• Title/Summary/Keyword: Tangible Recovery

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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.

Analysis of Hotel Customer Complaint and Recovery Strategy Using Critical Incident Technique (결정적 사건기법을 이용한 호텔 고객불평과 복구전략 분석)

  • Yoon, Sung-Wook;Seo, Mi-Ok
    • Journal of Global Scholars of Marketing Science
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    • v.15 no.1
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    • pp.61-79
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    • 2005
  • A critical incident technique(CIT) was employed to show the results of empirical findings regarding hotel services. The major purpose of this study was to describe and analyze service failures from the customers' point of view and thus suggest strategic implications for hotel service providers. Four-hundred sixteen service failure anecdotes from hotel customers were classified using Hoffman et al.'s(1995) approach. The CIT data showed the three major categories and eleven sub-categories and revealed that, in general, tangible recovery(e.g., upgrade, free meal, discount) was more effective than intangible one(e.g., explanation, canned apology, manager's apology). Interestingly, however, sincere apology seemed to be a better recovery strategy than other types of tangible recovery. Furthermore, the results showed that severity of service failure had its own impact on customers' perception regarding hotel's service recovery efforts. In particular, irrespective of service recovery, severity of service problem was negatively related to intention to repurchase. Managerial implications and future research agenda was also discussed.

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Differential Effects of Recovery Efforts on Products Attitudes (제품태도에 대한 회복노력의 차별적 효과)

  • Kim, Cheon-GIl;Choi, Jung-Mi
    • Journal of Global Scholars of Marketing Science
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    • v.18 no.1
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    • pp.33-58
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    • 2008
  • Previous research has presupposed that the evaluation of consumer who received any recovery after experiencing product failure should be better than the evaluation of consumer who did not receive any recovery. The major purposes of this article are to examine impacts of product defect failures rather than service failures, and to explore effects of recovery on postrecovery product attitudes. First, this article deals with the occurrence of severe and unsevere failure and corresponding service recovery toward tangible products rather than intangible services. Contrary to intangible services, purchase and usage are separable for tangible products. This difference makes it clear that executing an recovery strategy toward tangible products is not plausible right after consumers find out product failures. The consumers may think about backgrounds and causes for the unpleasant events during the time gap between product failure and recovery. The deliberation may dilutes positive effects of recovery efforts. The recovery strategies which are provided to consumers experiencing product failures can be classified into three types. A recovery strategy can be implemented to provide consumers with a new product replacing the old defective product, a complimentary product for free, a discount at the time of the failure incident, or a coupon that can be used on the next visit. This strategy is defined as "a rewarding effort." Meanwhile a product failure may arise in exchange for its benefit. Then the product provider can suggest a detail explanation that the defect is hard to escape since it relates highly to the specific advantage to the product. The strategy may be called as "a strengthening effort." Another possible strategy is to recover negative attitude toward own brand by giving prominence to the disadvantages of a competing brand rather than the advantages of its own brand. The strategy is reflected as "a weakening effort." This paper emphasizes that, in order to confirm its effectiveness, a recovery strategy should be compared to being nothing done in response to the product failure. So the three types of recovery efforts is discussed in comparison to the situation involving no recovery effort. The strengthening strategy is to claim high relatedness of the product failure with another advantage, and expects the two-sidedness to ease consumers' complaints. The weakening strategy is to emphasize non-aversiveness of product failure, even if consumers choose another competitive brand. The two strategies can be effective in restoring to the original state, by providing plausible motives to accept the condition of product failure or by informing consumers of non-responsibility in the failure case. However the two may be less effective strategies than the rewarding strategy, since it tries to take care of the rehabilitation needs of consumers. Especially, the relative effect between the strengthening effort and the weakening effort may differ in terms of the severity of the product failure. A consumer who realizes a highly severe failure is likely to attach importance to the property which caused the failure. This implies that the strengthening effort would be less effective under the condition of high product severity. Meanwhile, the failing property is not diagnostic information in the condition of low failure severity. Consumers would not pay attention to non-diagnostic information, and with which they are not likely to change their attitudes. This implies that the strengthening effort would be more effective under the condition of low product severity. A 2 (product failure severity: high or low) X 4 (recovery strategies: rewarding, strengthening, weakening, or doing nothing) between-subjects design was employed. The particular levels of product failure severity and the types of recovery strategies were determined after a series of expert interviews. The dependent variable was product attitude after the recovery effort was provided. Subjects were 284 consumers who had an experience of cosmetics. Subjects were first given a product failure scenario and were asked to rate the comprehensibility of the failure scenario, the probability of raising complaints against the failure, and the subjective severity of the failure. After a recovery scenario was presented, its comprehensibility and overall evaluation were measured. The subjects assigned to the condition of no recovery effort were exposed to a short news article on the cosmetic industry. Next, subjects answered filler questions: 42 items of the need for cognitive closure and 16 items of need-to-evaluate. In the succeeding page a subject's product attitude was measured on an five-item, six-point scale, and a subject's repurchase intention on an three-item, six-point scale. After demographic variables of age and sex were asked, ten items of the subject's objective knowledge was checked. The results showed that the subjects formed more favorable evaluations after receiving rewarding efforts than after receiving either strengthening or weakening efforts. This is consistent with Hoffman, Kelley, and Rotalsky (1995) in that a tangible service recovery could be more effective that intangible efforts. Strengthening and weakening efforts also were effective compared to no recovery effort. So we found that generally any recovery increased products attitudes. The results hint us that a recovery strategy such as strengthening or weakening efforts, although it does not contain a specific reward, may have an effect on consumers experiencing severe unsatisfaction and strong complaint. Meanwhile, strengthening and weakening efforts were not expected to increase product attitudes under the condition of low severity of product failure. We can conclude that only a physical recovery effort may be recognized favorably as a firm's willingness to recover its fault by consumers experiencing low involvements. Results of the present experiment are explained in terms of the attribution theory. This article has a limitation that it utilized fictitious scenarios. Future research deserves to test a realistic effect of recovery for actual consumers. Recovery involves a direct, firsthand experience of ex-users. Recovery does not apply to non-users. The experience of receiving recovery efforts can be relatively more salient and accessible for the ex-users than for non-users. A recovery effort might be more likely to improve product attitude for the ex-users than for non-users. Also the present experiment did not include consumers who did not have an experience of the products and who did not perceive the occurrence of product failure. For the non-users and the ignorant consumers, the recovery efforts might lead to decreased product attitude and purchase intention. This is because the recovery trials may give an opportunity for them to notice the product failure.

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A study on consumer satisfaction based on company mistakes compensation program for companies advancing into overseas market: a comparison of laptop and restaurant service between Korean and Japanese consumers (해외진출 기업을 위한 기업과실 보상프로그램의 소비자 만족도 연구 : 한.일 소비자의 노트북 구매와 레스토랑 서비스 비교)

  • Sohn, Won-Sang
    • International Commerce and Information Review
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    • v.15 no.1
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    • pp.3-34
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    • 2013
  • This research, which was experimented by dividing tangible and intangible products, established the influence that affects recovery for consumers' complaint behavior and behavioral intention as per each different compensation program. In Experiment 1, the consumers, who experienced complaint behavior owing to company's mistake, have preferably recovered through the compensation program offered by the company. However, there was a significant difference in preference recovery between products that caused complaint behavior. According to the study result, the more clear preference recovery was shown in the case of purchasing laptop than the case of dining in family restaurant. Additionally, the consumers' emotion recovery was possible through compensation.; There was a emotion recovery disparity depending on product type between purchasing laptop case and dining in family restaurant case. The consumers, who experienced complaints, were only able to recover their preference, emotion, and behavioral intention through compensation of which recovery was greater in tangible product case than ordinary service. Meanwhile, there was no distinct difference between recovery compensation types even though the products were identical-type ones whereas it appeared that such tangible product which showed greater purchasing effort as laptop computer was more effective in stimulating emotion response. In Experiment 2, the purpose was to find out the difference between complaint behavior and its recovery process shown after purchase by Korean and Japanese college students, who have different consumer purchasing habits. The both consumers of the two countries, who experienced complaint behavior, demonstrated precise difference in preference recovery while the emotion and behavioral intention exhibited no disparity between the two consumer groups. In this experiment, it was learned that Korean college students were show-off purchase type consumers while on the other hand, the Japanese college students were famous product purchase type consumers. Thus, there was a clear difference in laptop computer purchase process and post-purchase evaluation between these two groups. In particular, the Korean college students had quicker preference recovery through compensation than the Japanese college students on account of their tendency to be consciousness of others. Nevertheless, there was no difference between the emotion recovery and re-purchase recovery and therefore, the compensation program for complaints was proven to affect the emotion and behavioral intention.

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Managing Service Recovery via Social Media: The Impact of Transparency and Service Recovery Type in the Distribution of Feedback

  • Jie CAI;Yoonseo PARK
    • Journal of Distribution Science
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    • v.22 no.1
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    • pp.79-94
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    • 2024
  • Purpose: The popularity of social media has altered how customers interact with businesses, and an increasing number of customers prefer to voice their complaints on social media. Bystanders can observe the customer complaint process on social media, but the impact of transparency on bystanders remains uncertain. Therefore, this study established and verified a model for defining the effect of transparency and service recovery types on bystanders. Research Design and Methodology: In this study, we used the internet survey platform "So Jump" to collect data. And we validated three studies with SPSS 26.0 and Smart PLS 4.0. Result: First, we showed that the transparency process (vs. result) is more likely to increase customer forgiveness and E-loyalty and reduce E-NWOM intention among bystanders. Second, customer forgiveness also plays a complementary mediating role between transparency and E-loyalty, as well as between transparency and E-NWOM intention. Finally, we found a modest interaction effect between transparency (process vs. result) and service recovery types (psychological vs. tangible vs. hybrid) on bystanders' customer forgiveness and E-loyalty. Conclusions: This study provides actionable recommendations for how service managers can effectively employ social media as a means for distributing feedback information to manage service recovery in the future.

Equipment Replacement Problem and Engineering Valuation (설비대치문제와 평가공학)

  • 조진형;김성집
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.19 no.39
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    • pp.229-234
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    • 1996
  • When we analyze equipment replacement problem, we take the table of the duration period of tangible fixed asset on the corporation income tax law, and treat depreciation as simple allocation process for capital recovery. In this problem, there are some papers considering the concepts of economic depreciation. Those are not perfect model from a economical point of view. Therefore, we deal with equipment replacement problem considering the engineering valuation as well as the economic concept in the evaluation of asset.

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Critical Incidents of Casino Services: Qualitative Evidence from Asian VIP Customers

  • Seo, Mi-Ok;Yoon, Sung-Wook;Shin, Seongyeon
    • Journal of Distribution Science
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    • v.15 no.9
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    • pp.63-74
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    • 2017
  • Purpose - The purpose of this study is to contribute to the literature on casino services by investigating critical service failures using the critical incident technique (CIT) and provide effective recovery strategies that can be adopted in practice. Research design, data, and methodology - The data were collected from Asian casinos' HNI customers in China, Japan, and the Republic of Korea. This is the first study that has investigated VIP casino customers in leading Asian countries. The research used the critical incident technique (CIT) collect and a total of 227 incidents were analyzed. Results - The results show that three main categories and eleven subcategories are deduced. The first group concerns casino service system failures. The second group relates to service providers' responses to VIP customer complaints. The last group covers employees' attitudes and behavior toward customers. Conclusions - First, the most serious service problem in casinos was the service providers' attitudes rather than the service system failures. Second, Tangible recovery strategies such as "all pay" and "additional comps" were proven to enhance a casino's image and lower customers' intentions to switch. Customers, however, preferred intangible recovery strategies such as considerate responses, reliable problem management, sincere apologies, and accurate explanations.

Cultural Goods Development with Hahoe Village Motif (하회마을을 모티브로 한 문화상품 디자인 개발)

  • Seo, Seok Min
    • Journal of the Korea Furniture Society
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    • v.27 no.2
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    • pp.96-103
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    • 2016
  • This article is to develop test product as adopting motifs from Andong Hahoe Village registered in the UNESCO World Heritage. This study associates physiographic features and images of Hahoe Village with test product. In the research result of this study, the value of product and possibility of success of test product was found as follows. Firstly, Making the puzzle-oriented Desk Service Hahoe Village views by using 22 different styles & functional artworks. Secondly, Producing the tangible forms such as a tree, thatched cottage, arbor, tile-roofed house and ferryboat by casting technique. Thirdly, Designing the shape of the terrain by utilizing computer programing softwares such as CAD drawings and ARTCAM. Finally, Developing the mass-produce goods reflecting region historical and cultural characteristics. I expect this study may increase of interest of our country's culture and play several roles of the bridgehead for product development. Also I reconsider sensitivity recovery of users and our cultural value increase.

The Effect of Service Quality of Economy Hotels Through Mediating Customer Satisfaction on Re-visit Intention - Focused on Home Inn in China (경제형 호텔의 서비스품질이 고객만족을 매개로 재방문의도에 미치는 영향 - 중국 Home Inn을 대상으로)

  • Wang, Jing;Kim, Youn Sung
    • Journal of Korean Society for Quality Management
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    • v.47 no.4
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    • pp.875-894
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    • 2019
  • Purpose: This research is the impact of service quality of Economy Hotels on customer satisfaction and Re-visit Intention in China. It reviews the empirical theories about Economy Hotels at home and abroad, based on SERVPERF, combines with the actual situation of China's Economy Hotels, and then constructs based on the research results at home and abroad. In the subfactor of service quality, "recovery" is added, and the relationship model between the service quality of Economy Hotel, customer satisfaction and Re-visit Intention is designed, in which the mediated effect of "customer satisfaction" between the service quality's subfactor and Re-visit Intentio is explored. Methods: 334 questionnaires were distributed to the check-in guests of three Home Inns in China's first-tier cities (ShangHai,BeiJing,ShenZhen), of which 300 were valid for data analysis. Result: The data analysis results show that the Economy Hotels' subfactor of service quality have a positive impact on customer satisfaction and Re-visit Intention, and customer satisfaction also plays an mediated effect. (partial mediation: tangible, reliability, recovery; full mediation: responsiveness, assurance, empathy) Conclusion: The research puts forward the enlightenment points for the development of Economic Hotels through the differences in the development emphasis and service quality between Economic hotels and other types of hotels, so as to improve the satisfaction and market competitiveness of China's Economic hotels through the research results.

The Effects of Depreciation Methods on Investment Motivation for Solar Photovoltaic Systems (태양광 설비투자에 대한 제도적 유인방안 연구: 감가상각법의 경제적 효과 분석)

  • Kim, Kyung Nam
    • New & Renewable Energy
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    • v.16 no.4
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    • pp.65-75
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    • 2020
  • The value of tangible assets depreciates over their useful life and this depreciation should be adequately reflected in any tax or financial reports. However, the method used to calculate depreciation can impact the financial performance of solar projects due to the time value of money. Korean tax law stipulates only one method for calculating the depreciation of solar photovoltaic facilities: the straight-line method. Conversely, USA's tax law accepts other depreciation methods as solar incentives, including the modified accelerated cost recovery system (MACRS) and Bonus depreciation method. This paper compares different depreciation methods in the financial analysis of a 10 MW solar system to determine their effect on the financial results. When depreciation was calculated utilizing the MACRS and Bonus depreciation method, the internal rate of return (IRR) was 10.9% and 16.4% higher, respectively, than when the Korean straight-line depreciation method was used. Additionally, the increased IRR resulting from the use of the two US methods resulted in a 20.5% and 27.4% higher net present value, respectively. This shows that changing the depreciation calculation method can redistribute the tax amount during the project period, thereby increasing the discounted cash flow of the solar project. In addition to increasing profitability, USA's depreciation methods alleviate the uncertainty of solar projects and provide more flexibility in project financing than the Korean method. These results strongly suggest that Korean tax law could greatly benefit from adopting USA's depreciation methods as an effective incentive scheme.