• Title/Summary/Keyword: service recovery strategy

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The Influence of Service Recovery Fairness on Customers' Satisfaction and Intention to Repurchase: Focused on Purchasing Fashion Product at the Open Market and General Internet Shopping Mall (인터넷 쇼핑몰에서 서비스 회복 공정성이 고객의 만족과 재구매 의도에 미치는 영향: 오픈마켓과 종합 인터넷쇼핑몰을 중심으로)

  • Kim, Jungmi;Chae, Nari;Hwang, Sunjin
    • 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.

The Roles of Service Failure and Recovery Satisfaction in Customer-Firm Relationship Restoration : Focusing on Carry-over effect and Dynamics among Customer Affection, Customer Trust and Loyalty Intention Before and After the Events (서비스실패의 심각성과 복구만족이 고객-기업 관계회복에 미치는 영향 : 실패이전과 복구이후 고객애정, 고객신뢰, 충성의도의 이월효과 및 역학관계 비교를 중심으로)

  • La, Sun-A
    • 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.

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Simulation of Contaminant Draining Strategy with User Participation in Water Distribution Networks

  • Marlim, Malvin S.;Kang, Doosun
    • Proceedings of the Korea Water Resources Association Conference
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    • 2021.06a
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    • pp.146-146
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    • 2021
  • A contamination event occurring in water distribution networks (WDNs) needs to be handled with the appropriate mitigation strategy to protect public health safety and ensure water supply service continuation. Typically the mitigation phase consists of contaminant sensing, public warning, network inspection, and recovery. After the contaminant source has been detected and treated, contaminants still exist in the network, and the contaminated water should be flushed out. The recovery period is critical to remove any lingering contaminant in a rapid and non-detrimental manner. The contaminant flushing can be done in several ways. Conventionally, the opening of hydrants is applied to drain the contaminant out of the system. Relying on advanced information and communication technology (ICT) on WDN management, warning and information can be distributed fast through electronic media. Water utilities can inform their customers to participate in the contaminant flushing by opening and closing their house faucets to drain the contaminated water. The household draining strategy consists of determining sectors and timeslots of the WDN users based on hydraulic simulation. The number of sectors should be controlled to maintain sufficient pressure for faucet draining. The draining timeslot is determined through hydraulic simulation to identify the draining time required for each sector. The effectiveness of the strategy is evaluated using three measurements, such as Wasted Water (WW), Flushing Duration (FD), and Pipe Erosion (PE). The optimal draining strategy (i.e., group and timeslot allocation) in the WDN can be determined by minimizing the measures.

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The domestic situation of ethnic food restaurants and Service Failure, recovery, trust, satisfaction, loyalty of the Study on the Quality of Service (에스닉 푸드점 외식업의 실태와 서비스 품질이 서비스 실패, 회복, 신뢰, 만족, 충성도의 상관관계에 관한 연구)

  • Park, Ji Soo
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.22 no.6
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    • pp.385-397
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    • 2021
  • This study examined service failure and recovery of domestic ethnic food restaurants based on a model of the repercussions of service failure dealing with seriousness and control and the cause-and-effect relationships among the variables relevant to the quality of relationships -trust, satisfaction, and loyalty. This study provides valuable information for Korean restaurant managers regarding food service failure and response plans by collecting data from actual Japanese tourists visiting ethnic food restaurants. The results suggested that it is important to develop a strategy to present the distributional fairness to customers who recognize the seriousness of service failure to control the situation promptly. These results can be used to establish more systematic business plans, improving customer management and firm performance. The advantage of this research is that it is time for substantial research data on the booming domestic restaurant industry and service quality to overcome the current recession and grow and solidify the current restaurant market.

Differentiated Lambda Establishment and Wavelength Assignment based on DMS model for QoS guarantees in DWDM Next Generation Internet Backbone Networks (DWDM 차세대 인터넷 백본망에서 DMS 모델 기반의 차등화된 파장할당 및 LSP 설정)

  • Kim, Sung-Un;Lee, Jun-Won
    • The Journal of Korean Institute of Communications and Information Sciences
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    • v.28 no.9B
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    • pp.760-773
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    • 2003
  • The Internet is evolving from best-effort service toward an integrated or differentiated service framework with quality-of-service (QoS) assurances that are required for new multimedia service applications. Given this increasing demand for high bandwidth Internet with QoS assurances in the coming years, an IP/MPLS-based control plane combined. with a wavelength-routed dense-wavelength division multiplexing (DWDM) optical network is seen as a very promising approach for the realization of future re-configurable transport networks. This paper proposes a differentiated lambda establishment process for QoS guarantees based on the differentiated MPLS service (DMS) model. According to the QoS characteristics of wavelength in optical links and the type of used Optical Cross-Connect (OXC) nodes in DWDM next generation optical Internet backbone network, a differentiated wavelength assignment strategy that considers QoS recovery capability is also suggested.

Sewerage cost recovery alternatives achievable in seoul (서울시 하수도요금 현실화 방안에 관한 연구)

  • Oh, Hyuntaek;Kim, Sungtae;Park, Wankyu;Park, Jooyang;Park, Kyoohong
    • Journal of Korean Society of Water and Wastewater
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    • v.28 no.5
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    • pp.529-540
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    • 2014
  • As sewerage systems have obsolete, as quality and service level standards increase, and as rain characteristics change, the sewerage utility authorities are challenged to develop cost recovery strategies that assure financial sustainability. In this study, we conducted scenario analysis to examine the effect of three alternatives of partial or full sewerage cost recovery in Seoul during 2014-30 periods. It turned out that the alternative 1 is optimal and recommended. According to alternative 1, we had better increase annually sewerage fee by 14.8% until 2020 and thereafter apply only the inflation rate in setting sewerage fee. It would gradually decrease the deficit after 2019. The accumulated deficit of 13 billion Won in 2030 was estimated. We expect that this kind of analysis may provide useful informations to help sewage utility staffs, decision makers, and regulatory authorities understand, develop and implement ultimate full cost recovery strategy for many municipalities.

Recovery of Ecosystem Service Functions through Ecological Restoration Practice: A Case Study of Coal Mine Spoils, Samcheok, Central Eastern Korea (훼손된 생태계의 복원을 통한 생태계 서비스의 회복: 채탄쓰레기 매립지 복원지의 사례)

  • Oh, Woo Seok;Lee, Chang Seok
    • Korean Journal of Environmental Biology
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    • v.32 no.2
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    • pp.102-111
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    • 2014
  • Ecological restoration is regarded as a major strategy for preventing biodiversity loss and thereby enhancing ecosystem service. This study was performed to evaluate ecosystem service value that the restored ecosystem provides. Ecosystem service was evaluated for provisioning and regulating services. The former service was evaluated by comparing similarities in a viewpoint of floristic composition to the reference site between the restored and the unrestored sites. Species composition of the restored site was found to be more similar to the reference site than that of the unrestored site and thereby restoration practice contributed for enhancing the provisioning service. Regulating service was evaluated based on microclimate control, soil amelioration, and improvement of water holding capacity. The value of ecosystem services in terms of microclimate control, soil amelioration, and improvement of water holding capacity was higher in the restored site than in the unrestored site. In consequence, ecological restoration of coal mine spoils contributed for enhancing the ecosystem service value of the corresponding site and thereby is rewarding the cost invested for restoration.

An Empirical Study on the Use Dissatisfaction of Online Game Contents Service (온라인 게임 콘텐츠 서비스 이용 불만에 대한 경험적 연구)

  • Lee, Ji-Hun
    • Journal of Korea Game Society
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    • v.9 no.6
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    • pp.93-103
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    • 2009
  • The domestic online game market is rapidly growing and changing because of the game service that makes game users agreeable to their characters. However, the game service cannot satisfy with game users' need because it only considers game users' characters. As a result of this, there gives rise to side effects such as a secession from a customer group and a boycott. Furthermore, these have effect on life or death in the game market. Therefore, the purpose of this study examines game users' dissatisfaction and satisfaction about online game how to express. Through this process, this study willing to suggest a strategy for recovering service of the game company.

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The Effect of E-SERVQUAL on e-Loyalty for Apparel Online Shopping (재망상복장구물중전자(在网上服装购物中电子)E-SERVQUAL 대전자충성도적영향(对电子忠诚度的影响))

  • Kim, Eun-Young;Jackson, Vanessa P.
    • Journal of Global Scholars of Marketing Science
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    • v.19 no.4
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    • pp.57-63
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    • 2009
  • With an exponential increase in electronic commerce (e-commerce), marketers are attempting to gain a competitive advantage by emphasizing service quality and post interaction service aspects, which leads to customer satisfaction or behavioral consequence. Particularly for apparel, service quality is one of the key determinants in encouraging customer e-loyalty, and hence the success of apparel retailing in the context of electronic commerce. Therefore, this study explores e-service quality (E-SERVQUAL) factors and their unique effects on e-loyalty for apparel online shopping based on Parasuraman et al' s (2005) framework. Specific objectives of this study are to identify underlying dimension of E-SERVQUAL, and analyze a structural model for examining the effect of E-SERVQUAL on e-loyalty for online apparel shopping. For the theoretical framework of service quality in the context of online shopping, literatures on traditional and electronic service quality factors were comparatively reviewed, and two aspects of core and recovery services were identified. This study hypothesized that E-SERVQUAL has an effect on e-loyalty; customer satisfaction has a positive effect on e-service loyalty for apparel online shopping; and customer satisfaction mediates in the effect of E-SERVQUAL on e-loyalty for apparel online shopping. A self-administered questionnaire was developed based on literatures. A total of 252 usable questionnaires were obtained from online consumers who had purchase experience with online shopping for apparel products and reside in standard metropolitan areas, in the United States. Factor analysis (e.g., exploratory, confirmatory) was conducted to assess the validity and reliability and the structural equation model including measurement and structural models was estimated via LISREL 8.8 program. Findings showed that the E-SERVQUAL of shopping websites for apparel consisted of five factors: Compensation, Fulfillment, Efficiency, System Availability, and Responsiveness. This supports Parasuraman (2005)'s E-S-QUAL encompassing two aspects of core service (e.g., fulfillment, efficiency, system availability) and recovery related service (e.g., compensation, responsiveness) in the context of apparel shopping online. In the structural equation model, there are five exogenous latent variables for e-SERVQUAL factors; and two endogenous latent variables (e.g., customer satisfaction, e-loyalty). For the measurement model, the factor loadings for each respective construct were statistically significant and were greater than .60 and internal consistency reliabilities ranged from .85 to .88. In the estimated structural model of the e-SERVEQUAL factors, the system availability was found to have direct and positive effect on e-loyalty, whereas efficiency had a negative effect on e-loyalty for apparel online shopping. However, fulfillment was not a significant predictor for explaining consequences of E-SERVQUAL for apparel online shopping. This finding implies that perceived service quality of system available was likely to increase customer satisfaction for apparel online shopping. However, it was not supported that e-loyalty was determined by service quality, because service quality has an indirect effect on e-loyalty (i.e., repurchase intention) by mediating effect of value or satisfaction in the context of online shopping for apparel. In addition, both compensation and responsiveness were found to have a significant impact on customer satisfaction, which influenced e-loyalty for apparel online shopping. Thus, there was significant indirect effect of compensation and responsiveness on e-loyalty. This suggests that the recovery-specific service factors play an important role in maximizing customer satisfaction levels and then maintaining customer loyalty to the online shopping site for apparel. The findings have both managerial and research implications. Fashion marketers can establish long-term relationship with their customers based on continuously measuring customer perceptions for recovery-related service quality, such as quick responses to problem and returns, and compensation for customers' problem after their purchases. In order to maintain e-loyalty, recovery services play an important role in the first choice websites for consumers to purchase clothing. Given that online consumers may shop anywhere, a marketing strategy for improving competitive advantages is to provide better service quality, maximize satisfaction, and turn to creating customers' e-loyalty for apparel online shopping. From a researcher's perspective, there are some limitations of this research that should be considered when interpreting its findings. For future research, findings provide a basis for the further study of this important topic along both theoretical and empirical dimensions. Based on the findings, more comprehensive models for predicting E-SERVQUAL's consequences can be developed and tested. For global fashion marketing, this study can expand to a cross-cultural approach into e-service quality for apparel by including multinational samples.

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A Study on the Factors Affecting the Service Failure ZOT and severity Perception (서비스실패의 허용영역과 심각성 지각에 영향을 미치는 요인에 관한 연구)

  • Ock, Jung Won;Yun, Dae Hoong;Eum, Seong Won;Yim, Sun Joo
    • Journal of Service Research and Studies
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    • v.6 no.2
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    • pp.215-232
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    • 2016
  • As the development of service marketing, research on service failure has gained more and more attention. This research aims to explore factors influencing the service failure severity perception, focus on consumers' internal propensity, ZOT(zone of tolerance) about service and comparison with other consumers in service failure situation. According to study results, it revealed that past experience satisfaction has negative effect on the zone of tolerance about service failure. Company image also has negative effect on the ZOT about service failure. While service importance has negative effect on the ZOT about service failure, it has positive effect on the perceive service failure severity. The ZOT about service failure has negative effect on perceived serviced failure severity. In contrast, social comparison perception level has no effect on perceived service failure severity, and negative affectivity also has no effect on that. In Conclusion, five hypothesis are accepted among seven hypothesis. This study gives important point to researchers and service providers in the service industry. For researchers, the result will be helpful them to further develop service failure and recovery framework. For service providers, the results will suggest specific guidelines for recovering the service failure. They can place emphasis on the serious point, so they can get a effective performance from the recovery strategy.