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

• Journal of Korean Society for Quality Management
• /
• v.42 no.1
• /
• pp.43-61
• /
• 2014

Purpose: This study identifies preventive measures for VOC management by analyzing the causes and effects of factors that contribute to high risk service failure using FMEA on KORAIL VOC data. Methods: Two research methods were used. First, a Risk Priority Number (RPN) was assigned to each KORAIL VOC based on Failure Mode and Effect Analysis (FMEA). Second, multiple regression analysis was run with RPN factors that include severity, occurrence, and detection as the independent variables and customer dissatisfaction as the dependent variable. Results: Multiple regression analysis showed that RPN factors including severity, occurrence, and detection had significantly positive relationship with customer dissatisfaction. Based on these results, an FMEA was performed on VOC categories with high RPN for railroad stations including platform, ticketing, ticket verification, parking, and escalator, and VOC categories with high RPN for trains including entrance doors, cafes, air quality, announcement, and ticket verification. Conclusion: This study has practical implications to service failure management. A priority order using FMEA was established for the list of customer dissatisfactions that should be addressed to actively manage service failure, and strategies for tackling this priority list are offered.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.35 no.4
• /
• pp.194-201
• /
• 2012

Because the difference between products and services are getting less and less, service and manufacturing companies' efforts are increasingly focused on utilizing services to satisfy customers' needs under today's competitive market environment. The value of services depends on service reliability that is identified by satisfaction derived from the relationship between customer needs and service providers. In this paper, we extend concepts from the fault tree analysis for reliability analysis of tangible systems to services. We use an event-based process model to facilitate service design and represent the relationships between functions and failures in a service. The objective of this research is to propose a method for evaluating service reliability based on service processes using service blueprint and FTA. We can identify the failure mode of service in a service delivery process with a service blueprint. The fuzzy membership function is used to characterize the probability of failure based on linguistic terms. FTA is employed to estimate the reliability of service delivery processes with risk factors that are represented as potential failure causes. To demonstrate implementation of the proposed method, we use a case study involving a typical automotive service operation.

• Culinary science and hospitality research
• /
• v.22 no.8
• /
• pp.204-218
• /
• 2016

The purpose of this study is to identify the differences in the effect of service recovery efforts on consumers satisfaction, word of mouth intentions, and revisit intentions when exposed to service failure situations. The service failure situation was classified into outcome-related and process-related failures. The service recovery effort was divided into financial and emotional efforts. Using a scenario technique, this study collected data from diners in Daegu and Gyoungbuk province. The results of the empirical analysis show that the effect of service recovery efforts varies depending on types of service failures and recovery efforts. Also, the interaction between service failure types and service recovery efforts was confirmed.

• Journal of the Korean Society of Costume
• /
• v.63 no.3
• /
• pp.46-60
• /
• 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 the Korean Society of Costume
• /
• v.64 no.3
• /
• pp.13-31
• /
• 2014

This study attempts to analyze relational structures among service failure-related variables after the moderation of fairness in the beauty service industry with the following purposes: First, it aims to review and investigate service failure & service recovery strategies, non-switching intentions after recovery, revisit intention, the intent to provide word-of-mouth recommendations and previous studies on service failure and recovery in the beauty service industry. Second, it targets the analysis of the role of fairness as a variable that moderates relations between service recovery strategies and post-recovery satisfaction in the beauty service industry. For this, the following research method was used: This study has investigated the effect of service failure and its recovery strategies (behavioral recovery strategy, psychological recovery strategy, monetary recovery strategy) on customer satisfaction for beauty service users and used the Structural Equation Model (SEM) to further analyze and verify the effect of the satisfaction on post-satisfaction behavior (non-switching intention, repurchase intention and the intent to provide word-of-mouth recommendations). The SEM was divided into a measurement model and structural model to determine if the model is appropriate and estimate the parameters of the path coefficient. In addition, this study examined to see if fairness (procedural fairness, distributive fairness and interactive fairness) works as a moderating variable while the service recovery efforts affect customer satisfaction. Then, the role of service recovery strategies, targeted to satisfy the customers who were dissatisfied because of service failure, were investigated. In addition, its effect on post-satisfaction behavior was analyzed from the structural aspect, and the moderating role was examined as well. Then, the role of the service recovery strategy, which can be used to satisfy dissatisfied customers, was examined, and the effect of the satisfaction on customer behavior was analyzed from a structural perspective. In addition, the moderating role of fairness was tested. As a result, this study is significant in that it helps service providers formulate service recovery-related strategies.

• Journal of the Korean Society of Clothing and Textiles
• /
• v.35 no.6
• /
• pp.700-711
• /
• 2011

The purposes of the study were to identify the online service attributes that contribute to online consumer experiences of satisfaction, service failure, and service recovery and to examine whether differences exist in these attributes between U.S. and Korea. E-A-S-QUAL provided a useful framework for the study. Focus group interviews and web surveys were conducted by utilizing college students in both countries. No significant cultural differences were found in online service dimensions of service satisfaction. Personalization was the most frequently mentioned online service dimension of service satisfaction both in the U.S. and Korea. The findings showed significant cultural differences in terms of online service dimensions responsible for service failure and recovery. For Korean consumers, merchandising was one of the key online service dimensions of service failure, while efficiency was the important service dimension resulting in service failure for the U.S. consumers. In addition, for U.S. consumers, efficiency and personalization were the two most frequently mentioned service dimension for service recovery, while Korean consumers put more importance on the contact and information dimensions for service recovery. This study provided a comprehensive list of online service attributes important to online apparel retailing.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
• /
• v.7 no.3
• /
• pp.133-141
• /
• 2012

Service and manufacturing companies' efforts are increasingly focused on utilizing services to satisfy customers' needs and survive in today's competitive market environment. The value of services depends mainly on service reliability that is identified by satisfaction derived from the relationship between customer and service provider. In this paper, we extend concepts from the failure modes and effects analysis of tangible systems to services. We use an event-based process model to facilitate service design and represent the relationships between functions and failures in a service. The objective of this research is to propose a method for evaluating service reliability based on service processes using fuzzy failure mode effects analysis (FMEA) and grey theory. We define the failure mode of service as interaction ways that can be failed in a service delivery process. The fuzzy set theory is used to characterize service reliability based on linguistic terms during FMEA. Grey theory is employed to determine the degree of relation and ranking among risk factors that are represented as potential failure causes. To demonstrate implementation of the proposed method, we use a case study involving a typical automotive service operation.

• Journal of Distribution Science
• /
• v.18 no.8
• /
• pp.35-45
• /
• 2020

Purpose: Do close linkages among employees during service encounters always enhance customer satisfaction? Drawing on literature in social psychology, this research argues that under certain circumstances close linkages among employees undermine customer satisfaction. More specifically, this research explores a service failure context and shows that higher task interaction among employees during service encounters leads to higher perceived firm entitativity, resulting in an individual employee's service failure being detrimental to customer satisfaction with the firm. Data and research methodology: A series of experiments using scenarios across different service contexts was used in order to test hypotheses. Data was collected via Amazon Mechanical Turk and the models were tested using Hayes PROCESS. Results: The results show that interactions among employees during service result in 1) lower satisfaction with the firm and 2) lower revisit intentions in the future when there is a service failure by an individual employee. Following the main effects analysis, mediation analysis shows that the effect of employee interaction on customer satisfaction with the firm and revisit intention is mediated by perceived firm entitativity. Implications: By examining contexts where employee interaction may be detrimental to firms, this research provides novel insights on how to manage communications among service employees.

• Journal of Communications and Networks
• /
• v.16 no.5
• /
• pp.534-547
• /
• 2014

Large-scale failures resulting from natural disasters or intentional attacks are now causing serious concerns for communication network infrastructure, as the impact of large-scale network connection disruptions may cause significant costs for service providers and subscribers. In this paper, we propose a new framework for the analysis and prevention of network service disruptions in large-scale failure scenarios. We build dynamic deterministic and probabilistic models to capture the impact of regional failures as they evolve with time. A probabilistic failure model is proposed based on wave energy behaviour. Then, we develop a novel approach for preventive protection of the network in such probabilistic large-scale failure scenarios. We show that our method significantly improves uninterrupted delivery of data in the network and reduces service disruption times in large-scale regional failure scenarios.