The Impact of Service Failure Controllability and Relationship Strength on Post-Complaint Consumer Behavior - An Empirical Analysis

Abstract

The purpose of this research is to explore the impact of service failure controllability on consumer purchase behavior and to clarify the moderating role of relationship strength. Our conceptual model posits that high levels of firm controllability are associated with negative customer reactions. In addition, we examine two opposing hypotheses discussed in literature: the "love becomes hate" and the "love is blind" effect. We base our analysis on an extensive data set provided by a leading European online retailer that includes more than 14,000 complaints and 165,000 orders. Our research emphasizes the relevance of attribution theory in the context of actual consumer behavior and confirms that high levels of firm controllability are associated with negative consumer reactions. The empirical results further show that a strong customerorganization relationship mitigates the negative effects of service failures independently of the level of firm controllability. Therefore, the "love is blind" effect is strongly supported.

The Impact of an Apology and Explanation on Interactional Justice in Higher Education Institutions

“…This implies that where service failure can be attributed to external factors, higher education institutions must clearly explain that the cause of the service failure was due to external factors. Thus, such an explanation can assist in mitigating against the students drawing premature conclusions on the controllability of the situation (von Aswege, Kemper & Brettel, 2018).…”