The impact of the magnitude of service failure and complaint handling on satisfaction and brand credibility in the banking industry

Shams, Ghazal; Rehman, Mohsin Abdur; Samad, Sarminah; Rather, Raouf Ahmad

doi:10.1057/s41264-020-00070-0

Cited by 66 publications

(61 citation statements)

References 49 publications

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“…There are several factors that say the lack of satisfaction and loyalty in Sharia banking [3]. As is the complaint of Sharia banking customers, there is a failure in the transaction process in sharia banks online, where the failure is caused by errors on the part of customers [4]. From the results of interviews conducted during the pretest, there were some problems in transacting online, such as customers mis-entering the amount of money, incorrectly entering the account number, the network / system was damaged so that the transaction was constrained, when the transaction was completed but did not issue receipts, and the withdrawal of the amount of money did not match the amount stated on the receipt and magnetiq chip was problematic so it could not make transactions [5] [6].…”

Section: Introductionmentioning

confidence: 99%

The Role of Religiosity as a Mediating Variable in the Relationship between Online Transactions and Customer Satisfaction and Loyalty in Islamic Banking

Purnama

Sukmasari

Bhandari

2021

ATM

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This study aims to determine the role of religiosity as mediation in the relationship between online transactions and customer satisfaction and loyalty in Sharia banking in the Jakarta area. The population of this research is all sharia banking customers in Jakarta. The number of samples in this study was 175 Sharia banking customers in Jakarta by sampling purposive sampling method. The data processing method used is Structural Equation Modelling. The results showed: 1) there is no effect of failure on the experience of online transactions in Sharia banking; 2) there is an effect of service recovery on the customer experience of online transactions in Sharia banking; 3) there is an influence of customer experience on customer satisfaction in online transactions in Sharia banking; 4) there is an effect of customer satisfaction on customer loyalty using online transactions in Sharia banking; 5) customer religiosity moderates between customer experience to satisfaction using online transactions; 6) Customer religiosity moderates the satisfaction of customer loyalty using online transactions in Sharia banking.

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Section: Introductionmentioning

confidence: 99%

The Role of Religiosity as a Mediating Variable in the Relationship between Online Transactions and Customer Satisfaction and Loyalty in Islamic Banking

Purnama

Sukmasari

Bhandari

2021

ATM

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“…Service failure refers to a situation when the service provider fails to deliver what it supposed to deliver to meet the expectations of service encounters (Harrison-Walker, 2019; Shams et al , 2020). Service failures are a common occurrence in hospitality because of the intangible nature of services (Siu et al , 2013).…”

Section: Introductionmentioning

confidence: 99%

“…The complaint behaviour varies based on cultural values (Ergün and Kitapci, 2018). In this regard, causes, severity and consequences of service failures affect customers’ positive and negative emotions (Shams et al , 2020; Xu et al , 2018).…”

Section: Introductionmentioning

confidence: 99%

“…SR is of paramount importance for service performance management (Luo et al , 2019) and is an organizational last defence against customer defection (Migacz et al , 2018). A common argument in the service marketing literature is that human resource management should develop and strengthen the frontline staff’s capabilities so that they can be accountable for service failures (Hewagama et al , 2019; Shams et al , 2020). Considering hospitality industry as a case study where service failure is an unavoidable and effective SR can generate repeat visits with an improved level of customer satisfaction (Guchait et al , 2019), frontline employees must be able to rectify service failure properly (Van Vaerenbergh and Orsingher, 2016; Yao et al , 2019).…”

Section: Introductionmentioning

confidence: 99%

“…Researchers proposed several approaches to managers to handle service failures, including taking the initiative (Van Vaerenbergh et al , 2012), speedy and prompt recovery action (Wirtz and Mattila, 2004; Xu et al , 2018), genuine expressions of empathy (Luo et al , 2019), making an apology (Wirtz and Mattila, 2004; Radu et al , 2019), compassion, politeness and other positive emotions (Hwang and Mattila, 2020), compensation (Hwang et al , 2020), using managerial intervention (Silber et al , 2009), co-creation recovery strategies (Hazée et al , 2017) and stealing thunder as an emerging SR strategy (Guchait et al , 2019). According to the SR literature, every SR action may have a different influence on a customer’s behavioural intentions and satisfaction (Gelbrich and Roschk, 2011; Shams et al , 2020).…”

Section: Introductionmentioning

confidence: 99%

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Hospitality-based service recovery, outcome favourability, satisfaction with service recovery and consequent customer loyalty: an empirical analysis

Shams

Rather

Rehman

et al. 2020

IJCTHR

Self Cite

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Purpose In recent studies, tourism scholars focussed more on service failure and recovery. Thus satisfaction with service recovery (SSR) and outcome favourability in conjunction with service recovery (SR) and customers’ behavioural intention was given very little attention, while they are very attention-grabbing, particularly in marketing areas of hospitality and tourism studies. Using stealing thunder and co-creation-based strategies, this study aims to investigate the impact of SR on outcome favourability, and its association with SSR and customer loyalty. Design/methodology/approach To attain the objectives of the current study, data were collected through field survey by applying a random sampling technique from 346 regular customers four- and five-star hotels in the context of Iran. The structural equation modelling technique was applied for testing the measurement and relationship models of the study. Findings The findings of this research reveal a positive relationship between SR and outcome favourability. The findings also indicate that outcome favourability positively affects SSR and loyalty. Finally, SSR exerts a favourable and significant impact on customer loyalty. Research limitations/implications The study findings may have restricted applicability in different contexts other than four- and five-star hotels. Theoretically, the current research contributes insight into the dynamics of characterizing SR, outcome favourability, SSR and behavioural intention-based theoretical associations, as observed in the hospitality industry. Originality/value This study adopted an un-explored SR, outcome favourability and SSR theoretical perspectives to identify the strength and nature of relationships between them and discuss their important implications for academicians and hotel managers.

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Customer's revisit intention: Empirical evidence on Gen‐Z from Bangladesh towards halal restaurants

Polas

Raju

Hossen

et al. 2020

Journal of Public Affairs

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The perception of halal is a serious concern for all Muslims worldwide. The majority of the population in Bangladesh are Muslims. Restaurants providing halal food are important as the religion advocates that Islamic principles and beliefs must be practised in all transactions. A sample of 317 Generation Z (Gen Z) respondents was selected from 10 halal restaurants in Dhaka, Bangladesh. Gen Z comprises anyone born between 1996 and 2010 who are usually tech‐savvy. Which factors motivate customers from this young generation to revisit halal restaurants? To answer this question, the study examined the direct impact of service quality, physical environment, and price perception on their revisit intention, and tested the indirect effects of these three factors based on customer satisfaction, using Smart PLS 3.0 to test the research hypotheses. The findings confirmed a positive and significant relationship between service quality, physical environment, and price perception with revisit intention. The analysis also confirmed that customer satisfaction mediates the relationship between physical environment and price perception with customer revisit intention. However, the study did not establish any relationship in the mediation role of customer satisfaction with service quality and customer revisit intention. This study contributes to the existing body of knowledge by highlighting the importance of each factor in the hotel and hospitality sector. Its application in the hospitality business and implications for future research are also discussed.

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The impact of the magnitude of service failure and complaint handling on satisfaction and brand credibility in the banking industry

Cited by 66 publications

References 49 publications

The Role of Religiosity as a Mediating Variable in the Relationship between Online Transactions and Customer Satisfaction and Loyalty in Islamic Banking

The Role of Religiosity as a Mediating Variable in the Relationship between Online Transactions and Customer Satisfaction and Loyalty in Islamic Banking

Hospitality-based service recovery, outcome favourability, satisfaction with service recovery and consequent customer loyalty: an empirical analysis

Customer's revisit intention: Empirical evidence on Gen‐Z from Bangladesh towards halal restaurants

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