Australian Retail Banking Customers’ Perceptions of Time in A Service Recovery Process

Abstract

Results of past studies related to the role of time in service recovery processes have not been conclusive. The present study seeks to address this gap in the literature. In particular, the investigation is aimed at understanding how much time customers expect banks to take in solving their complaints, as well as how much personal time and effort customers are willing to invest during the process of addressing a complaint. To address these objectives, 25 in-depth interviews were conducted with Australian retail banking customers. Results demonstrated that a majority of customers expected banks to resolve their complaints within 24 hours, and that the amount of personal time and effort they were willing to invest in the process of complaining was dependent on the magnitude of the service failure. The investigation also identified four distinct groups of customers in relation to the personal time and effort they were willing to invest in the complaint process: non-complainers, convenience-oriented solution seekers, control seekers and desperate solution seekers.

An integrated service recovery process for service failures: insights from systematic review

“…Although some studies explained the usefulness of organizational resources, power, control system and consumer perception (Valenzuela and Cooksey, 2014;Van Vaerenbergh et al, 2012;Zhang and Geng, 2019), they did not explain their importance for specific SRPs. These are some of the important factors that can enhance the success of recovery strategies.…”

“…Moreover, customers are also found to have interacted more with those employees who put in effort and time to find solutions most suitable to the needs of the customers. Treating customers with empathy also has a positive significant influence on customers (Hogreve et al , 2017; Valenzuela and Cooksey, 2014). Finally, a willingness to listen to customers represents the commitment of employees to listen to the description provided by the customers about their unsatisfactory experience.…”

“…One of the most significant steps in the recovery Integrated service recovery process process includes the provision of a quick response to customers. Generally, customers accept that organizations will take some time to respond to the SR, but if the wait grows long then it can have a negative effect on the customer (Valenzuela and Cooksey, 2014;Lemon and Verhoef, 2016). Nevertheless, the pace of response is not always beneficial; for example, automated responses are almost always instantaneous, but they are ineffective when customers seek to understand their situation instead of receive merely a swift response (Kim and Baker, 2020).…”

The Impacts of Perceived Risk and Negative Emotions on the Service Recovery Effect for Online Travel Agencies: The Moderating Role of Corporate Reputation

“…The influence mechanism of service recovery satisfaction is a research hotspot. The current literature focuses on the influence of customer misconduct, time perception, cultural differences, customer psychological contract violation, economic compensation, and emotional compensation on customer satisfaction after service recovery (Valenzuela and Cooksey, 2014;Albrecht et al, 2017).…”

Understanding Customers Perception of ATM Data Integrity

“…Perception as a metric in exploring, investigating or understanding independent factors is much explored in financial industry (Conlon and Murray, 1996) to understand corporate responses to complaints. Cooksey (2014) explored customers perception of time in recovery process in Australia; (Hossain and Leo, 2009) unveiled service quality in retail banking in the middle east. Customers perception on preannouncement of application software was explored by (Hoxmeier, 2000) and in other IT related fields by (Jain, Sethi, and Mukherji, 2009).…”