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Service Recovery in Transition Economies: Russia and China

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Author Info

  • Wendy K. T. Gubler

    (Brigham Young University, USA)

  • Matthew W. McCarter

    (University of Illinois Urbana-Champaign, USA)

  • Kristie K. W. Seawright

    (Brigham Young University, USA)

  • Yuli Zhang

    (Nankai University, China)

Abstract

While processes for transition from planned to market economy vary, there is one common outcome from the transition process – more discriminating customers. Growing customer expectations increase the possibility of failing to meet those expectations. In competitive market economies service failures are accompanied by new consequences of lost customer loyalty. These potential losses to service providers that can result from service failures necessitate the implementation of service recovery. In this study researchers investigated the role of service recovery in two major economies that are currently in transition from a planned to a market economy: Russia and China. Four recovery systems were examined within the context of two levels of service failure criticality. Service recovery system design was found to matter in customer recovery in both Russia and China, but Chinese respondents reported higher levels of recovery success. Interaction effects also suggest that the common experience of transition from planned to market economy did not produce exactly the same response to service recovery efforts.

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Bibliographic Info

Article provided by University of Primorska, Faculty of Management Koper in its journal Managing Global Transitions.

Volume (Year): 6 (2008)
Issue (Month): 1 ()
Pages: 23-51

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Handle: RePEc:mgt:youmgt:v:6:y:2008:i:1:p:23-51

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Related research

Keywords: economies in transition; cross-cultural customer perceptions; empirical research; service recovery;

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References

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  1. Aaker, Jennifer L & Maheswaran, Durairaj, 1997. " The Effect of Cultural Orientation on Persuasion," Journal of Consumer Research, University of Chicago Press, vol. 24(3), pages 315-28, December.
  2. John McMillan & Christopher Woodruff, 2002. "The Central Role of Entrepreneurs in Transition Economies," Journal of Economic Perspectives, American Economic Association, vol. 16(3), pages 153-170, Summer.
  3. Webster, Cynthia & Sundaram, D. S., 1998. "Service consumption criticality in failure recovery," Journal of Business Research, Elsevier, vol. 41(2), pages 153-159, February.
  4. Georgine Fogel & Alina Zapalska, 2001. "A Comparison of Small and Medium-Size Enterprise Development in Central and Eastern Europe," Comparative Economic Studies, Palgrave Macmillan, vol. 43(3), pages 35-68, September.
  5. Chebat, Jean-Charles & Slusarczyk, Witold, 2005. "How emotions mediate the effects of perceived justice on loyalty in service recovery situations: an empirical study," Journal of Business Research, Elsevier, vol. 58(5), pages 664-673, May.
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Cited by:
  1. Cezar SCARLAT & Silvia RUCINSKA, 2010. "Some Considerations on Ending the Process of Economic Transition in Romania and Slovakia," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 169-188.

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