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Consumer responses to compensation, speed of recovery and apology after a service failure
Abstract
This experimental study examined how the three dimensions of fairness (distributive, procedural and interactional) influence consumers' attributional processes, their post‐recovery satisfaction and behavioral responses (repatronage intent and negative word‐of‐mouth) in a service failure context that does not involve monetary costs to the consumer. Our results indicate that recovery outcomes (e.g. compensation), procedures (e.g. speed of recovery) and interactional treatment (e.g. apology) have a joint effect on post‐recovery satisfaction. Specifically, our findings suggest that compensation may not enhance satisfaction when the recovery process is well‐executed (an immediate response combined with an apology). Similarly, compensation failed to lessen dissatisfaction with a poor recovery process (a delayed response without apology). It thus seems that compensation is a poor substitute for a good recovery process. However, offering compensation was effective in increasing satisfaction in mixed‐bag recovery situations (delayed recovery with an apology, or immediate recovery without apology). Furthermore, we found that service recovery satisfaction acted as a full mediator between service recovery attributes (compensation, recovery speed and apology) and behavioral intentions (repurchase intent and negative WOM). Finally, our findings suggest that consumer attributions for stability and controllability for the failure vary across recovery efforts. Managerial implications for these findings are discussed.
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“It is also demonstrated that post-complaint satisfaction partly mediates the relationship between justice perceptions and customer behavioral intentions (Maxham III and Netemeyer 2002) and completely mediates the relationship between organizational responses and customer behavioral intentions (Wirtz and Mattila 2004).”
From A Meta-Analysis of Organizational Complaint Handling and Customer Responses (2011) · cites this paper as Wirtz and Mattila 2004
In the citing paper
“It is also demonstrated that post-complaint satisfaction partly mediates the relationship between justice perceptions and customer behavioral intentions (Maxham III and Netemeyer 2002) and completely mediates the relationship between organizational responses and customer behavioral intentions (Wirtz and Mattila 2004).”
From A Meta-Analysis of Organizational Complaint Handling and Customer Responses (2011) · cites this paper as Wirtz and Mattila 2004
In the citing paper
“and satisfaction (Mattila, Cho, and Ro 2009; Wirtz and Mattila 2004)”
From A Meta-Analysis of Organizational Complaint Handling and Customer Responses (2011) · cites this paper as Wirtz and Mattila 2004
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“For example, Bechwati and Morrin (2003) find that behaving rudely and implying that the failure is the customer’s mistake (shifting the blame) increases retaliatory behaviors, while Wirtz and Matilla (2004) find that apologizing increases conciliatory behaviors.”
BackgroundThe Service Recovery Journey: Conceptualization, Integration, and Directions for Future Research
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BackgroundMethodInfluentialThe Effectiveness of Online Shopping Characteristics and Well-Designed Websites on Satisfaction1
Luo, J., ba, B., & Zhang, H. (2012) · MIS Quarterly · doi:10.2307/41703501 · Cited by 338
“2006; Szymanski and Hise 2000), customer service (Ba and Johansson 2008; Jun et al. 2004; Wirtz and Mattila 2004; Zhang and Prybutok 2004), and pricing (Cao et al.”
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Self-citationA Meta-Analysis of Relationships Linking Service Failure Attributions to Customer Outcomes
Vaerenbergh, Y. V., Orsingher, C., Vermeir, I., & Larivière, B. (2014) · Journal of Service Research · doi:10.1177/1094670514538321 · Cited by 284
“Some studies assess attributions immediately after the service failure (e.g., Hess 2008), whereas others take the assessments only after the service recovery attempt (e.g., Wirtz and Mattila 2004).”
BackgroundBolton, L. E., & Mattila, A. S. (2014) · Journal of Retailing · doi:10.1016/j.jretai.2014.10.001 · Cited by 272
Self-citationThe Effect of Compensation on Repurchase Intentions in Service Recovery☆
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Jung, N. Y., & Seock, Y. (2017) · Journal of Retailing and Consumer Services · doi:10.1016/j.jretconser.2017.01.012 · Cited by 237
“…Chang, 2010; Ha and Jang, 2009; Kau and Loh, 2006; Maxham, 2001; Maxham and Netemeyer, 2002; Schoefer, 2008; Smith et al., 1999; Tax et al., 1998; Wirtz and Mattila, 2004) as well as the mediating role of perceived justice between service recovery activities and post-recovery satisfaction…”
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Sparks, B., & Bradley, G. L. (2014) · Journal of Hospitality & Tourism Research · doi:10.1177/1096348014538052 · Cited by 235
“…Davidow, 2003; Gelbrich & Roschk, 2011; Liao, 2007; McColl-Kennedy & Sparks, 2003; Michel, Bowen, & Johnston, 2009; Smith, Bolton, & Wagner, 1999; Wirtz & Mattila, 2004), but we also examined the partially overlapping literatures on communication and conflict management, electronic word-of…”
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The nature of an apology: An experimental study on how to apologize after a service failure
Roschk, H., & Kaiser, S. (2012) · Marketing Letters · doi:10.1007/s11002-012-9218-x · Cited by 221
“A considerable amount of studies support that complainants, who receive an apology, are more satisfied than customers who receive no apology (e.g., Bradley and Sparks 2009; Coulter 2009; Wirtz and Mattila 2004).”
BackgroundMethodThe Impacts of Service Failure and Recovery Efforts on Airline Customers’ Emotions and Satisfaction
Xu, X., Liu, W., & Gürsoy, D. (2018) · Journal of Travel Research · doi:10.1177/0047287518789285 · Cited by 191
“Providing compensation for the current trip can result in fewer complaints by restoring customers’ perception of distributive justice (Wirtz and Mattila 2004) and by enhancing both utilitarian and hedonic values (Mano and Oliver 1993).”
Backgroundde Matos, C. A., Rossi, C. A. V., Veiga, R. T., & Vieira, V. A. (2009) · Journal of Services Marketing · doi:10.1108/08876040910995257 · Cited by 187
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“Numerous studies report positive effects of compensation on customer reactions like satisfaction (SAT), loyalty (LOY), or positive word of mouth (WOM; e.g., Bonifield and Cole 2008; Mattila and Patterson 2004; Wirtz and Mattila 2004).”
BackgroundThe impact of other‐customer failure on service satisfaction
Huang, W. (2008) · International Journal of Service Industry Management · doi:10.1108/09564230810891941 · Cited by 176
“Attribution theory Attribution theory is a collection of several theories that are concerned with the assignment of causal inferences, and how these interpretations influence a customer’s subsequent evaluation (Folkes, 1984; Wirtz and Mattila, 2004).”
BackgroundXie, K., So, K. K. F., & Wang, W. (2017) · International Journal of Hospitality Management · doi:10.1016/j.ijhm.2016.12.004 · Cited by 169
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“Distributive fairness refers to the perceived outcome following a service failure, procedural fairness refers to the process involved in making the recovery effort, and interactional fairness refers to the way the service failure is handled by the service provider (Wirtz and Mattila, 2004).”
BackgroundInfluentialOpportunistic customer claiming during service recovery
Wirtz, J., & McColl‐Kennedy, J. R. (2009) · Journal of the Academy of Marketing Science · doi:10.1007/s11747-009-0177-6 · Cited by 170
“Considerable research has focused on what constitutes effective recovery (Karande et al. 2007; Wirtz and Mattila 2004).”
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“For instance, research has shown that apologies can improve customer satisfaction post-service failure (Wirtz and Mattila 2004), compensate for unattractive boasting behavior (Levine and West 1976), and facilitate forgiveness in romantic relationships (Bachman and Guerrero 2006).”
BackgroundDemographic correlates of loyalty in a service context
Patterson, P. (2007) · Journal of Services Marketing · doi:10.1108/08876040710737877 · Cited by 153
“) or in service failure situations ( Wirtz and Matilla, 2004”
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BackgroundInfluentialTrust Recovery Following a Double Deviation
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InfluentialExplanations: if, when, and how they aid service recovery
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BackgroundSelf-citationI want to believe theyreallycare
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“Although complainants consider all three justice needs to evaluate the effectiveness of the company's complaint handling or service recovery efforts ( Wirtz and Mattila, 2004”
BackgroundKuo, N., Chang, K., Cheng, Y.-S., & Lai, C.-H. (2012) · Asia Pacific Journal of Tourism Research · doi:10.1080/10941665.2012.708352 · Cited by 101
“Researchers have suggested that proper service recovery can repair customer satisfaction (Michel, Bowen, & Johnston, 2009), and ultimately win customer patronage (Wirtz & Mattila, 2004).”
Backgroundten Brinke, L., & Adams, G. S. (2015) · Organizational Behavior and Human Decision Processes · doi:10.1016/j.obhdp.2015.05.003 · Cited by 95
“Thus, we recorded the number of days between the transgression and when the apology occurred, following Wirtz and Mattila (2004).”
BackgroundUnveiling the recovery time zone of tolerance: when time matters in service recovery
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“One stream suggests that service providers should act quickly, because a fast recovery ameliorates customers’ injustice perceptions, leading to greater satisfaction and repatronage intentions (Larivière and Van den Poel 2005; Liao 2007; Wirtz and Mattila 2004).”
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“A cost-effective alternative to financial compensation is psychological compensation, such as apology (e.g., Davidow, 2000; Roschk & Kaiser, 2013; Wirtz & Mattila, 2004).”
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BackgroundYu, S., Xiong, J., & Shen, H. (2022) · Journal of Consumer Psychology · doi:10.1002/jcpy.1330 · Cited by 99
Service Failures in Restaurants
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BackgroundCustomer complaints in restaurants: Do they differ by service stages and loyalty levels?
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Guchait, P., Lanza-Abbott, J., Madera, J. M., & Dawson, M. (2016) · Cornell Hospitality Quarterly · doi:10.1177/1938965516633308 · Cited by 87
“…products, quality and performance problems, negative word-of-mouth, customer dissatisfaction, increased costs, and loss of revenue (Guchait, Kim, & Namasivayam, 2012; McCollough, Berry, & Yadav, 2000; Smith & Bolton, 1998; Smith, Bolton, & Wanger, 1999; Swanson & Hsu, 2011; Wirtz & Mattila, 2004).”
Balaji, M. S., Jha, S., Sengupta, A. S., & Krishnan, B. (2018) · Journal of Business Research · doi:10.1016/j.jbusres.2018.01.023 · Cited by 85
Effect of communication mode in justice‐based service recovery
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“Previous research has indicated that both what is done and how it is done influence customer perceptions of service recovery ( Wirtz and Mattila, 2004”
BackgroundIntellectual structure of consumer complaining behavior (CCB) research: A bibliometric analysis
Arora, S. D., & Chakraborty, A. (2020) · Journal of Business Research · doi:10.1016/j.jbusres.2020.08.043 · Cited by 84
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A bibliometric investigation of service failure literature and a research agenda
Fouroudi, P., Kitchen, P., Marvi, R., Akarsu, T., & Uddin, H. (2020) · European Journal of Marketing · doi:10.1108/ejm-07-2019-0588 · Cited by 67
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An Empirical Examination of the Structural Dimensions of the Service Recovery System*
Smith, J. S., Karwan, K. R., & Markland, R. E. (2009) · Decision Sciences · doi:10.1111/j.1540-5915.2008.00220.x · Cited by 77
“In the recovery context, the devotion of resources is often addressed in the form of properly trained employees (Hart et al., 1990; Tax & Brown, 1998; Wirtz & Mattila, 2004).”
BackgroundKoç, E., & Boz, H. (2019) · Journal of Hospitality Marketing & Management · doi:10.1080/19368623.2019.1608885 · Cited by 84
“As explained above, several research studies emphasize the importance of speed in service encounters, and in the recovery of service failures (Dalgic et al., 2017; Koc, 2013; Wirtz & Mattila, 2004).”
BackgroundVarela-Neira, C., Vázquez-Casielles, R., & Iglesias-Argüelles, V. (2008) · The Service Industries Journal · doi:10.1080/02642060801917612 · Cited by 103
“…perceived justice as a key concept in the formation of customer evaluative judgements on organisation responses to a service failure (for example, Hoffman & Kelley, 2000; Mattila, 2001; Mattila & Cranage, 2005; Shapiro & Nieman-Gonder, 2006; Sparks & McCollKennedy, 2001; Wirtz & Mattila, 2004).”
BackgroundHuang, Y., Meng, Z., Gürsoy, D., & Shi, S. (2020) · International Journal of Contemporary Hospitality Management · doi:10.1108/ijchm-01-2020-0028 · Cited by 83
Handling online service recovery: Effects of perceived justice on online games
Ding, M.-C., & Lii, Y. (2016) · Telematics and Informatics · doi:10.1016/j.tele.2016.02.001 · Cited by 75
Weitzl, W., Hutzinger, C., & Einwiller, S. A. (2018) · Computers in Human Behavior · doi:10.1016/j.chb.2018.07.012 · Cited by 76
Nikbin, D., Ismail, I., Marimuthu, M., & Jalalkamali, M. (2010) · International Journal of Marketing Studies · doi:10.5539/ijms.v2n2p47 · Cited by 77
“Wirtz and Mattila (2004) indicate that recovery outcomes (e.g. compensation), procedures (e.g. speed of recovery) and interactional treatment (e.g. apology) have a joint effect on post-recovery satisfaction.”
Gelbrich, K., & Roschk, H. (2010) · Marketing Letters · doi:10.1007/s11002-010-9101-6 · Cited by 77
“Wirtz and Mattila (2004) Consumer Experiment Service Transaction-specific MI 0.3689”
BackgroundInfluentialNoone, B. M., & Lee, C.-H. (2010) · Journal of Hospitality & Tourism Research · doi:10.1177/1096348010382238 · Cited by 77
Dens, N., Pelsmacker, P. D., & Purnawirawan, N. (2015) · Journal of service management · doi:10.1108/josm-03-2014-0082 · Cited by 74
Chang, Y.-W. (2015) · Current Issues in Tourism · doi:10.1080/13683500.2015.1005580 · Cited by 74
“The regression indicated that “social innovativeness” (H1a) and “hedonic innovativeness” (H1c) influence perceived novelty, thus satisfying the first condition for mediation (Baker & Crompton, 2000; Baron & Kenny, 1986; Chang & Polonsky, 2011; Holmbeck, 1997; Wirtz & Mattila, 2004).”
BackgroundSatisfaction with service recovery: moderating effect of age in word-of-mouth
Velázquez, B. M., Molina, M. E. R., & Gardó, T. F. (2015) · Journal of Consumer Marketing · doi:10.1108/jcm-12-2014-1251 · Cited by 70
“emphasize that recovery satisfaction is mainly based on consumer cognitive factors (Wirtz and Mattila, 2004; Harris et al., 2006).”
BackgroundRe‐examining the effect of service recovery: the moderating role of brand equity
Huang, M. (2011) · Journal of Services Marketing · doi:10.1108/08876041111173633 · Cited by 69
“Based on the theory in social and organizational psychology (Greenberg, 1996; Bies and Shapiro, 1987), service research has taken the justice theory as the dominant theoretical framework to service recovery (Tax and Brown, 2000; Wirtz and Mattila, 2004).”
BackgroundResultPerceived justice in service recovery and switching intention
Nikbin, D., Ismail, I., Marimuthu, M., & Armesh, H. (2012) · Management Research Review · doi:10.1108/01409171211210181 · Cited by 70
Gruber, T., Szmigin, I. T. D., & Voss, R. (2009) · Managing Service Quality · doi:10.1108/09604520911005044 · Cited by 81
“However, recent work by Wirtz and Mattila (2004) found that satisfaction is the main variable in service recovery, acting as a mediator variable and explaining the relationship between post-recovery behaviors and service recovery dimensions.”
BackgroundNoone, B. M. (2012) · Journal of Services Marketing · doi:10.1108/08876041211245254 · Cited by 70
Attributions and Outcomes of Customer Misbehavior
Huang, W., Lin, Y., & Wen, Y.-C. (2009) · Journal of Business and Psychology · doi:10.1007/s10869-009-9137-x · Cited by 68
“The repurchase intentions measure included the following three items (Wirtz and Mattila 2004): ‘‘Because of what happened, I will never go to restaurant A again’’ (reverse scored), ‘‘If this situation had happened to me, I would never go to restaurant A again’’ (reverse scored), and ‘‘Given what happened, I would visi…”
BackgroundMethodResultInfluentialHuang, W. (2010) · Journal of service management · doi:10.1108/09564231011039286 · Cited by 67
“Negative WOM intention was measured by the answer to the following three questions (Wirtz and Mattila, 2004): “given what happened, how likely would you be to complain to your friends and relatives about this restaurant,” “given what happened, how likely would it be that you tell your friends and…”
BackgroundMethodResultInfluentialDEALING WITH SERVICE FAILURES: THE USE OF EXPLANATIONS
Bradley, G. L., & Sparks, B. (2009) · Journal of Travel & Tourism Marketing · doi:10.1080/10548400902862010 · Cited by 67
“Apologies, for example, have frequently been shown to lead to increases in interactional (or interpersonal) justice (Goodwin & Ross, 1992; Wirtz & Mattila, 2004), which then serves to bolster satisfaction.”
BackgroundZhao, Y., Wen, L., Feng, X., Li, R., & Lin, X. (2020) · Journal of Retailing and Consumer Services · doi:10.1016/j.jretconser.2020.102205 · Cited by 66
Too busy to help: Antecedents and outcomes of interactional justice in web-based service encounters
Turel, O., & Connelly, C. (2013) · International Journal of Information Management · doi:10.1016/j.ijinfomgt.2013.03.005 · Cited by 68
Vázquez‐Casielles, R., Argüelles, V. I., & Neira, C. V. (2016) · Service Business · doi:10.1007/s11628-016-0311-8 · Cited by 66
Digital tourism experience for tourist site revisit: an empirical view from Ghana
Preko, A., Amoako, G. K., Dzogbenuku, R. K., & Kosiba, J. P. (2022) · Journal of Hospitality and Tourism Insights · doi:10.1108/jhti-10-2021-0294 · Cited by 72
Nikbin, D., Marimuthu, M., Hyun, S. S., & Ismail, I. (2014) · Asia Pacific Journal of Tourism Research · doi:10.1080/10941665.2014.889028 · Cited by 67
“Wirtz and Mattila (2004) indicated that recovery outcomes (e.g. compensation), procedures (e.g. speed of recovery), and interactional treatment (e.g. apology) have a joint effect on post-recovery satisfaction.”
Background
Metadata
- Authors
- Wirtz, J., & Mattila, A. S.
- Affiliations
- National University of Singapore (SG)
- Pennsylvania State University (US)
- Venue
- International Journal of Service Industry Management
- Publisher
- Emerald
- Published
- 2004-04-01
- Volume
- 15
- Issue
- 2
- Pages
- 150-166
- ISSN
- 0956-4233 (ISSN-L)
- OpenAlex
- W2062193161
- Cited by
- 725
- References
- 51
- Citations by year
- 2026: 26 · 2025: 32 · 2024: 36 · 2023: 41 · 2022: 41 · 2021: 47 · 2020: 58 · 2019: 54 · 2018: 35 · 2017: 37 · 2016: 33 · 2015: 40 · 2014: 41 · 2013: 36 · 2012: 39
- FWCI
- 21.64
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- International Journal of Service Industry Management (publishedVersion)
- National University of Singapore (submittedVersion)
- 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
- service failure, service recovery, compensation, recovery speed, apology, distributive fairness, procedural justice, interactional justice, consumer attributions, post-recovery satisfaction, repurchase intention, negative word-of-mouth, consumer behavior
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