Service Recovery, Satisfaction and Customers' Post Service Behavior in the Malaysian Banking Sector
Financial services sector has become very competitive after Malaysia government's liberalization policy. In order to address the increased competition, banks have shifted their strategy from product-centered to a customer-centered strategy. This study tests a model related to the relationship between the service recovery, customer satisfaction and customer after purchase behavior. To test the proposed model, 370 self-administered questionnaires were distributed. The analyses based on Structural Equation Modelling (SEM) reveal direct relationships between perceived distributive justice, perceived procedural justice, perceived interactional justice and customer satisfaction in regard to service recovery. The results also show that customer satisfaction increases the level of trust among customers. There is also a high possibility that satisfied customers will spread positive word of mouth that can reinforce the good reputation of the service provider. Bootstrap is used to examine the mediation effects of satisfaction and the results show that customer satisfaction fully mediates the relationship between perceived interactional justice and word of mouth. The results also indicate that customer satisfaction partially mediate the following relationships; perceived distributive justice with word of mouth, perceived procedural justice with word of mouth and perceived interactional justice with perceive trust. However, the fact that this study is conducted by using cross sectional method, focuses on banking industry and covers a small area of the country should be taken into consideration for any generalization of results.
Volume (Year): 2 (2014)
Issue (Month): 4 (April)
|Contact details of provider:|| Phone: +40-372.177.141|
Web page: http://www.facultateademanagement.ro/
More information through EDIRC
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.:
- Sparks, Beverley A. & McColl-Kennedy, Janet R., 2001. "Justice strategy options for increased customer satisfaction in a services recovery setting," Journal of Business Research, Elsevier, vol. 54(3), pages 209-218, December.
- James G. Maxham, III & Richard G. Netemeyer & Donald R. Lichtenstein, 2008. "The Retail Value Chain: Linking Employee Perceptions to Employee Performance, Customer Evaluations, and Store Performance," Marketing Science, INFORMS, vol. 27(2), pages 147-167, 03-04.
- Lai, Yung-Lien & Zhao, Jihong Solomon, 2010. "The impact of race/ethnicity, neighborhood context, and police/citizen interaction on residents' attitudes toward the police," Journal of Criminal Justice, Elsevier, vol. 38(4), pages 685-692, July.
- 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.
When requesting a correction, please mention this item's handle: RePEc:nup:jrmdke:v:2:y:2014:i:4:p:5-20. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Cristian-Mihai VIDU)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.