• Asia Marketing Journal
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• v.14 no.1
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• pp.99-130
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• 2012

Service failure and a poor service recovery may lead loyal customers to try to aggressively punish the service firm. We use perceived betrayal and desire for vengeance as the key constructs to understand customer retaliation. Perceived betrayal is defined as a customer's belief that a firm has intentionally violated what is normative in the context of their relationship. And the desire for vengeance is defined as the retaliatory feelings that consumers feel toward a firm, such as the desire to exert harm on the firm. The perceived betrayal and the desire for vengeance are key antecedents of retaliatory behaviors such as vindictive complaining, negative WOM and third-party complaining for publicity. The empirical results suggest that betrayal is a key motivational factor that lead customers to restore fairness by making use of all means, including retaliation. We also find that relationship quality has effect on a customer's response to a failure in service recovery. As the levels of relationship increases, a violation of the proper fairness has a stronger effect on the sense of betrayal experienced by customers. Considerable research has investigated consumer responses to dissatisfaction. But our study examine the response of outraged and highly frustrated consumers. We focus on emotional and behavioral processes that have not been covered by previous dissatisfaction researches and which are unique to outraged consumers caused by extremely dissatisfied purchase experience. It has recently been pointed out by various mass media that the customers not only have positive effects on the company performance but also put the company in crisis. It has often been reported that one customer's dissatisfaction, for example, never ends as it is, and it tends to grow for retaliating upon the company, depending on the level of seriousness of the dissatisfaction. This sometimes leads to a lawsuit against the company. Our study focuses on the customers' emotional and behavioral responses induced by their extreme dissatisfactions. We divided the customer groups into the customers with high relationship quality and the customers with low relationship quality, and the difference between two groups is examined. The objective of this study is to comprehend the causal relationship between the feeling of betrayal caused by the service failure and the retaliatory behavior triggered by the desire of revenge. Our study is divided into three parts. First, a causal relationship between perceived unfairness and the perceived betrayal and desire for revenge. Second, the effect of the perceived betrayal and desire for revenge on the retaliatory behavior is investigated. Finally, the moderating role of relationship quality in the causal relationship between the unfairness in service recovery and the perceived betrayal is analyzed. This study finds the following empirical results. The distributive unfairness, procedural unfairness and interactional unfairness had significant effects on the perceived betrayal. Especially, the perceived distributive unfairness results in the highest perceived betrayal. When the service company does not provide customers proper and sufficient compensation for the failure, they feel the strong sense of betrayal. And in the causal relationship between the perceived betrayal, desire for revenge and retaliatory behavior, the perceived betrayal has significant effects on e desire for revenge. In addition desire for revenge has significant effects on negative word of mouth, retaliatory complaining behavior and publicity of complaints through third group. Therefore the perceived unfairness has effects on retaliatory behavior through the mediation of the perceived betrayal and desire for revenge. Finally the moderating role of relationship quality was examined in the relationship between the unfairness and perceived betrayal. If the customers experienced the perceived unfairness in the process of service recovery, the customers with high relationship quality feel the stronger perceived betrayal than the customers with low relationship quality do. When they experience the double service failure, the customer group with high relationship quality accumulating the sense of trust feel the more perceived betrayal than the customer with low relationship quality who do not have strong trust. The contribution of this study is to find the effect of the service failure on the retaliatory behavior with the moderating roles of relationship quality. The dimensions of unfairness in service recovery is found to have differential effects on the perceived betrayal, desire for revenge. And these differential effect is moderated by the level of relationship quality.

• The Journal of the Korea Contents Association
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• v.17 no.6
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• pp.424-435
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• 2017

Because services are delivered through the behaviors of people, it is very difficult to do the quality control and services failures are often happened. If services failures are not recovered by appropriate methods, customers make the negative word-of-mouth communications and have the negative intention to repurchase. The service recovery paradox demonstrates the importance of service recovery after the service failures. The purpose of this study is to investigate the antecedents of customer satisfaction of service recovery(CS), and its consequences of the CS. Independent variables of CS are distributive justice, procedural justice, and interactional justice, and dependent variables of CS are negative word of mouth communication and intention to repurchase. Data are collected using the scenario method. Research model and hypotheses are tested empirically using the statistical packages such as SPSS and AMOS.

• Journal of Digital Convergence
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• v.14 no.9
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• pp.199-214
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• 2016

There is a negotiation between management and labors about paying incentive at the every end of the year. This result causes the conflict between management and labors. The successful operation of incentive system is based on respect and common benefit between workers and managers. The manager-trust is the power of leading reciprocality. This research started from the issues of companies with incentive system at this year. This research analysed the influence of manager-trust by the fairness of incentive system. and how HRM system affects the manager-trust through the strength of the HRM system. It appeared in a survey that shows the fairness of incentive system and manager-trust effect positive matter. As a result of the control effect in the strength of the HRM system, the relationship between distributive justice and manager-trust shows that Distinctiveness, consistency, and consensus have the control effect. Although the Distinctiveness has control effect, consistency and consensus didn't have control effect in the relationship between perceptual justice and manager-trust.

• Journal of Distribution Science
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• v.13 no.2
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• pp.63-73
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• 2015

Purpose - Satisfaction with service is evaluated according to customers' subjective judgment. The expected value of customer service and its evaluations depend on the customers' position. The customer recognizes two different forms of service levels. One is satisfaction and the other is dissatisfaction. Customers who are satisfied want to receive the service in future. However, those dissatisfied try to change the service. The service provider tries to improve the service. There are two different service cycles. One is the successful cycle and the other is the failure cycle. This study aimed to empirically determine the effects of the justice and authenticity of service recovery on customer behavioral intention through an integrated approach to cognitive justice and psychological authenticity. Research design, data, and methodology - Based on a literature review, justice of service recovery was categorized into three types: distributive, procedural, and interactive. Then, authenticity was added to obtain four independent variables, along with recovery satisfaction as a parameter. Behavioral intention, as an outcome variable, was divided into the repurchase intention and positive word-of-mouth. The model and hypotheses were created and measurement items were developed. A questionnaire survey of items concerning the service recovery experience at family restaurants was conducted on college students and residents in Gwangju from September 30 to October 31, 2013. A total of 400 copies of the questionnaire were sent out and 385 were returned. Respondents answered questions about the importance of, and satisfaction with service recovery on a 5-point Likert scale. Excluding 174 copies without service failure experiences and 7 inappropriate copies, 204 copies were analyzed using SPSS 21.0 for Windows and AMOS 20.0 to determine the reliability and validity of measurements. The hypotheses were tested through a goodness-of-fit analysis. Results - First, distributive justice positively affected recovery satisfaction. Second, procedural and interactive justice had no impact. Third, authenticity positively affected recovery satisfaction. Fourth, distributive justice had relatively stronger effects on recovery satisfaction than authenticity. Fifth, recovery satisfaction significantly affected repurchase intention and positive word-of-mouth and it proved effective in mediation. Finally, additional analysis was performed for descriptive statistics of the principal variables by various demographic characteristics and significant differences were found in gender, occupation, and so on. Conclusions - This study has academic significance as the fairness and authenticity of service recovery were investigated to reveal the effects on behavior. The findings could be applied to a wide range of service recovery strategies. However, there are some limitations. First, data was collected only from the residents of Gwangju and most respondents were aged 20-30. Future studies should target a wide range of areas and age groups. Second, because the questionnaire used in this study targets only convenience family restaurants, the results of this study cannot be generalized to all services companies. Future research should be done on a wide range of industries such as hotels, airlines, and hospitals, and perform a comparison between sectors.

• The Journal of Society for e-Business Studies
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• v.21 no.3
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• pp.129-151
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• 2016

The objective of this study is to examine the relationship of organizational justice, project performance and internal and external PMO (Project Management Office) capability by conducting survey of IT project participants worked with PMO. This study was the first case which classifies PMO capability into internal and external by ownership of PMO. PLS-SEM analysis, which used for this study shows internal PMO capability connects with distributive justice and procedural justice, and directly related to project performance. By comparison, external PMO capability has relationship only with procedural justice, but never related to project performance. Furthermore, distributive justice and procedural Justice all have correlation with project performance. In general, capability of external professional consulting firms is utilized for the fairness and objectivity in spite of sufficient internal project management capability. However, the internal PMO capability has greater influence on procedural justice than external's (internal PMO capability > external PMO capability). Also, distributive justice and project performance have direct correlation only with the internal PMO capability. This paper will be an indicator of finding human capabilities which are necessary for internal and external PMO performance, and has great significance of laying a groundwork of project management strategy by PMO.

• Asian Journal of Business Environment
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• v.4 no.1
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• pp.5-13
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• 2014

Purpose - This study examines the relationship between organizational justice and employee job satisfaction and the extent of its moderation by perceived alternative job opportunities. Research design, data, and methodology - This is a cross-sectional study utilizing survey questionnaire data from 220 bank employees, which included scales measuring organizational justice, job satisfaction, and perceived alternative job opportunities. Results - The data is analyzed using correlation and hierarchical regression. Results demonstrated that organizational justice has a direct positive impact on employee job satisfaction further, distributive justice explains more variance in job satisfaction, followed by procedural justice and interactive justice. Perceived alternative job opportunities moderate the relationship between organizational justice and job satisfaction. Conclusions - Generally, organizational justice increases bank employees' job satisfaction; however, when they perceived more job opportunities, their job dissatisfaction increased notwithstanding fairness. Therefore, perceived job opportunities moderate the relationship between organizational justice and job satisfaction. Retaining skilled employees has become difficult, especially when there is market demand for skilled workers. Human resource (HR) managers should consider market situations before formulating policies; otherwise, they may lose the competitive advantage of skilled employees and workers.

• The Journal of Asian Finance, Economics and Business
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• v.9 no.5
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• pp.531-539
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• 2022

The goal of the research is to identify the relationship between organizational justice, job satisfaction, and work attitudes in the context of job rotation. The competence and loyalty of the employees of an organization are critical to the organization's success. Therefore, organization should invest in developing their employees, including creating effective procedures and human resource management policies. A job rotation program is one of the critical policies in developing employees, as through this program employees can develop and actualize their abilities. However, there are some challenges in practice regarding implementing the procedures of job rotation. One of the challenges is related to the concept of organizational justice, which then impacts on employees' job satisfaction and work attitudes. This study was conducted in focused group discussions. The sample is 272 of a state-owned organization. In this study, the concept of organizational justice, with the dimensions of distributive justice, procedural justice, and interactional justice, were used along with the discussion of job satisfaction and other work attitudes. The results were issues of fairness in perceiving organizational justice in the job rotation context, and the most significant response lies in procedural justice.

• Korean Journal of Culture and Social Issue
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• v.28 no.2
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• pp.219-239
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• 2022

The study investigated the relationship between subjective socioeconomic status (SES) of 508 Korean adults and their perception of justice (distributive and procedural justice for self and general others), and verified whether there is a moderating effect of age (20s versus 30s and over). A self-report survey on SES and perception of justice was conducted. Then, using the SPSS 27 and PROCESS Macro 4.0 program, a correlation analysis looking into the relationship among the study variables was performed along with the ANOVAs comparing the mean differences of study across age-groups to support the group division criteria. Next, a moderation analysis was conducted. The main results of this study are as follows. First, the participants' SES showed a positive relationship with all sub-factors of justice perception and a negative relationship with age. Second, age had a inverse relationship on distributive justice for self and general others, and procedural justice for self, but a non significant relationship on procedural justice for general others. Third, when looking into the mean differences of the research variables according to age, the 20s had different characteristics compared to the 30s and over. In comparison, there were no significant differences within the 30s and over group. Fourth, the moderating effect of age in the relationship between subjective SES and perception of justice was positively significant in the case of distributive justice for self and procedural justice for general others. In the case of distributive justice for self, the positive slope of the graph in which subjective SES predicts distributive fairness for self was steeper in the 30s and older group compared to the 20s. Regarding the procedural justice for general others, subjective SES was not a significant predictor in the 20s group. However, SES positively predicted procedural justice in the 30s and older group. This study is meaningful since it suggested age differences in subjective SES and perceptions of justice by revealing the different relationship patterns of subjective SES and perception of justice according to age.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.7 no.1
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• pp.245-255
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• 2012

Greenberg(1990) suggested that organizational justice research may potentially explain many organizational behavior outcome variables. One such example of nontraditional job behavior is organizational citizenship behavior and service quality, for they are part of the spontaneous and innovative behaviors noted by Katz(1964). Stimulated by conceptualizations of justice in organizations by such theorists as Homans(1961), Admans(1965), and Walster, Berscheid, and Walster(1973), organizational researchers devoted considerable attention in the 1960s and 1970s to testing propositions about the distribution of payment and other work-related rewards derived from equity theory. Although reviews and critiques of equity theories once dominated the pages of organizational journals, more recently it has been the subject of far more attention(Reis, 1986). In one notable recent trend, researchers and theorists have expanded on conceptualizations of procedural and distributive justice by turning attention to the interpersonal aspects of justice, the perceived fairness of the way people are treated by others. With the rapid and uncertain changes of organization, such voluntary behaviors as OCB, service quality, and innovative behavior have become more important for the development and survival of organization. Thus it is very important to keep the organization fair for keeping employees participative in organization. Here it is reviewed the relationship between organizational justice and it's related factors(OCB, service quality and innovative behavior).

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.12 no.3
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• pp.107-117
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• 2017

Entrepreneurship is a means of improving national competitiveness that can expand the industry quantitatively and qualitatively based on new technologies and ideas. As a result, we are implementing a nationwide initiative support policy around the world. It leads to actual results and grows into a global company. It also has the advantage of being able to produce potential creative people through support for startups. In order to cultivate talented people suitable for startup in Korea, Venture For Korea, the internship program is being carried out with the aim of strengthening basic capabilities and establishing an exchange with existing companies. The purpose of this study is to verify the effectiveness of the system by using justice theory among the interns of the startup internship. In order to improve the accuracy of the study, the survey was done by a complete enumeration and the results were analyzed through Smart PLS 2.0. As a result of the analysis, the distributive justice and interactional justice among the fairness variables have a positive effect on the expectancy effect, and the expectancy effect has a positive effect on the satisfaction. However, procedural justice did not appear to have an effect on expectancy effects. This is because it's been only two years after the start of the internship program, and it seems to reflect the lack of consensus about the process among the stakeholders (enterprise, pre-entrepreneur, the government) related to the system. The results of this study are meaningful in that it deduces the insufficient part of the startup internship based on the justice theory. In other words, in order to increase the policy effect of the startup internship, it is necessary not only to emphasize only the purpose, but also to establish a policy direction complementing the procedural aspect.