Do service firm employee and customer relations matter for customer forgiveness in service recovery?

Abstract

Purpose Customer forgiveness is gaining importance in service recovery. This study debates that service firm employees and the customers’ relations are supportive resources for the customer while deciding for forgiveness. Accordingly, the purpose of this paper is to test the effects of structural, relational and cognitive social capital on customer forgiveness and thereof the effects of customer forgiveness on negative word of mouth and repatronage intentions. Design/methodology/approach Partial least squares–structural equation modeling was employed to test the hypothesized relations on usable data from 428 banking customers who registered their complaint recently. Findings Results show that structural, relational and cognitive social capital explained a unique variance in customer forgiveness with significant positive influence, whereas customer forgiveness has a significant positive effect on repatronage intentions and a significant negative influence on negative word of mouth. Originality/value Customer forgiveness is a convincing idea in service recovery. This study proposed and empirically verified that social capital in relations of service firm employee and customer relations is important for customer forgiveness to minimize negative word of mouth and enhance repatronage intentions.

Impact of organizational mistreatment on employee performance in the hotel industry

“…The items were measured using five-point Likert scale (strongly disagree = 1, strongly agree = 5). Further approach to measure injustice perceptions was consistent with that described in the literature (Kumar et al, 2019, Sarwar andMuhammad, 2019), in which firstly we noted the justice perceptions and then reversed these during the phase of data entry. See items in Table 2 from Q10 to Q12.…”

“…According to recent literature, injustice perceptions among employees may arouse perceptions of incivility (Miner and Cortina, 2016). Further, literature also supports the relation of injustice and incivility (Blau andAndersson, 2005, Sarwar andMuhammad, 2019). According to Sarwar and Muhammad (2019), injustice in organizations put civility at odd, while interactional injustice perceptions of employees may stimulate uncivil perceptions.…”

“…Hence, upon feeling being treated unfairly as compared to others, employees would reduce their inputs to the organization. When employees experience injustice in an organization, they will attempt restoring balance using different mechanisms, such as reducing the task behavior (Spector andFox, 2002, Sarwar andMuhammad, 2019), thus reducing their performance. Further, Eastern countries are known for high level of uncertainty avoidance as compare to Western countries (Xie and Paik, 2019).…”

Antecedents of Overall E-service Quality and Brand Attachment in the Banking Industry

“…Further, to evaluate the results, partial least structural equation modeling is used by employing SmartPLS3. This approach considers the measurement model first, and on a satisfactory measurement model, hypotheses are evaluated (Muhammad, 2019). Accordingly, the measurement model was evaluated first.…”

“…Reliability and validity were considered in the measurement model (Hair, Hult, Ringle, & Sarstedt, 2016;Muhammad, 2019). To test the measurement model PLS algorithm was run.…”