One firm’s loss is another’s gain: capitalizing on other firms’ service failures

Allen, Alexis M.; Brady, Michael K.; Robinson, Stacey G.; Voorhees, Clay M.

doi:10.1007/s11747-014-0413-6

Cited by 48 publications

(60 citation statements)

References 37 publications

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“…customer satisfaction and repurchase intentions) (Holloway et al, 2005). For instance, when it comes to forming expectations for future transactions, past transactions with travel agencies may play an essential role as a predictor of customer satisfaction (del Bosque et al, 2006 In TSSC, there are affiliated parties, and this positive impact may exist due to a spillover effect, whereby an experience with one organization may have an impact on another (Allen et al,2015). Previous research on spillover effects (e.g.…”

Section: Good Prior Experiencementioning

confidence: 99%

“…Furthermore, it is possible for customers to have more favourable outcomes for recovering firms, since a prior failure lowers their expectations, which demonstrates that failure may also result with satisfaction if a satisfactory recovery is provided (Allen et al, 2015) and thus increase future purchases (Goodwin and Ross, 1992).…”

Section: Service Failure and Recoverymentioning

confidence: 99%

“…Failures, however, are common, and produce negative consequences, such as dissatisfaction and extra costs (Maxham III, 2001). In such a chain, a failure caused by one party may remain unresolved, and this may create a positive effect for another party providing recovery for the failure (Allen et al, 2015). This means that the doer of the failure and/or recovery, in other words, the particular party responsible for the failure and/or recovery may have an impact on behavioural outcomes.…”

Section: Introductionmentioning

confidence: 99%

“…Oflaç et al, 2012) and recoveries following a failure by an affiliated or unrelated partner (e.g. Allen et al, 2015), to our knowledge these have not been addressed from a TSSC perspective indicating a principal- A key innovation in the current research is a focus on a principal-agent relationship between hotel, travel agency, and consumer, which provides a vertical relationship with delegation of work between partners (e.g. although hotel is an agent that consumer directly encounters, it has a vertical relationship as a supplier to travel agency in TSSC).…”

Section: Introductionmentioning

confidence: 99%

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The doer effect of failure and recovery in multi-agent cases: service supply chain perspective

Yıldırım

Oflaç

Yurt

2018

JSTP

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The purpose of the study is to explore the doer effect of service failure, good prior experience, and recovery on overall customer satisfaction, and repurchase intentions for multi-agents in tourism service supply chain. It specifically focuses on internal and external failure, and recovery. Design/Methodology/Approach: The study employs a 2*2*3 between-subjects experimental design with twelve diverse scenarios. It aims to examine the main effects of good prior experience, and the interaction effects of service failure and recovery on overall customer satisfaction and repurchase intentions. Findings: The main findings show that consumers do not show favourable behavioural outcomes when they have good prior experience with an affiliated party. Results of the experiments demonstrate that for hotels, there is no interaction effect between failure and recovery regarding overall customer satisfaction and repurchase intentions; however, for travel agencies, an interaction effect has been found. This indicates that, an internal failure (by travel agency), should be recovered internally to increase the behavioural outcomes for travel agency. However, if there is an external failure (by hotel) then the essential thing is providing a recovery. Originality: Although the service literature covers failure and recovery in diverse contexts, these concepts are rarely studied from a multi-agent perspective in the service supply chain literature. In such a chain, a failure by a different party may remain unresolved, and this may create a positive effect on another party, if they provide recovery for the failure. This means that the doer of the failure and/or recovery (the party responsible from the failure and/or recovery) may have an impact on behavioural outcomes. However, previous literature has neglected to focus on the important issue of which entity/party performs the failure and/or recovery, and the effect on behavioural outcomes. By focusing on a principal-agent relationship in a tourism service supply chain, the study aims to address this research gap.

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Section: Good Prior Experiencementioning

confidence: 99%

Section: Service Failure and Recoverymentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The doer effect of failure and recovery in multi-agent cases: service supply chain perspective

Yıldırım

Oflaç

Yurt

2018

JSTP

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“…Although there is little research on this topic (cf. Allen, Brady, Robinson, & Voorhees, 2015), variables like employee uniforms that promote categorization among group members may give rise to contrast effects across groups, reflecting that other groups and group members are evaluated relative to the standard provided by the salient group (Schwarz & Bless, 1992a). Hence, poor service from a uniformed employee may not only make the employee's company look worse (Hypothesis 3), but may also make the company's competitors look better.…”

Section: Theoretical Backgroundmentioning

confidence: 99%

Uniformity: The effects of organizational attire on judgments and attributions

Smith

Chandler

Schwarz

2020

J Applied Social Pyschol

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Despite their prevalence in the marketplace, little empirical attention has been paid to how employee uniforms affect consumer reactions to service experiences. We propose that employee uniforms facilitate the shared categorization of employees and their organization in the mind of the customer, which affects many of the inferences that customers draw following service encounters. Study 1 shows that uniforms lead to greater attribution of responsibility to the company for employee behavior, especially following poor service. Studies 2 and 3 show that uniforms also lead to more assimilation of judgments across employees, increasing the impact of one employee's behavior on judgments of other employees of the same organization. Study 3 shows that employee uniforms lead to more extreme judgments of the company following service encounters. It also shows that bad (good) service from a uniformed employee makes competing companies look better (worse), indicating that uniforms can elicit contrast effects across companies. In sum, the mere presence of a uniform on an unsatisfactory service or retail employee can damage judgments of the organization and its employees and improve judgments of rival organizations compared to identical service from a nonuniformed employee. Managers seem unaware of these negative consequences. These same principles are likely to apply to a wide variety of uniformed services, including police, military, firefighters, and health-care providers.This is an open access article under the terms of the Creative Commons Attribution-NonCommercial License, which permits use, distribution and reproduction in any medium, provided the original work is properly cited and is not used for commercial purposes.

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Engaging Reciprocity from the Complainant Customer in the Digital Age

Simon¹

2019

Augmented Customer Strategy

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One firm’s loss is another’s gain: capitalizing on other firms’ service failures

Cited by 48 publications

References 37 publications

The doer effect of failure and recovery in multi-agent cases: service supply chain perspective

The doer effect of failure and recovery in multi-agent cases: service supply chain perspective

Uniformity: The effects of organizational attire on judgments and attributions

Engaging Reciprocity from the Complainant Customer in the Digital Age

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