• 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.

• Journal of Service Research and Studies
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• v.6 no.3
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• pp.107-122
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• 2016

This study was intended to examine the effect that the quality of service delivered by social commercial companies and service providers and perception towards seriousness of service failure would have on the intention of repurchase and revisit. 10 hypotheses were derived from literature review. excluding the questionnaires that contained many missing values or inconsistent or insincere answers. The results of this study can be summarized from 3 aspects. First, it was found that the quality of service delivered by social commerce companies had a statistically significant effect on social commerce companies' service failure(Hypothesis 1) and social commerce company repurchase intention(Hypothesis 3) in connection with the effect that the quality of service delivered by social commerce companies and service providers would have. The quality of service delivered by service providers was found to have a statistically significant effect on service providers' service failure(Hypothesis 2) and service provider revisit intention(Hypothesis 4). Second, the perception towards seriousness of service failure by social commerce companies and service providers was found to have the following effect: The service failure by social commerce companies(Hypothesis 5) was found to have a statistically significant effect on service provider revisit intention(Hypothesis 8), but did not have a statistically significant effect on social commerce company repurchase intention (Hypothesis 6). The service failure by service providers was found to be statistically significant for service provider revisit intention(Hypothesis 7) and social commerce companies purchase intention(Hypothesis 9). Finally, service provider revisit intention was found to be statistically significant for social commerce company repurchase intention(Hypothesis 10).

• 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.

• Culinary science and hospitality research
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• v.16 no.2
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• pp.15-30
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• 2010

This study investigates the effect of seriousness and controllability of service failure on perceived fairness, reliability, satisfaction and loyalty of customers. The result of the study is as follows. First, it was expected that a control-attribute and a seriousness-attribute would have an negative(-) impact on perceived fairness-attribute; however, the result showed that both did not have an negative impact on it. Next, a fairness-attribute of a procedure had a significant effect on trust, and a fairness-attribute of interaction and a fairness-attribute of distribution had a significant effect on trust and satisfaction. Lastly, trust had a significant effect on satisfaction while satisfaction had a significant effect on loyalty. Based of the result of this study, food-service enterprises need to perform a fast process of a recovery to overcome service failure rather than confirming a control-attribute and a seriousness-attribute of service failure. Also, they should set up a process of the recovery in the order of trust, satisfaction, and loyalty and check if this process is promptly carried out.

• 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.

• Journal of Service Research and Studies
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• v.9 no.4
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• pp.97-114
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• 2019

The relationship quality and recovery of service failures perceived by consumers play an essential role in affecting the service provider's image and sales in terms of the highly involved service industry. In particular, implementation of successful relationship marketing strategies and effective recovery of service failures provide greater satisfaction for customers expecting customized services and reinforce the relationships between the companies and consumers. Based on these previous studies, this research conducted to find out the causal relationship between the variables influencing service recovery expectations and word of mouth(WOM) by approaching the severity of service failures from the perspective of relationship marketing and attribution theory. For the empirical analysis of this research, we conducted a questionnaire surveys of 360 service users of beauty salons, who have experienced in high-involvement services, and utilized 333 questionnaires for the final analysis. The hypothesis was experimented using the Structural Equation Model(SEM), and the results are as follows. First, we identified that the higher the customer perceived the severity of the service failure, the lower the quality of the relationship. Second, we verified that service users observed service failure as a temporary and uncontrollable factor as they distinguished service quality as higher. Third, the hypothesis that customers recognize service failures as a temporary one has a positive impact on service recovery expectation level is determined through empirical analysis. Forth, it was figured out that the higher the perceived quality of the relationship with the service provider, the higher the service recovery level expected by the consumers. At the same time, the hypothesis that optimism for service recovery expectation affects positive word of mouth has been verified. The results of this study help develop the customer-oriented business model of the service companies. Furthermore, the academic significance in that it suggested a new direction for the research of high-involvement service marketing.

• 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.

• Journal of the Korea Academia-Industrial cooperation Society
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• v.22 no.6
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• pp.385-397
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• 2021

This study examined service failure and recovery of domestic ethnic food restaurants based on a model of the repercussions of service failure dealing with seriousness and control and the cause-and-effect relationships among the variables relevant to the quality of relationships -trust, satisfaction, and loyalty. This study provides valuable information for Korean restaurant managers regarding food service failure and response plans by collecting data from actual Japanese tourists visiting ethnic food restaurants. The results suggested that it is important to develop a strategy to present the distributional fairness to customers who recognize the seriousness of service failure to control the situation promptly. These results can be used to establish more systematic business plans, improving customer management and firm performance. The advantage of this research is that it is time for substantial research data on the booming domestic restaurant industry and service quality to overcome the current recession and grow and solidify the current restaurant market.

• 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.

• International Commerce and Information Review
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• v.14 no.4
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• pp.227-252
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• 2012

This paper is to study for causality validation of relation of the repair justice and repair satisfaction, relation between repair satisfaction and re-purchasing with South Korea's most important express service users. Through this research, we would like to confirm to seriousness of the failure express service and effects of controlling effectively adjust in relation between repair impartiality and satisfaction of repairs. The results of the study show as below. First, the result shows the justice outcome in express service, interaction justice, outcome justice in the relation of satisfaction with repair have regardful effects to the satisfaction of repair. This result explains that interaction justice has a positive influence. Second, in the relations between the procedural justice in express service and the satisfaction of repair, it is presented that the procedural justice has not regardful effects and results show differences from other leading researches. This result explains that procedural justice has not a positive influence. Third, as analyzing seriousness of the failure express service, controlling regulation effect in the relation of repair justice and repair satisfaction, seriousness of interaction and controlling regulation effect are not regardful effect in this relationship. These results are explained that the seriousness or controlling of the failure express service have not a positive influence to the relation of repair justice and repair satisfaction. Finally, in the relation between repair satisfaction and the intention to use again, repair satisfaction has a regardful effect to intention to use again. This result explained that it has positive influence to repair satisfaction and the intention to use again.