Perceived controllability and service expectations: Influences on customer reactions following service failure

Endeavors to address issues surrounding service failure have centered mainly on the topic of service recovery. In particular, perceived fairness and organizational responses to service failures are highly popular topics in the literature. Yet the vast majority of customers fail to voice their dissatisfaction to the firm. Consequently, it is important to understand how consumers process service failures regardless of the recovery outcome. This study examines the impact of perceived controllability over service failures and service quality expectations on customer reactions to those failures. Findings indicate that customers react quite negatively when they believe the service firm could have easily prevented the failure. Conversely, when customers feel partly responsible for the failure or are ambiguous about its cause, the negative effects of poor performance are somewhat mitigated. Finally, high service quality expectations also buffer the firm from the negativity effect. Managerial implications of these findings are briefly discussed.     

The journey from customer participation in service failure to co-creation in service recovery

Customer participation is growing into a widespread phenomenon in the service context. Despite the inherent significance of customer expectations to service failures in the high-participation service context, scant research exists on studying the links among customer participation, customer expectation of service recovery, and service outcomes (e.g., word-of-mouth or WOM). Even more pressing is the lack of research on the type of service recovery that can countervail the inflated customer expectation of service recovery and restore service outcomes. This research demonstrates that high contribution of customers in the beginning of service provision procedure leads to high recovery expectations and low satisfaction. The results also support that co-created service recovery (CCS-R), as contrasted to firm and customer recoveries, has a greater positive effect on satisfaction. Further, the contrasting impacts of each service recovery type on positive and negative WOM are presented. An experiment was conducted using service failure and recovery scenarios. Regression analysis was used to test the hypotheses. The current research has some important implications for scholars and managers who wish to effectively recover failed high-participation service encounters.     

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.     

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.     

Self-diminishing effects of awe on consumer forgiveness in service encounters

Previous studies address consumers' emotions as an endogenous consequence of the service experience and assume that consumers base their decisions to forgive on the service situation's features; however, they rarely mention the role of the emotions that people might be experiencing, for reasons unrelated to the service failure itself. The current study thus considers a foundational but rarely examined human experience in business settings, awe, as well as its prosocial effect in service encounters. Incidental awe might alleviate the negative impacts of a service failure and enhance consumer forgiveness, through self-diminishment processes. Using four scenario-based experiments, referring to four types of service failures (outcome, process, controllable, and uncontrollable failures), this study tests for the positive effect of awe on consumers' inclination to forgive service failures and the mediating role of the small self in this effect. The present research thus enriches understanding of consumer forgiveness due to incidental emotions, which offers marketers some insights into how they might leverage methods that affect consumers' incidental emotions to encourage consumer forgiveness in service failures.     

Measuring experienced emotions during service recovery encounters: construction and assessment of the ESRE scale

The role of emotions is increasingly gaining attention as a central element in understanding customer evaluations of service failure and recovery experiences. Despite the importance of emotions for service organizations, however, empirical investigations of customers’ emotional response to service recovery encounters remain scarce. A reason for this has been the absence of a valid and reliable measurement instrument for analyzing and comparing the emotions associated with different recovery experiences. Addressing this issue, the current paper presents the development and validation of a new scale specifically designed to measure experienced emotions during service recovery encounters (ESRE). The results show that the ESRE scale is a valid and reliable instrument, which should be helpful for empirically studying the role of emotional responses to service failure and recovery encounters.

Group service recovery strategies effectiveness: The moderating effects of group size and relational distance

The extant service recovery literature focuses on consumers' responses to individual failures. However, group service failures are in fact common, but they have received insufficient research attention. This study contributes to theory and practice by applying social impact theory to explain the social nature of group failures. Findings from two studies show that group size and relational distance substantially affect consumers' response to group service recovery strategies. Specifically, private economic recovery creates less consumer satisfaction as group size increases, whereas consumers with a distant social relationship are more satisfied with public recovery for both economic recovery and social recovery. However, consumers with close relationships are more satisfied with public economic recovery and private social recovery. Apart from offering practical insights, this study expands the theoretical understanding of service failures, suggesting that they occur in a complex social ecology instead of relatively simple dyadic interactions between service providers and consumers.     

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.     

Active or avoidance coping? Influencing mechanisms of streamers' coping strategies on viewers’ word of mouth after livestreaming e-commerce failures

Livestreaming e-commerce, as an emerging form of e-retailing and livestreaming monetization, is developing rapidly throughout the world. In the realm of livestreaming e-commerce, streamers inevitably need to cope with potential failures. However, few existing studies have examined livestreaming e-commerce failures, making it difficult to understand what strategies streamers can utilize to cope with these failures and how different strategies influence viewers' word of mouth (WOM). Building on social exchange and attribution theories, this study proposes two types of coping strategies (active and avoidance coping) and establishes a moderated-mediation model to explore the differential impact mechanisms of these coping strategies on viewers' WOM. Based on two-wave time-lagged data collected among 251 consumers who had experienced livestreaming e-commerce failures, results of a PLS-SEM analysis show that active coping has an indirect positive impact on viewers' WOM, while avoidance coping has an indirect negative impact on viewers’ WOM, both of which are fully mediated by cognitive and affective trust. Livestreaming e-commerce failure severity weakens the indirect negative effect of avoidance coping on WOM via both cognitive and affective trust. These findings advance our understanding of service recovery mechanisms in the context of livestreaming e-commerce failures and indicate that streamers can utilize active coping to alleviate the negative impacts of livestreaming e-commerce failures and recover from the failures.     

The impact of culture on consumers’ perceptions of service recovery efforts

The increasing globalization of business provides a compelling reason for understanding the cultural context of consumer behavior. The research reported here examines the impact of culture on consumers’ perceptions of service recovery efforts. In particular, we studied in an experimental setting, across East-West cultures, the combined effects of explanation and compensation in shaping customers’ attributions and post-recovery perceptions in a medium contact service—a restaurant setting. Our findings show that the differential sensitivity of East Asian and American consumers to situational constraints influence their attributions for service failures, and thus moderate their satisfaction with service recovery process. More specifically, the results suggest that a causal explanation for service failure decreases the likelihood of US consumers falling prey to the fundamental attribution error. Conversely, among East Asians, an explanation had minimal influence in attributional processes. Finally, our results indicate that attributional processes influence customer perceptions of employee effort, which in turn is linked to post-recovery satisfaction.     

Distinguishing between the impact of social media public and private compliments on customers’ future service recovery expectations

We seek to explore whether customers’ levels of service recovery expectations differ across customers who, prior to the service failure, publicly complimented the firm on social media and customers who, in advance of the service failure, privately complimented the firm on social media. We explore these differences in terms of satisfaction with the service provider and willingness to go back to the service provider. We conduct an experiment to test the research hypotheses. Our study results show that customers who complimented the service provider publicly (relative to privately) on social media in advance of a service failure require a higher level of service recovery to be satisfied with the service provider and go back to the service provider. Further, these effects are partly moderated by customer loyalty and social media usage intensity.     

Examining the impact of service robot communication styles on customer intimacy following service failure

With the growing use of robots in the service industry, service failures have increased. This study applies the Communication Accommodation Theory to examine how robot employees' communication style can foster perceived intimacy, reducing customer anger and negative word-of-mouth. The study also tests if this relationship varies based on failure severity. Results show that an informal communication style significantly reduces negative word-of-mouth through intimacy, but only for low severity failures. These findings offer valuable insights for service providers using robots, emphasizing the need to adapt communication styles based on failure severity to effectively manage negative customer experiences.     

Does delaying service-failure resolution ever make sense?

Conventional wisdom suggests that service providers should respond to their failures as quickly as possible. Some research, however, points out that delaying resolutions may produce highly desirable results. The study here investigates these competing views by examining under which conditions an immediate or a delaying resolution produces more positive consumer responses in term of re-patronage and negative word-of-mouth intentions. Based on the concept of service separation, this research identifies an interaction effect between service separation (separated service, non-separated service) and response timing (immediate response, delaying response) on consumers' post-consumption intention. This research also finds that the relationship between service separation-response timing interaction and consumer response is mediated by consumers' negative emotions. This study contributes to refining our understanding of consumer psychology in service recovery. Practically, the studies also enable service providers to better allocate their resources to recover different types of services' failure.     

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.     

Scoring More After Service Failures: Why Do Customers Overclaim?

ABSTRACT

More and more customers attempt to claim what they can, rather than what they are offered by the service firm after service failures. The present article empirically investigates the role of situational characteristics in triggering the intention to overclaim through a mediating process of customer's cognitive and emotional responses to the service failure. The model goes beyond predicting the likelihood of overclaiming behavior and offers some insights related to the magnitude or the extent of such claims. The results indicate that cognitive and affective drivers of overclaiming behavior have different impacts on the magnitude or the extent of such claims.     

How small service failures drive customer defection: Introducing the concept of microfailures

Service that falls below customer expectations is framed as a service failure. While many researchers have investigated service failures, they have tended to focus on large service failures. This is likely because large failures are more noticeable by firms and more likely to prompt customer complaints than small failures. However, we argue that smaller service failures can cause as much damage as larger failures, and in some cases even more. We introduce the concept of service microfailures, which we define as instances when a customer’s expectations go unmet in some small way. While minor in isolation, repeated service microfailures that go unnoticed and unrecovered can compound in effect and drive customer defection. For this reason, we propose that service microfailures are a potentially much larger managerial problem than they may appear on the surface. In this article, we conceptualize microfailures as a distinct form of service failure and outline the mechanism through which they cause damage. We then develop a multifaceted approach through which managers can detect, repair, and prevent service microfailures.     

Consumer Reactions to Unethical Service Recovery

Ethical business practices have been widely prescribed, but why? Consumer’s views on unethical business practices have been studied, but possibly more important to marketers and researchers are consumer actions and reactions to unethical business practices and the businesses themselves. Do consumers react negatively, or in such a way as to "punish" the unethical business? If so, what is the nature and extent of the punishment? This research seeks answers to these questions by examining consumer reactions, such as complaining and switching, to instances of unethical business practices. Using equity theory, this research proposes that consumers should be willing to tolerate some unethical behavior as long as they feel their investments and outcomes remain proportionately equal. Consumers who perceive that their outcome/investment ratio is proportionately unequal to their comparison other will respond by switching or complaining. In this research consumers were exposed to two types of service failures with different levels of service recovery in vignettes. Costs incurred by the consumer during the service transaction were also manipulated in the vignettes. Significant differences were found for complaint behavior in the failure recovery vignettes tested. Specifically, voice complaint was higher in the high cost service encounters in both types of services tested. The recovery attempt used (ethical, unethical, or none) led to significance differences in the variables of complaint, voice complaint, satisfaction, and quality. Higher satisfaction and quality ratings were found for the ethical recovery attempt and higher intentions to use complaint and voice complaint in the unethical recovery attempts. One significant interaction between cost and recovery attempt was found. Intentions to use voice complaint were higher in the high cost situations of ethical and unethical recovery, while approaching equality at the no recovery attempt.     

The impact of service failure on brand credibility

Recent studies have examined the consequences of brand credibility, with the majority of works embedded in physical goods. Despite the growing attention service branding receives, little is known about how service failure and recovery efforts impact on brand credibility in service organisations. The purpose of this study is to examine how brand credibility is affected by service failure and an organisations recovery efforts. An online self-completion survey of airline consumers (n=875) was employed to test the relationships between the focal constructs. The results show that a service firm’s effective complaint handling positively impacts satisfaction with complaining, overall satisfaction and service brand credibility. The study also finds that the higher the perceived magnitude of failure, the more difficult it is to satisfy a customer. These results demonstrate that it is possible to maintain service brand credibility during a service failure, provided brand managers develop and implement effective complain handling procedures.