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 |
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Authors: | Xiaofei Tang Jianmin Jia Tingrui Zhou Hongjuan Yin |
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Affiliation: | 1. School of Business Administration, Southwestern University of Finance and Economics, Chengdu 610074, China; 2. School of Economics and Management, Southwest Jiaotong University, Chengdu 610031, China School of Business Administration, The Chinese University of Hong Kong, Hong Kong, China; 3. School of Business, Renmin University of China, Beijing 100872, China; 4. College of Economics and Management, China Jiliang University, Hangzhou 310018, China |
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Abstract: | 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. |
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Keywords: | win-back management service attitude unfair price satisfaction recovery |
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