The harmful consequences of failed recoveries in the banking industry

Abstract

Purpose -This paper aims to examine which behaviour or set of behaviours customers are prone to follow in double deviation scenarios (i.e. consumption experiences in which customers face both the initial service failure and a failed service recovery), as well as how customers' perceptions of the problem and the firm's recovery efforts may influence these behaviours. Design/methodology/approach -The paper uses multinomial logit models with random coefficients to test the proposed model. Findings -Magnitude of service failure, explanations, apologies, perceived justice, anger and frustration felt by the customer, and satisfaction with the service recovery have significant and different effects on customers' choice of a type of response. Research limitations/implications -Additional research should try to determine the effects of different variables and their potential interactions. Further work incorporating different subjects, service settings or additional combinations of complaining behaviours is needed to validate the results of this investigation. Practical implications -This study highlights the importance of effective management of consumer responses to double deviations. Even when it is not possible to respond to customer complaints the first time, firms can learn from double deviations. Furthermore, new market entrants and competitors who want to capture consumer switchers should recognise what happened and try to avoid making the same mistakes. Originality/value -This study is the first to examine the consequences of double deviations by considering the multi-dimensional nature of complaint behaviour and the existence of simultaneous responses. This study is based on analyses of real service failures and recovery strategies and actual customer behaviour.

Pengaruh Pelayanan Yang Gagal Terhadap Respon Perilaku Konsumen

“…Hal ini sesuai dengan kenyataan bahwa penyesalan menyiratkan bahwa masih ada alternatif yang lebih baik, oleh karena itu, ada kemungkinan bahwa konsumen beralih ke alternatif penyedia jasa lain ketika mereka membutuhkan layanan yang baik (Joshua Buchanan et al, 2016;Lee, Romaniuk, & Behavior, 2009). Begitu juga penyesalan dapat menimbulkan keinginan konsumen untuk menyampaikan keluhan (Casado, Nicolau, & Mas, 2011). Untuk hasil komunikasi dari mulut ke mulut sendiri dengan emosi menyesal masih kurang konsisten, dalam penelitian Zeelenberg & Pieters (2004) ditemukan sedikit hubungan antara penyesalan dengan komunikasi dari mulut ke mulut yang negatif.…”

Violação E Recuperação Da Confiança Do Cliente Após O Duplo Desvio

“…BITNER et al, 1990;GRÉGOIRE et al, 2009;CASADO et al, 2011), até em que se sabe, nenhum trabalho estudou os efeitos do duplo desvio na confiança, em comparação com os efeitos do desvio simples. Aliado a isto, nenhum trabalho avaliou a efetividade de táticas de recuperação da confiança após o duplo desvio.…”

Post-service recovery customer satisfaction in Indian retail banking: a qualitative perspective

“…Service delivery is critical to any organisation and it is more so for an organisation providing services. The efficiency in service delivery for those organisations will determine its success in the long run (Casado et al, 2011).…”