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The Roles of Justice and Customer Satisfaction in Customer Retention: A Lesson from Service Recovery

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  • Noel Siu
  • Tracy Zhang
  • Cheuk-Ying Yau

Abstract

Customers complain because they want to be treated fairly by the company when a service failure occurs. The role of perceived complaint justice and its relation to customer satisfaction has been discussed and researched. However, a static view is mostly adopted in previous literature. We argue that satisfaction is cumulative and both prior satisfaction and post-recovery satisfaction should be looked at in relation to complaint justice in the context of service recovery. This study attempts to fill the gap by investigating the mediating role of justice in the relationship between prior satisfaction and post-recovery satisfaction (both with the recovery and with the organization) and examining the mediating role of post-recovery satisfaction in the relationship between the dimensions of justice and customer retention. Hypotheses were tested using a sample of 200 customers that had service failure experience at Chinese restaurants in Hong Kong. Justice dimensions (distributive justice, procedural justice, and interactional justice) were found to fully mediate the relationship between prior satisfaction and satisfaction with recovery. All dimensions, except the interactional justice, were also found to be partial mediators in the relationship between prior satisfaction and post-recovery satisfaction with organization. Findings also revealed the mediating roles of two post-recovery satisfaction variables in transferring the justice dimensions into behavioral intention, with the two variables playing almost opposite roles. Discussion and recommendations are provided for future development and improvement in building long-term relationship with customers. Copyright Springer Science+Business Media Dordrecht 2013

Suggested Citation

  • Noel Siu & Tracy Zhang & Cheuk-Ying Yau, 2013. "The Roles of Justice and Customer Satisfaction in Customer Retention: A Lesson from Service Recovery," Journal of Business Ethics, Springer, vol. 114(4), pages 675-686, June.
    • Handle: RePEc:kap:jbuset:v:114:y:2013:i:4:p:675-686
    DOI: 10.1007/s10551-013-1713-3
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    References listed on IDEAS

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    1. Goodwin, Cathy & Ross, Ivan, 1992. "Consumer responses to service failures: Influence of procedural and interactional fairness perceptions," Journal of Business Research, Elsevier, vol. 25(2), pages 149-163, September.
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    2. Steven Kayambazinthu Msosa & Nkululeko Fuyane, 2020. "Making Sense of Service Recovery in Higher Education Institutions: Exploring the Relationship between Perceived Justice and Recovery Satisfaction," International Journal of Economics & Business Administration (IJEBA), International Journal of Economics & Business Administration (IJEBA), vol. 0(1), pages 340-352.
    3. Yuan-Shuh Lii & May-Ching Ding & Chih-Huang Lin, 2018. "Fair or Unfair: The Moderating Effect of Sustainable CSR Practices on Anticipatory Justice Following Service Failure Recovery," Sustainability, MDPI, vol. 10(12), pages 1-21, December.
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    5. Azemi, Yllka & Ozuem, Wilson & Howell, Kerry E. & Lancaster, Geoff, 2019. "An exploration into the practice of online service failure and recovery strategies in the Balkans," Journal of Business Research, Elsevier, vol. 94(C), pages 420-431.
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    7. Qaiser Rashid Janjua, 2017. "Service Failures and Consumer Responses: Exploring the Antecedents of Consumer Dissatisfaction and Propensity to Complain," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 9(4), pages 23-48, December.
    8. Mathieu Lajante & David Remisch & Nikita Dorofeev, 2023. "Can robots recover a service using interactional justice as employees do? A literature review-based assessment," Service Business, Springer;Pan-Pacific Business Association, vol. 17(1), pages 315-357, March.
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    12. Cavdar Aksoy, Nilsah & Yazici, Nihal, 2023. "Does justice affect brand advocacy? Online brand advocacy behaviors as a response to hotel customers’ justice perceptions," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    13. Azzam Rifi & Rania B. Mostafa, 2022. "Brand credibility and customer-based brand equity: a service recovery perspective," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 27(1), pages 1-16, March.
    14. Roy, Vivek & Vijay, T. Sai & Srivastava, Abhishek, 2022. "The distinctive agenda of service failure recovery in e-tailing: Criticality of logistical / non-logistical service failure typologies and e-tailing ethics," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    15. Nicholas O Mantey & Vannie Naidoo, 2016. "Service Quality Failure and Recovery Imperatives: Implications for Airlines Owned by South Africa," Journal of Economics and Behavioral Studies, AMH International, vol. 8(4), pages 67-78.
    16. Jean-Pierre Thomassen & Marijke C. Leliveld & Kees Ahaus & Steven Walle, 2020. "Prosocial Compensation Following a Service Failure: Fulfilling an Organization’s Ethical and Philanthropic Responsibilities," Journal of Business Ethics, Springer, vol. 162(1), pages 123-147, February.
    17. Chen, Tong & Ma, Ke & Bian, Xuemei & Zheng, Chundong & Devlin, James, 2018. "Is high recovery more effective than expected recovery in addressing service failure? — A moral judgment perspective," Journal of Business Research, Elsevier, vol. 82(C), pages 1-9.
    18. Hyun-Kyung Choi & Sang-Soo Kim & Bum-Seok Kim, 2023. "Perceived Justice and Customer Loyalty in the Situation of Beauty Service Failure," SAGE Open, , vol. 13(4), pages 21582440231, December.
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    20. Millissa F. Y. Cheung & W. M. To, 2017. "The effect of organizational responses to service failures on customer satisfaction perception," Service Business, Springer;Pan-Pacific Business Association, vol. 11(4), pages 767-784, December.

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