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Unveiling the recovery time zone of tolerance: when time matters in service recovery

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Listed:
  • Jens Hogreve

    (Catholic University of Eichstaett-Ingolstadt)

  • Nicola Bilstein

    (Catholic University of Eichstaett-Ingolstadt)

  • Leonhard Mandl

    (Catholic University of Eichstaett-Ingolstadt)

Abstract

This article examines the link between recovery time and customer compensation expectations for service failures that cannot be immediately redressed. First, we show that the relationship between recovery time and compensation expectations is nonlinear. Initially, in a recovery time zone of tolerance, compensation expectations do not increase. Beyond this zone, the relationship follows an inverted U-shape, such that compensation expectations first increase but decrease in the long run. Second, our results show that long recovery times are accompanied by additional negative effects, including lower satisfaction with the recovery and negative word of mouth, so postponing service recovery represents a poor option. Third, relationship strength functions as a moderator. First-time customers expect higher compensation earlier; relational customers display a recovery time zone of tolerance but claim considerably higher compensations afterwards. Fourth, communication initiatives like the separate provision of status updates or an explanation may limit increases in compensation expectations over time. Still, their joint usage creates a “too-much-of-a-good-thing” effect, suggesting that if the usage of communication initiatives is taken too far it may lead to negative outcomes such as increasing compensation expectations.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:joamsc:v:45:y:2017:i:6:d:10.1007_s11747-017-0544-7
    DOI: 10.1007/s11747-017-0544-7
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    15. Yany Grégoire & Fateme Ghadami & Sandra Laporte & Sylvain Sénécal & Denis Larocque, 2018. "How can firms stop customer revenge? The effects of direct and indirect revenge on post-complaint responses," Journal of the Academy of Marketing Science, Springer, vol. 46(6), pages 1052-1071, November.
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    17. Wei, Chuang & Liu, Maggie Wenjing & Keh, Hean Tat, 2020. "The road to consumer forgiveness is paved with money or apology? The roles of empathy and power in service recovery," Journal of Business Research, Elsevier, vol. 118(C), pages 321-334.
    18. 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.
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