The effect of organizational responses to service failures on customer satisfaction perception

Cheung, Millissa F.Y.; To, Wai Ming

doi:10.1007/s11628-016-0328-z

Cited by 13 publications

(12 citation statements)

References 40 publications

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“…As Mannaa and Chaudhry (2013) point out, service failures are often impossible to correct, and in such cases, empathy and politeness are crucial factors in retaining the commitment and loyalty of the consumers affected by the service failure. In general, interactional justice (Chen and Lee 2018) or procedural justice (Cheung and To 2017) often serves to compensate for an inadequate level of distributive justice. As Davidow (2003) points out, the perception of justice is influenced most strongly by the following three factors: equality, need and equity.…”

Section: Theory Of Justice and Service Recoverymentioning

confidence: 99%

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

Kenesei

Bali

2020

Serv Bus

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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.

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Section: Theory Of Justice and Service Recoverymentioning

confidence: 99%

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

Kenesei

Bali

2020

Serv Bus

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“…On the other hand, justice theory is a widely recognized tool to explain the phenomena of recovery satisfaction and its outcomes after service failure (re-patronage intentions) (Chebat & Slusarczyk, 2005;Cheung & To, 2017;Ha & Jang, 2009;McColl-Kennedy et al, 2016;Smith et al, 1999). Service recovery satisfaction is considered a vital antecedent of loyalty.…”

Section: Perceived Service Recovery Justice and Customer Recovery Satisfaction And Re-patronage Intentionmentioning

confidence: 99%

“…Service recovery refers to corrective measures taken by companies to respond to service failures perceived by the customer. Many previous studies have highlighted the importance of subsequent service recovery to establish a positive relationship with the customer (Chao & Cheng, 2019;Cheung & To, 2017;Gustafsson, 2009;Maxham & Netemeyer, 2002a; H. S. Chang & Hsiao, 2008) but no research has measured the orders of the service events in the forms of service recovery justice, recovery satisfaction and customer affection.…”

Section: Introductionmentioning

confidence: 99%

Perceived service recovery justice and customer re-patronage intentions: Sequential mediation

Ali

Ting

Ahmad-ur-Rehman

et al. 2021

Cogent Business & Management

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The aims of this time-lagged study are twofold, first to identify the effect of perceived justice (as a second-order construct) on recovery satisfaction and customer affection; secondly, to investigate the effect of customer affection and recovery satisfaction on customer's re-patronage intentions. Data from 300 respondents (car insurance in Punjab, Pakistan) were analyzed using Structural Equation Modelling (PLS-SEM). The findings indicate that perceived service recovery justice (PSRJ) significantly predicts recovery satisfaction, customer affection and repatronage intentions, and customer re-patronage intentions can be engendered through customer justice perception, positive appraisal of recovery satisfaction and customer affection. Recovery satisfaction and customer affection also indirectly explain the effect of PSRJ on re-patronage intentions (sequential mediation). Such findings have implications to theory and practice as it proposes and tested a new link between recovery satisfaction and customer affection. This research contributes

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“…Customer satisfaction has been acknowledged as the key indicator of successful service recovery (e.g., Balaji, Roy and Quazi, 2017;Cheung and To, 2017;Petzer, De Meyer-Heydenrych and Svensson, 2017;Smith, Bolton and Wagner, 1999;Sparks and McColl-Kennedy, 2001;Tektas, 2017). Previous research conceptualized customer satisfaction into two types, namely, satisfaction with service transaction and cumulative satisfaction (Johnson, Anderson and Fornell, 1995;Johnson et al, 2001).…”

Section: Customer Satisfactionmentioning

confidence: 99%

Promoting responsible service policy: The impact of complaint invitation on perceived service recovery performance

Nuansi¹,

Ngamcharoenmongkol²

2019

JBRMR

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Given that developing effective, accountable and transparent institutions are the targets of sustainable development goals (SDGs), a shift toward more responsible actions are required for service providers. The present study attempts to establish the role of complaint invitation as the service providers' responsibilities on the advancement of customer complaint handling performance. A scenario-based experiment was carried out in a retail banking service setting. Two types of the service providers' response to service failure (invited complaint vs. customer-self complaint) are compared in terms of customer perceived justice and satisfaction of service recovery. Results from multivariate analysis of variance (MANOVA) suggest that inviting customer to complain can result in higher perceived justice and satisfaction than when the complaint is raised by the customer. Furthermore, invited complaint has a greater impact on perceived interactional justice and satisfaction for customers with low coping potential. This study suggests that understanding the role of service provider's accountability, service managers can more effectively develop and execute customer complaint management policy which contributes to business sustainability.

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The effect of organizational responses to service failures on customer satisfaction perception

Cited by 13 publications

References 40 publications

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

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

Perceived service recovery justice and customer re-patronage intentions: Sequential mediation

Promoting responsible service policy: The impact of complaint invitation on perceived service recovery performance

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