Effects of compensation for service recovery: From the equity theory perspective

Using equity theory, this study investigated the importance of consumers’ entire history of shared interactions with service organizations, in addition to fairness perceptions, when evaluating recovery efforts following service failure. Specifically, this study empirically tested the different consequences of compensation by manipulating the consumer relationship level. The relationship level determines the perspective of equity (transactional equity perception versus cumulative equity perception) and motivates consumers to follow different psychological processes to redress service failure. An online survey using hypothetical scenarios manipulating recovery efforts and relationship level conditions was conducted to collect data. Mediation tests showed that perceived equity fully mediates the effect of compensation on a consumer's future behavioral intentions. The results of analysis of variance (ANOVA) showed that when additional compensation is offered after a service failure, perceived equity was found to increase regardless of the consumer's relationship level. However, enhanced equity perception does not automatically mean that corresponding future behavioral intentions are also enhanced. When consumers have a high customer–organization relationship, there is no difference in behavioral intentions between those who are compensated and those who are not. Managerial implications for restaurant operations are also discussed.     

Perceptions of Chinese restaurants in the U.S.: What affects customer satisfaction and behavioral intentions?

This study investigates American customers’ perceptions of Chinese restaurants in the U.S., using the Importance–Performance Analysis (IPA) approach. This study also examines which attributes of Chinese restaurants influence American customers’ satisfaction and behavioral intentions. The IPA shows that environmental cleanliness and attentive service are two important areas where Chinese restaurateurs can make improvements. In addition, food taste and service reliability appear to be key attributes for Chinese restaurants’ success. Overall, this study indicates that food quality, service reliability and environmental cleanliness are three pivotal attributes to create satisfied customers and positive post-dining behavioral intentions. Chinese restaurant managers should reasonably allocate their limited resources to restaurant attributes based on their contributions to customer satisfaction and behavioral intentions.     

Applying loss aversion to assess the effect of customers’ asymmetric responses to service quality on post-dining behavioral intentions: An empirical survey in the restaurant sector

Using the loss aversion concept, this paper attempts to investigate the relationship between service quality and customers’ post-dining behavioral intentions in the restaurant sector. Incorporating the DINESERV instrument, the results gained from a Chinese chain restaurant indicate that a decrease in service quality from the reference point (customer's expectation) will decrease the perceived service value and customer satisfaction, but that an increase in service quality may not have significant effects on these two behavioral constructs. Moreover, the behavior-related causal relationships underlying service quality suggest that perceived service value and attitudinal loyalty succeed in acting as mediating variables within the model.     

The relationships among overall quick-casual restaurant image,perceived value,customer satisfaction,and behavioral intentions

The purpose of this research is to explain the relationships among overall quick-casual restaurant image, perceived value, customer satisfaction, and behavioral intentions in the quick-casual restaurant industry. The findings indicate that overall quick-casual restaurant image significantly influences perceived value, and overall quick-casual restaurant image and perceived value had a significant role in influencing customer satisfaction. Additionally, overall quick-casual restaurant image, perceived value, and customer satisfaction are significant predictors of customers’ behavioral intentions. Finally, customer satisfaction can act as a partial mediator in the relationship between overall quick-casual restaurant image/perceived value and behavioral intentions. Furthermore, we discuss the theoretical and managerial implications of the findings and future research ideas.     

The effects of dining atmospherics: An extended Mehrabian–Russell model

This study examined the relationships among dining atmospherics, emotional responses, perceived value, and behavioral intentions, using Chinese restaurants as its research setting. Results of the study revealed that dining atmospherics had significant effects on customers’ positive emotions, negative emotions, and perceived value. Further, both positive and negative emotions and perceived value also influenced customers’ post-dining behavioral intentions. Perceived value not only functioned as the greatest contributor to behavioral intentions but also mediated the relationship between emotional responses and behavioral intentions. Positive emotions and negative emotions had asymmetric effects on perceived value. Positive emotions showed a stronger capability in predicting perceived value. Chinese restaurant managers must utilize the effects of restaurant atmospherics to improve customers’ perceived value of the restaurant and their revisit intentions. Other practical implications are discussed as well.     

Customers’ cognitive,emotional, and actionable response to the servicescape: A test of the moderating effect of the restaurant type

This article explores the psychological processes by which the servicescape influences perceived service quality, pleasure-feeling, situational factor, and revisit intention. Drawing on Bitner's framework of environmental perception, the following questions are hypothesized: (1) Will the servicescape have a significant effect on customers’ perceived service quality and pleasure-feeling? (2) Do customers’ perceived service quality and pleasure-feeling positively influence revisit intention? (3) Does the situational factor, namely, the theme restaurant type have a moderation role among perceived service quality, pleasure-feeling, and revisit intention? The results emphasize that theme restaurant managers should seek an understanding of customers’ perception process in relation to emotion and cognition.     

Why do customers switch? More satiated or less satisfied

This study investigated whether restaurant customers switch to other restaurants due to satiation or diminished satisfaction. To achieve its objectives, this study extended well-known relationships among perceived quality, satisfaction, and behavioral intentions by including satiation and further examined the role of satiation on switching intentions. The results of this study showed that satiation was negatively associated with satisfaction but differed from diminished satisfaction. Further, the study results endorsed that satiation significantly influenced switching intentions, whereas satisfaction did not. This supports that customers switch to other restaurants not because they are less satisfied but because they are satiated. Regarding the relationship between perceived quality and satiation, service quality and food quality considerably reduced satiation levels, whereas physical surroundings were associated with an increase in satiation. In addition, satiation fully mediated the relationship between perceived quality and switching intentions, which emphasizes the importance of satiation in customer switching intentions. Findings and implications are provided in the main body of this paper.     

The impact of the servicescape on the desire to stay in convention and exhibition centers: The case of Macao

This study examines the important role of the servicescape in relation to customers’ cognitive (beliefs about servicescape quality), affective (affect and satisfaction) and behavioral responses (desire to stay) in the context of convention and exhibition centers in Macao. Unlike previous servicescape studies, we include two personal customer characteristics, namely perceived sacrifice and value-for-money considerations, as potential moderators of the relationship between customers’ satisfaction and the desire to stay. Overall, our results suggest that servicescape elements positively influence customers’ perceived quality of the service, their affect, customer satisfaction and desire to stay. Furthermore, this study reveals that value-for-money considerations enhance the positive impact customer satisfaction has on customers’ desire to stay in convention centers and that customers’ perceived level of sacrifice has a direct effect on their desire to stay. Theoretical and managerial implications are also presented.     

Error management at different organizational levels - Frontline, manager, and company

The influence of service recovery efforts in the form of apology (error management) at three organizational levels - frontline, manager, and company - on consumer satisfaction and behavioral intentions was examined with a 2 × 2 × 2 experimental study. Results support the main effects of all three apology levels on consumer satisfaction with the service exchange (recovery) process. The results also indicate that frontline apology has greater influence on consumers’ satisfaction when a manager's apology is also present. Moreover, the study identifies perceived control and fairness as mediators of the relationships between apology levels and consumer satisfaction indicating potential theoretical and managerial implications.     

Perceived values,satisfaction, and behavioral intentions: The role of familiarity in Korean restaurants

This study examined American customers’ perceptions of values regarding dining experiences in Korean restaurants in the United States. Specifically, the effects of hedonic and utilitarian values on customer satisfaction and behavioral intentions were investigated. This study also examined the moderating effect of familiarity with Korean restaurants on the relationships among perceived values, satisfaction, and behavioral intentions. Overall, the results indicated that American customers valued the utilitarian aspects of Korean restaurants more than the hedonic aspects. Additionally, utilitarian aspects had a stronger impact on customer satisfaction and behavioral intentions than hedonic aspects. However, when considering customers’ familiarity level with the restaurants, hedonic aspects more effectively induced positive behavioral intentions in the low familiarity group, proving that familiarity has a moderating role. Conversely, utilitarian aspects appeared to be more influential in terms of the behavioral intentions of the high familiarity group. Theoretical and practical implications are also discussed.     

Determinants of dining satisfaction and post-dining behavioral intentions

The purpose of this research is to empirically investigate the determinants and consequences of dining satisfaction with restaurant services. A total of 338 undergraduate business students participated in this research. Results reveal that there exist three sources of customers’ satisfaction with restaurant services: positive emotions, perceived service quality and negative emotions. Positive emotions have more impact on customers’ satisfaction than negative emotions. In addition, emotions mediate the impact of perceived service quality on dining satisfaction. Finally, satisfaction has a significant impact on recommendation, customer loyalty and willingness to pay more.     

The effects of nonverbal communication of employees in the family restaurant upon customers’ emotional responses and customer satisfaction

The purpose of this study was to understand interrelationships among customers’ perception of nonverbal communication, customers’ emotional responses and customer satisfaction in the family restaurant. A total of 333 customers in Korea participated. The results showed that employees’ kinesics and proxemics among nonverbal communications have a significant effect on customers’ positive emotions, while employees’ kinesics and paralanguage affect customers’ negative emotions. Also, it was found that whether customers feel positive or negative determines their satisfaction. Limitations and future research directions are also discussed.     

Consumer values among restaurant customers

The research presented in this article focuses on consumer values in restaurant meal experiences from the restaurant customers’ points of view. Based on a set of data, the purpose is to evaluate the customers’ perceived consumer values in restaurant meal experiences and to compare the results with other studies on consumer values and service quality and with studies of meal experiences. A modified grounded theory approach has been followed. The empirical data are based on seven semi-structured interviews of experienced restaurant customers in two cities in Norway. A conceptual model illustrates the coding process that shows the connection between the different categories. The data analysis produces different categories of consumer-specific values on three levels of integration. The lowest level includes 29 consumer values that are integrated into 13 specified values. On the highest level, five value categories of consumer-oriented values are specified. These are excellence, harmony, emotional stimulation, acknowledgement, and circumstance value, of which harmony is the most emphasised value among the restaurant customers.     

The impact of advertising on patrons’ emotional responses,perceived value,and behavioral intentions in the chain restaurant industry: The moderating role of advertising-induced arousal

The purpose of this study was twofold: to investigate the structural relationships between patrons’ emotional responses induced by advertising, their perceived value, and their behavioral intentions in the chain restaurant industry; and to investigate which attributes of advertising bear the strongest impact on behavioral intentions. Based on the literature review, six evaluative dimensions of advertising were derived: relevant news, brand reinforcement, stimulation, empathy, familiarity, and confusion. Theoretical relationships between these six evaluative dimensions and patrons’ emotional responses, perceived value, and behavioral intentions were derived based on the literature review. Following the collection and analysis of data obtained from chain restaurant patrons, it was found that four dimensions of advertising in particular (relevant news, stimulation, empathy, and familiarity) have a significant impact on inducing emotional responses in patrons. Among the four dimensions, stimulation was found to bear the most significant effect on patrons’ emotional responses. It can thus be stated that advertising-induced emotional responses positively influence patrons’ perceived value. During this study, it was found that the level of arousal induced by advertising plays a moderating function in the relationship between patrons’ emotional responses and hedonic value. The possible interpretations of these findings and their managerial implications are discussed in the latter part of this article.     

The effects of brand relationship quality on responses to service failure of hotel consumers

This article examines the applicability of Fournier's (1998) Brand Relationship Quality (BRQ) framework in the hotel industry, and also investigates the effects of BRQ on hotel consumers’ behavioral intentions, after service failures in high-class hotels. The empirical results show that BRQ is applicable to the hotel industry and has a moderating effect on consumers’ post-failure emotions, particularly in terms of influencing future behavioral intentions. However, this finding is not applicable when the service failures are severe.     

The effects of interactional fairness on satisfaction and behavioral intentions: Mature versus non-mature customers

Given the growing number of mature people, mature consumer behavior has become an increasingly important area of interest to marketers. This article focuses on the effects of interactional form of service fairness to mature customers as compared to non-mature in the U.S. restaurant industry. Following a two-step approach, this study investigates how age differences moderate the relationships between interactional fairness and satisfaction/behavioral intentions. This research stresses the mediating role of satisfaction between interactional fairness and future behavioral outcomes. The findings have important implications for the successful management of customer relationships in a restaurant setting. Limitations and future research directions are also discussed.     

Event Quality,Perceived Value,Destination Image,and Behavioral Intention of Sports Events: The Case of the IAAF World Championship,Daegu, 2011

This study proposes a conceptual model to investigate visitors' perceptions of an event's quality according to value and the destination image, and visitors' resulting behavioral intentions in the context of a mega-sports event. This study also examines whether or not perceived value and destination image determine visitors' future behavioral intentions. Using structural equation modeling analysis, this study determines that an event's quality and its perceived value have a significant effect on behavioral intentions. Moreover, perceived value exerted a direct influence on behavioral intentions, and destination image determined visitors' perceptions of value. However, the impact of destination image had an insignificant effect on behavioral intentions. The implications have merit for academic researchers and sports event organizers.     

Customer complaints in restaurants: Do they differ by service stages and loyalty levels?

Complaints by dissatisfied customers provide managers with an opportunity to learn about problems and take appropriate corrective action to ensure that mistakes do not recur. The authors investigate whether restaurant consumers respond differently to service failures at different service stages and loyalty levels. A survey of 289 customers in the United States found that customers are likely to complain at any service stage following a service failure. Highly loyal customers showed a significantly higher willingness to complain than less loyal customers when a service failure occurs during the greeting/seating and order taking/delivery stages (service stages 1 and 2). Four consumer groups with distinct willingness to complain and levels of loyalty emerged from this study: “silent potential,” “pure complainer,” “silent supporter,” and “loyal voicers.” Among those groups, the silent supporter group (high affective loyalty and low propensity to complain) showed the highest behavioral intentions, whereas the pure complainer group (low affective loyalty and high propensity to complain) showed the lowest behavioral intentions.     

Service in the restaurant industry: an American and Irish comparison of service failures and recovery strategies

The literature on service failure and recovery has to date tended to focus on American experiences or on single nation studies. As large numbers of service firms continue to seek opportunities in foreign markets, more effort needs to be directed at assessing cross-national similarities and differences so that appropriate strategies can be developed. This study compares the effects of failure and recovery strategies in the restaurant sector of two countries with very different dining traditions—the United States and Ireland. Analysis of over 700 personal interviews with restaurant customers shows that there is much commonality with regard to service failures but significant differences in recovery efforts. Especially noteworthy, however is that American customers are much more likely to expect such measures. In both countries, overcompensation methods do not appear to influence customer repeat patronage intentions, nor do they have significant influence on the rating of recovery effort. This last finding suggests that restaurants could and should use less expensive recovery methods.