Purpose -This study seeks to examine perceived corporate social responsibility (CSR) with a focus on ethical and legal questions, related to the constructs such as recovery satisfaction, customer trust, and loyalty after a service failure. Design/methodology/approach -An empirical test was conducted on this relationship in the context of service failure and recovery. A structural equation model was employed to test the hypotheses. Findings -Results indicate that perceived CSR has a significant impact on customer trust and loyalty and that customer trust serves as a key mediating variable in service recovery. Research limitations/implications -This study provides a theoretical implication for the relationship between perceived CSR and the relationship constructs such as service recovery satisfaction, customer trust, and loyalty. Practical implications -The results suggest that managers may need to be aware of perceived CSR as a key variable in restoring customer loyalty. The results further suggest that perceived CSR has a direct and indirect positive effect on loyalty; perceived CSR has a direct impact on loyalty, but it also has an indirect influence on loyalty through customer trust. Originality/value -In an attempt to deepen the understanding of how customer perceptions of firm CSR are connected with other customer-related outcomes during service recovery, the present research proposes a comprehensive model which encompasses CSR and other key relationship constructs after a service failure and recovery.
Purpose – This research aims to examine the consequences of customer justice perception and the role of customer affection in the context of service failure and recovery. Design/methodology/approach – Survey data were analyzed using confirmatory factor analysis and structural equation modeling. Findings – The authors' findings indicate that procedural and interactional justice perceptions significantly influence customer affection, with distributive justice perception being significant only if the failure severity is high. The present research also provides evidence for the links between customer affection and loyalty, and customer affection and word-of-mouth respectively, indicating that strengthening the emotional tie between customers and companies is crucial after service failure and recovery. Research limitations/implications – The present research makes a significant contribution by demonstrating the relationship between customer affection and other key constructs such as justice perception, customer loyalty, and word-of-mouth intention. Practical implications – Customers' distributive justice perception has a significant impact on customer affection especially in a severe service failure situation. Therefore, managers may need to provide monetary compensation for service recovery in a timely manner along with apologies to enhance customer affection when customers experience a high-magnitude service failure. On the other hand, in the case of a low-magnitude service recovery, providing apologies and prompt response to service failures may be enough to win customers back. Originality/value – The current findings highlight the importance of customer affection in service recovery. The effect of customers' distributive justice perception on customer affection, which is moderated by service failure severity, is also highlighted.
Purpose Creating superior customer experience quality is important to firm success, but the link between customer experience quality and customer-to-customer interaction quality – a critical component of customer experience quality in mass service settings – has seldom been spotlighted. This paper aims to propose and test a theoretical model of the relationship among three types of customer-to-customer interaction quality (friend-interaction, neighboring customer-interaction and audience-interaction) and customer experience quality. They also examine these variables’ effects on customer citizenship behavior in mass service settings. Design/methodology/approach The authors collected data through a self-administered survey. The proposed relationships were tested using structural equation modeling. Findings Friend-interaction and audience-interaction quality perceptions significantly influence customer experience quality, with neighboring customer-interaction quality perception significant only for low communication quality. We find that enhancing customer experience quality is crucial to promoting citizenship behavior in mass service settings. Practical implications Neighboring customer-interaction quality perception has a significant effect on customer experience quality, particularly in a low communication quality situation. Therefore, service marketers should provide effective neighboring customer-interaction management schemes to enhance experience quality together with friend-interaction and audience-interaction management schemes when customers experience low communication quality. Additionally, service marketers should focus on enhancing communication quality only when anticipating low neighboring customer-interaction quality. Originality/value The findings highlight the effects of three types of customer-to-customer interaction quality on customer citizenship behavior through experience quality perception in mass service settings, and the effect of neighboring customer-interaction quality perception on customer experience quality, moderated by communication quality.
This study investigates the dynamics of customer affection and customer trust on customer loyalty intention after cases of service failure and recovery. The results demonstrate that after customers experience service failure and recovery, customer affection has a greater influence on customer trust but less in loyalty intention, whereas customer trust becomes more influential in loyalty intention in comparison to the time prior to a service failure. The findings suggest that the rebuilding of loyalty after a service failure and recovery relies primarily on the recovery of trust and that the key determinant of trust recovery is customer affection. Theoretical and managerial implications are also discussed.
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