IDEAS home Printed from https://ideas.repec.org/a/kap/mktlet/v30y2019i3d10.1007_s11002-019-09505-8.html
   My bibliography  Save this article

The effects of relationship length on customer profitability after a service recovery

Author

Listed:
  • Mathieu Béal

    (Univ Grenoble Alpes ComUE)

  • William Sabadie

    (University Jean Moulin Lyon3)

  • Yany Grégoire

    (HEC Montréal)

Abstract

Relationship length and its implications for service recovery have rarely been quantified in terms of cross-buying and customer profitability. Based on a sample of 935 customers in the retail banking sector, the current research provides two core contributions. First, the results reveal that change in cross-buying is a crucial mediator to capture how service recovery contributes to a change in customer profitability. Second, this research contributes to the ongoing debate regarding the role of relationship variables on customers’ reactions to service recovery by investigating the moderating role of relationship length. From the use of archival data, the results show that when customers are dissatisfied with a recovery, a favorable protective effect arises, prompting an increased change in cross-buying. However, as the relationship gets longer, the positive effect of a successful service recovery on change in cross-buying keeps decreasing. The theoretical and managerial implications of these findings are discussed.

Suggested Citation

  • Mathieu Béal & William Sabadie & Yany Grégoire, 2019. "The effects of relationship length on customer profitability after a service recovery," Marketing Letters, Springer, vol. 30(3), pages 293-305, December.
    • Handle: RePEc:kap:mktlet:v:30:y:2019:i:3:d:10.1007_s11002-019-09505-8
    DOI: 10.1007/s11002-019-09505-8
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s11002-019-09505-8
    File Function: Abstract
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s11002-019-09505-8?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yves Van Vaerenbergh & Simon Hazée & Annelies Costers, 2018. "Customer participation in service recovery: a meta-analysis," Marketing Letters, Springer, vol. 29(4), pages 465-483, December.
    2. Stephen L. Vargo & Robert F. Lusch, 2016. "Institutions and axioms: an extension and update of service-dominant logic," Journal of the Academy of Marketing Science, Springer, vol. 44(1), pages 5-23, January.
    3. Goudarzi, Kiane & Borges, Adilson & Chebat, Jean Charles, 2013. "Should retailers pay to bring customers back? The impact of quick response and coupons on purchase outcomes," Journal of Business Research, Elsevier, vol. 66(5), pages 665-669.
    4. B. Larivière & D. Van Den Poel, 2005. "Investigating the post-complaint period by means of survival analysis," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 05/299, Ghent University, Faculty of Economics and Business Administration.
    5. Pradeep K. Chintagunta, 1998. "Inertia and Variety Seeking in a Model of Brand-Purchase Timing," Marketing Science, INFORMS, vol. 17(3), pages 253-270.
    6. Kumar, V. & George, Morris & Pancras, Joseph, 2008. "Cross-buying in retailing: Drivers and consequences," Journal of Retailing, Elsevier, vol. 84(1), pages 15-27.
    7. Maxham, James III, 2001. "Service recovery's influence on consumer satisfaction, positive word-of-mouth, and purchase intentions," Journal of Business Research, Elsevier, vol. 54(1), pages 11-24, October.
    8. Cambra-Fierro, Jesus & Melero, Iguacel & Sese, F. Javier, 2015. "Managing Complaints to Improve Customer Profitability," Journal of Retailing, Elsevier, vol. 91(1), pages 109-124.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jihoon Cho & Swinder Janda, 2023. "Perception carryover in cross-buying: the role of interpurchase time and product locus," Journal of Marketing Analytics, Palgrave Macmillan, vol. 11(4), pages 809-819, December.
    2. Fu, Xiaorong & Pang, Jing & Gursoy, Dogan, 2022. "Effects of online commercial friendships on customer revenge following a service failure," Journal of Business Research, Elsevier, vol. 153(C), pages 102-114.
    3. Béal, Mathieu & Suri, Anshu & Nguyen, Nguyen & Grégoire, Yany & Sénécal, Sylvain, 2022. "Is service recovery of equal importance for private vs public complainers?," Journal of Business Research, Elsevier, vol. 153(C), pages 392-400.
    4. Lee, Myounggu & Cho, Jihoon & Kim, Youngju & Kim, Hye-Jin, 2023. "Impact of movie-watching on cross-selling revenue in shopping malls: Implications for post-pandemic recovery," Journal of Retailing and Consumer Services, Elsevier, vol. 73(C).
    5. Arsenovic, Jasenko & De Keyser, Arne & Edvardsson, Bo & Tronvoll, Bård & Gruber, Thorsten, 2021. "Justice (is not the same) for all: The role of relationship activity for post-recovery outcomes," Journal of Business Research, Elsevier, vol. 134(C), pages 342-351.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jens Hogreve & Nicola Bilstein & Leonhard Mandl, 2017. "Unveiling the recovery time zone of tolerance: when time matters in service recovery," Journal of the Academy of Marketing Science, Springer, vol. 45(6), pages 866-883, November.
    2. Javornik, Ana & Filieri, Raffaele & Gumann, Ralph, 2020. "“Don't Forget that Others Are Watching, Too!” The Effect of Conversational Human Voice and Reply Length on Observers' Perceptions of Complaint Handling in Social Media," Journal of Interactive Marketing, Elsevier, vol. 50(C), pages 100-119.
    3. Ramakrishna Salagrama & Sanjeev Prashar & T. Sai Vijay, 2021. "Do customers exhibit gratitude after service recovery? Understanding the moderating role of relationship type," Service Business, Springer;Pan-Pacific Business Association, vol. 15(4), pages 757-779, December.
    4. Jeanpert, Sophie & Jacquemier-Paquin, Laure & Claye-Puaux, Sophie, 2021. "The role of human interaction in complaint handling," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    5. Chen, Xin & Guo, Shuojia & Xiong, Jie & Ye, Zhuxin, 2023. "Customer engagement, dependence and loyalty: An empirical study of Chinese customers in multitouch service encounters," Technological Forecasting and Social Change, Elsevier, vol. 197(C).
    6. Jasenko Arsenovic & Bo Edvardsson & Bård Tronvoll, 2019. "Moving Toward Collaborative Service Recovery: A Multiactor Orientation," Service Science, INFORMS, vol. 11(3), pages 201-212, October.
    7. Sophie Jeanpert & Laure Jacquemier & Sophie Claye-Puaux, 2021. "The role of human interaction in complaint handling," Post-Print hal-03516556, HAL.
    8. van Gils, Suzanne & Horton, Kate E., 2019. "How can ethical brands respond to service failures? Understanding how moral identity motivates compensation preferences through self-consistency and social approval," Journal of Business Research, Elsevier, vol. 95(C), pages 455-463.
    9. Bastian Popp & Herbert Woratschek, 2017. "Consumer–brand identification revisited: An integrative framework of brand identification, customer satisfaction, and price image and their role for brand loyalty and word of mouth," Journal of Brand Management, Palgrave Macmillan, vol. 24(3), pages 250-270, May.
    10. Krystyna Mazurek-Lopacinska & Magdalena Sobocinska, 2021. "Social Media in Marketing Activities of Enterprises in the Light of the Analysis of Empirical Research Results," European Research Studies Journal, European Research Studies Journal, vol. 0(4B), pages 647-658.
    11. Zhou, Yuanyuan & Tsang, Alex S.L. & Huang, Minxue & Zhou, Nan, 2014. "Does delaying service-failure resolution ever make sense?," Journal of Business Research, Elsevier, vol. 67(2), pages 159-166.
    12. Van den Poel, Dirk & Lariviere, Bart, 2004. "Customer attrition analysis for financial services using proportional hazard models," European Journal of Operational Research, Elsevier, vol. 157(1), pages 196-217, August.
    13. Severin Oesterle & Arne Buchwald & Nils Urbach, 2022. "Investigating the co-creation of IT consulting service value: empirical findings of a matched pair analysis," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(2), pages 571-597, June.
    14. Kalamas, Maria & Laroche, Michel & Makdessian, Lucy, 2008. "Reaching the boiling point: Consumers' negative affective reactions to firm-attributed service failures," Journal of Business Research, Elsevier, vol. 61(8), pages 813-824, August.
    15. da Silva, Agostinho & Almeida, Isabel, 2020. "Towards INDUSTRY 4.0 | a case STUDY in ornamental stone sector," Resources Policy, Elsevier, vol. 67(C).
    16. Gábor Kézdi & Gergely Csorba, 2013. "Estimating Consumer Lock-In Effects from Firm-Level Data," Journal of Industry, Competition and Trade, Springer, vol. 13(3), pages 431-452, September.
    17. Ponzoa, José M. & Gómez, Andrés & Mas, José M., 2023. "EU27 and USA institutions in the digital ecosystem: Proposal for a digital presence measurement index," Journal of Business Research, Elsevier, vol. 154(C).
    18. Michael K. Brady & Todd Arnold, 2017. "Organizational service strategy," Journal of the Academy of Marketing Science, Springer, vol. 45(6), pages 785-788, November.
    19. Shan, Wei & Qiao, Tong & Zhang, Mingli, 2020. "Getting more resources for better performance: The effect of user-owned resources on the value of user-generated content," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    20. Jia, Yibo & Su, Jingqin & Cui, Li & Wu, Lin & Hua Tan, Kim, 2023. "Platform business model innovation in the digitalization era: A “driver-process-result” perspective," Journal of Business Research, Elsevier, vol. 160(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:kap:mktlet:v:30:y:2019:i:3:d:10.1007_s11002-019-09505-8. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.