An experimental investigation of justice-based service recovery on customer satisfaction, loyalty, and word-of-mouth intentions

Service recovery is related to many important organizational outcomes such as customer satisfaction, loyalty, and profitability. Within the theoretical framework of organizational justice, an experiment using a simulated "live" service failure was used to assess the effects of justice-based service-recovery strategies on customer satisfaction, loyalty, positive word-of-mouth intentions, and negative word-of-mouth intentions. Analysis indicated that strategies including interactional justice, distributive justice, and a combination of these were equally effective in maintaining customer satisfaction, loyalty, and positive word of mouth, and minimizing negative word of mouth after a service failure. No support for the service recovery paradox, that is, increased satisfaction following service failure and recovery compared to never having a problem, was found. Satisfaction and loyalty for those in the failure conditions were equal to, although not higher than, in the no-failure control condition. Practical implications for organizational practices are discussed.     

Does service failure influence customer loyalty?

There is a general consensus that customer loyalty to service providers is not solely dependent upon their level of satisfaction or dissatisfaction. However, the identified antecedents of loyalty remain, at best, highly speculative. The aim of this extensive literature review is to give some understanding of the nature of customer loyalty and the antecedent effects of service dissatisfaction. The research reviewed suggests that customer loyalty is an attitudinal state, reflecting value, trust and commitment within supplier–customer relationships. Satisfaction is one of several antecedents of loyalty. A key influence on loyalty is the offer of unique value‐delivering advantages not provided by competitors. Thus firms need to develop positive value‐based exit barriers to achieve loyalty. When service failures occur, the recovery process is likely to have a greater impact on loyalty than the original service failure. The key to successful recoveries was found to be the customer's perception of ‘fairness’. Recovery programmes must get it right first time. Customers who remain dissatisfied after a complaint has been handled are more dissatisfied than if no recovery attempt had been made. Dissatisfaction and customer satiation are major causes of a customer's exit. The solution to customer satiation is dynamic value creation. Collection and monitoring of customer data is needed for success and two‐way communication is vital. Copyright © 2002 Henry Stewart Publications.     

Positive vs. negative switching barriers: the influence of service consumers' need for variety

• In this study, we deal with the existing debate related to the establishment of switching barriers retaining customers in the relationship with a provider. In particular, we demonstrate that ‘positive’ switching barriers (relational benefits) play a greater role that the ‘negative’ ones (switching costs and availability and attractiveness of other providers' offers) in determining customer satisfaction and retention. On the other hand, we include customers' need for variety in the proposed model, in order to demonstrate that a higher level of this psychological trait will lead to a lower perception of the existence of switching barriers. The hypotheses proposed have been tested for a services context on a sample of 800 individuals, using the technique ‘Partial Least Squares’ (PLS). Our findings lead to some interesting managerial implications.

Copyright © 2006 John Wiley & Sons, Ltd.     

Effects of service provider attitudes and employment status on citizenship behaviors and customers' attitudes and loyalty behavior

The relationship among job satisfaction, affective commitment, service-oriented organizational citizenship behaviors (OCBs), customer satisfaction, and customer loyalty were examined for a sample of 249 hairstylists and 1 of their corresponding customers. Employee satisfaction was positively related to service-oriented OCBs, customer satisfaction, and customer loyalty, whereas affective commitment was not related to these outcomes. The extent to which the predictor variables interacted with one another and the role of employment status on these relationships was also explored. High levels of job satisfaction or affective commitment resulted in more service-oriented OCBs for employees and self-employed workers, whereas high levels of both resulted in more service-oriented OCBs for owners.     

消费者厌腻感的生成机理、诱发因素及缓解策略

厌腻感是指消费者对连续或过量消费同一产品或服务的效用感、享乐感或满意度下降, 负面感知逐步抑制正面感知的主观情绪体验。为缓解或防止厌腻感的产生, 消费者会采取品牌转换、多样化寻求、控制消费周期等行为, 因此厌腻感已成为企业或店铺培养顾客忠诚的主要障碍。国外文献分别从厌腻感的生成过程、功能反应、知觉状态和属性感知等方面, 划分厌腻类型; 剖析了厌腻感生成的享乐适应、边际效用递减、认知失调以及最佳刺激水平等理论原理及机理; 探讨了生理厌腻感和心理厌腻感生成的诱发因素及影响效应; 验证了外部因素和个体因素的调节作用; 同时探讨了消费者缓解或防止厌腻感的主要策略及行为反应。最后对现有文献的研究思路、特点和不足进行了评述, 提出了未来研究方向。     

The moderating effects of purchase importance in customer satisfaction process: An empirical investigation

Customer satisfaction continues to draw the interest of researchers and practitioners because it can lead to long term benefits including customer loyalty. Purchase importance plays a role in pre‐purchase process, yet little is known about how it may influence customer satisfaction formation process and loyalty intentions. This study examines the moderating effect of purchase importance in the customer satisfaction formation process and in loyalty intentions. A survey was conducted with customers in a restaurant setting, and structural equation analysis via LISREL was performed. The results show that perceived performance has a stronger influence on satisfaction when purchase importance is low, whereas satisfaction seems to be influenced both by disconfirmation and perceived performance when purchase importance is high. Post‐consumption expectations were found to influence on loyalty intentions under both high and low importance purchase conditions. The implications of these findings are discussed and suggestions for future research are made. Copyright © 2011 John Wiley & Sons, Ltd.     

The mediating role of engagement and burnout in the relationship between employees' emotion regulation strategies and customer outcomes

Service employees' emotional display plays an important role in service interactions, but little is known about the effects of employee's emotional regulation strategies on customer outcomes. This study examines a model in which emotion regulation is associated with customer satisfaction and loyalty intentions as mediated by employee burnout and engagement. Data collected from 135 employee–customer dyads following service interactions was analysed with structural equation modelling. The results show that engagement fully mediates the relationship of deep acting, and burnout partially mediates the relationship of surface acting, with customer satisfaction and loyalty intentions.     

A Commentary on 'Exploring the Nature of Human Resource Developers' Expertise"

Previous research has shown that organizational identification (OI) of leaders is positively related to employee OI and, in turn, linked to positive behaviours of employees towards the organization. In the present study, we argue that leader OI does not only affect variables at the employee level but, through its influence on employees, also contributes to important customer outcomes (i.e., customer satisfaction, customer loyalty, and customer recommendations). Drawing on self-concept based theories of leadership effectiveness and insights from service linkage research, the present article proposes that OI plays an important role in these influence processes. Additionally, the article delineates the behavioural and psychological variables that intervene employee OI and customer outcomes. More specifically, we suggest that leader OI is positively related to follower OI, which results in customer-oriented service behaviour. Customer orientation, in turn, should positively affect customers' identification with the organization and, ultimately, result in customer satisfaction, customer loyalty, and customer recommendations. Results of a multilevel field study using data from leaders, employees, and customers provide support for our theoretical model.     

Satisfaction,loyalty and word of mouth within the customer base of a utility provider: differences between stayers,switchers and referral switchers

Research on satisfaction, loyalty and word of mouth (WOM) behaviour has made considerable progress within recent years, but important aspects remain neglected. In this paper, it is argued that, within the customer base of service providers, certain groups can be identified which differ from each other with regards to these variables. Hypotheses are developed and tested in a sample of 765 clients of a large German energy provider. The results show that recently acquired customers (switchers) differ from long‐term customers (stayers), and that switchers acquired through customer referrals differ from switchers recruited through advertising or direct mail in their satisfaction, loyalty and WOM behaviour. The paper ends with some important implications for management and future research. Copyright © 2004 Henry Stewart Publications Ltd.     

When Brand Attitudes Affect the Customer Satisfaction‐Loyalty Relation: The Moderating Role of Product Involvement

Drawing on the attitude accessibility and stability theories, we investigate the moderating role of product involvement in the customer satisfaction‐loyalty relation. Structural equation modeling shows that customer satisfaction has both direct and indirect effects on loyalty, whereas ad attitudes and corporate image have only indirect effects through their mediating influence on brand attitudes. Furthermore, product involvement decreases the direct effects of satisfaction on brand attitudes and loyalty, but it increases the indirect effects of ad attitudes and corporate image.     

Antecedents of consumer loyalty in ride-hailing

The rise of the sharing economy has remarkedly shifted consumers’ traffic behaviour, which gave rise to successful start-up businesses, such as Uber and Grab, that offer innovative transport alternatives through car and ride sharing. This study investigates consumers’ traffic attitudes and behavioural responses to on-demand ride-hailing. Using structural equation modelling, our survey findings showed that price consciousness, perceived usefulness, ease of use, safety risk and customer value exert significant influences on word-of-mouth (WOM), a manifestation of attitudinal loyalty towards ride-hailing. Contrary to findings in previous studies, our study found insignificant effects of personal innovativeness, subjective norm and perceived privacy security on WOM. In addition, although environmental consciousness is a predictor of WOM, its significant effect on WOM is negative. WOM is found to significantly impact purchase intention which is an indicator of behavioural loyalty. By identifying the antecedents of consumer loyalty in ride-hailing, this study provides recommendations for the ride-hailing ecosystem to generate more sustainable urban transport solutions.     

品牌忠诚：概念、测量和相关因素

早期研究者对品牌忠诚的定义多是操作性的,主要为行为论和态度论观点。将品牌忠诚看作复杂多维度概念,则成为当前研究者广泛接受的观点。品牌忠诚度是对消费者品牌忠诚的测量,依研究目的不同而有多种形式。消费者认知、态度和行为方面的一些变量,和品牌忠诚相互作用。     

Conscientiousness and reactions to psychological contract breach: a longitudinal field study

The authors examined the role of employee conscientiousness as a moderator of the relationships between psychological contract breach and employee behavioral and attitudinal reactions to the breach. They collected data from 106 newly hired employees within the 1st month of employment (Time 1), 3 months later (Time 2), and 8 months after Time 1 (Time 3) to observe the progression through contract development, breach, and reaction. Results suggest that conscientiousness is a significant moderator for 4 of the 5 contract breach-employee reaction relationships examined (turnover intentions, organizational loyalty, job satisfaction, and 1 of 2 facets of job performance). Specifically, employees who were lower in conscientiousness had more negative reactions to perceived breach with respect to turnover intentions, organizational loyalty, and job satisfaction. In contrast, employees who were higher in conscientiousness reduced their job performance to a greater degree in response to contract breach. Future research directions are discussed.     

The Relative Importance of Personality,Financial Satisfaction,and Autonomy for Different Subjective Well-Being Facets

Abstract

Using a nationally representative sample (N?=?507) from Singapore, this study examined whether personality, financial satisfaction, and autonomy were important to subjective well-being (SWB), and how the importance of these predictors varied across different SWB facets—life satisfaction, happiness, positive feelings, and negative feelings. The findings indicated that neuroticism, financial satisfaction, and autonomy, were important predictors of happiness. Personality was most important for affective well-being (i.e., positive and negative feelings), whereas financial satisfaction was most important for life satisfaction. Specifically, neuroticism accounted for substantial variance in positive and negative feelings, and was the strongest correlate among the Big Five traits. In contrast, financial satisfaction explained most of the variance in life satisfaction. This highlights that the importance of well-being predictors depended on the facet of well-being examined. The findings suggest that residents in an affluent nation like Singapore do not emphasize only postmaterialist values (e.g., autonomy) and disregard materialist concerns (e.g., financial satisfaction). Though certain SWB facets (positive and negative affect) are largely influenced by dispositional factors, other facets (life satisfaction and happiness) are closely related to factors (e.g., financial satisfaction, autonomy) that may be affected by social policies. Policymakers can thus target those aspects to enhance people’s SWB.     

The empirical link between relationship marketing tools and consumer retention in retail marketing

This article focuses on the key relationship marketing tools of customer service, loyalty/rewards programs, brand/store community, personalization and customization, and their relationship with customer retention. The relationship between customer service, loyalty/rewards programs, customization, personalization, brand/store community and customer retention were examined via an empirical investigation of 450 loyalty/reward program members of three retail stores in Malaysia. The administration of the survey was personally administered but self‐completed. Four of the five relationship marketing tools, namely, customer service, loyalty/rewards programs, brand/store community and personalization, had a significant positive relationship with customer retention. The findings provided valuable insights into the loyalty program management practices of retail stores in a developing country context. Copyright © 2013 John Wiley & Sons, Ltd.     

THE EFFECTS OF EMPLOYEE SATISFACTION, ORGANIZATIONAL CITIZENSHIP BEHAVIOR, AND TURNOVER ON ORGANIZATIONAL EFFECTIVENESS: A UNIT-LEVEL, LONGITUDINAL STUDY

This study addresses the issue of whether positive employee attitudes and behaviors influence business outcomes or whether positive business outcomes influence positive employee attitudes and behaviors. We hypothesize that employee satisfaction, organizational citizenship behavior, and employee turnover influence profitability and customer satisfaction. Data were gathered from the units of a regional restaurant chain via employee surveys, manager surveys, customer surveys, and organizational records. Cross-lagged regression analyses show that employee attitudes and behaviors at Time 1 are related to organizational effectiveness at Time 2. Additional cross-lagged regression analyses show no significant relationship between organizational effectiveness at Time 1 and the employee attitudes and behaviors at Time 2. These results add to the evidence that HR outcomes influence business outcomes, rather than the other way around.     

Satisfaction in the context of customer co‐production: A behavioral involvement perspective

Consumers increasingly subscribe to community‐supported agriculture (CSA) programs as an alternative retail channel for fresh produce. Compared with supermarket retailers, CSAs are built around an ethos of community rather than efficiency and economies of scale; and CSA programs demand far greater customer co‐production than supermarket retailers. For instance, CSA members (customers) assume responsibilities for physical distribution, market timing, and financial risk taking—activities that, for customers of traditional supermarkets, are assumed by the retailer or other market intermediaries. Service‐dominant logic suggests that such co‐production activities provide value for consumers. And the expanding demand for CSA programs anecdotally supports the notion that consumers find value in co‐producing fresh produce. However, whether or not co‐production leads to greater satisfaction with a product category remains largely untested. We draw on community theory to test if engagement in co‐production activities leads to satisfaction with a product category. By examining product satisfaction, we test an outcome of co‐production that is consumer‐centric. Results from an exploratory field study suggest that two types of value co‐creation—commitment to co‐production and behavioral involvement in product‐related activities—are positively correlated with product satisfaction. Our results support the notion that value co‐creation provides value for consumers. Interestingly, these findings are antithetical to studies that suggest service convenience constitutes non‐monetary value for consumers. Our study suggests that the community theory is a viable theoretical frame for consumer research on co‐production. Further, our findings suggest that consumer research into the co‐creation of value should incorporate measures of product satisfaction and draw on behavioral as opposed to exclusively attitudinal assessments of co‐production activities. Copyright © 2012 John Wiley & Sons, Ltd.     

Modeling Customer Loyalty from an Integrative Perspective of Self-Determination Theory and Expectation–Confirmation Theory

Purpose  This research conceptualizes and tests an integrative model of customer loyalty by linking two important theories: expectation–confirmation theory and self-determination theory. Design/Methodology/Approach  The model is examined using data obtained from 207 part-time students who have encountered the service of a skincare and beauty salon in Taiwan. These students work as full-time professionals in a variety of industries during the daytime and are financially independent for their daily consumption. Findings  The empirical results of this study indicate that loyalty is positively influenced by both intrinsic regulation and identified regulation, while introjected regulation and external regulation are insignificantly related to loyalty. Affected positively by service expectation and service confirmation, satisfaction has positive influences on all four dimensions of self-determined motivation—namely, intrinsic regulation, identified regulation, introjected regulation, and external regulation. Implications  The findings of this study show that the proposed model helps to learn about loyalty formation and its mediating mechanism in service contexts. Intrinsic regulation and identified regulation may be applied as two potential checkpoints for management to learn the actual status of customer loyalty based on a constant service quality offered by the service provider. Originality/Value  This study is one of the earliest to integrate expectation–confirmation theory and self-determination theory to explore loyalty. Besides, this study transplants the traditional application of self-determination theory from educational service to commercial service in general so that efficient strategies can be made for boosting loyalty.     

Attributions and Appraisals of Workplace Incivility: Finding Light on the Dark Side?

Ample research demonstrates that workplace incivility has individual and organisational costs, but an important question remains unanswered: might it have benefits as well? We investigate this possibility by focusing on incivility appraisals—both negative and challenge appraisals (i.e. as an opportunity for learning, growth)—and their correlates. To explain this diversity of appraisals, we examine whether attributions (i.e. perceived intent to harm, perceived perpetrator control) predict perceptions. We conducted two multi‐method (quantitative and qualitative) surveys, one of which was multi‐source, of employees across a range of occupations. In Study 1, attributions that perpetrators acted with control and malicious intent fuelled negative appraisals of incivility, which undermined job satisfaction. Study 2 added to these findings by demonstrating that some targets formed challenge appraisals of uncivil encounters, especially when they attributed low malicious intent to perpetrators; challenge appraisal related to boosts in job satisfaction and thriving. These attitudinal outcomes then positively related to organisational citizenship behaviour, as reported by targets' coworkers. Showing paths to incivility harm (and potential benefit), our findings can inform interventions to alter the impact of workplace incivility.     

The role of trust in financial customer–seller relationships before and after the financial crisis

This study examines the role of trust in customer–seller relationships before and after the 2008 financial crisis. On the basis of two surveys comprising 1155 and 757 bank customers, respectively, it is shown that trust is less likely to mediate the relationship between satisfaction and loyalty after the financial crisis compared with before the financial crisis. The results suggest that consumers rely more on satisfaction and less on trust after the financial crisis compared with before the financial crisis when determining whether they should remain loyal to a particular financial service provider. Hence, as a direct managerial implication, financial service managers should consider investing additional resources in satisfying their customers in the after crisis era. In addition, it is suggested that managers should seek to rebuild the positive relationship between trust and loyalty in order to receive the full benefit of their trust‐building efforts. Copyright © 2014 John Wiley & Sons, Ltd.