Service recovery in unaffected consumers: evidence of a recovery paradox

Purpose This paper aims to examine the effects of a general service recovery effort in consumers who were not victims of the service failure. Design/methodology/approach This study uses a 2 × 2 between-subjects design comparing a service failure announcement with apology and an anniversary event announcement, either with a 15% discount or no discount on purchase intentions. Findings A service recovery effort involving an apology and 15% discount leads to higher purchase intention in consumers who were not victims of the service failure in comparison to a control. The unexpected apology generates surprise, which amplifies the effect of the discount, leading to higher purchase intention. Practical implications The results of this study suggest that apologizing and offering a discount for a minor service failure can have positive effects on consumers who were not victims of the service failure. Thus, if a company is unsure which consumers have been affected by a service failure, this study shows that issuing a general apology for the failure does not have negative effects in unaffected consumers. Originality/value To the best of the author’s knowledge, this paper is the first to examine the effects of a service recovery effort in consumers who were not victims of the service failure and the first to find evidence of a service recovery paradox in unaffected consumers.

Revisiting the service recovery paradox in the restaurant industry

PurposeThe service recovery paradox (SRP) refers to a particular effect whereby an excellent recovery can turn angry and frustrated customers into loyal ones. Researchers who have studied the SRP have reported mixed findings, with some providing evidence in its support and others not finding any such evidence. To address this discrepancy, this study aims to investigate the SRP.Design/methodology/approachThis study re-examined the phenomenon of the SRP with a field study and provided further evidence in a subsequent experimental study in which the failure and recovery conditions were carefully manipulated.FindingsThe results of this study suggest that the SRP was observed in neither the field study nor the scenario experiment.Practical implicationsThis study can influence the current service management of restaurants with regard to service failures in several ways.Originality/valueThis research is a pioneering effort to examine the SRP by conducting both a field study and a scenario experiment.

The service recovery paradox in B2B relationships

Purpose This study aims to explore the service recovery paradox (SRP) in business to business (B2B) relationships. Previously, this phenomenon has been identified in consumer-facing industries. The research advances the marketing literature by highlighting the ways in which the antecedents of the service recovery paradox differ between B2B and consumer markets. Design/methodology/approach This research draws upon findings on the SRP in the consumer setting and service failure literature in business to consumer and B2B contexts. For the analysis, interview data were collected from 43 informants among clients and service providers in the aftermath of a service failure. Findings The authors propose an exploratory model of the SRP for B2B relationships. In the B2B setting the propensity of eliciting the SRP depends on (1) the characteristics of the service failure, (2) the attributes of the service recovery and (3) the shared subjective perceptions among boundary spanners. Practical implications Empowered operating-level employees, straightforward communication, immediate responses and action plans that ensure future conformance are the key factors to turn service failures into increased customer satisfaction. Originality/value This study is the first to transfer the SRP from consumer marketing into the B2B domain. Moreover, it derives an exploratory model of the SRP, which can be refined by future research.

Why are Generation Y consumers the most likely to complain and repurchase?

Purpose The purpose of this paper is twofold: to examine generational differences in complaint and post-recovery behaviors after service failures and recoveries, and to investigate the key factors that relate to Generation Y consumers’ responses. Design/methodology/approach In a two-stage approach, Study 1 investigates generational differences in the complaint and repurchase behaviors of a vast sample of more than 36,000 customers. Study 2 examines which factors influence Generation Y consumers’ decisions to complain and to repurchase. Findings Across four generational cohorts (the Silent Generation, Baby Boomers, Generation X, and Generation Y), consumers in Generation Y are the most likely to complain about service failures and repurchase after a satisfactory service recovery. The service recovery paradox thus is a generational feature. Generation Y’s unique characteristics – being tech savvy, heavily influenced by peers, and untrusting of brands – relate closely to their complaint and repurchase patterns. These prolific users of social media tend to stay with a service provider after experiencing satisfactory recovery but are more inclined to complain. Originality/value This study contributes to service management literature by revealing generational differences in customers’ complaint behavior and responses to recovery efforts, while also testing repurchase behavior rather than just behavioral intentions. This study provides valuable insights into the unique factors that influence Generation Y consumers’ complaint and post-recovery responses.

Guilt no longer a sin: the effect of guilt in the service recovery paradox

Purpose – Research on the service recovery paradox (SRP) effect has indicated that after recovery from failures in customer service, customers will commonly rate their satisfaction higher than prior to the service failure. However, thus far there has been little research on the cause of this phenomenon. Accordingly, the purpose of this paper is to explore the effect of “guilt” emotions in the context of consumer service. Design/methodology/approach – Three experiments were conducted to test the hypotheses. Data were collected from 532 undergraduate, graduate students and the general people. Findings – The results of the experiments demonstrate that if customers are compensated for service failures by receiving better than anticipated service, they will commonly experience feelings of “guilt.” In an attempt to alleviate this guilt, customers will project their feelings in evaluating a company, and will rate their customer satisfaction more highly. In doing so, the customer feels relief in reciprocating the kindness of the firm; in this way, the firm wins over the customer’s heart. Originality/value – This is one of the first studies to discuss the effect of guilt in the SRP effect. This research shows that relying on the emotion of “guilt” for receiving exceptional service helps companies to overcome service failures and successfully rebuild their relationships with customers.