• Title/Summary/Keyword: Service Failure Severity

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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.

Assessing the Damage: An Exploratory Examination of Electronic Word of Mouth (손해평고(损害评估): 대전자구비행소적탐색성고찰(对电子口碑行销的探索性考察))

  • Funches, Venessa Martin;Foxx, William;Park, Eun-Joo;Kim, Eun-Young
    • Journal of Global Scholars of Marketing Science
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    • v.20 no.2
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    • pp.188-198
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    • 2010
  • This study attempts to examine the influence that negative WOM (NWOM) has in an online context. It specifically focuses on the impact of the service failure description and the perceived intention of the communication provider on consumer evaluations of firm competence, attitude toward the firm, positive word of mouth and behavioral intentions. Studies of communication persuasiveness focus on "who says what; to whom; in which channel; with what effect (Chiu 2007)." In this research study, we examine electronic web posting, particularly focusing on two aspects of "what": the level of service failure communicated and perceived intention of the individual posting. It stands to reason electronic NWOM that appears to be trying to damage a product’s or firm's reputation will be viewed as more biased and will thus be considered as less credible. According to attribution theory, people search for the causes of events especially those that are negative and unexpected (Weiner 2006). Hennig-Thurau and Walsh (2003) state "since the reader has only limited knowledge and trust of the author of an online articulation the quality of the contribution could be expected to serve as a potent moderator of the articulation-behavior relationship. We therefore posit the following hypotheses: H1. Subjects exposed to electronic NWOM describing a high level of service failure will provide lower scores on measures of (a) firm competence, (b) attitude toward the firm, (c) positive word of mouth, and (d) behavioral intention than will subjects exposed to electronic NWOM describing a low level of service failure. H2. Subjects exposed to electronic NWOM with a warning intent will provide lower scores on measures of (a) firm competence, (b) attitude toward the firm, (c) positive word of mouth, and (d) behavioral intention than will subjects exposed to electronic NWOM with a vengeful intent. H3. Level of service failure in electronic NWOM will interact with the perceived intention of the electronic NWOM, such that there will be a decrease in mean response on measures of (a) firm competence, (b) attitude toward the firm, (c) positive word of mouth, and (d) behavioral intention from electronic NWOM with a warning intent to a vengeful intent. The main study involved a2 (service failure severity) x2 (NWOM with warning versus vengeful intent) factorial experiment. Stimuli were presented to subjects online using a mock online web posting. The scenario described a service failure associated with non-acceptance of a gift card in a brick-and-mortar retail establishment. A national sample was recruited through an online research firm. A total of 113 subjects participated in the study. A total of 104 surveys were analyzed. The scenario was perceived to be realistic with 92.3% giving the scenario a greater than average response. Manipulations were satisfactory. Measures were pre-tested and validated. Items were analyzed and found reliable and valid. MANOVA results found the multivariate interaction was not significant, allowing our interpretation to proceed to the main effects. Significant main effects were found for post intent and service failure severity. The post intent main effect was attributable to attitude toward the firm, positive word of mouth and behavioral intention. The service failure severity main effect was attributable to all four dependent variables: firm competence, attitude toward the firm, positive word of mouth and behavioral intention. Specifically, firm competence for electronic NWOM describing high severity of service failure was lower than electronic NWOM describing low severity of service failure. Attitude toward the firm for electronic NWOM describing high severity of service failure was lower than electronic NWOM describing low severity of service failure. Positive word of mouth for electronic NWOM describing high severity of service failure was lower than electronic NWOM describing low severity of service failure. Behavioral intention for electronic NWOM describing high severity of service failure was lower for electronic NWOM describing low severity of service failure. Therefore, H1a, H1b, H1c and H1d were all supported. In addition, attitude toward the firm for electronic NWOM with a warning intent was lower than electronic NWOM with a vengeful intent. Positive word of mouth for electronic NWOM with a warning intent was lower than electronic NWOM with a vengeful intent. Behavioral intention for electronic NWOM with a warning intent was lower than electronic NWOM with a vengeful intent. Thus, H2b, H2c and H2d were supported. However, H2a was not supported though results were in the hypothesized direction. Otherwise, there was no significant multivariate service failure severity by post intent interaction, nor was there a significant univariate service failure severity by post intent interaction for any of the three hypothesized variables. Thus, H3 was not supported for any of the four hypothesized variables. This study has research and managerial implications. The findings of this study support prior research that service failure severity impacts consumer perceptions, attitude, positive word of mouth and behavioral intentions (Weun et al. 2004). Of further relevance, this response is evidenced in the online context, suggesting the need for firms to engage in serious focused service recovery efforts. With respect to perceived intention of electronic NWOM, the findings support prior research suggesting reader's attributions of the intentions of a source influence the strength of its impact on perceptions, attitude, positive word of mouth and behavioral intentions. The implication for managers suggests while consumers do find online communications to be credible and influential, not all communications are weighted the same. A benefit of electronic WOM, even when it may be potentially damaging, is it can be monitored for potential problems and additionally offers the possibility of redress.

A Study on the Factors Affecting the Service Failure ZOT and severity Perception (서비스실패의 허용영역과 심각성 지각에 영향을 미치는 요인에 관한 연구)

  • Ock, Jung Won;Yun, Dae Hoong;Eum, Seong Won;Yim, Sun Joo
    • Journal of Service Research and Studies
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    • v.6 no.2
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    • pp.215-232
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    • 2016
  • As the development of service marketing, research on service failure has gained more and more attention. This research aims to explore factors influencing the service failure severity perception, focus on consumers' internal propensity, ZOT(zone of tolerance) about service and comparison with other consumers in service failure situation. According to study results, it revealed that past experience satisfaction has negative effect on the zone of tolerance about service failure. Company image also has negative effect on the ZOT about service failure. While service importance has negative effect on the ZOT about service failure, it has positive effect on the perceive service failure severity. The ZOT about service failure has negative effect on perceived serviced failure severity. In contrast, social comparison perception level has no effect on perceived service failure severity, and negative affectivity also has no effect on that. In Conclusion, five hypothesis are accepted among seven hypothesis. This study gives important point to researchers and service providers in the service industry. For researchers, the result will be helpful them to further develop service failure and recovery framework. For service providers, the results will suggest specific guidelines for recovering the service failure. They can place emphasis on the serious point, so they can get a effective performance from the recovery strategy.

The Influence of Service Recovery Justice on Intention to Recommend for Retailer

  • SHIN, Yongsun;KIM, Moonseop
    • Journal of Distribution Science
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    • v.18 no.2
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    • pp.91-98
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    • 2020
  • Purpose: This research aimed to suggest retailing companies some ways to enhance customer satisfaction with service recovery and recommendation intention towards these companies. For this purpose, current study examined the relationships among service recovery justice, service failure severity, customer trust, recovery satisfaction and intention to recommend and the moderating role of ego-resilience. Research design, data and methodology: Current study developed a structural equation model in which perceived service recovery justice is a predictor, service failure severity, customer trust, recovery satisfaction are mediators, intention to recommend is a dependent variable and the ego-resilience is a moderator between the perceived service recovery justice and the customer trust and the recovery satisfaction. Data were collected from customers who experienced service failures from retailers. A total of 400 questionnaires were collected and 365 samples were used for analysis after deleting data having missing value. SPSS 25.0 and AMOS 24.0 were used to test the validity, reliability, and structural equation modeling. Results: Empirical results showed that the perceived service recovery justice had a negative influence on the perceived service failure severity and a positive influence on the customer trust and the recovery satisfaction. These results indicate that when customers perceive the service recovery justice more highly, they perceive the service failure less severe but they perceive the retailer more trustworthy and are satisfied with service recovery. In addition, the customer trust and the recovery satisfaction had a positive influence on the intention to recommend. These results indicate that when customers perceive the retailer more trustworthy and are satisfied with service recovery, they are more intend to recommend the retailer. Moreover, the influence of the perceived service recovery justice on the customer trust and the recovery satisfaction was moderated by the ego-resilience. Conclusions: This study contributed to the service recovery literature by proving the relationship among service recovery justice, service failure severity, customer trust, recovery satisfaction and intention to recommend. Moreover, current research introduced the ego-resilience into service recovery research area and revealed the moderation role of the ego-resilience. Managerially, this research suggested retailing companies some ways to effectively recover from service failure.

The Roles of Service Failure and Recovery Satisfaction in Customer-Firm Relationship Restoration : Focusing on Carry-over effect and Dynamics among Customer Affection, Customer Trust and Loyalty Intention Before and After the Events (서비스실패의 심각성과 복구만족이 고객-기업 관계회복에 미치는 영향 : 실패이전과 복구이후 고객애정, 고객신뢰, 충성의도의 이월효과 및 역학관계 비교를 중심으로)

  • La, Sun-A
    • Journal of Distribution Research
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    • v.17 no.1
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    • pp.1-36
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    • 2012
  • Service failure is one of the major reasons for customer defection. As the business environment gets tougher and more competitive, a single service failure might bring about fatal consequences to a service provider or a firm. Sometimes a failure won't end up with an unsatisfied customer's simple complaining but with a wide-spread animosity against the service provider or the firm, leading to a threat to the firm's survival itself in the society. Therefore, we are in need of comprehensive understandings of complainants' attitudes and behaviors toward service failures and firm's recovery efforts. Even though a failure itself couldn't be fixed completely, marketers should repair the mind and heart of unsatisfied customers, which can be regarded as an successful recovery strategy in the end. As the outcome of recovery efforts exerted by service providers or firms, recovery of the relationship between customer and service provider need to put on the top in the recovery goal list. With these motivations, the study investigates how service failure and recovery makes the changes in dynamics of fundamental elements of customer-firm relationship, such as customer affection, customer trust and loyalty intention by comparing two time points, before the service failure and after the recovery, focusing on the effects of recovery satisfaction and the failure severity. We adopted La & Choi (2012)'s framework for development of the research model that was based on the previous research stream like Yim et al. (2008) and Thomson et al. (2005). The pivotal background theories of the model are mainly from relationship marketing and social relationships of social psychology. For example, Love, Emotional attachment, Intimacy, and Equity theories regarding human relationships were reviewed. As the results, when recovery satisfaction is high, customer affection and customer trust that were established before the service failure are carried over to the future after the recovery. However, when recovery satisfaction is low, customer-firm relationship that had already established in the past are not carried over but broken up. Regardless of the degree of recovery satisfaction, once a failure occurs loyalty intention is not carried over to the future and the impact of customer trust on loyalty intention becomes stronger. Such changes imply that customers become more prudent and more risk-aversive than the time prior to service failure. The impact of severity of failure on customer affection and customer trust matters only when recovery satisfaction is low. When recovery satisfaction is high, customer affection and customer trust become severity-proof. Interestingly, regardless of the degree of recovery satisfaction, failure severity has a significant negative influence on loyalty intention. Loyalty intention is the most fragile target when a service failure occurs no matter how severe the failure criticality is. Consequently, the ultimate goal of service recovery should be the restoration of customer-firm relationship and recovery of customer trust should be the primary objective to accomplish for a successful recovery performance. Especially when failure severity is high, service recovery should be perceived highly satisfied by the complainants because failure severity matters more when recovery satisfaction is low. Marketers can implement recovery strategies to enhance emotional appeals as well as fair treatments since the both impacts of affection and trust on loyalty intention are significant. In the case of high severity of failure, recovery efforts should be exerted to overreach customer expectation, designed to directly repair customer trust and elaborately designed in the focus of customer-firm communications during the interactional recovery process to affect customer trust rebuilding indirectly. Because it is a longer and harder way to rebuild customer-firm relationship for high severity cases, low recovery satisfaction cannot guarantee customer retention. To prevent customer defection due to service failure of high severity, unexpected rewards as a recovery will be likely to be useful since those will lead to customer delight or customer gratitude toward the service firm. Based on the results of analyses, theoretical and managerial implications are presented. Limitations and future research ideas are also discussed.

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A Study on the Effect of Service Recovery(Compensation) and Recovery Fairness on Service Recovery Satisfaction in Medical Service Failure (의료 서비스 실패에서 서비스 회복(보상)과 회복 공정성이 서비스 회복만족도에 미치는 영향에 관한 연구)

  • Park, Chan-Kwon;Kwag, Eun-Jwoo
    • Korea Journal of Hospital Management
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    • v.16 no.1
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    • pp.50-76
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    • 2011
  • This study chiefly aims to examine the relations between customer's responsive behavior and service recovery satisfaction in medical service failure. Therefore, this paper deals with the effect of medical service failure severity perceived by customers on complaint behavior and service recovery expectation, the effect of complaint appealing behavior and service recovery expectation on perceived recovery and service recovery satisfaction, and the roles of service recovery(compensation) and recovery fairness as moderating variables. According to the result of this research, it was shown that service failure severity affects complaint behavior and service recovery expectation positively, and compliant behavior and service recovery expectation affects perceived recovery performance and service recovery satisfaction positively. Moreover, the moderating roles of service recovery(compensation) and recovery fairness indicated partially significant results and affected perceived recovery performance and service recovery satisfaction direct positively. The result of this study is expected to provide support when medical institutes establish service recovery strategies.

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FMEA Measures for Service Failure Management (서비스 실패 관리를 위한 FMEA 이용 방안)

  • Kim, Hyun Jung;An, Qin Rui;Kim, Soo Wook
    • Journal of Korean Society for Quality Management
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    • v.42 no.1
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    • pp.43-61
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    • 2014
  • Purpose: This study identifies preventive measures for VOC management by analyzing the causes and effects of factors that contribute to high risk service failure using FMEA on KORAIL VOC data. Methods: Two research methods were used. First, a Risk Priority Number (RPN) was assigned to each KORAIL VOC based on Failure Mode and Effect Analysis (FMEA). Second, multiple regression analysis was run with RPN factors that include severity, occurrence, and detection as the independent variables and customer dissatisfaction as the dependent variable. Results: Multiple regression analysis showed that RPN factors including severity, occurrence, and detection had significantly positive relationship with customer dissatisfaction. Based on these results, an FMEA was performed on VOC categories with high RPN for railroad stations including platform, ticketing, ticket verification, parking, and escalator, and VOC categories with high RPN for trains including entrance doors, cafes, air quality, announcement, and ticket verification. Conclusion: This study has practical implications to service failure management. A priority order using FMEA was established for the list of customer dissatisfactions that should be addressed to actively manage service failure, and strategies for tackling this priority list are offered.

A Theoretical Study of Service Recovery Strategies (서비스실패 회복을 위한 복합적 보상 믹스 연구 : 재서비스와 보상적 할인을 중심으로)

  • Kim, Hyun Sik
    • Journal of Service Research and Studies
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    • v.7 no.4
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    • pp.109-126
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    • 2017
  • Designing cost-effective service recovery strategies mix has been recognized one of important issues by both service researchers and practitioners. In spite of the rising interest in them, there has been scarce studies on them. In this paper, we try to find cost-effective service recovery strategies mix via game-theoretic modeling. Especially, we focus on the possible incentives such as voucher type reward and service re-performance which have different cost structure. We investigated three questions about the topics as follows:(1) Should the service firm use the possible incentive scheme such as voucher and service re-performance for service recovery?, (2) How much voucher and service re-performance is adequate for service recovery under diverse service failure severity level?, (3) How much voucher and service re-performance is adequate for service recovery under diverse threshold level to make the customer repurchase? The results are as follows:(1) The use of both voucher and service re-performance for service recovery results in greater surplus for the service firm. (2) The higher gets the service failure severity level, the higher total incentives are required in the equilibrium. As service failure severity level gets higher, higher level of discount might be more useful to the service firm. However, service re-performance should be cut down above some critical level of service failure severity in the equilibrium. (3) The higher gets the threshold level to make the customer repurchase, the higher incentives are required in the equilibrium, and the higher portion of voucher incentive is required relative to that of service re-performance in the equilibrium.

The study on the role of employees' authenticity during service recovery (서비스 회복 과정에서 종업원 진정성의 역할에 관한 연구)

  • Ji, Hee-Jin
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.14 no.11
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    • pp.5541-5548
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    • 2013
  • Any enterprises cannot be free from service failure because of service attribute. Thus, the effort to recover from service failure properly has an important meaning. This study emphasizes on the need of effort of service recovery and distinguishes the operant situation of service failure into severity and controllability. At this moment in time, this study wants to verify the role of the effect of justice awareness on trust and satisfaction and adjustment role of employees' authenticity. An object of his study was 206 people who complained about service and this study analyzed their questionnaires by using SPSS, AMOS. To sum up, First, this study result shows that the seriousness of service failure has a negative effect on justice and only controllability has a negative effect on justice. Second, this study result shows that justice awareness has a positive effect on trust and satisfaction and that recovered trust has a positive effect on satisfaction. Third, authenticity has regulation effect on the structural relationship of severity, controllability, trust and satisfaction. Based on such result, this study presented suggestive point and suggested future study.

A Study on the Influence of the Recovery Methods of Information Service Failure on Online User Justice and Satisfaction (정보서비스 실패에 대한 회복 방법이 온라인 이용자의 공정성과 만족도에 미치는 영향에 관한 연구)

  • Kim, Young-Gon
    • Journal of the Korean Society for information Management
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    • v.30 no.2
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    • pp.35-59
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    • 2013
  • The aim of this study is to investigate the role of information service failure severity within existing framework of service recovery justice research and analyse the effects of the attribution of service recoveries on recovered user satisfaction and revisit. For empirical analysis, A total of 452 valid questionnaires were used to analyse the data gathered from university students who experienced the information service failures of university library. Some findings of the research are as follows: First, service failure severity has negative effect on service recovery justice. Second, procedural and interactional recovery justice has positive effect on recovered user satisfaction. Third, service recovery justice has significant influence on procedural and interactional justice. Finally, recovered user satisfaction has positive effect on user revisit and mouth of word.