Overcompensation as a service recovery strategy: the financial aspect of customers’ extra effort

Abstract

Compensation is one of the most important elements of service. Companies often pursue a strategy of overcompensation; however, there are contradictory results in the literature whether overcompensation has a positive or negative effect on postcomplaint customer behaviour. In this paper, based on three studies, we prove that examining the amount of additional effort required of the customer in order to achieve service recovery can help us better explain outcomes of the service recovery. Our results clearly show that the degree of additional customer effort has significant influence both on satisfaction and on perceived fairness and it moderates the effect of the amount of compensation.

Customer responses to airline companies' service failure and recovery strategies: the moderating role of service failure habit

“…This finding is comparable with the results of a study by Stakhovych and Tamaddoni (2020) who similarly found that service recovery was negatively affected by PSSF. Moreover, our findings agree with those by Kenesei and Bali (2020), who found that the bigger the severity of service failure was conceived, the less SRS was successful. Evidence from this study showed that PSSF had positively influenced customer NWoM regardless of airline carrier.…”

“…However, as Stakhovych and Tamaddoni (2020) noted, the severity of the service failure, as perceived by the customer, can have a dramatic impact on the effectiveness of any SRS that the transgressing firm might use. Similarly, Kenesei and Bali (2020) found that SRSs were less effective when the severity of the service failure was perceived as more intense. Therefore, the following hypothesis was proposed: H1.…”

How monetization mechanisms in mobile games influence consumers’ identity extensions

“…Finally, in terms of saturation, we followed Glaser and Strauss’s ( 1967 , p. 61) approach in grounded theory that focuses on theoretical saturation: as the interviews and their concurrent analysis progressed, categories started to repeat themselves despite our efforts to ensure diversity among interviewees (e.g., how consumers described their playing habits and what kind of games practitioners were involved with) (see also Kenesei and Bali 2020 ).…”