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1 – 10 of over 33000Lukas P. Forbes, Scott W. Kelley and K. Douglas Hoffman
The authors propose focusing on e‐commerce service failure and recovery through the presentation of failure and recovery strategies employed by e‐commerce service firms.
Abstract
Purpose
The authors propose focusing on e‐commerce service failure and recovery through the presentation of failure and recovery strategies employed by e‐commerce service firms.
Design/methodology/approach
The authors employ the critical incident technique using 377 customer responses to present ten e‐tail failures and 11 e‐tail recovery strategies used by e‐commerce service firms. The authors also present data on post‐recovery satisfaction levels and propensity to switch behavior.
Findings
Findings indicate that: e‐tail customers experience different types of service failure relative to traditional retail settings; e‐tail firms employ a different series of recovery strategies relative to traditional retail settings; and post‐recovery switching by e‐tail customers can be high even with satisfying experiences.
Originality/value
This paper strengthens the existing failure and recovery literature by presenting data on the largest growing sector of the service industry. These findings will have value to traditional firms looking to expand to e‐commerce channels in addition to e‐commerce firms currently experiencing customer dissatisfaction.
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Shinyong Jung, Jiyun Kang and Hhye Won Shin
This study aims to explore how professional event associations’ recovery strategies are perceived by members and to measure the consequent influence of the perceived fit of…
Abstract
Purpose
This study aims to explore how professional event associations’ recovery strategies are perceived by members and to measure the consequent influence of the perceived fit of recovery strategies on organizational identification (OI), consistent behavioral intentions and long-term commitment intentions.
Design/methodology/approach
Data were collected from current members of professional event management associations who work not only as event planners but also as service providers in the hospitality and tourism industry. The authors used partial least squares structural equation modeling to test the proposed model.
Findings
The perceived fit between recovery strategy and internal domains, the self in particular, was found to be the most important in exerting effects directly on OI, and its indirect effects are significant on all the behavioral intentions toward the association, while the perceived fit of recovery strategy with external domains, especially the industry, was not significant with any of the other factors.
Practical implications
The findings from the present study provide professional event association leaderships with significant managerial implications in establishing a sustainable business model to retain current members and increase their intentions toward consistent engagement and long-term commitment.
Originality/value
Stepping forward from the strategic management and organizational behavior literature in the private sector, the authors shed light on a crisis recovery mechanism of professional associations in the event industry, to the best of the authors’ knowledge, the first such attempt in the event management literature.
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K. Douglas Hoffman, Scott W. Kelley and Holly M. Rotalsky
Demonstrates a method for examining service failures and recoverystrategies in service industries and provides a typology of servicefailures and recoveries in the restaurant…
Abstract
Demonstrates a method for examining service failures and recovery strategies in service industries and provides a typology of service failures and recoveries in the restaurant industry. Based on 373 critical incidents collected from restaurant customers, uses the critical incident technique (CIT) to identify 11 unique failure types and eight different recovery strategies. Additional data regarding the magnitude of the service failure, the service recovery rating, the lapsed time since the failure/recovery incident, and customer retention rates were also collected. Presents this information along with managerial and research implications.
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Víctor Iglesias, Concepción Varela-Neira and Rodolfo Vázquez-Casielles
– The purpose of this paper is to analyze the effects of attributions on the efficacy of service recovery strategies in preventing customer defection following a service failure.
Abstract
Purpose
The purpose of this paper is to analyze the effects of attributions on the efficacy of service recovery strategies in preventing customer defection following a service failure.
Design/methodology/approach
The empirical investigation is carried out on the retail banking industry with a final sample of 448 real cases of customer retention or defection after a service failure.
Findings
The results of the study not only highlight the relevance of intentionality as an additional factor in explaining customer defection, but also show the effects of some attributional dimensions (intentionality and controllability) on the efficacy of some recovery strategies (redress, apology and explanation) applied by companies to prevent post-complaint customer defection.
Practical implications
The efficacy of the recovery strategies depends on the causal attributions that the customer makes about the service failure.
Originality/value
This study analyzes not only the effects of traditional dimensions of attribution (stability and controllability), but also the additional effect that intentionality attributions may have on actual customer defection (not intentions). Moreover, it analyzes their effects on the effectiveness of recovery strategies in preventing customer defection. Most of these effects have never been empirically analyzed in the literature.
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Sarah Jinhui Wu and David J. Closs
The purpose of this research is to apply a simulation experiment to investigate the impact of new components purchasing and used components recovery strategies on multiple…
Abstract
Purpose
The purpose of this research is to apply a simulation experiment to investigate the impact of new components purchasing and used components recovery strategies on multiple performance measures. The research compares the effectiveness of these strategies, given different levels of uncertainty for the return flow from the contingency perspective.
Design/methodology/approach
The experimental design is implemented using an ARENA simulation model. Simulation results are used to test the proposed research model. Multivariate analysis of variance is used for data analysis.
Findings
The results demonstrate that while a proactive purchasing strategy reduces total system cost, it also negatively affects service level. While there are some general conclusions, it is equally important to make decisions under specific business contexts.
Practical implications
The primary implication is that a firm has to align its purchasing strategy and recovery strategy with its business strategy. Given the tradeoff on multiple performance dimensions, the business strategy guides the selection of the appropriate purchasing and recovery strategy.
Originality/value
This paper demonstrates that using multiple performance measures is necessary to accurately assess cost and service trade‐offs related to a proactive purchasing strategy. Considering a wide range of circumstances, this paper suggests that the contingency perspective is a valid approach for investigating closed‐loop supply chains.
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Yllka Azemi, Wilson Ozuem and Geoff Lancaster
Despite scholarly effort to understand customers’ recovery evaluation, little progress is evident in deciphering how customers develop online failure/recovery perception. This…
Abstract
Purpose
Despite scholarly effort to understand customers’ recovery evaluation, little progress is evident in deciphering how customers develop online failure/recovery perception. This paper aims to address this issue.
Design/methodology/approach
Social constructivism was the epistemic choice for this study. This approach is holistic and offers a comprehensive understanding of each side of the phenomena. This provided social scientific descriptions of people and their cultural bases and built on, and articulated what was implicit in interpretations of their views.
Findings
Online banking customer groups were identified as: exigent customers, solutionist customers and impulsive customers. Customers’ position in each group determined failure perception, recovery expectation and evaluation, and post-recovery behaviour. Comparisons were observed and discussed in relation to Albania and Kosovo. It was suggested that banks should expand their presence in social media platforms and offer a means to manage online customer communication and spread of online WOM.
Research limitations/implications
For exigent customers, the failure/recovery responsibility is embedded within the provider. This explains their high sensitivity and criteria to define a failure.
Practical implications
Online banking customers’ request of a satisfactory recovery experience included: customer notifications, customer behaviour, customer determination, and the mediator of request. 10;Providers should examine customer failure/recovery experiences in cooperation with other banks which should lead to a higher order understanding of customer withdrawal and disengagement activities.
Social implications
Post-recovery behaviour is linked to the decline of online banking usage, switching to new providers, and the spread of negative online and off-line word-of-mouth.
Originality/value
This is the first empirical study on online service failure and recovery strategy to provide information on customers’ unique preferences and expectations in the recovery process. Online customers are organised into a threefold customer typology, and explanation for the providers’ role in the online customer failure-recovery perception construct is presented.
This study examines the different effects of service recovery strategies on customers' future intentions when online shoppers were experiencing delivery failures. Two types of…
Abstract
Purpose
This study examines the different effects of service recovery strategies on customers' future intentions when online shoppers were experiencing delivery failures. Two types of problem severity are evaluated: wrong-product delivery (issues with the product quality or quantity) and late delivery. This study also investigates the impact of service criticality on the relationship between service recovery strategies and customers' future intentions.
Design/methodology/approach
This study employs experimental research with 123 online shoppers as participants. Following the results, a subsequent test is conducted to examine the effect of participants' demographics on future intentions. Finally, the current study elaborates the findings using qualitative research, interviewing both sides impacted by the service failures: online shoppers and e-retail managers.
Findings
The findings show that complementing product replacement with monetary compensation is the most effective strategy to improve repurchase intention after a dissatisfaction moment. This effect is indifferent to service criticality and severity. Age influences the participants' repurchase intentions, in which younger people are less tolerant of service failures. In contrast, gender and education level do not provide any differences. To prevent delivery failures, managers participating in this study suggest several best practices regarding systems and infrastructure, people and coordination and collaboration with logistics partners.
Research limitations/implications
The study mainly examines a limited type of service and service failures. Further studies are encouraged to expand the variables and scenarios, as well as to employ more distinctive methods, to enrich the findings related to recovery strategy in the e-commerce industry.
Practical implications
Given proper compensation, service failure could create momentum for online retailers to boost customer loyalty. This study suggests that managers design the most effective service recovery to win customers back to the business.
Originality/value
This paper enriches the literature related to a service recovery strategy, particularly within the online shopping context.
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Jo Ann M. Duffy, John M. Miller and James B. Bexley
Through means of an empirical study of service recovery in US retail banking this paper aims to examine the link between satisfaction and various recovery strategies.
Abstract
Purpose
Through means of an empirical study of service recovery in US retail banking this paper aims to examine the link between satisfaction and various recovery strategies.
Design/methodology/approach
A total of 310 bank customers responded to a survey addressing customer demographics, levels of satisfaction, types of recovery strategies, and service recovery employees. Frequencies, chi‐square analysis and correspondence analysis were used to analyze the data.
Findings
The findings show no significant difference in recovery strategies or satisfaction by customer age, gender, or tenure with bank. However, the degree of customer satisfaction was strongly influenced by the type of recovery strategy used by the bank. The results indicate that recovery efforts are best directed toward empathic listening and fixing the problem rather than apologizing or making atonement.
Originality/value
This study of service recovery in US retail banking provides useful information on the link between satisfaction and various recovery strategies.
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Chengpeng Wan, Jiale Tao, Zaili Yang and Di Zhang
Since the start of the current century, the world at large has experienced uncertainties as a result of climate change, terrorism threats and increasing economic upheaval. These…
Abstract
Purpose
Since the start of the current century, the world at large has experienced uncertainties as a result of climate change, terrorism threats and increasing economic upheaval. These uncertainties create non-classical risks for global seaborne container trade and liner shipping networks (LSNs). The purpose of this paper is to establish a novel risk-based resilience framework to measure the effectiveness of different recovery strategies for the disruptions in LSNs in a quantitative manner.
Design/methodology/approach
Based on a resilience loss triangle model, an indicator of resilience–cost ratio is designed to measure the performance of LSNs during recovery. Four recovery strategies are proposed to test the rationality and feasibility of the developed indicator in aiding decision-making of LSNs from a resilience perspective.
Findings
The analysis results reveal that the superiorities of different recovery strategies vary depending on both the structures of LSNs and the specific requirements during recovery. Moreover, optimizing the sequence of ports being recovered will improve the overall recovery efficiency of the investigated LSN.
Research limitations/implications
As an exploratory research trying to enrich the risk-based resilience evaluation of LSNs from a complex network perspective, only two attributes (e.g. port scare and economy) are considered at the current stage when estimating the time needed to fully recover the whole LSN. In future research, more attributes from the industry may be identified and incorporated into the proposed model to further extend its ability and application scopes.
Practical implications
The findings will help to improve managerial understandings of recovery strategies to build more resilient LSNs. The proposed model has the capability to be tailored to tackle different types of risks in addition to the storm disaster condition.
Originality/value
The risk-based resilience framework and the resilience–cost ratio indicator are newly developed in this research. They can consider LSNs' structural resilience and the total costs that a recovery strategy needs to restore the whole system simultaneously.
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Arash Ahmadi and Sohrab Fakhimi
The main purpose of this work is to evaluate the different psychological impacts of two initial verbal recovery strategies (gratitude vs empathetic apology) on the consumers'…
Abstract
Purpose
The main purpose of this work is to evaluate the different psychological impacts of two initial verbal recovery strategies (gratitude vs empathetic apology) on the consumers' loyalty after a service failure. The proposed theoretical model also appraises the mediating role of two emotional responses (consumer forgiveness, consumer anger) and consumer self-esteem and the moderating role of self-oriented perfectionism.
Design/methodology/approach
Two studies (i.e. an experimental design and a field study) are considered for this investigation to assess the effectiveness of gratitude expression versus empathetic apology on post-recovery loyalty and test the effects of mediators and the moderator applied between the verbal recovery strategies and post-recovery loyalty.
Findings
The results of Study 1 revealed the supremacy of gratitude to empathetic apology in maintaining consumers' loyalty after service failure recovery. The better impact of gratitude expressed in increasing post-recovery loyalty is mediated through the elevation of consumers' forgiveness, the reduction of consumers' anger and consumers' self-esteem. The findings of Study 2 indicated that gratitude increases more post-recovery loyalty through individuals with a high level of self-oriented perfectionism.
Research limitations/implications
Future research could examine other service failure situations, different types of service recovery, mediators or moderators, which contribute to the service marketing literature.
Practical implications
After a service failure, using gratitude expressions to consumers often makes them feel better and more valuable.
Originality/value
This work increases service providers' knowledge in using proper expressions after a service failure to help elevate consumers' positive reactions resulting in maintaining their loyalty.
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