• Journal of the Korean Society of Costume
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• v.63 no.3
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• pp.46-60
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• 2013

With a goal of establishing a marketing strategy which allows businesses to hold a dominant position in beauty service industry, this study has attempted to investigate causal relations among behavioral intentions by customer satisfaction once service recovery strategy is recovered depending on customers' emotional responses against service failure. In order to provide relevant data to make correct decisions during management and marketing planning so that better customer satisfaction can be achieved in the beauty service industry, the results of the previous studies on service failure and recovery strategy in the beauty service industry have been examined. Then after selecting i) the efforts to recover service failure, ii) satisfaction after recovery and iii) behavioral intention after satisfaction as causal variables, the relation among these variables were verified using a structural equation model. As a result, an appropriate recovery strategy which is developed after service failure makes customers have positive behavioral intentions when customer satisfaction is achieved just as described in previous studies. Furthermore, it is a critical fact which helps businesses keep their customers in a mature market, where it is hard to attract new customers and create long-term profit. This study empirically supports information on how service failure and related variables occur in the beauty service industry. It is significant in that it has helped beauty service providers build service recovery-related strategies.

• Journal of Global Scholars of Marketing Science
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• v.8
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• pp.291-313
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• 2001

This study is about service failure and recovery. Prior studies of service failure and recovery encounters have been limited to descriptive research based primarily on retrospectiveti.e., memory-based) self-reports. This study uses a survey method and utilize a 2*2*2 experimental design with service recovery scenarios across two services. Manipulations included two levels of controllability, two levels of procedural justice and interactional justice, and two levels of distributive justice. Accordingly, this research examines how the controllability of service failure affect recovery satisfaction, and how these relations are moderated by the justice of service recovery. Conclusively, bi-dimension(outcome and process) constitutes the service recovery and this result supports the insistence that even dissatisfied customers can be satisfied through the service recovery efforts of the organization that once failed to meet the needs and expectation of customers.

• 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.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.9 no.1
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• pp.177-186
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• 2014

Failure mode and effect analysis (FMEA) is a systematic approach for identifying potential failures before they occur, with the intent to minimize the risk associated with them. It has been widely used in the various manufacturing industries as a solution to reliability problems. As the importance of the service sector is increasing, however, it has been recently extended to some applications in services. Despite these attempts, FMEA cannot be directly applied to the reliability problems in a service industry. Due to the heterogeneity and customer participation in service process, we cannot perfectly prevent service failures. For this reason, we suggest a new risk priority number with three input parameters that consist of severity, probability of occurrence, and recoverability. In this paper, we propose an approach for assessing service risk and service reliability using the service-oriented risk priority number (S-RPN). An example regarding a hypermarket service process is used to demonstrate the proposed approach.

• 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 Korea Technology Innovation Society
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• v.11 no.1
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• pp.46-71
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• 2008

Although the volume of mobile internet services has increased continually over the years, the rapid diffusion has still fallen short of expected quality. This paper considers mobile internet service industry in Korea as a system failure due to structural problems and attempts to identify systemic imperfection mechanisms from the supply side. The problems of mobile internet industry in Korea are categorized into interaction failures, institutional failures and capabilities failures which contribute to system failure and at the same time, failure types are linked to each other. It is needed to improve policy and institutions in operation and develop new policy for contents providers to promote mobile internet industry. This research findings will contribute to policy making to promote mobile internet service industry and development of sectoral system for emerging industries.

• Journal of the Korean Home Economics Association
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• v.47 no.7
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• pp.73-82
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• 2009

The purpose of this study was to examine the effect of perceived justice associated with service recovery on perceived service quality, and the relationships among perceived service quality, customer satisfaction and behavioral intentions in online apparel shopping contexts. Justice theory provided the theoretical framework for this study. The research strategy employed an online survey methodology. Online shoppers (N=669) who had experiences in service failure and dissatisfactions completed a questionnaire. The model of the study was tested by structural equation modeling (SEM) and the results of SEM revealed positive effect of perceived justice regarding service recovery on perceived service quality, positive effect of perceived service quality on customer satisfaction, and positive effect of customer satisfaction on behavioral intention. The results of this study have implications for online retailers. Online retailers need to understand the importance of service recovery by which service failures are managed.

• 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.

• Journal of the Korean Operations Research and Management Science Society
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• v.27 no.3
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• pp.115-133
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• 2002

In this paper, 15 South Korean telecommunications service failure cases were analyzed. Through the in-depth case study, 8 factors were found to be the major causes contributing to the telecommunications service failure. They were (1) ineffective marketing, (2) poor demand forecasting due to misjudgment of customer preference, (3) failure to satisfy technical specifications, (4) loss of cost advantage due to the price cut of competing services or new entry with lower price, (5) loss of utility advantage due to the increased utility of competing services or new entry with higher utility (6) decrease of market attractiveness due to change of customer preference, (7) impact of government policy, and (8) insufficient or low quality of contents. Additional analysis was done to derive managerial implications to the new telecommunications service development strategy. The findings from the paper will provide valuable Insight to the successful Implementation of new service development and service provisioning processes.

• The Journal of the Korea Contents Association
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• v.16 no.11
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• pp.72-82
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• 2016

Various studies have been done in medical service area but they have just focused on the examination of the relationships between cause and effect variables. This study, thus, empirically analyzed qualitative data regarding medical service problems using word cloud technique. The major results of the paper are as follows. The data reveal ten sources in medical service - forced treatment, excess inspection, misdiagnosis, carelessness, inexperienced service, waiting for emergency, reservation problem, unkindness, process problem, and inconvenience. Major words in the category of irrecoverable service failure are misdiagnosis, careless treatment, and inexperienced service whereas those in recoverable service failure are unkind attitude and negative experience in reservation system. Those who experienced a medical service problem are usually engaged in a public act and they make public protests and legal action against very severe problems. The conclusion of this study also suggests a summary, implication, and agenda of the research.