• Journal of the Korean Society of Costume
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• v.64 no.3
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• pp.13-31
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• 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 Applied Tourism Food and Beverage Management and Research
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• v.15 no.2
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• pp.123-150
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• 2004

The purpose of this study is to prove that the approprlate fit between service failure and recovery strategy can effciently maximize customer satisfaction and behavioral intention, by using prepared scenario through comprehensive approach concerning how the expectation level about service recovery has influences on perceived fairness, satisfaction and behavioral intention of servlce recovery based upon size in case of service failure. This study has been conducted by way of selection of filling-up type questionnaires for customers themselves who have experience in service failure out of customers who can easily visit family and hotel restaurants, that is, domestic restaurants in Seoul area, June ~ August 2004, by setting factorial design of 2(control, severeness) ${\times}$ 3(distributive fairness, procedural fairness, mutual relational fairness) ${\times}$ 2(customer satisfaction, customer behavior). The survey was performed on the customers who visited common restaurants, family restaurants, hotel restaurants, etc. mainly in Seoul, and total 600 sheets of questionnaires were distributed and 496 sheets of them were returned(82.67% of return ratio).

• Korea Journal of Hospital Management
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• v.16 no.1
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• pp.50-76
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• 2011

This study chiefly aims to examine the relations between customer's responsive behavior and service recovery satisfaction in medical service failure. Therefore, this paper deals with the effect of medical service failure severity perceived by customers on complaint behavior and service recovery expectation, the effect of complaint appealing behavior and service recovery expectation on perceived recovery and service recovery satisfaction, and the roles of service recovery(compensation) and recovery fairness as moderating variables. According to the result of this research, it was shown that service failure severity affects complaint behavior and service recovery expectation positively, and compliant behavior and service recovery expectation affects perceived recovery performance and service recovery satisfaction positively. Moreover, the moderating roles of service recovery(compensation) and recovery fairness indicated partially significant results and affected perceived recovery performance and service recovery satisfaction direct positively. The result of this study is expected to provide support when medical institutes establish service recovery strategies.

• 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.

• Culinary science and hospitality research
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• v.13 no.1 s.32
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• pp.152-165
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• 2007

The purpose of this study is to prove that the appropriate fit between service failure and recovery strategy can efficiently maximize customer satisfaction and behavioral intention, by using the prepared scenario through comprehensive approach concerning how the expectation level of service recovery has influence on perceived fairness, satisfaction and behavioral intention of service recovery based upon size in case of service failure. This study has been conducted by way of selection of filling-up type questionnaires for customers themselves who have experience in service failure out of customers who can easily visit family and hotel restaurants, that is, domestic restaurants in Seoul area, $June{\sim}August$ 2004, by setting factorial design of 2(control, severeness)$\times$3(distributive fairness, procedural fairness, mutual relational fairness)$\times$2(customer satisfaction, customer behavior). The survey was performed on the customers who visited common restaurants, family restaurants, hotel restaurants, etc. mainly in Seoul, and total 600 sheets of questionnaires were distributed and 496 sheets of them were returned(82.67% of return ratio). Research findings are as follows; First, perceived recovery justice has an effect on customer satisfaction and behavioral intention. Second, customer satisfaction and restaurant satisfaction have positive influence on behavioral intention. The results will be helpful for them to develop a further service failure and recovery framework. For service marketing managers, the results will suggest specific guidelines for establishing service recovery strategies.

• Journal of Fashion Business
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• v.18 no.1
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• pp.118-131
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• 2014

The purpose of this study is to classify the service recovery fairness of internet fashion shopping mall depending on the type of shopping mall into 3 levels, and analyze their influence on customers' satisfaction and intention to repurchase. Data were collected from 271 customers who had made a complaint or raised a question about service among the customers, and was analyzed through AMOS 7.0. For hypothesis testing, a research model was set up in the form of structure equation model, and its suitability was investigated. The results of this research can be summarized as follows: First, in relation to the service recovery fairness at internet shopping mall, only the consequential fairness has a meaningful relationship with customer satisfaction. Second, it has been shown that the higher the customers' satisfaction with internet shopping mall, the more positive influence it has on intention to repurchase. Third, it has been shown that the influence of service recovery fairness on customers' satisfaction and intention to repurchase has a meaningful difference depending on the type of internet shopping mall. In other words, it has been shown that customer satisfaction is higher at open market than general internet shopping mall. In addition, it has been shown that in open market, only the consequential fairness has a meaningful influence, therefore it will be more effective to strengthen a strategy focused on economical rewards than other fields.

• Culinary science and hospitality research
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• v.16 no.2
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• pp.15-30
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• 2010

This study investigates the effect of seriousness and controllability of service failure on perceived fairness, reliability, satisfaction and loyalty of customers. The result of the study is as follows. First, it was expected that a control-attribute and a seriousness-attribute would have an negative(-) impact on perceived fairness-attribute; however, the result showed that both did not have an negative impact on it. Next, a fairness-attribute of a procedure had a significant effect on trust, and a fairness-attribute of interaction and a fairness-attribute of distribution had a significant effect on trust and satisfaction. Lastly, trust had a significant effect on satisfaction while satisfaction had a significant effect on loyalty. Based of the result of this study, food-service enterprises need to perform a fast process of a recovery to overcome service failure rather than confirming a control-attribute and a seriousness-attribute of service failure. Also, they should set up a process of the recovery in the order of trust, satisfaction, and loyalty and check if this process is promptly carried out.

• Journal of Distribution Science
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• v.13 no.2
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• pp.63-73
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• 2015

Purpose - Satisfaction with service is evaluated according to customers' subjective judgment. The expected value of customer service and its evaluations depend on the customers' position. The customer recognizes two different forms of service levels. One is satisfaction and the other is dissatisfaction. Customers who are satisfied want to receive the service in future. However, those dissatisfied try to change the service. The service provider tries to improve the service. There are two different service cycles. One is the successful cycle and the other is the failure cycle. This study aimed to empirically determine the effects of the justice and authenticity of service recovery on customer behavioral intention through an integrated approach to cognitive justice and psychological authenticity. Research design, data, and methodology - Based on a literature review, justice of service recovery was categorized into three types: distributive, procedural, and interactive. Then, authenticity was added to obtain four independent variables, along with recovery satisfaction as a parameter. Behavioral intention, as an outcome variable, was divided into the repurchase intention and positive word-of-mouth. The model and hypotheses were created and measurement items were developed. A questionnaire survey of items concerning the service recovery experience at family restaurants was conducted on college students and residents in Gwangju from September 30 to October 31, 2013. A total of 400 copies of the questionnaire were sent out and 385 were returned. Respondents answered questions about the importance of, and satisfaction with service recovery on a 5-point Likert scale. Excluding 174 copies without service failure experiences and 7 inappropriate copies, 204 copies were analyzed using SPSS 21.0 for Windows and AMOS 20.0 to determine the reliability and validity of measurements. The hypotheses were tested through a goodness-of-fit analysis. Results - First, distributive justice positively affected recovery satisfaction. Second, procedural and interactive justice had no impact. Third, authenticity positively affected recovery satisfaction. Fourth, distributive justice had relatively stronger effects on recovery satisfaction than authenticity. Fifth, recovery satisfaction significantly affected repurchase intention and positive word-of-mouth and it proved effective in mediation. Finally, additional analysis was performed for descriptive statistics of the principal variables by various demographic characteristics and significant differences were found in gender, occupation, and so on. Conclusions - This study has academic significance as the fairness and authenticity of service recovery were investigated to reveal the effects on behavior. The findings could be applied to a wide range of service recovery strategies. However, there are some limitations. First, data was collected only from the residents of Gwangju and most respondents were aged 20-30. Future studies should target a wide range of areas and age groups. Second, because the questionnaire used in this study targets only convenience family restaurants, the results of this study cannot be generalized to all services companies. Future research should be done on a wide range of industries such as hotels, airlines, and hospitals, and perform a comparison between sectors.

• Asia Marketing Journal
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• v.14 no.1
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• pp.99-130
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• 2012

Service failure and a poor service recovery may lead loyal customers to try to aggressively punish the service firm. We use perceived betrayal and desire for vengeance as the key constructs to understand customer retaliation. Perceived betrayal is defined as a customer's belief that a firm has intentionally violated what is normative in the context of their relationship. And the desire for vengeance is defined as the retaliatory feelings that consumers feel toward a firm, such as the desire to exert harm on the firm. The perceived betrayal and the desire for vengeance are key antecedents of retaliatory behaviors such as vindictive complaining, negative WOM and third-party complaining for publicity. The empirical results suggest that betrayal is a key motivational factor that lead customers to restore fairness by making use of all means, including retaliation. We also find that relationship quality has effect on a customer's response to a failure in service recovery. As the levels of relationship increases, a violation of the proper fairness has a stronger effect on the sense of betrayal experienced by customers. Considerable research has investigated consumer responses to dissatisfaction. But our study examine the response of outraged and highly frustrated consumers. We focus on emotional and behavioral processes that have not been covered by previous dissatisfaction researches and which are unique to outraged consumers caused by extremely dissatisfied purchase experience. It has recently been pointed out by various mass media that the customers not only have positive effects on the company performance but also put the company in crisis. It has often been reported that one customer's dissatisfaction, for example, never ends as it is, and it tends to grow for retaliating upon the company, depending on the level of seriousness of the dissatisfaction. This sometimes leads to a lawsuit against the company. Our study focuses on the customers' emotional and behavioral responses induced by their extreme dissatisfactions. We divided the customer groups into the customers with high relationship quality and the customers with low relationship quality, and the difference between two groups is examined. The objective of this study is to comprehend the causal relationship between the feeling of betrayal caused by the service failure and the retaliatory behavior triggered by the desire of revenge. Our study is divided into three parts. First, a causal relationship between perceived unfairness and the perceived betrayal and desire for revenge. Second, the effect of the perceived betrayal and desire for revenge on the retaliatory behavior is investigated. Finally, the moderating role of relationship quality in the causal relationship between the unfairness in service recovery and the perceived betrayal is analyzed. This study finds the following empirical results. The distributive unfairness, procedural unfairness and interactional unfairness had significant effects on the perceived betrayal. Especially, the perceived distributive unfairness results in the highest perceived betrayal. When the service company does not provide customers proper and sufficient compensation for the failure, they feel the strong sense of betrayal. And in the causal relationship between the perceived betrayal, desire for revenge and retaliatory behavior, the perceived betrayal has significant effects on e desire for revenge. In addition desire for revenge has significant effects on negative word of mouth, retaliatory complaining behavior and publicity of complaints through third group. Therefore the perceived unfairness has effects on retaliatory behavior through the mediation of the perceived betrayal and desire for revenge. Finally the moderating role of relationship quality was examined in the relationship between the unfairness and perceived betrayal. If the customers experienced the perceived unfairness in the process of service recovery, the customers with high relationship quality feel the stronger perceived betrayal than the customers with low relationship quality do. When they experience the double service failure, the customer group with high relationship quality accumulating the sense of trust feel the more perceived betrayal than the customer with low relationship quality who do not have strong trust. The contribution of this study is to find the effect of the service failure on the retaliatory behavior with the moderating roles of relationship quality. The dimensions of unfairness in service recovery is found to have differential effects on the perceived betrayal, desire for revenge. And these differential effect is moderated by the level of relationship quality.

• The Journal of the Korea Contents Association
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• v.17 no.6
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• pp.424-435
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• 2017

Because services are delivered through the behaviors of people, it is very difficult to do the quality control and services failures are often happened. If services failures are not recovered by appropriate methods, customers make the negative word-of-mouth communications and have the negative intention to repurchase. The service recovery paradox demonstrates the importance of service recovery after the service failures. The purpose of this study is to investigate the antecedents of customer satisfaction of service recovery(CS), and its consequences of the CS. Independent variables of CS are distributive justice, procedural justice, and interactional justice, and dependent variables of CS are negative word of mouth communication and intention to repurchase. Data are collected using the scenario method. Research model and hypotheses are tested empirically using the statistical packages such as SPSS and AMOS.