Exploration of lead factors affecting service recovery

This research attempts to explore the influence of empowerment on service recovery from the viewpoint of managers and also to probe into the possible differences in the adoption of service recovery strategies in different corporate cultures. Linear multivariate data analysis and nonlinear fuzzy neural network are combined to analyze data and verify the proposed hypotheses. Through the investigation into Chinese and Western food chain stores, it is shown that the more empowered employees will adopt more active failure recovery strategies; and tougher corporate cultures tend to have passive service recovery strategies, whereas minor corporate cultures tend to have active service recovery strategies. Customer relationship involvement reveals positive influences on the adoption of recovery strategies. The characteristic of this research is that, on the one hand, through the empirical conclusion of the nonlinear fuzzy neural network model, we not only measure the relationship among the variables more precisely, but also have less restrictive conditions. Also, according to organizational management factors, this research proposes and examines the influencing factors affecting service recovery strategies. It explores the responses to service recovery from the viewpoint of internal prevention in the organization, which is different from past research that focussed mostly upon consumers' views.     

Quality function deployment in failure recovery and prevention

This paper presents a strategic model for proactively recovering and preventing service failures; it employs an analytical hierarchy process (AHP) to measure the severity of failure categories and ultimately employs quality function deployment (QFD) to identify the execution order of proactive recovery and prevention strategies. Questionnaires on AHP and QFD were used to collect data. The results show that the three most important strategies, ‘Educational training of employees,’ ‘Managerial level professional expertise and leadership,’ and ‘Staff appraisal, reward, and punishment systems,’ are within the purview of human resources management. Human resource management plays a key role in service failure and recovery management. For individual failure categories, business managers can select those that are most severe and execute proactive recovery and failure prevention strategies. We propose a methodology for designing service recovery systems and that addresses the gap in academic research on proactive recovery and service failure prevention.     

Matching service failures and recovery options toward satisfaction

Service failures are inevitable in any service delivery process that establishes the need for a good service recovery. This study aims to investigate the relationships among service recovery variables to develop appropriate recovery options considering different levels of failure severity and satisfaction. Using a scenario-based survey approach and structural equation modeling, the results are failure severity negatively relates to satisfaction; recovery justices positively relates to satisfaction regardless of the level of failure severity; complaining behavior strengthens (weakens) the relationship between the failure severity (recovery justices) and satisfaction; and relationship quality is a stronger predictor of post-purchase behavioral intentions than satisfaction. A service recovery matrix is proposed to depict appropriate recovery options for different situations.     

基于服务利润链的物流服务补救策略

在物流行业竞争日益激烈的今天,服务质量已成为物流企业竞争的主要方面,持续的服务补救能使物流企业发现问题、改进缺点,进而使服务运作体系更加优化。从服务利润链的角度,将物流服务补救分为内部服务补救和外部服务补救,这样就形成了积极有效的物流服务补救策略。     

The Service Industries Journal: Its Ethos and Emphases

This study investigates the dynamics of customer affection and customer trust on customer loyalty intention after cases of service failure and recovery. The results demonstrate that after customers experience service failure and recovery, customer affection has a greater influence on customer trust but less in loyalty intention, whereas customer trust becomes more influential in loyalty intention in comparison to the time prior to a service failure. The findings suggest that the rebuilding of loyalty after a service failure and recovery relies primarily on the recovery of trust and that the key determinant of trust recovery is customer affection. Theoretical and managerial implications are also discussed.     

Service recovery expectation model – from the perspectives of consumers

This paper explores the influence of the major attributes of consumers, such as personality traits, gender, number of consumptions, and levels of involvement, on service recovery expectations. A combination of linear multivariate statistical analysis and nonlinear fuzzy neural network models is further used to analyse data and validate hypotheses. Consumers of middle-to-high-end Chinese restaurant chains are sampled as the interactions between these restaurants and consumers are frequent. The empirical research finds that old customers have lower expectations of service recovery than new ones and male consumers have lower expectations than female consumers. Extrovert-type consumers have lower expectations of service recovery than introvert-type consumers. There is a positive correlation between consumers' involvement and service recovery expectation. As this paper examines the expectations of service recovery from the perspectives of consumers, it aims to help companies use pre-processing of service recovery as a precautionary measure, rather than as a remedial measure as mostly seen. Different from the vast majority of literature that deals with the issue by focusing on western enterprises, this paper uses small-and-medium enterprises in Taiwan and constructs management implications accordingly.     

顾客应对倾向、服务失败程度与服务补救策略

服务补救是企业挽回顾客信心的关键,补救策略的效果与失败情境和顾客特质密切相关。本文以关键事件法和访谈法对过程补救策略进行划分,并与结果补救策略形成有效组合,通过实验法考察顾客应对倾向与服务失败程度对补救策略的影响。结果表明：结果补救策略与问题应对顾客之间存在匹配效应,且失败程度越高,匹配性越强;过程补救策略与情绪应对顾客之间的匹配效应在服务失败程度严重时得以体现。     

服务失误及服务补救理论研究进展综述

本文认为,大规模定制生产模式旨在以大批量生产的成本和速度向客户提供个性化的产品。具有柔性和快速响应能力是面向大规模定制制造系统的主要特点,它要求必须以信息集成技术、先进的制造技术和管理技术为支撑,实现制造系统模块化、动态组合的布局方式、柔性物流系统、动态响应的控制结构并减少生产准备工作。文章提出,大规模定制企业在构建物流系统时,要紧紧围绕用户需求这个中心,以产品生产企业为核心,通过对物流、信息流和资金流的控制,从原材料采购开始到最终将产品送达用户,将供应商、制造企业、分销商、零售商、第三方物流和最终用户连接成一个链状网络机构。     

Service failure and recovery in using technology-based self-service: effects on user attributions and satisfaction

This study examines service failure and recovery in using technology-based self-service (TBSS) systems to determine the effects of a variety of relevant factors on negative customer/user attributions to the service provider, to employees who try to help in recovery, and to the technology itself, as well as the effects on customer/user satisfaction with the failure/recovery experience. The findings show that immediate recovery of TBSS failures reduces negative attributions and increases customer/user satisfaction with the experience, as does a low-anxiety environment around the kiosk. Technology error (as opposed to user error) decreases user satisfaction. Employee assistance decreases negative attributions to the employee but increases negative attribution to the technology. Some interactions were found among the experimental factors that are also meaningful.     

From disconfirmation to switching: an empirical investigation of switching intentions after service failure and recovery

This research proposes and empirically tests a customer switching intentions model from a disconfirmation perspective in a service failure and recovery context. Specifically, the research examines how initial (discrepancy between service failure expectation and service performance) and recovery (discrepancy between recovery expectation and recovery performance) disconfirmations influence satisfaction when a service failure occurs and a recovery offer is given, and subsequently impact switching intentions. The results support the hypotheses that both initial and recovery disconfirmations influence switching intentions via satisfaction. In addition, switching costs directly influence switching intentions and also moderate the effect of satisfaction on switching intentions.     

Explaining consumer complaining behaviour in double deviation scenarios: the banking services

Research has shown that more than half of attempted recovery efforts only reinforce dissatisfaction, producing a ‘double deviation’ effect. Surprisingly, these double deviation effects have received little attention in marketing literature. The crucial question is what happens after these critical encounters, which behaviour or set of behaviours the customers are prone to follow and how customers' perceptions of the firm's recovery efforts influence these behaviours. For the analysis of choice of the type of response (no action, complaining, exit, and complaining and exit), we estimate ordered probit models. The results of our study show that the magnitude of service failure, recovery strategies, distributive and procedural justice, recovery-related emotions and satisfaction with service recovery have a significant effect on customers' choice of the type of response, the latter showing the highest impact. Implications from the findings are offered.     

Research on satisfaction recovery from service failure due to attitude defect and unfair price: A dynamic and longitudinal evaluation model based on customer win-back management

Customer win-back is a cognitive process of satisfaction changing from a low level to a high level with service recovery strategies as the stimulus. Because prior research tends to view service recovery strategies as a static antecedent, it is difficult to analyze and observe how the recovery strategies affect satisfaction and repurchase intention dynamically. Moreover, not enough attention has been directed to the relationship between reasons of customer loss and recovery strategies. This research conducted a field experiment involving a 2 × 2 between-subjects design (defects of service attitude and unfair price × tangible recovery and intangible recovery strategies). From a longitudinal and dynamic perspective, this study has produced the following key results: First, there are significant differences in satisfaction and purchase intention between the four groups categorized by specific reasons of customer loss. Second, recovery strategies may have non-linear effects on customer’s satisfaction. Lastly, based on the prospect theory and disappointment theory, we discuss important managerial implications of the function curves fitted between customer satisfactory (before customer loss and after implementation of customer winback strategy) and purchase intention.     

Assessing Service Quality in Korean Casual-Dining Restaurants Using DINESERV

ABSTRACT

This study aimed to validate the five dimensions of DINESERV and evaluate service quality of foreign-brand, casual dining restaurants in Korea using DINESERV. It was hypothesized that DINESERV is a valid instrument in the Korean culture, and service quality differs significantly based upon customers' characteristics and restaurants. The factor analysis indicated that (1) tangibles had three subdimensions, and (2) responsiveness had a substantial overlap with assurance. Restaurants in the chain displayed significantly different service qualities. Gender, average spending, and dining occasions significantly impacted the perceptions of service quality.     

The effects of harm directions and service recovery strategies on customer forgiveness and negative word-of-mouth intentions

This study aims to investigate the direction of harm and the role of service recovery strategies on customer positive (i.e., forgiveness) and negative (i.e., word-of-mouth) intentions. We found that customer intentions are stronger among those who are directly affected by the service failure than indirectly affected customers. Further, we assess the role of service recovery in customer intentions after the service failure. The study findings contribute to the development of theory on the “other customers” effect by comparing the consequences of service failure directed at the focal customer and other customers and provide solutions to practitioners to reduce this damaging effect.     

Hotel Service Recovery and Service Quality: Influences of Corporate Image and Generational Differences in the Relationship between Customer Satisfaction and Loyalty

ABSTRACT

As the number of tourists continues to grow globally, the hospitality industry players inevitably face more challenges. High competition among the competitors and the emergence of new technologies such as online booking platforms make the competition more intense among players in the hospitality sector. The quality of services provided is undoubtedly crucial to the success of the hotel. Hence, any service failure has to be addressed appropriately in order to maintain a high level of customer satisfaction and to keep the image of the hotel intact. It is therefore vital that service recovery programs are carefully planned to meet various types of service failures which may inevitably occur. In this study, questionnaires were distributed to customers who had experienced service failures. The aim was to investigate the influence of service quality and service recovery on satisfaction and, ultimately, the effect on customer loyalty. The research also tested the mediating effect of corporate image between the relationship of customer satisfaction and customer loyalty. The findings showed that both service recovery and service quality had a significant impact on customer satisfaction. Similarly, it was found that customer satisfaction induced customer loyalty towards the hotel operator. The result also showed that corporate image mediated partially between the relationship of customer satisfaction and customer loyalty.     

Three Criteria That Separate the Top Sellers from the Cellar Dwellers

Abstract

In the past, studies of the causes and consequences of service failures were generally conducted from the perspective of the consumers. Only a few of the studies were conducted through the perspective of management involvement. Furthermore, qualitative analysis tends to be extensively used in such studies, as well as CIT, case study or multivariate analysis. Therefore, this study is an attempt to use a non-linear fuzzy neural model as the method for empirical study. A survey has been conducted in the chain stores of Starbucks, La New and one vegetarian food store chain. They are industries with a high level of interaction with customers. A total of 104 respondents were samples. The results of this survey indicate that if we are to trace the unanimous reasoning of service defects, the factor of management involvement tends to be higher for employees exhibiting personality characteristics of external control rather than internal control. If the level of service defects becomes seriously high, a higher level of management involvement is necessary for employees exhibiting personality characteristics of external control rather than internal control. For employees exhibiting internal control in personality characteristics, a higher level of management involvement is required to make voluntary moves in pursuing remedial recovery strategy. For employees exhibiting external control in personality characteristics, a lower level of management involvement is required to make voluntary moves in pursuing remedial measures for compensational strategy. The pursuit of remedial recovery strategy may vary according to the situation of service defects. The level of management involvement positively correlates with customer relation strengths. The customer relation strengths positively correlate with the pursuit of remedial recovery strategy.     

Service Recovery,Justice Perception,and Forgiveness: The “Other Customers” Perspectives

ABSTRACT

While extant research has examined the effects of service recovery on customer attitude and behavior, little is known about whether customers react differently to the same recovery depending on whether they are victims or observers of a service failure. Adopting the “other customers” perspectives, this study used a quasiexperimental design using scenarios in a professional services context with 267 U.S. respondents recruited from Qualtrics national online panel. We found that when compensation is offered, victims will perceive a higher level of distributive justice than observers. However, the effects of service recovery on forgiveness intention is stronger among observers than victims.     

The distinctive agenda of service failure recovery in e-tailing: Criticality of logistical / non-logistical service failure typologies and e-tailing ethics

What is so different about executing service failure recovery in an online environment as in e-tailing?Answering this, the present research points out to the need of considering e-tailing's natural propensity to foster multiple avenues of service failures which are either logistical or non-logistical in nature. Furthermore, given the distant location of the product, e-tailer, and the buyer, e-tailing is posed with risks of ethical transgressions. Therefore, by contextualizing on an Indian e-tailing scenario, we explore how service failure recovery in this challenging setting could be shaped. Justice building failure mitigation strategies such as response speed and compensation emerge to improve recovery efforts, however, apology seems to not work well in establishing justice to drive service failure recovery. Interestingly, an e-tailer's watchfulness toward the strengthening of its online ethics synergistically redeems recovery satisfaction, customer forgiveness, and positive word-of-mouth for the grieving consumer. This synergy can further mitigate the adverse impacts of service failure severity on recovery outcomes. Yet, a consumer having faced a severe service failure instance can have reservations in spreading positive word-of-mouth despite forgiving. Lastly, when considering logistical vs. non-logistical service failure typologies, the synergistic influence of e-tailing ethics and justice over recovery satisfaction becomes very strong in the case of non-logistical service failures.     

Impact of actual service provider failure on the satisfaction with aggregator

The purpose of the paper is to investigate the impact of the failure caused by the actual service provider on consumer satisfaction with the aggregator firm, where the aggregator firm works as a bridge between the consumers and the actual service providers using technology, resources, information etc., thus reducing the information search cost, process-related costs, and quality risks for the consumers. We have applied retrospective experience sampling to collect data and used structural equation modeling to validate the conceptual model of the study. We found that people consider the actual service provider’s failure as the aggregator firm’s responsibility when the attributional factors (control and stability) are strong. Moreover, when consumers perceive that the aggregator firm is responsible, they will ask for less punishment of the actual service provider and more monetary compensation. Additionally, severity of the failure increases the consumer’s recovery expectations. However, the sense of power of the consumers leads to increasing expectations of punishment of actual service provider and decreasing expectations of monetary compensation. Lastly, the actual monetary compensation or actual punishment of the service provider leads to higher level of satisfaction for the consumers. We discussed the implications of the results in the light of relationship management and service recovery design of aggregator firms.     

Recovering service failure through resource integration

Customers and employees can co-create a resolution following a service failure through integrating their resources. Their activities and interactions during resource-integration shape the customers' service recovery experiences. Prior research overlooks resource integration between all involved actors in a co-created service recovery process. This research details the process with two empirical studies. Study 1 is a qualitative analysis of narratives of service recovery experiences; Study 2 is a quantitative assessment of scenario-based survey data. The results show that a favourable service recovery experience is resulted from integrating all involved actors' resources in a mutually beneficial manner. Three key resources are financial compensation, service skills including communication and timing. Our findings indicate that co-created service recovery fails in the absence of just one resource or mismatches in their integration. The combined studies reveal that customers use their justice perceptions to assess activities and interactions for resource integration in service recovery.