• Journal of Korean Society of Industrial and Systems Engineering
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• v.33 no.3
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• pp.208-218
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• 2010

The purpose of this study is to examine the dynamic relationships among locus of control as a individual traits, the three organizational equity factors(distributive equity, procedural equity and interactional equity), individual attitudes and behaviors(job satisfaction, organizational commitment and turnover intention). In this study, we designed research model based on extensive literature review and tested each hypothesis through empirical analysis of which single public organization was the subject. The results are as follows : locus of control negatively affect all the three equity factors. And distributive equity positively affect job satisfaction whereas both procedural equity and interactional equity positively affect organizational commitment. Also only organizational commitment not job satisfaction positively affect turnover intention. The various implications to manage organizational equity, job satisfaction and organizational commitment and the limitations of the study and directions for future research were discussed.

• Journal of Distribution Research
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• v.13 no.2
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• pp.59-78
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• 2008

The purpose of this study is to investigate the effect of vendor perceived equity on the performance of retailer-vendor relationship. The empirical study of 386 vendors identified the following results. First, retailers' ethical management positively influenced on vendors' perception on procedural justice and interactional equity, whereas boundary personnel's ethical management positively influenced only on interactional equity. Second, distributive equity was positively influenced by procedural equity and interactional equity. Third, the performance of retailer-vendor relationship was directly affected by distributive equity and interactional equity, whereas procedural equity indirectly influenced on the relationship via distributive equity.

• Journal of the Korean Operations Research and Management Science Society
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• v.35 no.3
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• pp.1-24
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• 2010

As the Internet is explosively growing and the market is rapidly globalized, many entrepreneurs have been given an impetus to take on the function of the intermediation between providers and customers. Organizations performing the mediating roles in the cyberspace are termed 'cybermediary' and often called 'Openmarket' as a kind of transactional cybermediary in Korea. Despite sustainable growth of Openmarket, customer complaints and damages are increasing because of absence of recovery standards after a service failure. Therefore, it is important that a service provider converts dissatisfied customers to advocates for the growth of the Openmarket. This study aims to examine the role of recovery of the service failures for the Openmarket by proposing a relationship between complaint handling and continuance based on the equity theory. From the empirical results, we found that interactional equity had significant effects on both overall service satisfaction and recovery satisfaction, while procedural equity significantly influenced only recovery satisfaction. Recovery satisfaction also had an impact on overall service satisfaction and each satisfaction factor was positively related to continuance intention.

• The Journal of the Korea Contents Association
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• v.14 no.10
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• pp.677-684
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• 2014

The purpose of this study, due to recent increase of digital outdoor media, is to analyze the consumer experience of interaction with digital media. Through this study it was found that experience factor consisting of cognitive, emotional, and interactional factors has a mediating effect on brand preference and brand reliability which in turn influence consumers' purchasing intention. On the other hand, it was verified that the consumer satisfaction of the experience does not directly influence purchasing intention, but only through the mediation of brand reliability. This research has implications on the academic field as well as in work-level practices, as a study based on an actual operating digital media, not a laboratory simulation that verifies the importance of digital media experience in forming brand equity through immediate influence on brand preference and brand reliability.

• Management & Information Systems Review
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• v.31 no.1
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• pp.205-219
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• 2012

This study is to understand how why users fail to service and how users use service recovery strategics. This study use equity theory to understand how perceived justices have influence on trust and to identify how trust has influence on service quality. This study used scenario techquie to get user experience of service failure in smartphone application. Scenario is composed of 16 sub scenario and we conducted survey with each case. The results show that interpersonal justice and distributed justice have significantly influence on trust. However, procedural justice has not influence on trust. Service quality is influenced by trust. This paper conclude with statements of implications and limitations of the study results.

• Journal of Information Technology Services
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• v.15 no.1
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• pp.269-287
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• 2016

In general, service failure occurs inevitably and the customers who experienced the greater dissatisfaction have the higher expectations of service recovery. However, most of the previous studies have focused on the evaluation and risk factors of pre-service quality. Thus, this study is contrary to the numerous previous studies and focus on the effectiveness of mobile application advertisement users' perceived perception on service recovery after service fails. A research model presented in this study is based on the Equity Theory and deeply evaluated the effectiveness of Distributive Justice, Interactional Justice, and Authenticity Relevance on Service Recovery. The survey of this study was conducted among 286 users who have experienced a services recovery of mobile application advertising. As a result, among all the factors of users of mobile application advertising, Distributive Justice, Interactive Justice, and Relevance have a positive impact to Satisfaction. In addition, Distributive Justice, Authenticity and Satisfaction also have a positive impact to Trust. Ultimately, Satisfaction and Trust have a positive impact to Service Recovery. The results of this study are expected as a reference for presenting a new business model for mobile application advertising industry, reducing business risk and enriching the related researches.

• 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.