• Journal of Distribution Science
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• v.18 no.2
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• pp.91-98
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• 2020

Purpose: This research aimed to suggest retailing companies some ways to enhance customer satisfaction with service recovery and recommendation intention towards these companies. For this purpose, current study examined the relationships among service recovery justice, service failure severity, customer trust, recovery satisfaction and intention to recommend and the moderating role of ego-resilience. Research design, data and methodology: Current study developed a structural equation model in which perceived service recovery justice is a predictor, service failure severity, customer trust, recovery satisfaction are mediators, intention to recommend is a dependent variable and the ego-resilience is a moderator between the perceived service recovery justice and the customer trust and the recovery satisfaction. Data were collected from customers who experienced service failures from retailers. A total of 400 questionnaires were collected and 365 samples were used for analysis after deleting data having missing value. SPSS 25.0 and AMOS 24.0 were used to test the validity, reliability, and structural equation modeling. Results: Empirical results showed that the perceived service recovery justice had a negative influence on the perceived service failure severity and a positive influence on the customer trust and the recovery satisfaction. These results indicate that when customers perceive the service recovery justice more highly, they perceive the service failure less severe but they perceive the retailer more trustworthy and are satisfied with service recovery. In addition, the customer trust and the recovery satisfaction had a positive influence on the intention to recommend. These results indicate that when customers perceive the retailer more trustworthy and are satisfied with service recovery, they are more intend to recommend the retailer. Moreover, the influence of the perceived service recovery justice on the customer trust and the recovery satisfaction was moderated by the ego-resilience. Conclusions: This study contributed to the service recovery literature by proving the relationship among service recovery justice, service failure severity, customer trust, recovery satisfaction and intention to recommend. Moreover, current research introduced the ego-resilience into service recovery research area and revealed the moderation role of the ego-resilience. Managerially, this research suggested retailing companies some ways to effectively recover from service failure.

• 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.

• Journal of the Korea Safety Management & Science
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• v.12 no.2
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• pp.89-97
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• 2010

The most important concern in the internet service organizations in competitive market circumstances is to focus on formation and maintenance of continuous relationship with customers. The purpose of this study is to verify the effect of perception of the fairness - procedural fairness for recovery, interactional fairness, fairness for reward on customer's satisfaction and trust, behavior when the internet service company failed to service such as disclosure of personal information. This study aims to apply justice theories to service recovery. As a result, first, the customer's perceived justice had a significant effect on the customer satisfaction and trust in service recovery. Second, the customer's satisfaction positive effect on trust. Third, customer's satisfaction formed by service recovery had a effect on the customer's behavior such as continuous usage intention. Therefore, this study was reveal how the extent of justice perception felt by customers in the service recovery process, causes positive causation relationship which affect customer behavior intention.

• International Area Studies Review
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• v.13 no.2
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• pp.687-711
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• 2009

This research was conducted to explore the factors that cause medical tourists' dissatisfaction, and find ways to solve the tourists' problems by researching on the relationship between the service recovery and the failure of medical services. Also, the research has put more emphasis on establishing marketing strategies that enable Japanese medical tourists to actively visit Korea, and finding out the effects that the medical tourists satisfaction and trust have on their behavioral intentions, recommendations, and positive feedbacks. The summary of the research analysis results as follows. First, the service recovery after the service failure has positive influences on the medical tourist's satisfaction. Second, the service recovery has proven its positive influences on the tourists' trusts and behavioral intentions. Third, the satisfaction of the service recovery has built the mutual trust between the tourists' and the medical center, and this has positive influences on the customer's behavioral intentions. Finally, the research was conducted to analyze the moderating effects on the relationship between the service recovery and the recovery satisfaction. It was found that the medical service failure recognition type has proven no moderating effects.

• Asia-Pacific Journal of Business Venturing and Entrepreneurship
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• v.9 no.1
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• pp.165-176
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• 2014

This study is directed to examine the most useful restoration strategies for turning the customers' dissatisfaction caused by unsuccessful spa service to the satisfaction through each fair factors and tries to suggest the practical schemes to cope with complaints and dissatisfaction of spa service customers by establishing the system dealing with customers' complaints. And this verifies the relationship between the alternative attraction and the intention of conversion as the action after the restoration from the unsuccessful services. Moreover, it analyzes the mediation effect that a formation of reliance through the restoration of unsuccessful services has. To achieve the purpose of this study, the subject got decided as women who are customers of private spa facilities situated in Seoul and Gyeonggi-do region for the purpose of skin care in 1 year recently. After understanding their experiences of complaining about the services, this study investigates the alternative attraction and the intention of conversion as the next action and the perception of fairness and trust in the efforts of Spa service business for recovery. As the result of verifying hypothesis, it is shown that the recovery satisfaction increases when the 3 points of the distributive justice, procedural justice, and interactional justice, which are the fairness factors of the effort to restore services according to the quality of service, are more positive. In the relation among recovery satisfaction, trust, the alternative attraction, and the intention of conversion, the result was that recovery satisfaction affects trust in positive way and alternative attraction in negative way. However, the positive and meaningful result came out in contrast with the hypothesis which predicted the negative effect of recovery satisfaction on the intention of conversion. Furthermore, it means that indirect effectiveness which carries trust and alternative attraction should be considered instead of the direct effectiveness that the recovery satisfaction affects on the intention of conversion. In this study, it can be interpreted that the combined increase of the trust and the alternative attraction makes the intention of conversion higher rather than the higher intention of conversion following the decrease of the recovery satisfaction in view of the result that the indirect effectiveness is high between the recovery effort and the intention of conversion. In the relation among the intention of conversion, trust, and alternative attraction, the intention of conversion got influenced in positive way and negative way by trust and alternative attraction respectively and trust influenced the alternative attraction negatively as well. It means the high quality of services or the recovery of services has a direct causation which carries conviction to the customers' intention of action.

• Journal of Digital Convergence
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• v.14 no.4
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• pp.267-276
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• 2016

This paper aims to examine the effects of perceived justice of service recovery efforts on the customer relationship performance in mobile social commerce. To this end, we classified cognitive-affective trusts and post-recovery satisfaction into the customer relationship performance. This research employs a field survey of customers who experienced service failures in mobile social commerce and a covariance structural model analysis in order to test hypotheses of our research model. The findings present that all justices of service recovery efforts positively affect the cognitive trust, whereas the only procedural justice significantly influences the affective trust. In addition, the results show that cognitive-affective trusts have a positive effect on the post-recovery satisfaction. Our results suggest practical implications that are used to help managers maintain and improve relations with the customers who experienced service failures and to increase the post-recovery satisfaction.

• Management & Information Systems Review
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• v.33 no.1
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• pp.65-81
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• 2014

Although the study of IT services has increased in recent years, few study have focused on trust based recovery process. Additionally, users of IT services have different use purpose depending on service type. Therefore, the purposes of this research is to propose trust recovery model of smartphone applications and to examine the moderating effect of service type on the use of smartphone applications. To achieve research purposes, we suggested service failure type using the scenario technique and empirically verified by conducting survey. The results showed that the procedural justice and interpersonal justice have influence on trust and trust had an effect on the all quality factors (system, information, service quality). Also, information quality and service quality had an effect on the customer loyalty. Finally, service type had significant moderating effects on the relationship between perceived justice and quality.

• 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.

• Proceedings of the Korean Institute of Information and Commucation Sciences Conference
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• 2013.05a
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• pp.167-169
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• 2013

The purposes of this research is to propose trust recovery model of smartphone applications and to examine the moderating effect of service type on the use of smartphone applications. To achieve research purposes, we suggested service failure type using the scenario technique and empirically verified by conducting survey. The results showed that the procedural justice and interpersonal justice have influence on trust and trust had an effect on the all quality factors (system, information, service quality). Also, information quality and service quality had an effect on the customer loyalty. Finally, service type had significant moderating effects on the relationship between perceived justice and quality.

• Journal of Distribution Research
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• v.10 no.3
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• pp.59-86
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• 2005

This study examined whether the efforts of department store for recovering services may be perceived fairly from the standpoint of customers upon any occurrence of service failure, whether such perceived justice contributes to higher customer satisfaction and trust, and whether such customer satisfaction and trust have positive influence on store loyalty of customers, respectively. For this sake, this study investigated relevant literatures, set up some hypotheses to solve main questionable considerations and made a corresponding empirical analysis. For empirical analysis, a questionnaire survey was applied to total 204 customers who experienced in service recovery around domestic major department stores in the last one(1) year. With regard to empirical analysis to verify some hypotheses hereof, this study verified the reliability and validity of each questionnaire item by means of statistical programs like SPSS 10,0 and AMOS 4.0, followed by verifying hypotheses through SEM(structural equation modeling) analysis. These results indicate that positive efforts of department stores for service recovery upon their service failure may bring customer satisfaction and trust in department store, which result in boosting up store loyalty of customers. In this empirical study, it was notably demonstrated that despite any occurrence of service failure, the corresponding efforts of department stores to improve the level of justice perceived by customers in course of service recovery, had positive effects on better customer satisfaction, trust and store loyalty, and these effects induced customer's continuous repurchase, positive WOM(word of mouth) and recommendation about the use of appropriate department store, which may contribute to better its competitive edge.