An experimental investigation of justice-based service recovery on customer satisfaction, loyalty, and word-of-mouth intentions.
Service recovery is related to many important organizational outcomes such as customer satisfaction, loyalty, and profitability. Within the theoretical framework of organizational justice, an experiment using a simulated "live" service failure was used to assess the effects of justice-based service-recovery strategies on customer satisfaction, loyalty, positive word-of-mouth intentions, and negative word-of-mouth intentions. Analysis indicated that strategies including interactional justice, distributive justice, and a combination of these were equally effective in maintaining customer satisfaction, loyalty, and positive word of mouth, and minimizing negative word of mouth after a service failure. No support for the service recovery paradox, that is, increased satisfaction following service failure and recovery compared to never having a problem, was found. Satisfaction and loyalty for those in the failure conditions were equal to, although not higher than, in the no-failure control condition. Practical implications for organizational practices are discussed.
Shapiro
Terri
T
Industrial and Organizational Psychology, 135 Hofstra University, Hempstead, NY 11549-1350, USA. terri.shapiro@hofstra.edu
Nieman-Gonder
Jennifer M
JM
Andreoli
Nicole A
NA
Trimarco-Beta
Darlene
D
D000293:Adolescent; D000328:Adult; D003258:Consumer Behavior; D005069:Evaluation Studies as Topic; D005260:Female; D006801:Humans; D033182:Intention; D008297:Male; D016134:Organizational Policy; D011590:Psychology, Industrial; D012718:Set, Psychology; D012935:Social Justice; D040241:Social Marketing; D012984:Software