The Service Recovery Paradox (SRP) has emerged as an important effect in the marketing literature. However, empirical research testing the SRP has produced mixed results, with only some studies supporting this paradox. Because of these inconsistencies, a meta-analysis was conducted to integrate the studies dealing with the SRP and to test whether studies' characteristics influence the results. The analyses show that the cumulative mean effect of the SRP is significant and positive on satisfaction, supporting the SRP, but nonsignificant on repurchase intentions, word-of-mouth, and corporate image, suggesting that there is no effect of the SRP on these variables. Additional analyses of moderator variables find that design (cross-sectional versus longitudinal), subject (student versus nonstudent), and service category (hotel, restaurant, and others) influence the effect of SRP on satisfaction. Finally, implications for managers and directions for future research are presented.

Purpose – Even though personal values are considered an important variable in consumer studies, rarely has it been related to customer loyalty, especially in the banking context and considering the different loyalty phases. Hence, the purpose of this paper is to investigate the influence of personal values on loyalty phases in the private banking industry, taking into account the moderating influence of demographic variables. Design/methodology/approach – After developing a theoretical framework based on the relevant literature, a research model is proposed and empirically tested with data from a survey with 891 bank customers from Brazil. Hypotheses of moderation were tested using structural equation modelling technique. Findings – Results suggested that customers that place more importance on growth and achievement as personal values are less loyal to their bank, considering all four stages of loyalty. Moreover, this effect was more pronounced for female, older and high-income consumers, supporting the moderating effect of these demographic variables. Research limitations/implications – One of the limitations was that the sample was not probabilistic. To compensate this issue, the authors have used the approach of splitting the sample and use one for calibration and other for estimation. Another limitation was the small subgroups of high and low education, which might be responsible for the nonsignificant finding, due to low statistical power in the z-test. Future studies should consider using quota samples in order to have sample size greater than 150 cases in each category of variables such as age, education and income. Practical implications – This study emphasizes the relevance of personal values, especially the dimensions of growth/achievement and security/social affiliation, and demographic variables when considering customers’ loyalty in the private banking industry. Managers should give different treatment for customers in distinct loyalty stages and with different demographics, thus increasing the customer orientation and segmentation efficacy. Originality/value – The study tests a theoretical model that analyses the influence of two dimensions of personal values on loyalty, with originality on the loyalty phases (from cognitive to action) and the contingent effect of demographic variables, such as gender, age, education and income. Moreover, the model is tested in a sample of private banking customers from an emerging market, i.e., Brazil.

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Purpose – The purpose of this study is to test the effects of satisfaction, satisfaction with service recovery (SSR) and switching costs (SC) on loyalty and positive word-of-mouth (PWOM) of bank customers in a service recovery context, taking into account the interaction among latent variables and the effects of contextual factors. Design/methodology/approach – A theoretical model is proposed based on previous studies and tested using structural equation modeling technique and bootstrapping estimates. A survey was conducted with 1,878 bank customers of a large Brazilian bank. Findings – Results supported the positive effects of satisfaction and SC on loyalty, while PWOM was influenced mainly by SAT. In addition, SC significantly interacted with satisfaction, reducing the effects of satisfaction on loyalty. Finally, relationship time, gender and age were the most relevant contextual factors. Practical implications – This study highlights the importance of switching costs in the banking industry. Although satisfaction is a relevant predictor of loyalty, this influence is contingent on the customer's SC. Hence, investment on marketing strategies and campaigns should be oriented to better convert switching perceptions into effective loyalty. Originality/value – Despite recent investigations on the roles of SC in customer loyalty, results have indicated mixed findings and most of the studies do not consider interactions between latent constructs. This study addresses this issue using the orthogonalization procedure.