• Title/Summary/Keyword: service recovery strategy

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A Study on Service Recovery and Customer Behavior from Service Failure (서비스 실패에 따른 서비스 회복과 고객행동에 관한 연구)

  • Park, Young-Bae
    • 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.

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Comparing the Effects of Courteous vs. Humorous Apologies for Chatbot Service Recovery (챗봇의 서비스 회복을 위한 정중한 사과와 유머러스한 사과의 효과 비교)

  • Min Jeong Seo
    • Journal of the Korean Society of Clothing and Textiles
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    • v.48 no.2
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    • pp.254-268
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    • 2024
  • Human agents are increasingly being replaced by chatbots. However, like humans, chatbots can also make mistakes in service delivery by failing to provide accurate answers to customer questions while research on service recovery has been highly focused on human employees. Recognizing the necessity of research on effective chatbot service recovery strategies, this study investigated the relationships among service recovery messages (courteous apology vs. humorous apology), perceived sincerity, recovery satisfaction, and continuous usage intention. An online experiment was conducted with the participants randomly assigned to one of two experimental conditions (courteous apology vs. humorous apology). After using the chatbot developed for this study, the participants completed a questionnaire. The analysis results revealed that, in comparison to the humorous apology, the courteous apology had a higher positive predictive effect on perceived sincerity, Furthermore, perceived sincerity and recovery satisfaction sequentially mediated the relationship between the chatbot's courteous apology and continuous usage intention. In conclusion, this study demonstrates that the courteous apology was a more effective approach as a chatbot service recovery strategy. This study offers insights into crafting recovery service messages for chatbots.

The Impact of Service Recovery on Satisfaction and Word of Mouth of International Tourists Towards Homestays: An Empirical Study in Vietnam

  • MAI, Van Nam;NGUYEN, Quoc Nghi;NGUYEN, Du Ha Long
    • The Journal of Asian Finance, Economics and Business
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    • v.8 no.8
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    • pp.593-600
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    • 2021
  • Service failures are fairly common these days, and recovering from them is difficult. If service failures are not addressed quickly, the service provider may lose revenue and customers. A good service recovery strategy will positively impact the business results of the service provider. The study aims to demonstrate the impact of service recovery on the satisfaction and word of mouth of international visitors towards homestays in the Mekong Delta, Vietnam. The research data was collected from 320 international visitors who have used services at homestays and experienced service failures in the Mekong Delta, Vietnam. Structural equation modeling was applied to analyze the data. The result shows that 3 dimensions constitute service recovery which are distributive justice, interactional justice, and procedural justice. Most importantly, the study has proved the positive impact of service recovery on both satisfaction and word of mouth of overseas tourists towards homestays in the Mekong Delta, Vietnam. The results have stressed the importance of service recovery to tourists' perceptions of service quality and service image. In addition to this, the study suggests that homestay owners should develop risk handling and risk prevention plans for their services.

Effect of Justice Perception of Restaurant e-Service Recovery on Customer Behavioral Intentions (외식업체 e-서비스회복에 대한 긍정성 지각이 고객행동에 미치는 영향에 관한 연구)

  • Kim Tae-Hee;Kim Le-Sook;Jang Yeajin
    • Journal of the Korean Home Economics Association
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    • v.43 no.3 s.205
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    • pp.147-159
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    • 2005
  • The purpose of this study was to analyze the effect of justice (distributive, interactional, and procedural) perception of e-service recovery in restaurant businesses on e-service recovery satisfaction, negative word of mouth, trust, and commitment. We designed a quasi-experimental study using eight different scenarios of justice application. One of the eight scenarios was distributed to each respondent to read, and the respondent then answered regarding feelings and subsequent action. Data analysis was based on 232 usable responses. The results imply that interactional justice is more important than other forms of justices in e-service recovery of restaurant businesses, indicating that restaurants must approve the service failure, make an apology to the customer, and maintain a courteous attitude at all times. In addison, the restaurant has to consider an e-service recovery program as a long-term strategy because the effect of e-service recovery in restaurant businesses grows slowly and takes time-consuming effort.

A Study on the Factors affecting the Recovery Satisfaction at Logistics Service Failure (물류서비스실패시 회복만족에 영향을 미치는 요인에 관한 연구)

  • Choi, Youngro
    • Journal of Korea Port Economic Association
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    • v.28 no.4
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    • pp.169-191
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    • 2012
  • This study is to investigate the strategy on forming a long term relationship between logistics service provider and demander including maintaining strategy of it. For these purposes, effect on the organization and human factor of Logistics service companies and also, impact on the customer trust and relational commitment against service recovery are analysed. Literature review and empirical study are used to modify research model and to develop questionnaire for logistics service companies. Reliability for measuring procedure yields the same result on repeated trials and validity for identifying the accuracy of the accrual measuring instrument are also used. Suggested hypothesis are verified through multiple regression method and the testing results are shown as follows; First, organization and human factor have a positive effect to the service recovery satisfaction against the service failure of logistics service providing company. Second, the service recovery satisfaction also leads a positive effect on the customer trust and relational commitment.

A Study on Recovery Justice, Satisfaction and Behavioral Intention of Service Failure (서비스실패에 대한 회복공정성과 만족, 행동의도에 관한 연구)

  • Park, Yeong-Bae
    • 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).

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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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The Effect of Failure of Online Food Delivery Service Recovery Strategies on Consumer Attitude and Behavioral Intention: Focusing on Justice Theory (온라인 음식 배달 서비스 회복 전략의 실패가 소비자 태도 및 행동 의도에 미치는 영향: 공정성 이론(Justice Theory)을 중심으로)

  • Jungkun Park;Sangwoo Lee;Hyowon Hyun;Jihwan Yum
    • Journal of Service Research and Studies
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    • v.13 no.2
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    • pp.161-180
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    • 2023
  • This study empirically analyzed the effect of perceived injustice on service recovery measures proposed by online food delivery service (OFDS) companies on consumer disappointment. This study adopted interaction justice, information justice, procedural justice, and distributive justice as sub-variables of justice perception based on the justice theory. In addition, the differences by generation (MZ generation and other generations) were examined in the relationship between negative word-of-mouth behavior and switching intentions due to service recovery failure. An online survey was conducted targeting 250 adult consumers in the U.S for the empirical analysis of this research model. The results of the data analysis demonstrated that negative perceptions about the procedural justice and distributive justice among the service recovery strategies had a positive effect upon the consumer's disappointment. Furthermore, it was confirmed that the consumer's disappointment due to the perceived injustice of the service recovery strategy had a positive effect on the consumer's negative word-of-mouth behavior and switching intentions. The verification results of the moderation effect in the relationship between negative word-of-mouth behavior and switching intention, it was found that the younger the age(MZ generation), the higher the possibility of causing dysfunctional behavior. This study expands the scope of related research by presenting a new perspective on the justice perception in the service recovery process by verifying dysfunctional behavior of consumers caused due to the failure of the service recovery strategy. It is believed that the results of this study will be used as basic data for the establishment of practical strategies for OFDS companies to prevent double defection of their customers.

Potential Influence of Expectation-Performance Dis-Confirmation and Perceived Justice for Service Recovery upon Fashion-Product Consumers' Satisfaction and Loyalty (서비스 회복에 대한 기대-성과 불일치와 지각된 공정성이 패션 상품 고객의 만족도 및 충성도에 미치는 영향)

  • Shin, Su-Yun;Lee, Jung-Im
    • The Research Journal of the Costume Culture
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    • v.18 no.3
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    • pp.526-540
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    • 2010
  • Due to fierce competition, many domestic fashion businesses are suffering difficulty in securing and maintaining customers. Accordingly, fashion companies are devoting all their energy to secure customers by using high quality and diverse strategies for distribution and promotion, and to secure loyalty by satisfying customers with the offer of excellent service. Thus, it is very important to provide systematic service recovery strategy available for handling service failure effectively. Therefore, the purpose of this study is comprehensively analyzing influences of expectation dis-confirmation and perceived justice for service recovery upon consumers' satisfaction and loyalty. The findings are as follows. First, as for the service failure that customers experienced, the more consumers who expect it to be recovered led to the higher formation of expectation-compensation dis-confirmation. Second, it was indicated that the higher seriousness in service failure that customers experienced led to the lower satisfaction and loyalty to service recovery. Third, as a result of examining influence of expectation-compensation dis-confirmation for service-failure recovery upon consumer satisfaction and loyalty, the customers who showed more positive dis-confirmation to expectation-compensation were indicated to form the more satisfaction and loyalty. Fourth, as a result of examining the influence of the perceived justice in the process of service-failure recovery upon customer satisfaction, all in 3 dimensions of justice had effect on customer satisfaction.

The Relationship between Perceived Justice and Customer Attitude in an Integrated On·Offline Commerce : Focusing on the Moderation Effect of Commerce Industry Type (통합된 온·오프라인 상거래에서 지각된 공정성과 고객태도 간 관계 : 상거래 산업유형의 조절효과를 중심으로)

  • Moon, Yunji
    • 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.