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The negative effects of failed service recoveries

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Author Info
Ana B. Casado () (Universidad de Alicante)
Juan Luis Nicolau () (Universidad de Alicante)
Francisco Mas Ruiz (Universidad de Alicante)

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Abstract

Research has shown that more than half of attempted recovery efforts fail, producing a "double deviation" effect. Surprisingly, these double deviation effects have received little attention in marketing literature. This paper examines what happens after these critical encounters, which behavior or set of behaviors the customers are prone to follow and how customers' perceptions of the firm's recovery efforts influence these behaviors. For the analysis of choice of the type of response (complaining, exit, complaining and exit, and no-switching), we estimate multinomial Logit models with random coefficients (RCL). The results of our study show that magnitude of service failure, explanations, apologies, perceived justice, angry and frustration felt by the customer, and satisfaction with service recovery have a significant effect on customers' choice of the type of response. Implications from the findings are offered. La investigación ha mostrado que más de la mitad de los intentos de recuperación tras el fallo de un servicio fracasan, lo que produce un efecto de "desviación doble". Sorprendentemente, estos efectos de desviación doble han recibido muy poca atención en la literatura de marketing. Este trabajo analiza qué ocurre tras estos encuentros críticos, ¿qué comportamiento o conjunto de comportamientos tienden a seguir lo clientes? y ¿cómo afectan a estos comportamientos las percepciones de los clientes acerca del problema y de los esfuerzos de recuperación de la empresa?. Para el análisis del tipo de respuesta (queja, abandono, queja y abandono, y no cambiar de entidad), estimamos modelos Logit multinomiales con coeficientes aleatorios (RCL). Los resultados de nuestro estudio muestran que la magnitud del fallo inicial, las explicaciones y disculpas recibidas tras el mismo, la justicia percibida en la gestión de la queja, la frustración y el enfado que siente el cliente y la satisfacción con el proceso de recuperación, tienen un efecto significativo en la elección de los clientes del tipo de respuesta de queja. Finalmente, se ofrecen implicaciones para la gestión.

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Publisher Info
Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie EC with number 2008-07.

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Length: 24 pages
Date of creation: May 2008
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasec:2008-07

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Related research
Keywords: desviación doble; comportamiento de queja del consumidor; modelos Logit multinomiales con coeficientes aleatorios (RCL); recuperación del servicio. Double deviations; consumer complaining behavior (CCB); multinomial logit models with random coefficients (RCL); service recovery.;

Find related papers by JEL classification:
M31 - Business Administration and Business Economics; Marketing; Accounting - - Marketing and Advertising - - - Marketing
G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages

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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Kenneth Train, 2000. "Halton Sequences for Mixed Logit," Department of Economics, Working Paper Series 1035, Department of Economics, Institute for Business and Economic Research, UC Berkeley. [Downloadable!]
    Other versions:
  2. Weiner, Bernard, 2000. " Attributional Thoughts about Consumer Behavior," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 27(3), pages 382-87, December.
  3. 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. [Downloadable!] (restricted)
  4. Richins, Marsha L, 1997. " Measuring Emotions in the Consumption Experience," Journal of Consumer Research: An Interdisciplinary Quarterly, University of Chicago Press, vol. 24(2), pages 127-46, September.
  5. Kenneth Train, 2003. "Discrete Choice Methods with Simulation," Online economics textbooks, SUNY-Oswego, Department of Economics, number emetr2, March. [Downloadable!]
  6. Carolyn Bonifield & Catherine Cole, 2007. "Affective responses to service failure: Anger, regret, and retaliatory versus conciliatory responses," Marketing Letters, Springer, vol. 18(1), pages 85-99, June. [Downloadable!] (restricted)
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