The Influence of Perceived Organisational Justice on Customer’s Trust: An Overview of Public Higher Educational Students

Abstract

This paper focused on the issues of customer's trust within the telecommunication industry in Malaysia. This paper looked into the importance of perceived organisational justices towards customer trust. In the event of service recovery, it is important for the managers to monitor closely the current processes (procedural justice), outcomes (distributive justice) and the communication between employee and customer (interactional justice). This with help the organisation to maintain customer loyalty and minimize customer switching to a different mobile provider. Primary data is collected through survey questionnaires from 181 customers who are the major mobile users in the industry. Likert scales were used and all variables demonstrated good values of consistency. This study found that, procedural justice, distributive justice and interactional justice are all having significant relationship towards customer trust. It is an indication that perceived organisational justice is an important antecedent for customer trust especially during service recovery period.

The Roles of Service Recovery and Perceived Justice on Post-Recovery Satisfaction in M-Commerce

“…The three-dimensional view is the most widely adopted in the previous research on the service recovery model. Customers evaluate perceived fairness by evaluating three factors: distributive justice (resource allocation and perceived outcome of exchange), procedural equity (the fairness of the recovery policy/procedure), and interac-tion (the politeness and empathy shown in the recovery process) [38]. It is evident from many online service failure studies that justice theory is adopted to discuss the relationship between recovery effectiveness and satisfaction level [8].…”

“…Every part will be subjectively evaluated, and justice will be restored when customers believe they have been treated equitably in the process [41]. Perceived justice can explain the relationship between service failure, service recovery, and post-recovery satisfaction [38]. According to social exchange theory, the typology and magnitude of service failure will become a reference point through which customers will judge the perceived fairness, procedural, and interactional justice during the recovery process, and distributive justice is perceived after the outcome of the recovery [11].…”

“…The second contribution is a complete model of service failure. For service failure and recovery, many studies have only covered how justice affects post-recovery satisfaction [8,38] or discussed the relationship between service failure and recovery [35]. This study has combined the studies by Liu et al [14] and Smith et al [11] and proposed a complete model of service failure typology, magnitude, service recovery strategy, perceived justice, and post-recovery satisfaction.…”

Customer churn prediction for telecommunication industry: A Malaysian Case Study

“…11 Every day, the telecom industry loses 20%-40% of its customers. 12 Without pricing and subscription plans, 83% of Malaysians would switch telecom providers. On the other hand, 66% had no problem cancelling their existing service provider subscription.…”

Post-service recovery emotion and customer trust: The role of satisfaction as mediation

“…It also plays an important role in maintaining trust (Norizan, Arham, & Norizan, 2019), satisfaction, and word of mouth (Chen & Kim, 2017). This is also part of the business actions conducted by the service provider in 3 forms, including interactional, distributive, and procedural justice (Chebat & Slusarczyk, 2005).…”