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Article
Publication date: 1 August 2005

Lukas 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.

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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.

Details

Journal of Services Marketing, vol. 19 no. 5
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 18 March 2022

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.

Details

International Journal of Contemporary Hospitality Management, vol. 34 no. 6
Type: Research Article
ISSN: 0959-6119

Keywords

Article
Publication date: 1 May 1995

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…

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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.

Details

Journal of Services Marketing, vol. 9 no. 2
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 9 November 2015

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.

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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.

Details

Journal of Service Theory and Practice, vol. 25 no. 6
Type: Research Article
ISSN: 2055-6225

Keywords

Article
Publication date: 22 May 2009

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…

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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.

Details

The International Journal of Logistics Management, vol. 20 no. 1
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 10 June 2019

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.

Details

Qualitative Market Research: An International Journal, vol. 22 no. 3
Type: Research Article
ISSN: 1352-2752

Article
Publication date: 11 November 2021

Erlinda Nusron Yunus

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.

Details

International Journal of Productivity and Performance Management, vol. 72 no. 5
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 1 February 2006

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.

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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.

Details

International Journal of Bank Marketing, vol. 24 no. 2
Type: Research Article
ISSN: 0265-2323

Keywords

Article
Publication date: 15 October 2021

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…

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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.

Details

The International Journal of Logistics Management, vol. 33 no. 2
Type: Research Article
ISSN: 0957-4093

Keywords

Article
Publication date: 3 December 2021

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.

Details

Journal of Contemporary Marketing Science, vol. 4 no. 3
Type: Research Article
ISSN: 2516-7480

Keywords

1 – 10 of over 33000