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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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“DJ in online shopping has been measured by the ‘justice’, ‘fairness’, ‘value’ and ‘reward’ of outcomes (Wirtz and Mattila 2004; Chebat and Slusarczyk 2005).”
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Petzer, D. J., & Steyn, T. F. J. (2006) · Acta Commercii · doi:10.4102/ac.v6i1.106 · Cited by 18
“Several strategies exist, therefore, to reduce inevitable service failure (Cranage, 2004:211-212; Wirtz & Mattila, 2004:162; Young et al., 2004:32; Lewis & Spyrakopoulos, 2001:46 and McCole, 2004:346): • Organisations should put interviewing methods in place to identify employees with potentially…”
BackgroundWaqas, M., Haider, A., & Khan, M. A. (2014) · International Review on Public and Nonprofit Marketing · doi:10.1007/s12208-014-0120-5 · Cited by 18
“According to Writz and Mattila (2004) procedural justice causes satisfaction with service recovery if it is combined with interactional justice.”
BackgroundResultInfluentialAppreciation vs. apology: When and why does face covering requirement increase revisit intention?
Luo, A., Ye, T., Xue, X., & Mattila, A. S. (2021) · Journal of Retailing and Consumer Services · doi:10.1016/j.jretconser.2021.102705 · Cited by 18
Self-citationNeira, C. V., Casielles, R. V., & Argüelles, V. I. (2009) · Cuadernos de Economía y Dirección de la Empresa · doi:10.1016/s1138-5758(09)70045-3 · Cited by 19
Chao, C., & Cheng, B. (2017) · Total Quality Management & Business Excellence · doi:10.1080/14783363.2017.1369351 · Cited by 18
“Recent research on the topic of service recovery justice has focused largely on justice theory (e.g. Smith, Bolton, & Wagner, 1999; Wirtz & Mattila, 2004).”
BackgroundCarrillo, I. M., Svensson, G., & Neira, M. D. C. O. (2019) · International Journal of Quality and Service Sciences · doi:10.1108/ijqss-12-2017-0115 · Cited by 18
Sheraz, A., & Hashim, S. (2018) · Unimas Institutional Repository (Universiti Malaysia Sarawak) · Cited by 18
JianHua, W., Kim, H. J., Su, C.-H. J., & Chen, M. (2024) · Asia Pacific Journal of Tourism Research · doi:10.1080/10941665.2024.2343074 · Cited by 17
“We use two representative measures (refunds and apolo-gies) satisfying distributive and interactional justice, respectively (e.g. Wirtz & Mattila, 2004).”
MethodZhu, T., & Park, S. K. (2022) · Frontiers in Psychology · doi:10.3389/fpsyg.2022.877446 · Cited by 17
The evolution of E-WOM intentions: A two time-lag interval approach after service failures
Yang, C. Z., & Ha, H. (2023) · Journal of Hospitality and Tourism Management · doi:10.1016/j.jhtm.2023.06.024 · Cited by 17
Yu, J., Liu, X., He, M., Huang, L., & Li, J. (. (2024) · International Journal of Hospitality Management · doi:10.1016/j.ijhm.2024.103759 · Cited by 17
Cognitive decline and emotional regulation of senior consumers
Kim, D., & Jang, S. S. (2014) · International Journal of Hospitality Management · doi:10.1016/j.ijhm.2014.10.011 · Cited by 17
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
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
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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