Cited by 218Customer Service Quality and LoyaltyService and Product InnovationAI in Service Interactions

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Equity and repurchase intention following service failure

Palmer, Adrian, Beggs, Rosalind, Keown‐McMullan, Caroline·2000·Journal of Services Marketing

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Abstract

Failure to consistently deliver promises is a likely outcome for high contact services. While many organizations create blueprints to recover from service failures, these tend to focus on production processes rather than the individual needs of customers. Develops a framework based on equity, for studying the effects on customers of service failure and recovery. In a study of restaurant customers, the construct of equity is found to be significantly correlated with respondents’ intention to repurchase. Significant differences in equity were observed between genders and age groups, suggesting that service recovery processes should be more closely tailored to the demographic characteristics of customers.

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“The equity theory has received special attention in consumer satisfaction research on complaints handling and the subsequent consequences ( Liljander, 1999 ; Palmer, Beggs, & Keown-McMullan, 2000 ), and is therefore a relevant focus for the study of consumer dissatisfaction.”
Background
Antecedents of Repurchase Intention: Propositions Towards Using Marketing Strategy to Mitigate the Attrition of Online Students
Kenney, M. G., & Khanfar, N. M. (2009) · Services Marketing Quarterly · doi:10.1080/15332960902993536 · Cited by 17
“Olorunniwo, Hsu, & Udo ( 2006 ) state “the search for universal conceptualization of the service quality construct may be futile” (p.”
Background
Fun and fair, and I don’t care: The role of enjoyment, fairness and subjective norms on online gambling intentions
Konietzny, J., Caruana, A., & Cassar, M. L. (2018) · Journal of Retailing and Consumer Services · doi:10.1016/j.jretconser.2018.06.010 · Cited by 24
Can online service recovery interventions benignly alter customers’ negative review evaluations? Evidence from the hotel industry
Sreejesh, S., Anusree, M. R., & Ponnam, A. (2018) · Journal of Hospitality Marketing & Management · doi:10.1080/19368623.2019.1544958 · Cited by 23
An Empirical Study on Antecedents of Perceived Service Recovery Quality in E-banking Context
Rejikumar, G. (2015) · The Journal of Internet Banking and Commerce · doi:10.4172/1204-5357.1000130 · Cited by 16
“Every service is considered as a heterogeneous co-process and hence magnitudes of service failures are perceived differently depending on characteristics of individuals involved in service production and consumption [21-23].”
Background
Customer perception and response to ethical norms in legal services marketing
Ndubisi, N. O., Nataraajan, R., & Lai, R. (2013) · Journal of Business Research · doi:10.1016/j.jbusres.2013.01.001 · Cited by 20
Customer retaliation at the employee–customer interface
Keeffe, D. A., Russell-Bennett, R., & Tombs, A. (2008) · Journal of Management & Organization · doi:10.5172/jmo.837.14.4.438 · Cited by 18
“This subsequent behaviour includes switching and exit (Bougie, Pieters & Zeelenberg 2003; Davidow 2003), compliments and complaints (Mattila & Wirtz 2004), positive and negative word of mouth (Maxham 2001; Wirtz & Mattila 2004) and repurchase intentions (Palmer et al 2000).”
Background
Does customer-based destination brand equity help customers forgive firm service failure in a tourist ecosystem? An investigation through explanatory sequential mixed-method design
Sahaf, T. M., & Fazili, A. I. (2024) · Journal of Destination Marketing & Management · doi:10.1016/j.jdmm.2024.100866 · Cited by 18
In‐store shopping hassles: Conceptualization and classification
Lee, J., & Ko, G. (2020) · International Journal of Consumer Studies · doi:10.1111/ijcs.12607 · Cited by 17
Effect of different food recall strategies on consumers’ reaction to different recall norms
Hu, H., Djebarni, R., Zhao, X., Xiao, L., & Flynn, B. B. (2017) · Industrial Management & Data Systems · doi:10.1108/imds-10-2016-0464 · Cited by 17
“Moreover, Palmer et al. (2000) confirmed the direct effect of perceived fairness on repurchase intention in a service failure or recovery.”
Background
Dark side of consumer-brand relationships: A brand hate perspective in anti-brand social media communities
Kamboj, S., & Sharma, M. (2023) · Journal of Global Marketing · doi:10.1080/08911762.2023.2186305 · Cited by 16
E-retailing Ethics in Egypt and Its Effect on Customer Repurchase Intention
Agag, G., & Elbeltagi, I. M. (2014) · IFIP advances in information and communication technology · doi:10.1007/978-3-662-44208-1_1 · Cited by 21
Just What the Doctor Ordered? Investigating the Impact of Health Service Quality on Consumer Misbehaviour
Greer, D. A., Russell-Bennett, R., Tombs, A., & Drennan, J. (2014) · Australasian Marketing Journal (AMJ) · doi:10.1016/j.ausmj.2014.08.010 · Cited by 15
“While early research often only investigated one or two of the justice dimensions (e.g. McCullough et al., 2000; Oliver & Swan, 1989; Palmer et al., 2000), recent research links all three justice dimensions to behavioural intentions (Smith and Bolton, 2002; Tax, Brown & Chandrashekaran, 1998).”
Background
Activating multiple roles of customer-firm relationships in service failures
Sajtos, L., & Chong, Y. S. (2018) · Journal of Service Theory and Practice · doi:10.1108/jstp-07-2017-0105 · Cited by 14
Service Failures in Restaurants
Namkung, Y., & Jang, S. S. (2010) · Cornell Hospitality Quarterly · doi:10.1177/1938965510364488 · Cited by 93
“The gravity of such failure varies from the trivial (e.g., a short delay) to serious (e.g., a food poisoning accident) (Kelly and Davis 1994; Palmer et al. 2000).”
Background
An empirical investigation of service recovery in e-retailing
Zhang, M., Dai, X., & He, Z. (2015) · Journal of Service Theory and Practice · doi:10.1108/jstp-03-2014-0046 · Cited by 9
Customer relationship satisfaction and revenge behaviors: Examining the effects of power
Mdakane, S., Muhia, A. N., Rajna, T., & Botha, E. (2012) · AFRICAN JOURNAL OF BUSINESS MANAGEMENT · doi:10.5897/ajbm12.953 · Cited by 12
“The failure is a violation of the promises or performances a customer expects from the firm and, as such, undermines the customer’s relationship with the firm (Colgate ad Norris, 2001; Hess et al., 2003; Palmer et al., 2000).”
Background
Fatal errors: unbridling emotions in service failure experiences
O'Donohoe, S., & Turley, D. (2007) · Journal of Strategic Marketing · doi:10.1080/09652540601088641 · Cited by 12
“According to this literature, for example, the most serious service breakdowns involve consumers finding no record of their reservation at a hotel (Levesque and McDougall, 2000 ), receiving incorrect items by mail order or getting the wrong room key in a hotel (Palmer, Beggs and Keown‐McMullan, 2000 ).”
Background
Does involvement shapes consumers’ response to product failure?
Hamzelu, B., Gohary, A., Nia, S. G., & Hanzaee, K. H. (2017) · Asia Pacific Journal of Marketing and Logistics · doi:10.1108/apjml-03-2016-0042 · Cited by 10
The role of switching cost in the e-service recovery framework among banking customers
Jose, A., Mathew, S., G, R., Chacko, D. P., & Thomas, A. K. (2021) · International Journal of Quality and Service Sciences · doi:10.1108/ijqss-11-2020-0172 · Cited by 10
The Roles of Forgiveness towards Repurchase Intentions from a Cross Cultural Perspective
Noth, A., Jaroenwanit, P., & Brown, R. (2015) · Athens Journal of Business & Economics · doi:10.30958/ajbe.1-3-4 · Cited by 10
“…of the relationship between marketer and consumer, such as repatronage, repurchase intention and positive word of mouth (Levesque and McDougall 2000, Palmer et al. 2000) consumers are also willing to continue to engage their relationship with the marketer after perceived service recovery.”
Background
Why Do Restaurant Customers Engage in Negative Word-of-Mouth?
Moliner-Velázquez, B., & Blasco, M. F. (2012) · ESIC MARKET Economic and Business Journal · doi:10.7200/esicm.142.0432.1i · Cited by 10
“It is a wide sector in terms of number of users and incidents, unsatisfactory experiences are easily generates in relation to individual level of involvement, and users have a critical perception and evaluation of the service results (Palmer et al., 2000).”
Background
More to tip, or tip more? Examining consumers' preservice tipping behavior in the on-demand supermarket delivery context
Wen, Y., Dai, H., Xu, X., & Tong, T. (2023) · Decision Support Systems · doi:10.1016/j.dss.2023.114125 · Cited by 9
Cognition and affect: A factors combination in clients dissatisfied with restaurants
Velázquez, B. M., Saura, I. G., & Contrí, G. B. (2010) · Journal of Retail & Leisure Property · doi:10.1057/rlp.2010.15 · Cited by 9
“Equity theory has received special attention in consumer satisfaction research on complaints handling and the subsequent consequences ( Liljander, 1999 ; Palmer et al , 2000 ), and is therefore a relevant approach in the study of consumer dissatisfaction.”
Background
The Impact of Service Recovery Processes on Consumer Trust and Loyalty in Car Repair Services
dos Santos, C. P., & Fernandes, D. V. H. D. (2008) · Latin American Business Review · doi:10.1080/10978520802084313 · Cited by 7
“Instead, the most frequently utilized approach has been to test the direct (main) effects on satisfaction, trust, perceptions of justice, and levels of loyalty (e.g., Palmer et al., 2000; Richard and Adrian, 1995).”
Background
Fair and easy: the effect of perceived fairness, effort expectancy and user experience on online slot machine gambling intention
Konietzny, J., & Caruana, A. (2018) · International Gambling Studies · doi:10.1080/14459795.2018.1526313 · Cited by 8
Chapter 6 The Intentional Use of Service Recovery Strategies to Influence Consumer Emotion, Cognition and Behavior
Keeffe, D. A., Russell-Bennett, R., & Tombs, A. (2007) · Research on emotion in organizations · doi:10.1016/s1746-9791(07)03006-4 · Cited by 8
“For example, the three dimensions of perceived justice have been empirically linked to varying levels of word-of-mouth, satisfaction and repurchase intention (Davidow, 2003; McCollough et al., 2000; Palmer et al., 2000).”
Background

Authors: Palmer, A., Beggs, R., & Keown‐McMullan, C.
Affiliations: University of Gloucestershire (GB)
University of Ulster (GB)
Venue: Journal of Services Marketing
Publisher: Emerald
Published: 2000-11
Volume: 14
Issue: 6
Pages: 513-528
ISSN: 0887-6045 (ISSN-L)
DOI: 10.1108/08876040010347624
OpenAlex: W1977161855
Cited by: 218
References: 0
Citations by year: 2026: 3 · 2025: 7 · 2024: 7 · 2023: 10 · 2022: 4 · 2021: 5 · 2020: 9 · 2019: 10 · 2018: 13 · 2017: 9 · 2016: 9 · 2015: 13 · 2014: 14 · 2013: 10 · 2012: 11
FWCI: 2.95
Type: journal article
Language: en
Open access: closed
Licence: www.emeraldinsight.com/page/tdm (tdm)
Locations: Journal of Services Marketing (publishedVersion)
Topics: Social Sciences › Business, Management and Accounting › Marketing › Customer Service Quality and Loyalty
Social Sciences › Business, Management and Accounting › Marketing › Service and Product Innovation
Social Sciences › Business, Management and Accounting › Marketing › AI in Service Interactions
Keywords: equity theory, service failure, service recovery, repurchase intention, restaurant customers, demographic differences, gender differences, age differences, customer satisfaction

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Equity and repurchase intention following service failure

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