• Asia Marketing Journal
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• v.19 no.3
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• pp.19-44
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• 2017

Researchers do not fully understand consumers' responses to negative co-branding events; thus, they report inconsistent evidence regarding the negative impact on the partnering brands. Our research bridges a gap in this research stream, and answers an important question: When a service failure occurs, could the two different models of consumers' brand schema change affect their negative perception of each brand partner? By using a theoretical and mathematical modeling approach, we offer two propositions. The first proposition shows that, under consumers' book-keeping cognitive process, the negative spillover effect occurs for both brands. The second proposition argues that, when the sub-typing model is assumed, it is possible that one brand suffers while the other escapes the blame for the failure. To our knowledge, this is one of the first few studies to identify circumstances in which a negative spillover effect may or may not occur to brand partners in co-branding service failures.

• Journal of Labour Economics
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• v.31 no.1
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• pp.105-133
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• 2008

Focusing market failure and state intervention, this article analyzes the determinants of corporate training in Korea. Analysing the first wave of HCCP(Human Capital Corporate Panel) data produced by KRIVET(Korea Research Institute for Vocational Education and Training), this article finds that even though the skills attainead in corporate in Korea are mostly general(industry-specific), but the market failure in training appears rather small and is confined to the manufacturing industry. And the state intervention in corporate training works only at manufacturing industry, it does not work at new service industry. The results mean that in new service industry, it is difficult to find out the existence of market failure in training due to the positive externalities. Therefore Korea government should look thoroughly into the state intervention in training in new service industry.

• Journal of Information Technology Applications and Management
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• v.26 no.2
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• pp.41-60
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• 2019

O2O(Online-to-Offline) commerce, a kind of multi-channel, is used in various industries such as accommodation, food and beverage, transportation, and real estate. The O2O commerce, a channel of integrating online and offline, overcomes the limitations of traditional online commerce, where a customer made a purchase decision without direct experience. Despite this advantage of O2O, if the online-offline channel is not effectively linked, customer's complaints would occur due to service failure. This study, with regard to O2O service failure circumstances, intends to investigate the effect of customer's perceived justice on their emotional response, recovery satisfaction, followed by intention to repurchase. Perceived justice in this study is composed of distributive justice, interactional justice, and procedural justice. Furthermore, this study explores the moderation effect of O2O industry types in the relationship between perceived justice and emotion. An O2O industry type is classified into accommodation, food and beverage, and transportation. A hypothesized research model was empirically tested using a structural equation model. The current study collected 433 questionnaires and the target respondents are customers who have experienced service failure in O2O commerce. The empirical results showed that O2O commerce more effectively conducts service recovery strategy and causes positive customer response by integrating online and offline channel. One of the ultimate purposes of O2O service providers is to reduce the likelihood of service failures and to recover more quickly and efficiently by linking two channels rather than using a single channel. This study suggested that the O2O channel is effective in influencing customer satisfaction and loyalty by inducing customer's positive emotions in recovering service failure.

• The Journal of the Korea Contents Association
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• v.21 no.5
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• pp.182-199
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• 2021

This study was designed by paying attention to the negative aspects of the performing arts service. As interest in performing arts increases, various studies on services are being conducted in the performing arts field as well. However, although research on the positive side of performing arts services is steadily increasing, research on the negative side is insufficient. In this study, the limitations of existing studies were supplemented and the study was conducted by applying the Stimulus-Organism-Response (S-O-R) model for empirical research. The effect of failure of performing arts service as a stimulus variable on the response to complaint behavior through negative emotion as an organism was verified. As a result of the analysis, it was found that among the factors of failure in performing arts services, performance works and personal services had a significant influence on negative emotions. In addition, the influence of negative emotions on public and private complaints was confirmed. Lastly, this study will have academic significance in that it analyzed consumers by converting the factors of service failure of performing arts into variables.

• 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.

• Knowledge Management Research
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• v.18 no.2
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• pp.103-127
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• 2017

This study examines the effects of failed airline services on the consumers' psychological process and their behavioral responses. Having different classifications from the previous studies, this study focuses on dividing important factors of airline services into search attributes(e.g. sale and procedure services, services concerning flight attendant, in-flight services) and experience attributes(e.g. flight services, collateral services). Using structural equation modeling, this study shows that the failure of service factors of the experience attributes provokes the feeling of disappointment with mediation effect of external attribution while the failure of service factors of search attributes provokes the feeling of regret with mediation effect of internal attribution. Finally, disappointment leads to consumers' complaint behavior while regret leads to consumers' switching behavior. Unlike previous studies, we show that when a service failure occurs, depending on each attribute, consumers feel negative emotions of disappointment or regret through different attribution processes and finally show different behavioral responses with an empirical analysis.

• 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.

• The Journal of the Korea Contents Association
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• v.16 no.11
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• pp.72-82
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• 2016

Various studies have been done in medical service area but they have just focused on the examination of the relationships between cause and effect variables. This study, thus, empirically analyzed qualitative data regarding medical service problems using word cloud technique. The major results of the paper are as follows. The data reveal ten sources in medical service - forced treatment, excess inspection, misdiagnosis, carelessness, inexperienced service, waiting for emergency, reservation problem, unkindness, process problem, and inconvenience. Major words in the category of irrecoverable service failure are misdiagnosis, careless treatment, and inexperienced service whereas those in recoverable service failure are unkind attitude and negative experience in reservation system. Those who experienced a medical service problem are usually engaged in a public act and they make public protests and legal action against very severe problems. The conclusion of this study also suggests a summary, implication, and agenda of the research.

• Journal of Korean Society for Quality Management
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• v.45 no.4
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• pp.649-664
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• 2017

Purpose: This paper introduces the technology of prognostics for Industry 4.0 and presents its application procedure for fitness-for-service assessment of natural gas pipelines according to ISO 13374 framework. Methods: Combining data-driven approach with pipe failure models, we present a hybrid scheme for the gas pipeline prognostics. The probability of pipe failure is obtained by using the PCORRC burst pressure model and First Order Second Moment (FOSM) method. A fuzzy inference system is also employed to accommodate uncertainty due to corrosion growth and defect occurrence. Results: With a modified field dataset, the probability of failure on the pipeline is calculated. Then, its residual useful life (RUL) is predicted according to ISO 16708 standard. As a result, the fitness-for-service of the test pipeline is well-confirmed. Conclusion: The framework described in ISO 13374 is applicable to the RUL prediction and the fitness-for-service assessment for gas pipelines. Therefore, the technology of prognostics is helpful for safe and efficient management of gas pipelines in Industry 4.0.

• Journal of Korean Society for Quality Management
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• v.40 no.1
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• pp.25-38
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• 2012

Service FMEA may yield several possible corrective actions for each failure mode with large RPN. Corrective actions for each service failure are usually interrelated with the customers and environmental elements of the service system. SWOT analysis can provide an effective way to analyze the inner and outer environmental impacts for each corrective action. In this paper, we suggest a way for selecting and ranking corrective strategy in service operation based on SWOT analysis. Every candidate of corrective action strategy is ranked and evaluated on the basis of the impact factors of the SWOT variables, correlations between possible corrective actions and SWOT variables, and RPNs of service failures. The most desirable set of corrective actions is selected considering the preference score of each corrective action, required resources and budgetary allowance. The proposed methodology is demonstrated with an illustrative example.