The Effect of Perceived Justice and Attributions Regarding Service Failure and Recovery on Post-Recovery Customer Satisfaction and Service Quality Attitudes

Abstract

This research examines the impact of attributions regarding service failure and recovery on the relationship between satisfaction and service quality by studying a service failure in the hospitality industry resulting from overbooking. In addition, the impact of perceived justice on satisfaction and service quality is analyzed. Finally, the ability of superior recovery to completely mitigate the dissatisfaction resulting from low-harm service failure is addressed. In doing so, the relationship between satisfaction and service quality is clarified. Research hypotheses are critically evaluated through the use of a scenario-based experiment. Implications concern the ability of recovery to mitigate the harm caused by failure. Specifically, for managers in the hospitality industry, the study demonstrates a need to balance overbooking as a yield management tool against the need for organizations to assure service quality through reliability in their service products.

Perceived Justice in Service Recovery and Recovery Satisfaction: The Moderating Role of Corporate Image

“…Many authors have found that all three forms of justice including distributive justice, procedural justice, interactional justice have a positive effect on overall service recovery satisfaction (Patterson et al, 2006;dos Santos & Fernandes, 2008;Kim et al, 2009;Karande et al, 2007;Karatepe, 2006;Ok et al, 2005;Smith et al, 1999;Tax et al, 1998;Clemmer & Schneider, 1996;Kau & Loh, 2006). The effects of dimensions of justice on customers' recovery satisfaction have been studied in different service industries as well, including, hotel customers, (Karatepe 2006), mobile phone buyers (Kau & Loh 2006), Undergraduate students, hotel customers (Smith et al, 1999) and Airline passengers (McCollough et al, 2000). Thus, based on the above discussion, this study proposed the following hypotheses:…”

“…As it was mentioned in the introduction section, past studies have examined the effect of perceived justice on recovery satisfaction (Karatepe, 2006;Kau & Loh 2006;Smith et al, 1999;McCollough et al, 2000). However, the degrees of the relationship between perceived justice and recovery satisfaction might not be the same across corporate image levels.…”

A Case Study of Service Failure and Recovery in Tourism within China Southern Airline

“…A superior recovery is examined to be critical to repurchase intentions, post-recovery satisfaction and customer retention [15][16] [18]. Taking Hampton Inn hotels in the USA as a practical example, approximately $11 million extra revenue has been derived from the maintaining of service guarantee and retaining customers [10].…”

“…responding to service failure). [18] demonstrated that the better performance of service recovery, the higher level of customer satisfaction. Consequently, it is imperative to recover service failure to reduce risks of financial loss and create long-term customer loyalty.…”

“…To draw a conclusion, compensation plays an essential role in rectifying service failure. Managers should offer compensation such as refund check, product replacement, or free goods coupon corporation with apology tactics to recover failure [7] [18].…”