• Title/Summary/Keyword: Recovery from Failure

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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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Customer-Contact Employee Support and Service Recovery Efforts: The Mediating Role of Job Burnout and Customer Orientation

  • Moon, Younhee
    • Asia Marketing Journal
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    • v.20 no.3
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    • pp.83-103
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    • 2018
  • The purpose of this research is to investigate the effect of customer-contact employees support on service recovery efforts. Service companies should try to prevent the service failure situation from occurring, but it is realistic that the service failure occurs due to the characteristics of the service. Service recovery efforts of service providers are important because effective responses to service failures can enhance customer satisfaction despite service failures. Social support for customer-contact employees needs to improve service recovery efforts. Specifically, this study focuses on the mediation roles of job burnout and customer orientation in relationship between social support for customer-contact employees and service recovery efforts. Social exchange theory was used as the theoretical underpinning of the research model. Based on reciprocity principle, this paper suppose that support for customer-contact employees and service recovery effort are a kind of social exchange relationship. Social supports for customer-contact employees are categorized into internal and external organization. Internal organization is POS(perceived organizational support) and external organization is customer support. The research model was tested with the data gathered from the flight attendants whose emotional labor intensity was relatively high and the service failure frequently occurred. As a result of analysis, social supports for customer-contact employees classified into organizational support, supervisor support, and customer support are found to have differential impacts on job burnout and customer orientation. It has been found that job burnout of service providers is negatively affecting service recovery efforts. On the other hand, customer orientation of service providers has a positive influence on service recovery efforts. Based on the results of the analysis, we provide practical implications for effective service recovery efforts in service failure situations, and suggest the theoretical implications to explain the process of service recovery effort. Finally, limitations of the study and directions for future research are suggested.

Early Phase Contingency Trajectory Design for the Failure of the First Lunar Orbit Insertion Maneuver: Direct Recovery Options

  • Song, Young-Joo;Bae, Jonghee;Kim, Young-Rok;Kim, Bang-Yeop
    • Journal of Astronomy and Space Sciences
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    • v.34 no.4
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    • pp.331-342
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    • 2017
  • To ensure the successful launch of the Korea pathfinder lunar orbiter (KPLO) mission, the Korea Aerospace Research Institute (KARI) is now performing extensive trajectory design and analysis studies. From the trajectory design perspective, it is crucial to prepare contingency trajectory options for the failure of the first lunar brake or the failure of the first lunar orbit insertion (LOI) maneuver. As part of the early phase trajectory design and analysis activities, the required time of flight (TOF) and associated delta-V magnitudes for each recovery maneuver (RM) to recover the KPLO mission trajectory are analyzed. There are two typical trajectory recovery options, direct recovery and low energy recovery. The current work is focused on the direct recovery option. Results indicate that a quicker execution of the first RM after the failure of the first LOI plays a significant role in saving the magnitudes of the RMs. Under the conditions of the extremely tight delta-V budget that is currently allocated for the KPLO mission, it is found that the recovery of the KPLO without altering the originally planned mission orbit (a 100 km circular orbit) cannot be achieved via direct recovery options. However, feasible recovery options are suggested within the boundaries of the currently planned delta-V budget. By changing the shape and orientation of the recovered final mission orbit, it is expected that the KPLO mission may partially pursue its scientific mission after successful recovery, though it will be limited.

Priority Factors of Service Recovery Strategy in Distribution Channel

  • Han, Sang-Lin;Jung, Kyung Sik;Lee, Myoung Soung;Lee, Jong Won
    • Asia Marketing Journal
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    • v.17 no.2
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    • pp.97-125
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    • 2015
  • In this study, we tried to evaluate the relative importance and find out the differences in consumer perceptions regarding service recovery strategies and the service provider in the distribution industry by using AHP (Analytic Hierarchy Process) analysis method. Therefore in this study, we tried to systematize various recovery strategies which were considered very important during service failure process in the distribution industry and analyze the relative importance for each recovery strategy. We set hierarchy composed of four items of monetary, action-oriented, psychological, and assured level as primary selection criteria and a total of 16 items(indemnity, refund, gift, gift certificate, prompt resolution, exchange, manager support, explanation, apology, empathy, acknowledge, kindness, assortment, after service, manage subcontractor, manage employee) as secondary selection criteria. We tried to take one step further from the service sector and study service recovery strategies specialized in distributor services. This study suggests various implications about service recovery strategies of distributors. First, this study can provide practical implications - e.g. service recovery efforts should be applied differently depending on service channels. There is a perceptual difference with respect to the importance of the types of service recovery strategies between service provider and final customer. Second, we can find theoretical implications in terms of identifying the priorities through hierarchy design of new recovery strategies and comparison of each element from the classifications of the current fractional recovery strategies. We hope to help service providers to build more efficient recovery strategy system based on the results of this study.

QoS-Aware Approach for Maximizing Rerouting Traffic in IP Networks

  • Cui, Wenyan;Meng, Xiangru;Yang, Huanhuan;Kang, Qiaoyan;Zhao, Zhiyuan
    • KSII Transactions on Internet and Information Systems (TIIS)
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    • v.10 no.9
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    • pp.4287-4306
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    • 2016
  • Network resilience provides an effective way to overcome the problem of network failure and is crucial to Internet protocol (IP) network management. As one of the main challenges in network resilience, recovering from link failure is important to maintain the constancy of packets being transmitted. However, existing failure recovery approaches do not handle the traffic engineering problem (e.g., tuning the routing-protocol parameters to optimize the rerouting traffic flow), which may cause serious congestions. Moreover, as the lack of QoS (quality of service) restrictions may lead to invalid rerouting traffic, the QoS requirements (e.g., bandwidth and delay) should also be taken into account when recovering the failed links. In this paper, we first develop a probabilistically correlated failure model that can accurately reflect the correlation between link failures, with which we can choose reliable backup paths (BPs). Then we construct a mathematical model for the failure recovery problem, which takes maximum rerouting traffic as the optimizing objective and the QoS requirements as the constraints. Moreover, we propose a heuristic algorithm for link failure recovery, which adopts the improved k shortest path algorithm to splice the single BP and supplies more protection resources for the links with higher priority. We also prove the correctness of the proposed algorithm. Moreover, the time and space complexity are also analyzed. Simulation results under NS2 show that the proposed algorithm improves the link failure recovery rate and increases the QoS satisfaction rate significantly.

Faster Detouring for Data Plane Failures in Software Defined Networks (SDN에서 데이터 평면 장애를 해결하는 빠른 우회 기법)

  • Thorat, Pankaj;Yeom, Sanggil;Choo, Hyunseung
    • Proceedings of the Korea Information Processing Society Conference
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    • 2016.04a
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    • pp.124-126
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    • 2016
  • Successful deployment of the Software Defined Network (SDN) depends on its ability to cope up with network failures. There are various types of failures that may occur in an SDN. The most common are switch and link failures. It is necessary to recover the network from failures for a continuous service availability. But for the real-time services fast recovery from the failure is required to minimize the service disruption time. In the proposed work, we focused on minimizing the recovery time after the failure is detected. Once the failure is detected, the controller involvement is needed to dynamically reroute the failure disrupted flows from the failed component to an alternate path. The aim of the proposed scheme is to provide a traffic management scheme which can react to the dynamic network events by rapidly modifying the forwarding behavior of the switches for faster in-band network adaptability. The proposed scheme (1) Considers the shared data and control path delay (2) Optimally utilize the network resources (3) Eliminates the need of constant monitoring overhead at the controller which results into faster detouring and ultimately rapid recovery.

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.

Service Failure, Service Recovery Activity and Satisfaction with Online Shopping Channel of Apparel Products (온라인 의류쇼핑에서 서비스 실패 경험 후 쇼핑채널의 회복노력에 따른 채널만족도)

  • Kang, Eun Jung;Lee, Kyu-Hye
    • Journal of Digital Convergence
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    • v.11 no.2
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    • pp.115-125
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    • 2013
  • Unexpected consumer dissatisfaction emerges through rapid growth and expansion of on-line shopping channel. This research focused on the fashion online retail channels' negative aspect caused by service failure which possibly disappointed consumers. We also tried to seek for appropriate service recovery types based on frequently offered recovery types on-line. Data from college students were analyzed. Results indicate that fitting problem, insufficient information, product defect, inventory problem and slow delivery were the main service failure types in apparel e-shopping. Regression analysis identified that among these types, insufficient information, product defect, and slow delivery had significant influence on channel satisfaction after post recovery effort. Results also confirmed significant relationships between channel satisfaction and channel switching. Consumers perceived benefit level causes overall channel satisfaction level to rise while perceived risk leads to lower level of channel satisfaction. Choosing desirable service recovery activities in each service failure situations is necessary in order to raise consumer's channel satisfaction in online apparel shopping.

Service Recovery and Behavioral Intentions in the Restaurant Industry: A Service Process Stage Perspective (레스토랑 서비스 제공 단계별 실패에 따른 서비스 회복 노력과 행동의도에 관한 연구)

  • Choi, Soo-Ji;NamKung, Young
    • Korean journal of food and cookery science
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    • v.29 no.5
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    • pp.605-616
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    • 2013
  • A multistage approach for service recovery enables restaurant managers to do the most effective recovery strategies to reduce customer dissatisfaction and lead to positive behavioral intentions. The purpose of this study was to identify the most effective service recovery strategies in terms of service stage and examine the relationship between service strategies and behavioral intentions. A total of 227 diners examined the customer perceptions to recovery strategies (tangible strategy and intangible strategy) following service failures in each of the four stages:1) reservation and parking, 2) seating and ordering, 3) meal consumption, and 4) payment and exit. The one-way ANOVA showed that intangible strategies were relatively more effective than tangible strategies regardless of service stages. Free meal or free dessert were most effective in service stage 1 and stage 2 whereas correct the failure and reperformance of service found to be the most effective service recovery strategy. Regarding the association between service recovery strategies and behavioral intentions, multiple regression analysis showed that intangible strategies influenced diners' likelihood of positive behavioral intentions whereas tangible strategies lead to diners' willingness to positive behavioral intentions only in service stage 1. The findings enable restaurant practitioners to improve service recovery activities from a service stage perspective.

Negative Spillover Effects of Other-Customer Failure in Airline Context

  • Kim, Mi-Jeong;Park, Chul-Ju;Park, Jae-Sung
    • Journal of Distribution Science
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    • v.15 no.1
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    • pp.15-20
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    • 2017
  • Purpose - Other customers within the same service environment do influence a customer' attitude and behavior toward a service firm. Specially, other customers' misbehaviour and various service problems stemmed from them could make the other customers suffer some bad experiences. However, there are few studies to answer how the spillover effect of a service failure arisen from other customers' misbehavior. This study is aimed to examine how service failure due to the dysfunctional behavior of other customers has negative effects on customer evaluation with the service provider. Research design, data, and methodology - Data were collected from a survey based on consumers' retrospective experiences in airline service context. The hypothesized relationships were tested conducting structural equation modeling. Results - Our results show that the attribution of a firm responsibility for other-customer failure has a positive influence on customer's recovery expectation, in turn, it is negatively related to customer satisfaction. Furthermore, perceived service provider's efforts positively influence customer satisfaction. Conclusions - Although a service failure was caused by other customer's misbehavior, employees should be able to alleviate any bad feelings of the affected customers. Furthermore, service providers should provide proper recovery efforts for solving problems caused by the other customers for the wounded customers.