• Title/Summary/Keyword: Consumer failure

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The Effects of Service Failure Magnitude on Perceived Justice, Positive Emotion, and Revisit Intention in Restaurants -A Comparison of Korean and American Customer Perceptions- (레스토랑에서의 서비스 실패 정도가 회복 공정성, 긍정 감정, 재방문 의도에 미치는 영향 -한국 고객과 미국 고객 비교를 중심으로-)

  • Yi, Na-Young
    • The Korean Journal of Food And Nutrition
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    • v.24 no.3
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    • pp.329-339
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    • 2011
  • The purpose of this study was to compare the effects of service failure magnitude on perceived justice, positive emotion, and revisit intention at restaurants between a collectivist culture(Korea) and an individualistic culture(United States). The results showed that the higher a customer's perception of service failure magnitude, the lower the perceived recovery justices in both cultures. The distributive, procedural, and interactional justices had a favorable effect on positive emotions in both cultures. Other findings revealed that interactional justice was the best predictor of revisit intention in Korea, while distributive justice was the best determinant of revisit intention in the United States. This research suggests that global restaurant managers need to understand how cultural orientation influences consumer perceptions of service failures in order to develop a highly targeted and effective service recovery.

Design of Bayesian Zero-Failure Reliability Demonstration Test and Its Application (베이지안 신뢰성입증시험 설계와 활용)

  • Kwon, Young Il
    • Journal of Applied Reliability
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    • v.13 no.1
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    • pp.1-10
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    • 2013
  • A Bayesian zero-failure reliability demonstration test method for products with exponential lifetime distribution is presented. Beta prior distribution for reliability of a product is used to design the Bayesian test plan and selecting a prior distribution using a prior test information is discussed. A test procedure with zero-failure acceptance criterion is developed that guarantees specified reliability of a product with given confidence level. An example is provided to illustrate the use of the developed Bayesian reliability demonstration test method.

Cost Analysis Model for Minimal Repair in Free-Replacement Policy (무상수리 정책에서 응급수리 적용의 비용분석 모델)

  • 김재중;김원중
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.20 no.43
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    • pp.241-247
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    • 1997
  • This paper is concerned with cost analysis model in free-replacement policy. The free-replacement policy with minimal repair is considered as follows; in a manufacturer's view point operating unit is periodically replaced, if a failure occurs between minimal repair and periodic maintenance time, unit is remained in a failure condition. Also unit undergoes minimal repair at failures in minimal-repair interval. Then total expected cost is calculated according to the parameter of failure distribution in a view of consumer's. The expected costs are included repair cost and usage cost: operating, fixed, minimal repair and loss cost. Numerical example is shown in which failure time of item has weibull distribution.

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A Study of the Trait of Leadership Failure Using Failure Knowledge (실패지식을 활용한 리더십 실패 특성 도출에 관한 연구)

  • Shim, Hyung-Seok;Hong, Sun-Gwan
    • Knowledge Management Research
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    • v.15 no.3
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    • pp.1-12
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    • 2014
  • It is tried to draw the failure traits of leadership by extracting leadership parts from previous failure studies and including some parts which mention failure leadership among leadership-related books. All of 5 patterns are drawn through total 13 types of study data. From 'insensitive to change' and authoritarianism which is mentioned 8 times in such 13 studies, to 'interpersonal problem', which is mentioned five times, traits which are mentioned at least five times are selected. There are drawn 5 traits including ${\Delta}$ authoritarianism ${\Delta}insensitive$ to change ${\Delta}lack$ of executive ability ${\Delta}populism$ and ${\Delta}interpersonal$ problem. As being examined in these 5 types of failure traits, the failure of leadership is ultimately happened because of communication heading for the inside without any communication(exchange) to the outside. That is, it is understood that authoritarian leaders don't perceive change correctly but make a wrong communication (populism) or break down communication. Additionally, the executive ability is to perform actually one's idea and to be achieved through incessant communication with members. Compared with other various studies to draw failure factors, these leadership traits have something in common. In the previous researches conducted the study of general failure factors, ${\Delta}adherence$ to preexisting business and resistance to change ${\Delta}unfeasible$ expansion strategy ${\Delta}blind$ faith in successful technology and innovation and ${\Delta}insufficiency$ to grasp competitor(consumer) are pointed out as the failure factors. It is deemed that these are happened because organizational management is headed for the inside without any communication (exchange) to the external environments. Matters unfolded through this paper until now are an attempt to apply the failure knowledge to a leadership part which is an individual field in business administration. It is considered that this study will be complemented through additional case study or quantitative analysis in the future.

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A Case Study on the Failure of New Product Development on Consumer Acceptance of Innovative Products (소비자의 혁신제품수용에 대한 신제품개발 실패 사례 연구)

  • Kyeongsik Yoo;Heungsik Kang;In Sue Kim;Taekeun Kim
    • Industry Promotion Research
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    • v.9 no.1
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    • pp.65-79
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    • 2024
  • This study analyzed the failure cases of new products for relative benefits among various factors related to the characteristics of innovation, which is an important factor in the consumer persuasion process among Rogers (1995)'s innovation diffusion theory. This is because relative profits are the most influential factor in consumers' intention to adopt among the characteristics of various innovative products (Holak and Lenmann, 1990). As a result of analyzing the failure cases of new products of six companies, these products lacked relative profits for existing products in common. Relative profits are factors that are measured in the economic sense or are measured by social advantages, convenience, and satisfaction, and are the most important factors compared to other factors such as suitability, complexity, observability, and applicability. In the end, it was found that relative profits compared to existing products are an important success factor in persuading consumers of new products.

Haw Clothing Stores Response to Customer Complaints Affects Future Purchase Intention (유형별 의류 점포의 소비자 불평처리 만족도에 따른 반복 구매 의도)

  • Park Kun-Hee;Hwang Choon-Sup
    • The Research Journal of the Costume Culture
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    • v.13 no.6 s.59
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    • pp.910-918
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    • 2005
  • This study compares consumer satisfaction levels in clothing stores based on, consumer complaint behavior. This study investigates the relationship between future purchase intention and consumer satisfaction with the response of clothing stores to complaints. The study was implemented through a normative-descriptive survey using self-administered questionnaires. The samples consisted of 509 female consumers residing in Seoul and its suburbs. Data were analyzed by following statistical methods: frequency analysis, t-test, ANOVA, regression analysis, and Duncan's multiple range test. Results are as follows: The satisfaction with response to complaints were different according to types of clothing stores. A significant relationship between the degree of satisfaction with service recovery and future purchase intension was found in all types of clothing stores. The future purchase intention increases, when consumers are fully satisfied with the way that a service failure was recovered.

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Differential Effects of Recovery Efforts on Products Attitudes (제품태도에 대한 회복노력의 차별적 효과)

  • Kim, Cheon-GIl;Choi, Jung-Mi
    • Journal of Global Scholars of Marketing Science
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    • v.18 no.1
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    • pp.33-58
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    • 2008
  • Previous research has presupposed that the evaluation of consumer who received any recovery after experiencing product failure should be better than the evaluation of consumer who did not receive any recovery. The major purposes of this article are to examine impacts of product defect failures rather than service failures, and to explore effects of recovery on postrecovery product attitudes. First, this article deals with the occurrence of severe and unsevere failure and corresponding service recovery toward tangible products rather than intangible services. Contrary to intangible services, purchase and usage are separable for tangible products. This difference makes it clear that executing an recovery strategy toward tangible products is not plausible right after consumers find out product failures. The consumers may think about backgrounds and causes for the unpleasant events during the time gap between product failure and recovery. The deliberation may dilutes positive effects of recovery efforts. The recovery strategies which are provided to consumers experiencing product failures can be classified into three types. A recovery strategy can be implemented to provide consumers with a new product replacing the old defective product, a complimentary product for free, a discount at the time of the failure incident, or a coupon that can be used on the next visit. This strategy is defined as "a rewarding effort." Meanwhile a product failure may arise in exchange for its benefit. Then the product provider can suggest a detail explanation that the defect is hard to escape since it relates highly to the specific advantage to the product. The strategy may be called as "a strengthening effort." Another possible strategy is to recover negative attitude toward own brand by giving prominence to the disadvantages of a competing brand rather than the advantages of its own brand. The strategy is reflected as "a weakening effort." This paper emphasizes that, in order to confirm its effectiveness, a recovery strategy should be compared to being nothing done in response to the product failure. So the three types of recovery efforts is discussed in comparison to the situation involving no recovery effort. The strengthening strategy is to claim high relatedness of the product failure with another advantage, and expects the two-sidedness to ease consumers' complaints. The weakening strategy is to emphasize non-aversiveness of product failure, even if consumers choose another competitive brand. The two strategies can be effective in restoring to the original state, by providing plausible motives to accept the condition of product failure or by informing consumers of non-responsibility in the failure case. However the two may be less effective strategies than the rewarding strategy, since it tries to take care of the rehabilitation needs of consumers. Especially, the relative effect between the strengthening effort and the weakening effort may differ in terms of the severity of the product failure. A consumer who realizes a highly severe failure is likely to attach importance to the property which caused the failure. This implies that the strengthening effort would be less effective under the condition of high product severity. Meanwhile, the failing property is not diagnostic information in the condition of low failure severity. Consumers would not pay attention to non-diagnostic information, and with which they are not likely to change their attitudes. This implies that the strengthening effort would be more effective under the condition of low product severity. A 2 (product failure severity: high or low) X 4 (recovery strategies: rewarding, strengthening, weakening, or doing nothing) between-subjects design was employed. The particular levels of product failure severity and the types of recovery strategies were determined after a series of expert interviews. The dependent variable was product attitude after the recovery effort was provided. Subjects were 284 consumers who had an experience of cosmetics. Subjects were first given a product failure scenario and were asked to rate the comprehensibility of the failure scenario, the probability of raising complaints against the failure, and the subjective severity of the failure. After a recovery scenario was presented, its comprehensibility and overall evaluation were measured. The subjects assigned to the condition of no recovery effort were exposed to a short news article on the cosmetic industry. Next, subjects answered filler questions: 42 items of the need for cognitive closure and 16 items of need-to-evaluate. In the succeeding page a subject's product attitude was measured on an five-item, six-point scale, and a subject's repurchase intention on an three-item, six-point scale. After demographic variables of age and sex were asked, ten items of the subject's objective knowledge was checked. The results showed that the subjects formed more favorable evaluations after receiving rewarding efforts than after receiving either strengthening or weakening efforts. This is consistent with Hoffman, Kelley, and Rotalsky (1995) in that a tangible service recovery could be more effective that intangible efforts. Strengthening and weakening efforts also were effective compared to no recovery effort. So we found that generally any recovery increased products attitudes. The results hint us that a recovery strategy such as strengthening or weakening efforts, although it does not contain a specific reward, may have an effect on consumers experiencing severe unsatisfaction and strong complaint. Meanwhile, strengthening and weakening efforts were not expected to increase product attitudes under the condition of low severity of product failure. We can conclude that only a physical recovery effort may be recognized favorably as a firm's willingness to recover its fault by consumers experiencing low involvements. Results of the present experiment are explained in terms of the attribution theory. This article has a limitation that it utilized fictitious scenarios. Future research deserves to test a realistic effect of recovery for actual consumers. Recovery involves a direct, firsthand experience of ex-users. Recovery does not apply to non-users. The experience of receiving recovery efforts can be relatively more salient and accessible for the ex-users than for non-users. A recovery effort might be more likely to improve product attitude for the ex-users than for non-users. Also the present experiment did not include consumers who did not have an experience of the products and who did not perceive the occurrence of product failure. For the non-users and the ignorant consumers, the recovery efforts might lead to decreased product attitude and purchase intention. This is because the recovery trials may give an opportunity for them to notice the product failure.

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A Cross-cultural Analysis of Online Satisfaction, Service Failure and Recovery: An E-A-S-QUAL Approach

  • Park, Min-Jung;Kim, Min-Jeong
    • Journal of the Korean Society of Clothing and Textiles
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    • v.35 no.6
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    • pp.700-711
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    • 2011
  • The purposes of the study were to identify the online service attributes that contribute to online consumer experiences of satisfaction, service failure, and service recovery and to examine whether differences exist in these attributes between U.S. and Korea. E-A-S-QUAL provided a useful framework for the study. Focus group interviews and web surveys were conducted by utilizing college students in both countries. No significant cultural differences were found in online service dimensions of service satisfaction. Personalization was the most frequently mentioned online service dimension of service satisfaction both in the U.S. and Korea. The findings showed significant cultural differences in terms of online service dimensions responsible for service failure and recovery. For Korean consumers, merchandising was one of the key online service dimensions of service failure, while efficiency was the important service dimension resulting in service failure for the U.S. consumers. In addition, for U.S. consumers, efficiency and personalization were the two most frequently mentioned service dimension for service recovery, while Korean consumers put more importance on the contact and information dimensions for service recovery. This study provided a comprehensive list of online service attributes important to online apparel retailing.

Informational Justice and Post-recovery Satisfaction in E-Commerce: The Role of Service Failure Severity on Behavioral Intentions

  • Kussusanti, Susanti;Tjiptoherijanto, Prijono;Halim, Rizal Edy;Furinto, Asnan
    • The Journal of Asian Finance, Economics and Business
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    • v.6 no.1
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    • pp.129-139
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    • 2019
  • The purpose of this research is to examine the effect of informational justice on post-recovery satisfaction, and the effect of post-recovery satisfaction on behavioral intentions in e-commerce, including further investigate the moderating effect of service failure severity. Using quantitative method, the population of this research are online customers in Indonesia, with non-probability sampling that will be done by purposive sampling method based on predetermined criterias, which are customers who were doing transactions in the Business to Consumer (B2C) online sites, experienced service failure in the last 6 months, submitted a complaint, and received a response. Sample of 317 online customers were gathered and analyzed using the Structural Equation Modeling. The results of this study indicated that 5 hypothesis are supported with data. As a conclusion, informational justice and post-recovery satisfaction has positive effect, while service failure severity acts as a moderator between post-recovery satisfaction and behavioral intentions. As a managerial implication, online store management needs to ensure the informational justice to make a post-recovery satisfaction. Therefore, online store management needs to ensure the informational justice to make a post-recovery satisfaction, increase repurchase and positive e-word of mouth intention, also work harder to recover services, especially in high service failure severity condition.

Consumers' Tolerance When Confronted with Different Service Types in Service Retailing

  • Chengcheng YU;Na CAI;Jinzhe YAN;Yening ZHOU
    • Journal of Distribution Science
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    • v.22 no.2
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    • pp.103-113
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    • 2024
  • Purpose: With the popularity of artificial intelligence (AI) in the service industry and occurrence ofservice failures in AI-based services, understanding human-robot interaction issues in service failure situations is especially important. Some issues which deserve further empirical investigation are whether consumers can develop the same tolerance for chatbots after service failure as they have for human agents, and the relationship between agent type and tolerance is mediated by the mechanisms of perceived warmth and perceived competence. Research Design, Data, and Methodology: This research experimentally collected and analyzed data from 119 university students who had experienced chatbots service failures. Differences in tolerance towards human agents and chatbots after experiencing service failures were explored, with a further examination of the mediating pathways between this relationship via perceived warmth and perceived competence. Results: Consumers are more tolerant ofservice failure with chatbots compared to service failure with human agents. Significant mediation of the relationship between service agent and service failure tolerance by perceived competence, while perceived warmth has no significant mediating effect. Conclusions: This research enhances our understanding of AI-assisted services, human-computer interaction, improves the service functionality of existing smart devices, and deepens the understanding of the relationship between consumer responses and behaviors.