factors in the service recovery process, although prior failures did not affect satisfaction or negative word-of-mouth in a meaningful way. Theoretical and practical implications of these findings are discussed.

Customer retaliation at the employee–customer interface

AbstractThe service encounter is the point where employees and customers interact both positively and negatively. When things go wrong (service failure), initially it is the employee who is required to remedy the situation (recover the service). While positive service recovery outcomes are well investigated, there is little research that investigates whether specific service recovery strategies can be used to reduce customer anger and retaliation. Further, there is little research regarding whether an organisation's acceptance of blame has an effect on customer anger and retaliation. These gaps are addressed using a quasi-experimental study of 120 respondents that examines customers' emotional and behavioural responses to specific service recovery strategies following a service failure. The results show that high-level service recovery strategies directly reduce the occurrence of retaliation, as well as indirectly reduce retaliation through the mediating effects of customer anger. The theoretical and practical implications of these results are discussed.

Customer retaliation at the employee–customer interface

AbstractThe service encounter is the point where employees and customers interact both positively and negatively. When things go wrong (service failure), initially it is the employee who is required to remedy the situation (recover the service). While positive service recovery outcomes are well investigated, there is little research that investigates whether specific service recovery strategies can be used to reduce customer anger and retaliation. Further, there is little research regarding whether an organisation's acceptance of blame has an effect on customer anger and retaliation. These gaps are addressed using a quasi-experimental study of 120 respondents that examines customers' emotional and behavioural responses to specific service recovery strategies following a service failure. The results show that high-level service recovery strategies directly reduce the occurrence of retaliation, as well as indirectly reduce retaliation through the mediating effects of customer anger. The theoretical and practical implications of these results are discussed.

Discrete Negative Emotions and Customer Dissatisfaction Responses in a Casual Restaurant Setting

The primary purpose of this study is to investigate customers' emotional responses following a service failure in a restaurant setting. Specifically, this study investigates how specific emotions (anger, disappointment or regret, worry) influence consumers' behavioral intentions. To gain a richer understanding of consumers' coping behaviors, the authors examine customers' locus of failure attributions. By using a 3 × 2 factorial between-subjects design, three attribution types (internal, external, and control condition) are matched with two service recovery outcomes (positive and negative). Findings suggest that customers with feelings of anger and disappointment or regret are likely to engage in various dissatisfaction responses (e.g., direct complaining, negative word-of-mouth, and switching), whereas worried customers are not. Attributing the failure to internal or external causes reduce switching and negative word-of-mouth intentions. Finally, the study results indicate that feelings of anger spill over to postrecovery satisfaction.