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The influence of failure severity and employee effort on service recovery in a service guarantee context

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  • McQuilken, Lisa

Abstract

This experimental study utilised a sample of 131 online panel members to examine how service failure severity and perceived employee effort influence consumers’ postrecovery negative WOM and trust evaluations in the context of a 100% satisfaction guarantee. In this study, while the promised guarantee compensation is forthcoming, the failure remains uncorrected. Findings indicate that while the level of effort does not influence negative WOM when a major problem eventuates, high versus low levels of effort are appreciated for a minor failure. Evaluations of trust are enhanced when employees display a high versus a low level of effort across both minor and severe failure conditions. Overall, findings suggest that it would be unwise for organisations offering a “100% satisfaction or your money back” guarantee to rely too heavily on economic compensation to recover from service failures; the failure itself must also be rectified.

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  • McQuilken, Lisa, 2010. "The influence of failure severity and employee effort on service recovery in a service guarantee context," Australasian marketing journal, Elsevier, vol. 18(4), pages 214-221.
    • Handle: RePEc:eee:aumajo:v:18:y:2010:i:4:p:214-221
    DOI: 10.1016/j.ausmj.2010.07.003
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    Cited by:

    1. Schumacher Satu & Komppula Raija, 2016. "A case study on service recovery: Frontline employees’ perspectives and the role of empowerment," European Journal of Tourism, Hospitality and Recreation, Sciendo, vol. 7(2), pages 117-127, July.

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