Consumer Reactions to Service Recovery Strategies

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Consumer Reactions to Service Recovery Strategies

Keywords of Existing Reading

Complaint/ Recovery Paradox/ Satisfaction/ Customer Retention

Introduction: 800~1000 words

Literature Review: 1000~1500 words

Methodology: 900~1000 words

Notes from Reading:

 

(Mostafa, 2014) ‘Successful service recovery relies on individual strategies like facilitating complaint process and fast response time’.

(Mostafa, 2004, p.301) ‘Most implementation of service recovery are apology and compensation, yet other implementations such as explaining the source of service failure should be considered as a way to differentiate one company’.

(Spreng et al, 1995, p.16) ‘One of the most key consequences of maintaining customers’ satisfaction is to increase repurchase intentions’.

(Spreng et al, 1995, p.18) ‘Service recovery dominates satisfaction formations and positive intentions’.

(Spreng et al, 1995, p.20) ‘In many cases customers choose not to complain, instead they bring business to another competitor. Therefore facilitating/encouraging complaint is important’.

(Fan & Niu, 2016, p.1032) ‘Recovery speed does not directly contribute to customer satisfaction when operating service recovery on social media, because customers deem immediate response as a key factor of the recovery process’.

About Internet Provider:

(Dwivedi, 2010, p.214) ‘If broadband providers aim to increase and maintain existing customer base, they should provide customers technical support whenever needed’.

Structure of the Introduction:

A lot of industry especially service-based companies aim to provide successful service, yet even those with world class system inevitable encounter service fail. As such, service recovery is established to solve fail service and preserve customers. Existing papers suggest that effective service recovery contributes to customer retention, and identify that ‘enhancing loyalty’ and ‘creating positive WOM’ are the key objectives for service recovery strategy .Some scholar suggests that one of the key issues of service recovery is about dealing with complaint, yet others disagree with such discourse.

Existing researches in this area are mainly about how to measure effectiveness of service recovery, what tools are more effective for service recovery process (email, telephone, social media, etc).

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Focused area:

Internet providers in UK face strong competitive, therefore providing effective service recovery strategies will help them to maintain/increase market share. In the article written by Mostafa (2014), successful recovery strategies include nine actions: apology, problem solving, courtesy, explanation, promptness, compensation, facilitation, effort, follow-up; facilitating the report of issue contributes to customer satisfaction. This research paper proposal aims to identify 4 variables that may influence consumers satisfaction in the complaint process, and explore its relationship.

Hypothesis:

  1. Using phone call is more effective for service recovery.
  2. Using email is more effective for service recovery.
  3. Using online chat is more effective for service recovery.
  4. Using social media (e.g. facebook, twitter) is more effective for service recovery.

Problem situation for internet users:

  1. Wifi drop-off suddenly;
  2. Bill is wrongly charged;
  3. Set up problem;
  4. Router doesn’t work;
  5. Delivery of the router is slow;
  6. Any other technical support.

Reference:

Mostafa, R., Lages, R.C., Sääksjärvi, M. (2014) ‘The CURE scale: a multidimensional measure of service recovery strategy’, Journal of Services Marketing. 28(4), pp.300-310.

Spreng, R.A., Harrel, G.D., Mackoy, R.D. (1995) ‘Service recovery: Impact on satisfaction and intentions’, Journal of Services Marketing. 9(1), pp.15-23.

Zeithaml, V., Bitner, M., Gremler, D. (2006) Service Marketing: Integrating Customer Focus Across the Firm. New York: McGraw-Hill Irwin.

Fan, Y. & Niu, R.H. (2016) ‘To tweet or not to tweet? Exploring the effectiveness of service recovery strategies using social media’, International Journal of Operations & Production Management. 36(9), pp.1015-1036.

 

McCollough, M.A. (2009) ‘The recovery paradox: the effect of recovery performance and service failure severity on post-recovery customer satisfaction’, Academy of Marketing Studies Journal. 13(1), pp.89-104.

Harris, K.E., Grewal, D., Mohr, L.A., Bernhardt, K.L. (2005) ‘Consumer responses to service recovery strategies: The moderating role of online versus offline environment’, Journal of Business Research. 59(4), pp.425-431.

Michel, S. & Meuter, M.L. (2008) ‘The service recovery paradox: true but overrated?’, International Journal of Service Industry Management. 19(4), pp.441-457.

 

Grégoire, Y., Salle, A., Tripp, T.M. (2015) ‘Manging social media crises with your customers: The good, the bad, and the ugly’, Business Horizons. 58(2), pp.173-182.

Miller, J.L., Craighead, C.W., Karwan, K.R. (2000) ‘Service recovery: a framework and empirical investigation’, Journal of Operations Management. 20(4), pp.387-400.

Dwivedi, Y.K., Papazafeiropoulou, A., Brinkman, WP., Lal, B. (2010) ‘Examining the influence of service quality and secondary influence on the behavioural intention to change internet service provider’, Information Systems Frontiers. 12(2), pp.207-217.

Minichiello, V (1990) In-depth Interviewing: Researching People. Cheshire: Longman Ltd.

Kasemsap, K (2016) ‘Promoting Service Quality and Customer Satisfaction in Global Business’ in Upendra Singh Panwar, Raj Kumar, Nilanjan Ray (editors) Handbook of Research on Promotional Strategies and Consumer Influence In the Service Sector. Pennsylvania: Business Science Reference, pp. 247-276.

Quach, T.N., Jebarajakirthy, C., Thaichon, P. (2016) ‘The effects of service quality on internet service provider customers’ behaviour: A mixed methods study’, Asia Pacific Journal of Marketing and Logistics. 28(3), pp.435-463.

 

Brown T.J., Suter, T.A., Churchill, G.A. (2014) Basic Marketing Research: Customer Insights and Managerial Action, 8th edition. Stamford: Cengage Learning.

Liao, H (2007) ‘Do It Right This Time: The Role of Employee Service Recovery Performance in Customer-Perceived Justice and Customer Loyalty After Service Failures’, Journal of Applied Psychology. 92(2), pp.475-489.

Maxham, J.G. (2001) ‘Service recovery’s influence on consumer satisfaction, positive word-of-mouth, and purchase intentions’, Journal of Business Research. 54(1), pp.11-24.

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