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Service recovery, satisfaction and behaviour intentions: analysis of compensation and social comparison communication strategies

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  • Rodolfo Vázquez-Casielles
  • Víctor Iglesias
  • Concepción Varela-Neira

Abstract

In the marketing literature, there is a great interest in learning how companies should behave after a service failure. From this perspective, different service recovery strategies have been proposed. This experimental study of the airline industry deals with this topic, indicating the benefits of carrying out, after a service failure, a financial compensation and/or an explanation based on social comparison. The results indicate when financial compensation and social comparison increase satisfaction and when they have a positive impact on different behaviour intentions (repurchase intentions, positive or negative word of mouth communication, and complaints to the company and/or third parties). There predictions on the effects of the service recovery strategies are developed on the basis of failure stability and the emotions (anger) brought on by it.

Suggested Citation

  • Rodolfo Vázquez-Casielles & Víctor Iglesias & Concepción Varela-Neira, 2010. "Service recovery, satisfaction and behaviour intentions: analysis of compensation and social comparison communication strategies," The Service Industries Journal, Taylor & Francis Journals, vol. 32(1), pages 83-103, July.
    • Handle: RePEc:taf:servic:v:32:y:2010:i:1:p:83-103
    DOI: 10.1080/02642069.2010.511187
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    References listed on IDEAS

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