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.     

The effects of social justice and stigma-consciousness on gay customers' service recovery evaluation

This study examines how social justice and the stigma-consciousness level of gay customers influence their service recovery perceptions. The results, based on an experiment involving 379 gay respondents, indicate that distributive justice, procedural justice, and interactional justice significantly affect gay customers' service recovery evaluations (satisfaction) and post-complaint behavioral intentions (negative word-of-mouth and repatronage). Also, higher stigma-consciousness gay customers show more negative service recovery evaluations and behavioral intentions than those with lower stigma-consciousness. Service providers who are interested in attracting and maintaining gay customers should create awareness among their employees about stigma-consciousness.     

The Roles of Justice and Customer Satisfaction in Customer Retention: A Lesson from Service Recovery

Customers complain because they want to be treated fairly by the company when a service failure occurs. The role of perceived complaint justice and its relation to customer satisfaction has been discussed and researched. However, a static view is mostly adopted in previous literature. We argue that satisfaction is cumulative and both prior satisfaction and post-recovery satisfaction should be looked at in relation to complaint justice in the context of service recovery. This study attempts to fill the gap by investigating the mediating role of justice in the relationship between prior satisfaction and post-recovery satisfaction (both with the recovery and with the organization) and examining the mediating role of post-recovery satisfaction in the relationship between the dimensions of justice and customer retention. Hypotheses were tested using a sample of 200 customers that had service failure experience at Chinese restaurants in Hong Kong. Justice dimensions (distributive justice, procedural justice, and interactional justice) were found to fully mediate the relationship between prior satisfaction and satisfaction with recovery. All dimensions, except the interactional justice, were also found to be partial mediators in the relationship between prior satisfaction and post-recovery satisfaction with organization. Findings also revealed the mediating roles of two post-recovery satisfaction variables in transferring the justice dimensions into behavioral intention, with the two variables playing almost opposite roles. Discussion and recommendations are provided for future development and improvement in building long-term relationship with customers.     

负面事件修复策略对品牌资产的影响

近年来,类似于三聚氰胺毒奶粉的负面事件频发。负面事件发生后,如何修复它所造成的不利影响,成为企业关注的热点问题。本文将修复策略划分为情感性修复、信息性修复、纠正性修复三大类,基于公平理论,以品牌资产为因变量,构建概念模型,展开实证研究。研究结果发现情感性修复和信息性修复正向影响感知交互公平,信息性修复正向影响感知过程公平和感知交互公平,纠正性修复正向影响感知分配公平,交互公平和分配公平正向影响修复满意度,修复满意度正向影响品牌资产。     

How trust mediate the effects of perceived justice on loyalty: A study in the context of automotive recall in China

Service recovery studies have claimed fairness wisdom by investigating the influence of justice on shaping attitude and behavior in the service recovery process. Considering product recall as special service recovery, this inductive study presents a conceptual model connecting justice to loyalty through trust. By using structural equation modeling to analyze a survey of 469 consumers involved in automotive product recall in China, we examine inductively the effects of distributive, procedural, and interactional justice on the trust and loyalty of consumers in the recall process. Distributive and procedural justice positively affects cognitive trust, whereby interactional justice positively affects affective trust, and cognitive trust can exert positive impact on affective trust. Furthermore, we detect that both cognitive and affective bases of trust affect attitudinal loyalty, whereas affective trust merely affects attitudinal loyalty. The effects of attitudinal loyalty on behavioral loyalty are examined.     

Customer participation in service recovery: a meta-analysis

Research on customer participation in service recovery is surging, yet empirical examinations provide mixed results. A meta-analysis of 30 independent samples reported in 21 studies (N?=?7872) shows that the effect sizes for the relationships between customer participation in service recovery and customer outcomes are rather weak. We also find that customer participation in service recovery has an indirect effect on satisfaction with service recovery via distributive justice and procedural justice, but not via interactional justice. Conversely, customer participation in service recovery has an indirect effect on overall satisfaction via distributive justice and interactional justice, but not via procedural justice. Finally, the effectiveness of customer participation in service recovery is stronger when customers participate in the outcome of the recovery and for customers with an Eastern cultural background, but weaker when additional compensation is offered and in online settings.     

Customer-oriented boundary-spanning behaviors: Test of a social exchange model of antecedents

Using a sample of 281 frontline service employees of a national retail bank, we test a social exchange model of antecedents of three dimensions of customer-oriented boundary-spanning behaviors suggested by prior boundary-spanning and services marketing/management literatures: external representation, internal influence, and service delivery. In support of our hypotheses, we identify fully mediated relationships from procedural, interactional, and distributive justice to external representation and internal influence via job satisfaction and organizational commitment. Our results generally support our expectation that the indirect effects of procedural justice on external representation and internal influence are stronger than the indirect effects of distributive or interactional justice on these behaviors. Also, our results reveal no significant indirect effects of procedural and distributive justice on service delivery behaviors. However, we find an unexpected direct positive path from interactional justice to service delivery behaviors. We interpret this latter finding in light of the normative value of interactional justice as a source of role modeling or managerial legitimacy.     

Modeling customer perceptions of complaint handling over time: the effects of perceived justice on satisfaction and intent

This paper proposes a model of the effects of perceived justice on customer satisfaction and intent following a service or product failure and a recovery attempt. We tested the model using two field studies that captured customer perceptions over time, and the results largely support the model’s path estimates and explanatory power. Study One also supports the hypothesis that procedural and interactional justice are more influential in forming overall firm satisfaction than distributive justice. As hypothesized, satisfaction with recovery was a stronger predictor of the likelihood of spreading positive word-of-mouth (WOM intent) than overall firm satisfaction, and overall firm satisfaction was a stronger predictor of purchase intent than satisfaction with recovery. The results also suggest that satisfaction partially mediates the effects of justice on WOM intent and purchase intent. Finally, we draw on the findings of this study to offer implications for service recovery researchers and managers.     

The Effects of Airline Mergers on Consumers' Perceptions of Services and Behavioral Responses

Prior literature focuses on customer satisfaction in the airline industry, while research on consumers' perceptions and behavioral responses to airline mergers is limited and understudied. This paper conducts a field survey on the merger between United and Continental Airlines to examine the effects of an airline merger on passenger satisfaction, service value, and behavioral intentions through perceived service quality. Data were collected from airline passengers arriving at three US airports in two phases: before and after the merger across a period of four years. The results show a noticeable increase in customer satisfaction and positive behavioral responses with the postmerger United Airlines due to the perceived improvement in service quality. This study provides insights into the role of airline mergers in improving customer satisfaction, implications for airline managers, and directions for future research.     

Examining the casual relationship among service recovery,perceived justice,perceived risk,and customer value in the hotel industry

This study elucidates the causal relationships between service recovery, perceived justice, perceived risk, and customer value. Data were collected by questionnaires validated for reliability and validity. The findings were as follows: perceived justice is positively affected by service recovery, whereas perceived risk is negatively affected by perceived justice. Furthermore, perceived risk is directly and negatively affected by service recovery; perceived risk is also indirectly influenced by service recovery through perceived justice. Finally, customer value is affected by perceived risk. However, customer value is not directly related to perceived justice; customer value was found to be indirectly affected by perceived justice through perceived risk. Therefore, the path of this casual relationship is ‘service recovery, perceived justice, perceived risk then customer value’. Future studies may explore the influence of internal factors or dimensions of the forgoing variables on perceptions of customer value. In practice, hotel managers can refine the relevant service recovery approach and optimize financial investment to increase customer value.     

The antecedents of complaint behaviour for Brazilian and French consumers of services

Using a cross‐cultural approach, this study investigates customer satisfaction after a service failure and recovery experience, considering (i) the influence of perceived justice on satisfaction; (ii) the impact of satisfaction on consumer repurchasing and complaint intentions; (iii) the moderating role of the customer cultural orientation; and (iv) the relevance of contextual variables. Based on a survey of 298 consumers from Brazil and France, the results indicated that (i) distributive and interactional justice influenced satisfaction; (ii) satisfaction was a significant predictor of repurchase intentions; (iii) satisfaction influenced third‐party, private and voice responses; and (iv) the level of the customer relationship, the severity of the failure and the responsiveness of the firm were significant contextual variables. Moreover, the individual‐level analysis suggested that only power distance cultural orientation was a significant moderator.     

Perceived justice and post-recovery satisfaction in banking service failures: Do commitment types matter?

Based on the notion that the types of customer commitment to a service provider may have diverse reasons and effects on the customer’s perceptions, attitudes, and behaviors, this study aims to investigate the different buffering effects of calculative and affective commitments on the perceived justice and post-recovery satisfaction (PRS) relationship. Multiple and hierarchical regression analyses were conducted based on survey data collected from 284 households who experienced service failure in the banking sector. Results revealed that while affective commitment moderates the effects of procedural and interactional justice, calculative commitment increases the impact of distributive and procedural justice on PRS.     

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.     

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 Mediating Role of Postrecovery Satisfaction in the Relationship between Justice Perceptions and Customer Attitudes

ABSTRACT

The present study advances the literature by examining the meditating roles of postrecovery satisfaction in the relationships between distributive and interactional justices, and postrecovery attitudes. The model is empirically tested using survey data collected from 600 telecommunications service customers; and analyzed using partial least squares technique. Results indicate that postrecovery satisfaction partially mediates the perceptions of justice in the recovery process and service quality as well as repurchase intention. It is the first study to examine postrecovery satisfaction as a mediator in understanding the impact of recovery justice (antecedent) on service quality (consequence) in the telecommunications service context.     

Please explain why it happened! How perceived justice and customer involvement affect post co-recovery evaluations: A study of Iranian online shoppers

As online shopping is growing, the probability of service failure is increasing, too. Therefore, online retailers need to employ particular recovery strategies in online setting. Online shopping relies more on information and communication rather than traditional shopping. In addition, involving consumers in co-recovery procedure triggers them to perceive post-recovery satisfaction higher than usual, hence, resulting enhancement behavioral intentions (i.e. positive word-of-mouth, repurchase intention, loyalty, intention to future co-creation). While recent researches in online shopping did not examine the impact of informational justice and co-recovery, this study aims to investigate the influence of four justice dimensions (e.g. distributive, procedural, interactional and informational) by mediating role on involvement on post-recovery satisfaction. Thus, a scenario-based, between-subjects experiment was performed to reduce extreme memories and biases of the subject matter. A sample of 278 Iranian online shoppers from two shopping websites (i.e. Digikala and Bamilo) was employed to analyze data. Covariance-Based Structural Equation Modeling (CB-SEM) was employed to analyze data. First, the measurement model was performed to check validity and reliability of the constructs involved in the conceptual framework. Then, proposed hypotheses were tested using structural model. Results show that justice dimensions are positively associated with post-recovery satisfaction. Also, it is confirmed that involvement is mediator between justice dimensions and satisfaction, which means customers participation in recovery procedure is necessary in online post-recovery assessment. These findings also suggest that informational justice should be consider as a crucial factor in online shopping, particularly online recovery. Results suggest that managers should be generous to share information with customers and explain them what is the reason of failure, in detail. Finally, post-recovery satisfaction is positively related to behavioral intentions such as positive word of mouth, loyalty; repurchase intention and future co-creation tendency.     

Job Satisfaction: Linking Perceived Organizational Support,Organizational Justice with Work Outcomes in China

This study develops and tests a full mediation model that examines the mediating role of job satisfaction in the Chinese context, based on a survey of 424 employees in three small and medium sized enterprises. Data analysis shows a good fit with the full mediation and all four classes of antecedents (i.e., perceived organizational support, procedural, distributive, and interactional justice). Particularly, procedural justice contributes to the prediction of satisfaction. Job satisfaction is also shown to mediate most antecedentconsequence relationships, except the two between perceived organizational support (POS)—turnover and procedural justice—consequences. Furthermore, there are only four direct links, including POS to citizenship behaviors directed at individuals, distributive justice to turnover intention, interactional justice to citizenship behaviors directed at organizations and turnover. These direct links suggest that job satisfaction does not fully mediate the relationships.     

Behavioural responses to service encounter involving failure and recovery: the influence of contextual factors

This study investigates two features of customer satisfaction within the context of service failure and recovery: (i) the effect of perceived justice on customer satisfaction and (ii) the effect of customer satisfaction on repurchase intentions, negative word-of-mouth, and intention to complain. The study takes into account the influence of important contextual factors, including severity of failure, recovery responsiveness, attitude toward complaining, switching cost, and the relationship level. Based on a survey of 556 customers with complaints in Brazil, the results supported the influence of perceived justice on satisfaction and of satisfaction on behavioural responses. Specifically, findings revealed that perceived failure severity, attitude toward complaining, and switching costs were the more relevant contextual factors, as these were significantly associated with satisfaction, intention to complain, and negative word-of-mouth.     

Unravelling the impact of psychological empowerment on customer service behaviours as a consequence of ‘Leader-Member Exchange’

This study aims to investigate the cognitive process by which perceived organizational justice and leader–member exchange (LMX) are channelized into role-prescribed and extra-role customer service behaviours. It proposes the mediating role of three forms of psychological empowerment (goal internalization, perceived competence, and perceived control) in the predictor–outcome relationship, and examines this relationship from a comparative view of the role-prescribed and extra-role behaviours. Valid and reliable self-report and supervisory evaluation measures were administered to 282 nurses in Korea. The results indicate that LMX had a significantly greater effect on extra-role behaviours than on role-prescribed behaviours, and that perceived control mediated the relationship between LMX and extra-role behaviours. In terms of justice perceptions, there was no significant comparative effect on customer service behaviours. Furthermore, perceived competence mediated the relationship only between distributive justice and role-prescribed behaviours.     

Impact of organizational justice on customer satisfaction in the hospitality industry of Pakistan: The moderating role of uncertainty avoidance

This study investigates the impact of distributive justice, procedural justice, interactional justice, and informational justice on customer satisfaction in the hospitality industry of Pakistan, also the study investigates the moderating role of uncertainty avoidance on all relationships. Data were collected from 309 consumers from all provinces of Pakistan. A significant positive impact of dimensions of organizational justice on customer satisfaction is found; however, contrary to expectations, no moderating role of uncertainty avoidance is proved for any of the relationships. At the end of the article, the results of the study are discussed. This study shows potential implications for service providers.