This study examines how loyalty influences the relationship between customer satisfaction (CS) and repurchase intention (RPI). Considering the effect of time, the study introduces adjusted expectations, which are expectations updated after consumption experience. The present study investigates the role of adjusted expectations in the CS-RPI link. With structural-equation analysis, the proposed model was tested in the family-restaurant setting. The results show that adjusted expectations can mediate the effect of CS on RPI. The results also indicate that processes underlying the CS-RPI link are different between low-loyalty and high-loyalty customers. Specifically, the transient route, which reflects the indirect path from CS to RPI via adjusted expectations, has a greater impact for nonloyals than for loyals. On the other hand, the chronic route, which represents the direct path from CS to RPI, has a greater impact for loyals than for nonloyals. CS is found to have no direct influence on RPI for low-loyalty customers.

Purpose -This study seeks to examine perceived corporate social responsibility (CSR) with a focus on ethical and legal questions, related to the constructs such as recovery satisfaction, customer trust, and loyalty after a service failure. Design/methodology/approach -An empirical test was conducted on this relationship in the context of service failure and recovery. A structural equation model was employed to test the hypotheses. Findings -Results indicate that perceived CSR has a significant impact on customer trust and loyalty and that customer trust serves as a key mediating variable in service recovery. Research limitations/implications -This study provides a theoretical implication for the relationship between perceived CSR and the relationship constructs such as service recovery satisfaction, customer trust, and loyalty. Practical implications -The results suggest that managers may need to be aware of perceived CSR as a key variable in restoring customer loyalty. The results further suggest that perceived CSR has a direct and indirect positive effect on loyalty; perceived CSR has a direct impact on loyalty, but it also has an indirect influence on loyalty through customer trust. Originality/value -In an attempt to deepen the understanding of how customer perceptions of firm CSR are connected with other customer-related outcomes during service recovery, the present research proposes a comprehensive model which encompasses CSR and other key relationship constructs after a service failure and recovery.

This study investigates the dynamics of customer affection and customer trust on customer loyalty intention after cases of service failure and recovery. The results demonstrate that after customers experience service failure and recovery, customer affection has a greater influence on customer trust but less in loyalty intention, whereas customer trust becomes more influential in loyalty intention in comparison to the time prior to a service failure. The findings suggest that the rebuilding of loyalty after a service failure and recovery relies primarily on the recovery of trust and that the key determinant of trust recovery is customer affection. Theoretical and managerial implications are also discussed.

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Purpose The purpose of this paper is to examine the relationships between perceived justice and perceived corporate social responsibility (CSR) and the impact of perceived justice and CSR perceptions on customers’ behavioral responses, such as satisfaction and repatronage intention after service recovery. The authors also investigate the moderating role of service failure severity in the relationship between perceived justice and perceived CSR. Design/methodology/approach The data were collected using individually completed questionnaires. The proposed model was tested using structural equation modeling, and the moderation effects of failure severity in the relationship between perceived justice and perceived CSR were analyzed using stepwise multiple regression models. Findings The results suggest a path from satisfaction to CSR perceptions, which indicates that the link between CSR perceptions and satisfaction is reversed in the context of service recovery. The authors further reveal recovery satisfaction in two ways: It has a direct influence on repatronage intentions as well as an indirect influence via perceived CSR. Finally, the results demonstrate that the severity of a service failure intensifies the impact of distributive and procedural justice perceptions on perceived CSR, and perceived CSR serves as a partial mediator in the path from recovery satisfaction to repatronage intentions. Research limitations/implications The results demonstrate that perceived justice of service recovery affects perceived CSR after a service failure and that the severity of a service failure moderates the impact of justice perceptions on perceived CSR. However, the possibility of intercausal relationships among distributive, procedural and interactional justice may need to be further explored in future research. Practical implications Given that the impact of distributive and procedural justice on CSR perceptions has become more critical as the severity of service failure increases, companies should prioritize allocating a fair amount of monetary compensation in a timely manner, particularly for those who experience a severe service failure. Originality/value The authors propose a model of perceived justice – perceived CSR – repatronage intentions within the service recovery context in an attempt to deepen the understanding of the antecedents of repatronage intention and the relationship between repatronage intention and recovery satisfaction following service recovery encounters by introducing perceived justice and CSR. Moreover, the authors discover the moderating effect of service failure severity on the relationship between justice perceptions and perceived CSR.