Effects of compensation for service recovery: From the equity theory perspective

International Journal of Hospitality Management

Volumn 31, Issue 4, 2012, Pages 1235-1243

  Kwon, SoYeon ^a   Jang, SooCheong Shawn ^b  

^a PURDUE UNIVERSITY   (United States)

^b PURDUE UNIVERSITY   (United States)

Author keywords

Equity theory; Justice theory; Recovery efforts; Relationship level; Service failure

Indexed keywords

EID: 84862226411     PISSN: 02784319     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ijhm.2012.03.002     Document Type: Article

References (52)

1. Alexander E.C. Consumer reactions to unethical service recovery. Journal of Business Ethics 2002, 36(March):223-237.
2. Andreassen T.W., Lervik L. Perceived relative attractiveness today and tomorrow as predictors of future repurchase intention. Journal of Service Research 1999, 2(2):164-172.
3. Bagozzi R.P. Marketing as exchange. Journal of Marketing 1975, 39(October):32-39.
4. Baron R.M., Kenney D.A. The moderator-mediator variable distinction in social psychological research: conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology 1986, 51(6):1173-1182.
5. Bendapudi N., Berry L. Customers' Motivations for Maintaining Relationships with Service Providers. Journal of Retailing 1997, 73(1):15-37.
6. Bhattacharya C.B., Sen S. Consumer-company identification: a framework for understanding consumers' relationship with companies. Journal of Marketing 2003, 67(April):76-88.
7. Bitner M.J., Booms B.H., Tetreault M.S. The service encounter: diagnosing favorable and unfavorable incidents. Journal of Marketing 1990, 54(1):71-84.
8. Blodgett J.G., Hill D.J., Tax S.S. The effects of distributive, procedural, and interactional justice on post-complaint behavior. Journal of Retailing 1997, 73(2):185-210.
9. Bolton R.N., Lemon K.N. A dynamic model of customers' usage of services: usage as an antecedent and consequence of satisfaction. Journal of Marketing Research 1999, 36(2):171-186.
10. Brunner T.A., Stocklin M., Opwis K. Satisfaction, image and loyalty: new versus experienced customers. European Journal of Marketing 2008, 42(9/10):1095-1105.
11. Chen C., Myagmarsuren O. Brand equity, relationship quality, relationship value, and customer loyalty: evidence from the telecommunications services. Total Quality Management and Business Excellence 2011, 22(9):957-974.
12. Crosby L.A., Evants K.R., Cowles D. Relationship quality in service selling: an interpersonal influence perspective. Journal of Marketing 1990, 54(July):68-81.
13. De Ruyter K., Wetzels M. Customer equity considerations in service recovery: a cross-industry perspective. International Journal of Service Industry Management 2000, 11(1):91-108.
14. De Wulf K., Oderkerken-Schroder G., Iacobucci D. Investment in consumer relationships: a cross-country and cross-industry exploration. Journal of Marketing 2001, 65(October):33-50.
15. Fournier S. Consumers and their brands: developing relationship theory in consumer research. Journal of Consumer Research 1998, 24(4):343-353.
16. Garbarino E., Johnson M.S. The different roles of satisfaction, trust and commitment in customer relationships. Journal of Marketing 1999, 63(2):70-87.
17. Gregoire Y., Fisher R.J. The effects of relationship quality on customer retaliation. Marketing Letters 2006, 17(January):31-46.
18. Goodwin C., Ross I. Consumer responses to service failures: influence of procedural and interactional fairness perceptions. Journal of Business Research 1992, 25(2):149-163.
19. Gregoire Y., Fisher R.J. Customer betrayal and retaliation: when your best customers become your worst enemies. Journal of the Academy of Marketing Science 2008, 36(2):247-261.
20. Grewal D., Roggeveen A.L., Tsiros M. The effect of compensation on repurchase intentions in service recovery. Journal of Retailing 2008, 84(4):424-434.
21. Gronroos C. Service quality: the six criteria of good perceived service quality. Review of Business 1988, 9(3):10-13.
22. Hart C.W.L., Heskett J.L., Sasser W.E.J. The profitable art of service recovery. Harvard Business Review 1990, 68(4):148-156.
23. Ha J., Jang S.C. Perceived justice in service recovery and behavioral intentions: the role of relationship quality. International Journal of Hospitality Management 2009, 28(3):319-327.
24. Halstead E.A. Comparing objective service failures and subjective complaints: an investigation of domino and halo effects. Journal of Business Research 1996, 36(2):107-115.
25. Harmon-Jones E., Millis J. Cognitive Dissonance: Progress on a Pivotal Theory in Social Psychology 1996, American Psychological Association, Washington, DC.
26. Henning-Thurau T., Gwinner K.P., Gremler D.D. Understanding relationship marketing outcomes: an integration of relationship benefits and relationship quality. Journal of Service Research 2002, 4(February):230-247.
27. Hess R.L., Ganesan S., Klein N.M. Service failure and recovery: the impact of relationship factors on customer satisfaction. Journal of the Academy of Marketing Science 2003, 31(2):127-146.
28. Kopalle P.K., Lehmann D.R. Strategic management of expectations: the role of disconfirmation sensitivity and perfectionism. Journal of Marketing Research 2001, 38(3):386-394.
29. Leone R.P., Rao V.R., Keller K.L., Luo A.M., McAlister L., Srivastava R. Linking brand equity to customer equity. Journal of Service Research 2006, 9(2):125-138.
30. Mattila A.S. An examination of factors affecting service recovery in a restaurant setting. Journal of Hospitality and Tourism Research 1999, 23(3):284-298.
31. Maxham J.G. Service recovery's influence on consumer satisfaction, positive word-of-mouth, and purchase intentions. Journal of Business Research 2001, 54:11-24.
32. Maxham J.G.I., Netemeyer R.G. A longitudinal study of complaining customers' evaluations of multiple service failures and recovery efforts. Journal of Marketing 2002, 66(4):57-71.
33. Maxham J.G.I., Netemeyer R.G. Modeling customer perceptions of complaint handling over time: the effects of perceived justice on satisfaction and intent. Journal of Retailing 2002, 78:239-252.
34. McColl-Kennedy J.R., Sparks B.A. Application of fairness theory to service failures and service recovery. Journal of Service Research 2003, 5(3):251-266.
35. McCollough, M.A., 1995. The recovery paradox: a conceptual model and empirical investigation of customer satisfaction and service quality attitudes after service failure and recovery. Unpublished doctoral dissertation, Texas A&M University, College Station.
36. McCollough M.A. The effect of perceived justice and attributions regarding service failure and recovery on post-recovery customer satisfaction and service quality attitudes. Journal of Hospitality and Tourism Research 2000, 24(4):423-447.
37. Morgan R.M., Hunts S.D. The commitment-trust theory of relationship marketing. Journal of Marketing 1994, 58(3):20-38.
38. Ok C.H., Back K.J., Shanklin C.W. Modeling roles of service recovery strategy: a relationship-focused view. Journal of Hospitality and Tourism Research 2005, 29(4):484-507.
39. Oliver R.L. Satisfaction: A Behavioral Perspective on the Consumer 1997, McGraw-Hill, New York.
40. Oliver R.L., Swan J.E. Equity and disconfirmation perceptions as influences on merchant and product satisfaction. Journal of Consumer Research 1989, 16(December):372-383.
41. Olsen L.L., Johnson M.D. Service equity, satisfaction, and loyalty: from transaction-specific to cumulative evaluations. Journal of Service Research 2003, 5(3):184-195.
42. Palmer A., Beggs R., Keown-McMullan C. Equity and repurchase intention following service failure. Journal of Service Marketing 2000, 14(6):513-528.
43. Raimondo M.A., Miceli G.N., Costabile M. How relationship age moderates loyalty formation: increasing effect of relational equity on customer loyalty. Journal of Service Research 2008, 11(2):142-160.
44. Sabharwal N., Soch H., Kaur H. Are we satisfied with incompetent services? A scale development approach for service recovery. Journal of Services Research 2010, 10(1):125-142.
45. Seiders K., Berry L.L. Service fairness: what is it and why it matters. Academy of Management Executive 1998, 12(May):8-20.
46. Smith A.K., Bolton R.N., Wagner J. A model of customer satisfaction with service encounters involving failure and recovery. Journal of Marketing Research 1999, 36(August):356-372.
47. Susskind A.M. I told you so!: restaurant customers' word-of-mouth communication patterns. Cornell Hotel and Restaurant Administration Quarterly 2002, 43(2):75-85.
48. Tax S., Brown W., Chandrashekaran M. Customer evaluations of service complaint experiences: implications for relationship marketing. Journal of Marketing 1998, 62(April):60-76.
49. Wang Y., Wu S., Lin H., Wang Y. The relationship of service failure severity, service recovery justice and perceived switching costs with customer loyalty in the context of e-tailing. International Journal of Information Management 2011, 31(4):350-359.
50. Wong A., Sohal A. An examination of the relationship between trust, commitment and relationship quality. International Journal of Retail and Distribution Management 2002, 31(1):34-50.
51. Yi Y., La S. What influences the relationship between customer satisfaction and repurchase intention? Investigating the effects of adjusted expectations and customer loyalty. Psychology and Marketing 2004, 21(5):351-373.
52. Zhang Y., Fang Y., Wei K., Ramsey E., McCole P., Chen H. Repurchase intention in B2C e-commerce-a relationship quality perspective. Information and Management 2011, 48(6):192-200.