Balancing the scales: recovering from service failures depends on the psychological distance of consumers

The purpose of this research is to enhance knowledge about service recovery by investigating the feelings of psychological distance in the relationship between customers' perceptions of service recovery efforts of the perceived justice dimensions (distributive, procedural, and interactional justice) and attitudinal responses such as satisfaction with service recovery effort and trust in the firm. The results of structural equation modelling analyses suggested that consumers who had positive justice perceptions were likely to exhibit positive attitudinal responses. Consequently, the positive attitudinal responses generated positive word-of-mouth intention about their experiences and encouraged them to continue the service.     

Perceived justice of service recovery strategies: Impact on customer satisfaction and quality relationship

This article aims to build on previous research analyzing the effects of perceived justice on customers' satisfaction with service recovery and the attitudinal consequences of the recovery strategies firms adopt after service failures occur. The results obtained from a conceptual model developed for the mobile‐phone sector support the idea that justice perceptions positively influence satisfaction with service recovery. Other findings are that satisfaction with service recovery positively affects trust and commitment, and that these two variables, in turn, positively affect overall customer satisfaction. Finally, the results also suggest that positive past experiences mitigate the effects of inadequate service recovery strategies on the quality of the relationship with the customers. © 2010 Wiley Periodicals, Inc.     

Pursuit of loyalty in service recovery: The roles of brand equity and cognitive reappraisal as moderators

This research investigates the roles of brand equity and cognitive reappraisal in the association between the perception of justice and loyalty via customer affection in a service failure and recovery context. Survey data were subjected to the conditional process analysis using the regression-based method. Results reveal that customer affection plays a mediating role in the link between the perception of justice and loyalty. In addition, brand equity and cognitive reappraisal contribute as moderators in influencing the behavioral outcomes. Implications for researchers and managers are also provided.     

Understanding effects of co-creation on cognitive,affective and behavioral evaluations in service recovery: An ethnocultural analysis

While cognitive, affective and behavioral consequences of service recovery have been extensively explored in the literature, the role of co-creation is mostly neglected. Most efforts dedicated to investigating co-recovery are limited to cognitive and behavioral factors. Furthermore, most of the recent studies explored co-recovery on western and eastern cultures, ignoring the role of ethnics in countries with different sub-cultures. This study aims to discover all possible factors on service recovery procedure, focusing specifically on effects of co-creation. Thus, a 2(distributive justice: high/low)×2 (interactional justice: high/low)×2(procedural justice: high/low)×2(co-creation: yes/no)×2(ethnics Azerbaijani vs. Baluch) between-subjects factorial design experiment was performed. A sample of 977 Iranian mobile banking customers participated in the study. Results of Structural Equation Modeling (SEM) indicate that most cognitive, affective and behavioral factors were supported by predictors. In addition, Multi-group SEM reveal that co-creation increases effects of most positive nature variables except negative emotions which is conceptualized as negative nature factor. The results of cultural differences indicate that Azeri people are more intended to participate in co-creation programs, whereas Balochs are more loyal due to higher level of reuse intentions.     

The Roles of Procedural and Distributive Justice in Logistics Outsourcing Relationships

In this paper, the effects of two dimensions of justice—procedural and distributive—on key attitudinal and behavioral elements of logistics outsourcing relationships are investigated. The findings suggest that the fairness of policies adopted by a third‐party logistics provider (3PL) and respective outcomes nurtures a customer's trust in and long‐term orientation toward the relationship with a 3PL. In such a relationship climate, patterns of cooperative behavior take place, providing an incentive for a 3PL to proactively pursue operational improvements.     

The impacts of complaint efforts on customer satisfaction and loyalty

ABSTRACT

This study identifies the depth structure of customer complaint efforts and investigates the roles of each dimension in the structural relations with customer satisfaction and loyalty. Three dimensions of customer complaint efforts were identified, procedural effort, cognitive effort, and affective effort in the restaurant context. This study uses two subsamples to develop and validate the proposed three-dimension customer complaint efforts scale. Exploratory factor analysis was conducted on the first subsample of 211 participants. Confirmatory factor analysis and structural equation modeling were applied on the second subsample of 328 participants. It is found that customers’ physical/procedural and cognitive efforts exerted during the complaint resolution process compound their affective efforts, which further reduce customer satisfaction with the complaint process and erode customer behavioral and attitudinal loyalty. This study bridges the research gap gaps and provides managerial implications to help reduce customer complaint efforts and ensure positive customer behaviors.     

Analysis of the moderating role of the gender variable in service recovery processes

In this study, the authors focus on service recovery processes and identify a set of key factors that drive satisfaction with the recovery process, which ultimately leads to customer loyalty. In addition, the authors investigate the role of gender as a potential moderating variable in the recovery process. Using a sample of 202 customers who had experienced a problem with their provider, filed a complaint and received a response from the company, the authors empirically test the proposed framework in the mobile phone market. The findings reveal that men tend to be more demanding when dealing with service providers and less loyal, while women tend to exhibit a more fully-developed sense of justice and greater attitudinal and behavioral loyalty. These results provide valuable insights for the consumer services industry: Companies can use gender information to manage complaints in order to restore customer satisfaction and increase customer loyalty more efficiently.     

Effect of service recovery on customers’ perceived justice,satisfaction, and word-of-mouth intentions on online shopping websites

As consumers become better informed and more demanding about their purchase of services, service provider's failure to satisfy all consumers during delivery of service is unavoidable. Consequently, to alleviate consumer dissatisfaction that results from service failure has become important. However, empirical consensus has been lacking on the effects of various service recovery activities. Thus, this study examines the impact of different types of service recovery on customers’ perceptions of justice, post-recovery satisfaction, and word-of-mouth (WOM) intentions. The results indicated that consumers’ perceptions of distributive and interactional justice differ by the types of service recovery and supported significant relationships among perceptions of justice, satisfaction, and WOM intentions. The results implied that consumers respond differently to different types of service recovery and that consumers particularly favor apology among types of service recovery.     

Rethinking value co-creation and loyalty in virtual travel communities: How and when they develop

For marketers of virtual travel communities (VTCs), a vital issue is to understand how to maintain consumer stickiness and loyalty. Although existing studies have tried to explore this issue, researchers have not given detailed and specific answers from the value co-creation theoretic lens. Therefore, the present paper aims to bridge this research gap by investigating the relationship among consumer trust in VTCs, consumer co-creation behaviors and their loyalty. The moderating impact of community service quality (CSQ) on loyalty is also explored. Data from a two-wave survey were collected from 214 active users in a Chinese VTC (Mafengwo) and then analyzed using the ordinary least squares (OLS) technique with STATA 13. Results indicated that (1) consumer trust positively impacts on two dimensions of value co-creation behavior, namely, breadth participation and depth participation. (2) Depth participation is more conducive to cultivating both attitudinal and behavioral loyalty, while breadth participation has an inverted U-shaped influence on behavioral loyalty. (3) CSQ positively moderates the relationship between depth participation and attitudinal loyalty. But after controlling for the effect of attitudinal loyalty on behavioral loyalty, this study found that CSQ negatively moderates the relationship between depth participation and behavioral loyalty. This paper developed a comprehensive framework involving antecedent and consequence of consumer co-creation behavior and showed the importance of CSQ as a key boundary condition, enriching the existing VTC and consumer loyalty research from the perspective of value co-creation and trust theory. Corresponding practical implications and limitations are also discussed.     

Consequences of Value in Retail Markets

We suggest that merchandise value, affect and two types of loyalty are related in the retail domain. Based on ideas from cognitive psychology on the structure of value we suggest that merchandise value is directly related to repurchase loyalty but indirectly related to attitudinal loyalty via the construct of store affect. Additionally, our model proposes that attitudinal loyalty is related to willingness to pay a price premium while repurchase loyalty is not. We also control for the effects of store familiarity and convenience. We test our hypotheses in three studies and find that, in general, our model is well supported at the level of both individual consumers and stores. Additionally, we find that perceived retailer differentiation moderates the effect of merchandise value on store affect.     

What drives retailer loyalty? A meta-analysis of the role of cognitive,affective, and social factors across five decades

Today's retailers face significant competition due to the proliferation of both retail formats and channels. It is crucial for retailers to understand how to develop a loyal customer base for competitive advantage. To this end, we conducted a meta-analysis of 1,908 effect sizes from 319 studies on retailer loyalty over the last 50 years, to examine the impact of cognitive, affective, and social retail experience on customer loyalty toward a retailer. Our analysis shows that affective experience became more important over time and had the highest impact on retailer loyalty, 24% more than that of social drivers and 50% more than cognitive drivers. Affective experience is particularly impactful online and for retailers of hedonic or low-involvement products. Social drivers increased significantly in impact over time too. Its effect was particularly strong on attitudinal loyalty, for studies with a higher proportion of females, and surprisingly, in utilitarian rather than hedonic retail contexts. Taken together, our findings suggest that traditional cognitive differentiators such as price and product assortment are no longer sufficient for maintaining customer loyalty to a retailer. Positive affective and/or social experience represent a more defensible path toward customer loyalty.     

Green cooperation in last-mile logistics and consumer loyalty: An empirical analysis of a theoretical framework

Based on the contingency, transaction, and trust theories, this paper explored how the green cooperation between supplier and customer in last-mile logistics contributes to consumers’ sustainable consumption behaviors and trust and transaction cost's contingency role. We collected survey data from 453 users of green shopping platforms in South Korea (e.g., Homepick and Smart Locker) and analyzed the data using structural equation modeling. The results suggest that green cooperation with companies positively affects consumers’ sustainable consumption behaviors and trust, and transaction costs negatively moderate such relationships. In addition, customer trust positively affects sustainable consumption behavior and loyalty. We also found that improved sustainable consumption behavior can form loyalty, but transaction cost decreases its positive impact. This paper evaluates the last-mile delivery through green cooperation and enriches the literature on contingency, transaction cost, and trust theories.     

How online trust evolves over time: The role of social perception

Using customer service scenarios in an online retail context, the current study examines how cognitive and affective trust develop over time and how service failure negatively impacts trust, along with the trust restoration opportunities provided by recovery. Study 1 findings reveal that the relationship between Web site social perception and affective trust is stronger for repeat visitors than for first-time visitors. Study 2 findings indicate that failure timing and recovery duration play important roles in service failure situations. Overall, the results demonstrate that consumer cognitive and affective trust develop through the number of interactions with a retail Web site over time and that increased Web site social perceptions facilitate the trust-building process.     

The effects of distributive,procedural, and interactional justice on customer retention: An empirical investigation in the mobile telecom industry in Tunisia

The framework offered in this study provides empirical evidence concerning the interaction between distributive, procedural and interactional perceived justice and loyalty program satisfaction on relational satisfaction in the mobile telecommunication context. Firms that rely on justice perception for strategy implementation are able to attain customer retention. This study suggests a theoretical model of customer retention that aims at investigating the role of satisfaction with loyalty program on relationship marketing. The structural equation modeling was used to test the hypothetical relationships. A self-administrated questionnaire was distributed to a total of a convenience sample of 520 customers of multiple mobile phone companies. The target population includes customers who have subscribed to a loyalty program. Results show that distributive justice moderates the relationship between satisfaction with the loyalty program and relational satisfaction. The results highlight the need to focus on distributive justice in order to nurture satisfaction and loyalty. Satisfaction with the loyalty program is a key predictor of a satisfactory relationship with the operator and customer retention.     

以公平性为源头的服务忠诚度及其驱动因素剖析

在当代竞争环境下,服务忠诚已成为服务组织面临的一个重要问题.服务管理和关系营销两大学派分别从交易过程和关系过程阐述了服务忠诚的决定因素,但仍有众多问题没有达成共识.我们把公平性作为外生变量引入进来,尝试把两大学派进行整合,以复合的观点考察服务忠诚.在此基础上,采用基于Lisrel统计分析软件的结构方程模型,综合分析了包括公平性、顾客信任、顾客感知价值、顾客满意等多个前置变量对服务忠诚度的影响,并建立了概念模型.实证研究的结果证实了该模型的合理性.     

In Advertising We Trust: Religiosity's Influence on Marketplace and Relational Trust

Trust is a critical component of marketing for both brands and consumers. Competing theories suggest that high-religiosity consumers could be either more or less trusting of marketing. Thus, this article explores religiosity's influence on broad marketplace trust that influences more specific relational trust in the context of advertising messages. Study 1 shows that marketplace and relational trust positively mediate the relationship between religiosity and product evaluations. Studies 2 and 3 test moderators to this relationship based on three dimensions of religiosity: affective, behavioral, and cognitive.     

A two-dimensional model of trust–value–loyalty in service relationships

The study examines the relationships between consumer trust (cognitive and affective), perceived value (utilitarian and hedonic), and loyalty behavioral intentions (repurchase and advocacy) in a two-dimensional (affect- and rational-based) consumer–service provider model. It provides an alternative theoretical representation of consumer behavior in service relationships and implications for service providers about consumers' loyalty intentions. A mail survey analyzed by SEM supports the model of loyalty as a function of consumers' expressive and instrumental responses resulting from intrinsic and extrinsic perceptions of trust and heuristic and rational-based perceived value. Implications for designing loyalty programs are explored and future research opportunities recommended.     

The impact of affective and cognitive app experiences on loyalty towards retailers

Although mobile applications (apps) are now widespread, to date few studies have considered the effects that app use has on loyalty towards the retailer. This study aims to explore the impact of affective and cognitive app experiences on loyalty towards retailers. A theoretical model, validated empirically with data from a survey using partial least squares structural equation modelling (PLS-SEM), is proposed. The results show the key role of affective experience and its impact on cognitive experience and that both dimensions positively influence the satisfaction and trust that users have in apps, which in turn has a positive effect on loyalty felt towards the retailer. These findings contribute towards improving the theoretical knowledge of the impact of apps on the retailer-customer relationship, and guide businesses in developing and implementing appropriate app-related strategies.     

Consumers' Trust in a Brand and the Link to Brand Loyalty

Brands are important in the consumer market. They are the interface between consumers and the company, and consumers may develop loyalty to brands. This study proposes that trust in a brand is important and is a key factor in the development of brand loyalty. Factors hypothesized to influence trust in a brand include a number of brand characteristics, company characteristics and consumer-brand characteristics. Respondents representing a broad spectrum of Singapore consumers were surveyed. The findings reveal that brand characteristics are relatively more important in their effects on a consumer's trust in a brand. The results also show that trust in a brand is positively related to brand loyalty. Marketers should, therefore, take careful consideration of brand factors in the development of trust in a brand.     

Consumer Innovativeness and Loyalty to Non-GMO Foods: The Role of Cognitive and Affective Beliefs

Public concern over genetically modified (GMO) foods has led marketers to promote non-GMO branded foods to consumers. However, factors affecting consumers’ loyalty to non-GMO branded foods are still largely unknown. Building on the product diffusion model, the present research predicts and finds that consumer innovativeness has a positive effect on consumer loyalty to non-GMO foods. In addition, the present research draws from previous research on attitude formation and tests whether cognitive and/or affective beliefs may mediate the relationship between consumer innovativeness and loyalty to non-GMO foods. The results of a parallel multiple mediation model suggest that cognitive, but not affective, beliefs fully mediate the effect of consumer innovativeness on loyalty to non-GMO foods. These results have direct implications for marketers of non-GMO foods and, in general, increase our understanding of the process by which consumer innovativeness may affect consumer loyalty.