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Examining the casual relationship among service recovery, perceived justice, perceived risk, and customer value in the hotel industry

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  • Hong-Sheng Chang
  • Han-Liang Hsiao

Abstract

This study elucidates the causal relationships between service recovery, perceived justice, perceived risk, and customer value. Data were collected by questionnaires validated for reliability and validity. The findings were as follows: perceived justice is positively affected by service recovery, whereas perceived risk is negatively affected by perceived justice. Furthermore, perceived risk is directly and negatively affected by service recovery; perceived risk is also indirectly influenced by service recovery through perceived justice. Finally, customer value is affected by perceived risk. However, customer value is not directly related to perceived justice; customer value was found to be indirectly affected by perceived justice through perceived risk. Therefore, the path of this casual relationship is ‘service recovery, perceived justice, perceived risk then customer value’. Future studies may explore the influence of internal factors or dimensions of the forgoing variables on perceptions of customer value. In practice, hotel managers can refine the relevant service recovery approach and optimize financial investment to increase customer value.

Suggested Citation

  • Hong-Sheng Chang & Han-Liang Hsiao, 2008. "Examining the casual relationship among service recovery, perceived justice, perceived risk, and customer value in the hotel industry," The Service Industries Journal, Taylor & Francis Journals, vol. 28(4), pages 513-528, May.
    • Handle: RePEc:taf:servic:v:28:y:2008:i:4:p:513-528
    DOI: 10.1080/02642060801917646
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