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The negative effects of failed service recoveries

Listed author(s):
  • Ana B. Casado


    (Universidad de Alicante)

  • Juan Luis Nicolau


    (Universidad de Alicante)

  • Francisco Mas Ruiz

    (Universidad de Alicante)

Research has shown that more than half of attempted recovery efforts fail, producing a "double deviation" effect. Surprisingly, these double deviation effects have received little attention in marketing literature. This paper examines what happens after these critical encounters, which behavior or set of behaviors the customers are prone to follow and how customers' perceptions of the firm's recovery efforts influence these behaviors. For the analysis of choice of the type of response (complaining, exit, complaining and exit, and no-switching), we estimate multinomial Logit models with random coefficients (RCL). The results of our study show that magnitude of service failure, explanations, apologies, perceived justice, angry and frustration felt by the customer, and satisfaction with service recovery have a significant effect on customers' choice of the type of response. Implications from the findings are offered. La investigación ha mostrado que más de la mitad de los intentos de recuperación tras el fallo de un servicio fracasan, lo que produce un efecto de "desviación doble". Sorprendentemente, estos efectos de desviación doble han recibido muy poca atención en la literatura de marketing. Este trabajo analiza qué ocurre tras estos encuentros críticos, ¿qué comportamiento o conjunto de comportamientos tienden a seguir lo clientes? y ¿cómo afectan a estos comportamientos las percepciones de los clientes acerca del problema y de los esfuerzos de recuperación de la empresa?. Para el análisis del tipo de respuesta (queja, abandono, queja y abandono, y no cambiar de entidad), estimamos modelos Logit multinomiales con coeficientes aleatorios (RCL). Los resultados de nuestro estudio muestran que la magnitud del fallo inicial, las explicaciones y disculpas recibidas tras el mismo, la justicia percibida en la gestión de la queja, la frustración y el enfado que siente el cliente y la satisfacción con el proceso de recuperación, tienen un efecto significativo en la elección de los clientes del tipo de respuesta de queja. Finalmente, se ofrecen implicaciones para la gestión.

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File Function: Fisrt version / Primera version, 2008
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Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie EC with number 2008-07.

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Length: 24 pages
Date of creation: May 2008
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasec:2008-07
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  1. Carolyn Bonifield & Catherine Cole, 2007. "Affective responses to service failure: Anger, regret, and retaliatory versus conciliatory responses," Marketing Letters, Springer, vol. 18(1), pages 85-99, June.
  2. 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.
  3. N/A, 1991. "Appraisal," National Institute Economic Review, National Institute of Economic and Social Research, vol. 138(1), pages 3-5, November.
  4. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, number 9780521747387, October.
  5. Bougie, J.R.G. & Pieters, R. & Zeelenberg, M., 2003. "Angry customers don't come back, they get back : The experience and behavioral implications of anger and dissatisfaction in services," Other publications TiSEM 1708fb71-fd68-41d9-b870-e, Tilburg University, School of Economics and Management.
  6. Robert Johnston & Adrian Fern, 1999. "Service Recovery Strategies for Single and Double Deviation Scenarios," The Service Industries Journal, Taylor & Francis Journals, vol. 19(2), pages 69-82, April.
  7. David Hensher, 2001. "The valuation of commuter travel time savings for car drivers: evaluating alternative model specifications," Transportation, Springer, vol. 28(2), pages 101-118, May.
  8. Weiner, Bernard, 2000. " Attributional Thoughts about Consumer Behavior," Journal of Consumer Research, Oxford University Press, vol. 27(3), pages 382-387, December.
  9. Richins, Marsha L, 1997. " Measuring Emotions in the Consumption Experience," Journal of Consumer Research, Oxford University Press, vol. 24(2), pages 127-146, September.
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