What recovery options to offer for loyalty reward program members: Dollars vs. Miles?

Research shows that offering monetary compensation is effective in restoring customers’ equity perceptions following a service failure. However, little is known about loyalty reward program members’ responses to various types of recovery options. This study fills this important void by investigating two types of compensation: a discount coupon (in dollars) and bonus reward points (in miles) in the airline context. This study further investigates the boundary effect of controllability of a service failure. Our findings show that, when the flight delay is perceived as highly controllable by the airline company (i.e., scheduling error by flight crews, repatronage intention was higher in the 50-dollar discount vs. 2500 bonus miles condition. Conversely, repatronage intention did not differ between the two compensation options when the flight delay was perceived as uncontrollable i.e., inclement weather. Our findings help hospitality and tourism firms leverage service recovery initiatives for loyalty reward program members.     

Procedural justice,ethical climate and service outcomes in restaurants

The literature suggests that ethical climate may actually contribute to organizational success by enhancing employee performance. Ethical climate is considered to be highly relevant to the hospitality industry, since it enhances service-providers’ contact with customers. This study reinforces previous researches by exploring the relationships between ethical climate, service, and customer satisfaction in restaurants. We have also examined the relationship between ethical climate and the fair treatment of employees by an organization. The study was conducted in 20 restaurants, with 171 employees and 103 customers. Data were obtained from employees, customers, and “mystery shoppers”. As expected, ethical climate was found to be related to service performance which, in turn, was found to fully mediate the relationship of ethical climate with customer satisfaction. Ethical climate was also found to correlate positively with procedural justice. Our results indicate the benefits of the ethical message conveyed through consistent managerial practices in service organizations.     

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.     

Opportunistic customer complaining: Causes, consequences, and managerial alternatives

Should a hospitality firm yield to a customer complaint that is suspected [or even known] to be opportunistic? While the answer to this question varies based upon numerous factors, this conceptual article synthesizes multiple streams of empirical research to enumerate: (1) customer-centric, firm-centric [such as the influence of firm size], and relationship-centric determinants of opportunistic customer complaining; (2) means of detecting whether a complaint is opportunistic [such as through employee knowledge of operations]; and (3) potential consequences to the firm of yielding and not yielding to opportunistic complaints.     

The influences of transaction history and thank you statements in service recovery

A certain number of service failures are inevitable in the hotel business. In a scenario-based experiment, using an Internet-panel sample of 166 subjects, this study finds that: (1) those guests with a long transaction history are more satisfied with a recovery initiative and more willing to return than those with a short transaction history; (2) those guests who are thanked for voicing their complaints are more satisfied with the recovery initiative and more willing to return than those who do not receive a thank you statement; and (3) receiving a thank you statement while voicing a complaint might have a greater positive impact on the satisfaction of guests with short transaction histories than on guests with long transaction histories. The managerial and research implications of these findings are discussed.     

Promoting service-oriented organizational citizenship behaviors in hotels: The role of high-performance human resource practices and organizational social climates

Integrating social exchange and information processing theories, this study examines the influence of high-performance human resource (HR) practices on service-oriented organizational citizenship behavior (OCB) through two climates—justice climate and service climate. This field study of 1133 customer contact employees and 119 human resource managers from 119 hotels in Taiwan has shown that social climates of justice and service mediate the influence of high-performance HR practices on service-oriented OCB. The study demonstrates that high-performance HR practices affect employees’ cognition on how they are treated by hotels and what service behaviors are expected, which in turn can positively influence collective service-oriented OCB.     

Equity restoration,the Holocaust and tourism of sacred sites

Distressing events perpetrated against specific ethnic and religious groups frequently have implications that stretch well beyond the cessation of violent activities. Many times the victims and their descendants manifest their animosity in the realm of tourism and consumption related activity. This paper, utilizing netnographic data, examines the reactions of some global Jewish citizens in relation to tourism activity surrounding historic Holocaust sites located in Eastern Europe. Related to the emergent themes of equity restoration, controllability, and discounting, this research examines why many tourists decide to avoid tourism to historic heritage sites, leading to an examination of the link between physical location, remembrance and relational work. Additionally, data indicate some Jewish tourists may avoid travel because of the paucity of Jewish life in the areas surrounding sacred sites, thereby creating the perception that anti-Semitism is still present. Our research calls to question the value of visual and physical evidence in relation to maintaining identity and facilitating remembrance.     

The influence of self-construal and co-consumption others on consumer complaining behavior

Consumers show great individual variability in complaining behavior even after experiencing similar service failures. The present study examined the effect of self-construal and co-consumption others on consumer complaining behavior following a service failure. Based on an experimental study with a sample of 202 in a restaurant context, MANCOVA results revealed significant effects of self-construal on voice response and switching behavior. The results also showed a significant interaction effect of self-construal and the presence of co-consumption others on switching behavior. The findings shed light into the intrapersonal and interpersonal dynamics at work when consumers react to service failures. Theoretical and managerial implications of the findings are also discussed.     

The effects of high performance work systems in employees’ service-oriented OCB

The present research investigates the effects of “High Performance Work Systems (HPWS)” on employees’ “work engagement” and “service-oriented Organizational Citizenship Behavior (OCB)”, through the development of a social and justice climate. In doing so, “Partial Least Squares Structural Equation Modeling (PLS-SEM)” was applied based on a convenient sample of 448 customer-contact hotel employees across ten Greek hotel organizations. In summary, the study reveals first the valuable contribution of HPWS towards the development of a justice and service climate, which in turn influence positively employees’ work engagement. As a consequence, employees respond by exhibiting extra role behaviors and by engaging in service-oriented OCB. Overall, the findings clarify the mechanism behind the HPWS process, known as the “black-box”, a valuable knowledge for professionals practicing Human Resource Management (HRM).     

Effectiveness of recovery actions on deviant customer behavior—The moderating role of gender

This paper aims to examine how gender interacts with various recovery actions on perceived employee effort, complaint handling satisfaction, and behavioral intention in the case of deviant customer behavior in an East-Asian context. Study 1, a qualitative study, reveals that consumers expect companies to take appropriate remedial actions when a service consumption experience is affected by deviant customer behaviors (e.g., smoking in non designated area). Study 2 employed a 2 (gender) × 6(recovery actions) between subject design in a restaurant setting. Results show that confronting the deviant customer received the highest customer ratings in terms of perceived employee effort, complaint handling satisfaction, and behavioral intention. However, gender moderated the relative effectiveness of recovery actions. Relocating the focal customer was equally good as compensation for women while men were less appreciative of relocation than compensation. In sum, service providers are advised to initiate some form of recovery action in response to deviant customer behaviors.     

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.     

Hotel Guests' Cumulative Satisfaction Updating Process in the Context of Service Failure and Service Recovery

ABSTRACT

Consumers constantly revise their satisfaction judgments as they gain new service experience. While some researchers found that consumers weigh their prior cumulative experience more heavily than their most current individual service encounters when updating their cumulative overall satisfaction, others found the opposite result. Following the development of the literature, this study investigated customers' satisfaction updating process in the context of service failure and service recovery in the hotel industry. The results of the data analysis show that when updating overall satisfaction, participants weighed their current service encounter satisfaction more heavily than prior cumulative overall satisfaction, regardless of different levels of service failure and service recovery. The findings of this research also suggest that once customers experience service problems, it is difficult to bring customers' satisfaction level back to where it was.     

Voicing out or switching away? A psychological climate perspective on customers’ intentional responses to service failure

This research explores why customers who experience service failure are willing to complain directly to service providers but unlikely to switch to other service providers. We bring in the concept of psychological climate for communication safety (PCCS) to the service failure context and explore how customers’ perception of the social environment as open and supportive for communication affects their complaint and service switching intentions and behaviors. We further identify customer harmony enhancement as an important personality trait predictor of PCCS. Based on two field studies and one scenario-based experimental study, our findings consistently show that PCCS mediates the positive effect of customer harmony enhancement on customer complaint intentions. Customer harmony enhancement exerts a positive indirect effect on customer complaint behavior serially through PCCS and customer complaint intentions. However, our findings relating to customer service switching intentions are inconsistent across the three studies. Theoretical and practical implications are discussed.