Service Recovery Strategies Research Articles

Language Styles, Recovery Strategies and Users’ Willingness to Forgive in General Artificial Intelligence Service Recovery: A Mixed Study

As the prevalence of generative artificial intelligence (GenAI) in the service sector continues to grow, the impact of the language style and recovery strategies utilized during service failures remains insufficiently explored. This study, grounded in the theory of social presence and dual-process theory, employed a mixed-method approach combining questionnaire surveys and event-related potential (ERP) experiments to investigate the effect of different language styles (rational vs. humorous) and recovery strategies (gratitude vs. apology) on users’ willingness to forgive during the GenAI service recovery process. It further delves into the chained mediating role of perceived sincerity and social presence in this process. The findings revealed that a humorous language style was more effective in enhancing users’ willingness to forgive compared to a rational style, primarily through the enhancement of users’ perceived sincerity and sense of social presence; recovery strategies played a moderating role in this process, with the positive impact of perceived sincerity on social presence being significantly amplified when the GenAI service adopted an apology strategy. ERP results indicated that a rational language style significantly induced a larger N2 component (cognitive conflict) in apology scenarios, while a humorous style exhibited higher amplitude in the LPP component (positive emotional evaluation). This research unveils the intricate relationships between language style, recovery strategies, and users’ willingness to forgive in the GenAI service recovery process, providing important theoretical foundations and practical guidance for designing more effective GenAI service recovery strategies, and offering new insights into developing more efficacious GenAI service recovery tactics.

Emotional intelligence and demographic factors: Moderating effects in service recovery strategy

This study highlights the role of emotional intelligence, gender, income, and residence area on the relationship between brand image, service recovery strategy, and satisfaction. The multistage with purposive sampling method has recruited 600 samples of private hospital services in Thailand. Self-administered online questionnaires via Google Forms were used to collect the data online. Confirmatory factor analysis and multigroup SEM have been used for hypothesis testing. The research explores emotional intelligence (EI), with lower emotional intelligence associated with more negative perceptions of social brand image. Lower income affects the symbolic and social image, influencing satisfaction with a service recovery strategy. The upcountry areas viewed experiential images more positively compared to those from urban regions. Gender did not significantly moderate these relationships. The study also highlights thatfactors do not substantially impact service recovery satisfaction but are still vital for effective communication and brand attachment. The results underscore the intricate dynamics of the various factors that shape consumer attitudes and behaviours toward service recovery strategy.

Enhancing CSR and purchase intent in service recovery: investigating the interplay of prosocial compensation, hedonic and luxury purchases

Purpose As a company’s corporate social responsibility (CSR) image can protect from the backlash of a service failure, it is important to remind customers of the company’s CSR commitment when a service failure occurs. One novel mechanism for doing so is through a prosocial service recovery. However, explorations of such service recovery strategies are relatively unknown. Thus, this paper aims to examine how recoveries including prosocial elements compare to those only utilizing monetary compensation strategies and to explore boundary conditions for such effects. Design/methodology/approach This research utilizes an experimental design approach across three studies. Participants were recruited from Amazon’s Mechanical Turk. Findings This research demonstrates that a recovery including prosocial (vs only monetary) elements can positively impact purchase intent through the firms’ CSR perceptions. The authors show that the benefits of prosocial compensation are contingent on the motivation for visiting a company (e.g. hedonic vs utilitarian) as well as the degree to which the company is perceived as luxurious. Originality/value The series of studies provides important theoretical contributions to services marketers by advancing the understanding of novel recovery strategies and demonstrating when companies should initiate such strategies. Implications of the findings and directions for future research are explored.

Managing difficult spa customers and situations: implications for employee wellbeing

ABSTRACT Service failures can provoke guest complaints either in the spa setting or through social media, thus leading to unfavourable reactions (incivility and misbehaviour) and the occurrence of difficult situations. Customer misbehaviour can be triggered by several factors like personality, mood, attention-seeking and financial or ego-driven motivations. Although attention must be paid to service recovery strategies, it is also important to take care of employees, whose wellbeing and performance may be negatively affected by dealing with difficult customers and situations. This relatively under-researched issue will be the focus of the research in this paper using an in-depth case study of a Latvian spa to illustrate challenges and appropriate strategies. This includes the impacts of “emotional labour” on employees’ job satisfaction and wellbeing, the main drivers of typical customer misbehaviour, the coping strategies used by spa employees, as well as key management approaches for supporting staff and dealing with service recovery. The findings reveal that although eliminating customer misbehaviour totally is an unrealistic expectation, clear internal rules, staff training, management support and effective leadership can help to decrease the occurrence of problematic situations, maintain high service quality and enhance employee wellbeing.

Logistics service failures and recovery strategies: is the response time or the discount amount more important?

PurposeAlthough trade volumes in e-retailing have increased significantly in recent years, logistics service failures are inevitable, especially at the delivery stage. Therefore, it is essential to provide customers with effective recovery strategies to increase their satisfaction and repurchase intentions. There is a lack of empirical evidence on whether the response time or the discount offered in compensation is more crucial for customers. Therefore, this study aims to determine whether the response time or the discount offered for high and low criticality failures has a greater impact on customer satisfaction levels and repurchase intentions for female and male customers.Design/methodology/approachA scenario-based experimental design method has been adopted to collect data, and 697 participants aged 18 and 58 years have been reached. The research utilized a between-subjects design, incorporating three factors: gender (female vs male), criticality (high vs low) and compensation (7 days: 10% discount, 10 days: 20% discount and 14 days: 30% discount). Six scenarios depicting the failure of an online retailer were created, and factorial univariate ANOVA was conducted to test the hypotheses.FindingsThe study's results show that in terms of customer satisfaction, female customers attach more importance to the response time in the case of high criticality and the amount of discount offered in the case of low criticality. On the other hand, male customers give more importance to the response time in terms of customer satisfaction when they experience a high or low criticality failure. In the case of low criticality, response time is more important for male customers to increase their repurchase intentions, while the amount of the discount is more important for female customers.Originality/valueThe study demonstrates the relative importance of the response time and discount amount according to the criticality level of failures and to guide business managers in terms of the recovery strategies they will implement. It focuses on gender differences and determine whether the response time or discount amount is more important for male and female customers in high or low-criticality situations.

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.

The Impact of Service Recovery Actions and Perceived Justice on Customer Satisfaction: Insights from Thailand's Private Hospitals

The research explores service recovery strategies' impact on customer satisfaction, word-of-mouth (WOM), and revisit intention in private hospitals in Thailand, drawing upon the expectation confirmation theory and social exchange theory. Using a quantitative approach, data was collected via an online questionnaire from service users of private hospitals in Thailand, with 600 usable responses analyzed using Structural Equation Modeling (SEM) and multi-group analysis with SEM. The findings reveal that service recovery actions (SRA) and perceived justice (PJ) significantly influence customer satisfaction with service recovery, WOM, and revisit intentions. Focusing on tangible actions and perceived justice can enhance customer retention in private hospitals. Private hospitals should emphasize tangible actions and perceived justice to enhance customer satisfaction and retention. Additionally, tailoring service recovery efforts based on customers' varying experience levels within the healthcare sector is crucial. The research contributes valuable insights to the healthcare industry's understanding of service recovery strategies, offering guidance for marketing strategy planning and enhancing customer satisfaction and retention in private hospitals in Thailand.

Would the blind box be more effective? The role of uncertainty in consumers’ post-recovery satisfaction

The tourism and hospitality industries are notably highly likely to experience service failures due to frequent contact with service personnel. These industries actively seek innovative strategies to enhance consumers’ post-recovery satisfaction without increasing costs. Drawing on social exchange theory and regulatory focus theory, this study examines whether uncertainty can be an effective recovery method for service failures through four experiments. Findings indicate that uncertainty can enhance perceived fun and post-recovery satisfaction in situations of low-severe failure severity and hedonic consumption. However, in cases of high-severity failures and utilitarian consumption, uncertainty can lead to perceived insincerity and reduce post-recovery satisfaction. We also investigate the moderating role of customer inoculation and find that customer inoculation is effective in amplifying the positive impact of the uncertainty effect and mitigating its negative impact. This paper expands the literature on uncertainty utilization and service recovery strategies by determining whether and when uncertainty is appropriate in service recovery.

“Give me an upgrade or I will give you a bad review!” Investigating customer threats in the hospitality industry

This work is a first attempt to explain the phenomenon of customer threats and identify the individual and situational factors that drive this phenomenon in tourism and hospitality. Towards this goal, one qualitative and two quantitative studies are employed. Study 1 conceptualizes customer threats by uncovering two of the most common forms of verbal threats (i.e., threat to switch and threat to negative word of mouth) and their distinctive features as well as customers’ motivations behind them, and some situational conditions that favor the enactment of customer threats. Using a survey-based approach, study 2 sheds light on three incident-specific drivers (i.e., psychological reactance, rumination, and justice perceptions) of the two main forms of customer threats. Finally, using an experimental approach, study 3 assesses the effectiveness of two service recovery strategies (self-service recovery vs. human-based recovery) at mitigating customer threats following service failure incidents.

‘From fail to prevail’ : How a salesperson’s communication sentiment influences consumer forgiveness in service failures focusing on the role of consumer self-construal

ABSTRACT Service Failure and Recovery (SFR) is a crucial area of service industry due to the inevitability of service failures, yet firms often struggle with executing appropriate strategies. This research aims to identify the pinpoint optimal “moment of truth” adopting consumer forgiveness serves as a mediator of service recovery and customers’ overall satisfaction. The study focused on the importance of service providers’ communication sentiment during the apology delivery process in order to elicit authenticity from consumers during the recovery process. Data was collected through a survey from 350 individuals of different nationalities, including Chinese and Korean. A scenario-based experiment using self-administered questionnaires was also conducted. The findings indicate that communication sentiment that oriented in warmth have a positive impact on consumers’ willingness to forgive, while task-oriented and coldness-oriented styles have a negative effect. Additionally, consumers who are interdependent tend to be more influenced by communication sentiment when it comes to forgiveness. These results can be valuable for service firms to train their personnel and develop effective service recovery strategies that enhance consumer empathy and forgiveness.

Modeling Customer Satisfaction in the Food Industry: Insights from a Structural Equation Approach.

This study aims to understand what actions should be taken to improve consumer satisfaction. The methodology adopted was an explanatory quantitative approach using structural equations via variance (PLS-SEM). The study began with validating the data collection instrument by franchisees of the chain and applying a questionnaire adapted to a group of consumers. The dimensions evaluated included Safety, Tangibility, Credibility, Responsiveness, and Empathy, with questions organized into nine dimensions. The total sample of respondents was 149. The results indicated that the quality of service is a crucial determinant of customer satisfaction, explaining 36.14% of the variation in satisfaction. Service quality plays a crucial role in customer satisfaction, highlighting the importance of restaurant owners and managers prioritizing the fundamental dimensions of service quality, particularly responsiveness and reliability, as well as service recovery strategies. Another significant factor was customers’ perception of a reasonable price, which acts as a variable to enhance the impact of quality (i.e., quality of food, service, and physical environment) on their overall satisfaction.

Raving Fans or Silent Critics? Brand Service Recovery’s Impact on Positive eWOM

Brand Service Recovery Strategies (BSRS) have garnered significant attention due to their transformative potential in traditional business practices. However, the precise influence of BSRS on fostering positive Electronic Word of Mouth (eWOM) remains inadequately elucidated within the academic literature. Most scholarly investigations have tended to adopt either a theoretical perspective or have overlooked intermediary factors, particularly the role of consumer attitudes toward the brand. Drawing upon the Social Exchange Theory, this study presents an empirical model that seeks to examine whether consumer attitude toward the brand mediates the relationship between BSRS and positive eWOM. Based on survey data from 292 Executive MBA students in a large Chinese university, our study confirms that BSRS strongly impact consumer attitudes, leading to increased positive eWOM. Additionally, we discover that consumer power plays a moderating role, highlighting its contextual importance in this relationship. This study provides vital practical insights for businesses, emphasizing the need for comprehensive strategies involving BSRS, fostering positive consumer attitudes, active eWOM engagement, tailored approaches for consumer power, and ongoing adaptation to customer feedback, all contributing to improved brand perception and customer satisfaction in today’s business environment.

Demystifying the Impact of Service Recovery Strategies: Evidence From Healthcare and Telecom Sectors

Demystifying the Impact of Service Recovery Strategies: Evidence From Healthcare and Telecom Sectors

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

Uloga lojalnosti gostiju između zadovoljstva oporavkom usluge i ponašanja gostiju u planinskim hotelima

Purpose -The purpose of the study is to investigate the role of guest loyalty in the relationship between satisfaction with service recovery (SSR) and consumer citizenship behavior (CCB), as well as dysfunctional customer behavior (DCB) of hotel guests. Methodology -The study was conducted on a sample of 1,324 guests from hotels operating in the Republic of Serbia, Croatia, and Slovenia in mountain tourism. The obtained data were analyzed using an SEM approach. Findings -Loyalty has a mediating role in the relationship between SSR and CCB. On the other hand, loyalty does not have a mediating role in the relationship between SSR and DCB of hotel guests during their stay. Implications -The study has theoretical and practical implications. The theoretical implication is that loyalty forms the foundation for guests' cognitive and affective responses when they are satisfied with a service recovery; this means that loyalty is a driver of hotel guests' CCB. In the opposite situation, loyalty does not act as a shock absorber that will mitigate the impact of dissatisfaction with service recovery on the manifestation of DCB. The practical implications are that hotels must prioritize effective service recovery strategies to enhance guest loyalty and encourage CCB while simultaneously reducing the risk of DCB.

Service failures that cause customer dissatisfaction and service recovery strategies in food and beverage businesses

The aim of this study is to descriptively determine the service failures that cause customer dissatisfaction in food and beverage businesses and the applied service recovery strategies. Within the scope of the study, data were collected from employees working in various positions in restaurants located in tourism centers in different regions of Turkey, with a semi-structured interview form consisting of 15 questions between the 19th August and 24th August 2022. As a result of the research, it was determined that service failures were mostly experienced in food taste, service speed and price. In response to service failures, employees have implemented service recovery strategies such as apologizing, voiding the check or invoice, offering free food or drinks, and offering to make a new order. This study contributes to the identification and understanding of service failures encountered in food and beverage businesses and the service recovery strategies applied. Additionally, in the study, employees emphasized the importance of issues such as effective communication and training in reducing or completely eliminating customer dissatisfaction.

The role of service guarantees in contemporary foodservice encounters

ABSTRACT Drawing on the role congruity theory, this research revisits a common service practice – service guarantee’s effectiveness in contemporary foodservice encounters across different customer-company relationships (communal vs. exchange) and delivery modes (touch vs. tech) in two service failure settings (Study 1 – catering service and Study 2 – food ordering/delivery service). The research shows that a service guarantee does not effectively enhance customers’ post-failure satisfaction in a communal relationship. Conversely, in an exchange relation, its presence significantly enhances customers’ post-failure satisfaction following a touch service failure. The research further investigates the underlying process driving such satisfaction through serial mediation effects. Specifically, when customers face a touch service failure in an exchange relation, the presence of a service guarantee enhances perceived competence of the service provider and expected service quality, thus reducing perceived risk, which in turn, has a positive impact on customers’ post-failure satisfaction. The current research contributes to the classic service guarantee literature with novel insights and provides industry practitioners guidelines regarding how to employ service guarantees as an effective service recovery strategy.

Service recovery strategies: mitigating negative word-of-mouth in the hotel industry through enhanced customer engagement

Service recovery strategies: mitigating negative word-of-mouth in the hotel industry through enhanced customer engagement

Service Recovery Strategy for Non-Star Accommodation in the Seminyak Area, Kuta, Bali

The COVID-19 pandemic has swept the world, causing service failure and requiring the right strategy. This study aims to examine tourist perceptions regarding service recovery strategies for non-star accommodation in Seminyak, in this case villa-type accommodations, and to formulate appropriate service recovery strategies as well as adapt them to the operational setting in the presence of a pandemic. This research was conducted in 10 villas in Seminyak Village, using observation, interview, and distributed 10 questionnaires for guests who have stayed at non-star accommodation in Seminyak Villa classification; 250 questionnaires were distributed both through external and internal methods. The data was processed using a Likert scale and SWOT analysis comparing external and internal factors. The variables in this study are the recovery variable for customer satisfaction and system recovery performance. Service recovery of non-star accommodation in Seminyak has opportunities and strengths so that it can take advantage of existing opportunities and be on the right track by continuing to develop (aggressive) strategies that can improve the service received by guests so that it is more efficient than before. The strategy that must be applied in this condition is to support an aggressive growth policy (growth oriented strategy), which continues to strive to overcome service failures to guests so that in the future guests will be more comfortable to stay at the inn/accommodation.

Assessing the Impact of Service Recovery Strategies on Customer Satisfaction in the Hospitality Industry

Studying customer Opinion of service quality in the banking industry holds immense importance for both financial institutions and the customers they serve. Firstly, understanding customer perception allows banks to identify areas of strength and weakness in their service delivery. This insight enables them to make targeted improvements in the dimensions that matter most to their customers. For example, if customers perceive a lack of empathy in their interactions, banks can focus on training and developing their staff to be more empathetic, ultimately enhancing the customer experience. Secondly, the study of customer perception helps banks gauge their competitive position in the market. In a highly competitive industry like banking, where customers have numerous choices, having a clear understanding of how customers perceive the quality of their services can be a strategic advantage. Banks can use this information to differentiate themselves from competitors and attract and retain customers. Moreover, customer perception studies provide valuable feedback that can be used for benchmarking against industry standards and best practices. Banks can compare their performance with that of peers, leading to industry-wide improvements in service quality. Additionally, a positive perception of service quality can directly impact customer loyalty and retention. Keywords: Customer perception, Banks, Reliability, Assurance, Responsiveness and credibility.