IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v22y2015icp117-127.html
   My bibliography  Save this article

Determining adequate tangible compensation in service recovery processes for developed and developing countries: The role of severity and responsibility

Author

Listed:
  • Bambauer-Sachse, Silke
  • Rabeson, Landisoa

Abstract

This study examines effects of different compensation types on satisfaction with the service recovery in different failure severity and responsibility conditions. We additionally integrate cultural and economic developmental differences by studying two completely different countries (Madagascar and Switzerland). We propose a framework based on social exchange, regulatory focus, and attribution theories to explore differences in satisfaction with service recovery across these countries. The empirical results indicate that satisfaction with service recovery as a consequence of using different types of tangible compensation varies considerably depending on cultural and person-specific factors.

Suggested Citation

  • Bambauer-Sachse, Silke & Rabeson, Landisoa, 2015. "Determining adequate tangible compensation in service recovery processes for developed and developing countries: The role of severity and responsibility," Journal of Retailing and Consumer Services, Elsevier, vol. 22(C), pages 117-127.
  • Handle: RePEc:eee:joreco:v:22:y:2015:i:c:p:117-127
    DOI: 10.1016/j.jretconser.2014.08.001
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S096969891400109X
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jretconser.2014.08.001?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. Folkes, Valerie S, 1984. "Consumer Reactions to Product Failure: An Attributional Approach," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 10(4), pages 398-409, March.
    2. Hui, Michael K. & Au, Kevin, 2001. "Justice perceptions of complaint-handling: a cross-cultural comparison between PRC and Canadian customers," Journal of Business Research, Elsevier, vol. 52(2), pages 161-173, May.
    3. Grewal, Dhruv & Roggeveen, Anne L. & Tsiros, Michael, 2008. "The Effect of Compensation on Repurchase Intentions in Service Recovery," Journal of Retailing, Elsevier, vol. 84(4), pages 424-434.
    4. Arrow, Kenneth & Bolin, Bert & Costanza, Robert & Dasgupta, Partha & Folke, Carl & Holling, C.S. & Jansson, Bengt-Owe & Levin, Simon & Mäler, Karl-Göran & Perrings, Charles & Pimentel, David, 1996. "Economic growth, carrying capacity, and the environment," Environment and Development Economics, Cambridge University Press, vol. 1(1), pages 104-110, February.
    5. Cambra-Fierro, Jesús & Berbel-Pineda, Juan M. & Ruiz-Benítez, Rocío & Vázquez-Carrasco, Rosario, 2013. "Analysis of the moderating role of the gender variable in service recovery processes," Journal of Retailing and Consumer Services, Elsevier, vol. 20(4), pages 408-418.
    6. Watson, Stevie, 2012. "Consumer responses to service situations: Tests for main and interaction effects," Journal of Retailing and Consumer Services, Elsevier, vol. 19(3), pages 287-296.
    7. Daniel Kahneman & Amos Tversky, 2013. "Prospect Theory: An Analysis of Decision Under Risk," World Scientific Book Chapters, in: Leonard C MacLean & William T Ziemba (ed.), HANDBOOK OF THE FUNDAMENTALS OF FINANCIAL DECISION MAKING Part I, chapter 6, pages 99-127, World Scientific Publishing Co. Pte. Ltd..
    8. Webster, Cynthia & Sundaram, D. S., 1998. "Service consumption criticality in failure recovery," Journal of Business Research, Elsevier, vol. 41(2), pages 153-159, February.
    9. Joshua J. Clarkson & Chris Janiszewski & Melissa D. Cinelli, 2013. "The Desire for Consumption Knowledge," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 39(6), pages 1313-1329.
    10. Mazaheri, Ebrahim & Basil, Debra Z. & Yanamandram, Venkata & Daroczi, Zoltan, 2011. "The impact of pre-existing attitude and conflict management style on customer satisfaction with service recovery," Journal of Retailing and Consumer Services, Elsevier, vol. 18(3), pages 235-245.
    11. Simon, Françoise, 2013. "The influence of empathy in complaint handling: Evidence of gratitudinal and transactional routes to loyalty," Journal of Retailing and Consumer Services, Elsevier, vol. 20(6), pages 599-608.
    12. Costanza, Robert, 1995. "Economic growth, carrying capacity, and the environment," Ecological Economics, Elsevier, vol. 15(2), pages 89-90, November.
    13. Celsi, Richard L & Olson, Jerry C, 1988. "The Role of Involvement in Attention and Comprehension Processes," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 15(2), pages 210-224, September.
    14. Roschk, Holger & Müller, Jana & Gelbrich, Katja, 2013. "Age matters: How developmental stages of adulthood affect customer reaction to complaint handling efforts," Journal of Retailing and Consumer Services, Elsevier, vol. 20(2), pages 154-164.
    15. Goodwin, Cathy & Ross, Ivan, 1992. "Consumer responses to service failures: Influence of procedural and interactional fairness perceptions," Journal of Business Research, Elsevier, vol. 25(2), pages 149-163, September.
    16. Kahle, Lynn R & Beatty, Sharon E & Homer, Pamela, 1986. "Alternative Measurement Approaches to Consumer Values: The List of Values (LOV) and Values and Life Style (VALS)," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 13(3), pages 405-409, December.
    17. del Río-Lanza, Ana Belén & Vázquez-Casielles, Rodolfo & Díaz-Martín, Ana M, 2009. "Satisfaction with service recovery: Perceived justice and emotional responses," Journal of Business Research, Elsevier, vol. 62(8), pages 775-781, August.
    18. Choi, Sunmee & Mattila, Anna S., 2008. "Perceived controllability and service expectations: Influences on customer reactions following service failure," Journal of Business Research, Elsevier, vol. 61(1), pages 24-30, January.
    19. 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.
    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. Martinez, Luisa M. & Pacheco, Natália & Ramos, Filipe R. & Bicho, Marta, 2023. "Would you try it again? Dual effects of customer mindfulness on service recovery," Journal of Retailing and Consumer Services, Elsevier, vol. 74(C).
    2. Harun, Ahasan & Rokonuzzaman, Md, 2021. "Pursuit of loyalty in service recovery: The roles of brand equity and cognitive reappraisal as moderators," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    3. Gohary, Ali & Hamzelu, Bahman & Alizadeh, Hamid, 2016. "Please explain why it happened! How perceived justice and customer involvement affect post co-recovery evaluations: A study of Iranian online shoppers," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 127-142.
    4. Casidy, Riza & Shin, Hyunju, 2015. "The effects of harm directions and service recovery strategies on customer forgiveness and negative word-of-mouth intentions," Journal of Retailing and Consumer Services, Elsevier, vol. 27(C), pages 103-112.
    5. Buse CETI & Azize TUNC HASSAN, 2019. "Bibliometric Profile of Studies Related with Equity Theory," Journal of Tourismology, Istanbul University, Faculty of Economics, vol. 5(1), pages 17-29, June.

    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. Gohary, Ali & Hamzelu, Bahman & Alizadeh, Hamid, 2016. "Please explain why it happened! How perceived justice and customer involvement affect post co-recovery evaluations: A study of Iranian online shoppers," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 127-142.
    2. Sharifi, Seyed Shahin & Aghazadeh, Hashem, 2016. "Discount reference moderates customers' reactions to discount frames after online service failure," Journal of Business Research, Elsevier, vol. 69(10), pages 4074-4080.
    3. Baliga, Ashwin J. & Chawla, Vaibhav & Sunder M, Vijaya & Ganesh, L.S. & Sivakumaran, Bharadhwaj, 2021. "Service Failure and Recovery in B2B Markets – A Morphological Analysis," Journal of Business Research, Elsevier, vol. 131(C), pages 763-781.
    4. Pierre-Nicolas Schwab, 2015. "Online complaint handling practices: Company strategies and their effects upon post-complaint satisfaction," Working Papers CEB 15-005, ULB -- Universite Libre de Bruxelles.
    5. Jung, Na Young & Seock, Yoo-Kyoung, 2017. "Effect of service recovery on customers’ perceived justice, satisfaction, and word-of-mouth intentions on online shopping websites," Journal of Retailing and Consumer Services, Elsevier, vol. 37(C), pages 23-30.
    6. Gelbrich, Katja & Gäthke, Jana & Grégoire, Yany, 2016. "How a firm's best versus normal customers react to compensation after a service failure," Journal of Business Research, Elsevier, vol. 69(10), pages 4331-4339.
    7. McQuilken, Lisa, 2010. "The influence of failure severity and employee effort on service recovery in a service guarantee context," Australasian marketing journal, Elsevier, vol. 18(4), pages 214-221.
    8. Harrison-Walker, L. Jean, 2019. "The critical role of customer forgiveness in successful service recovery," Journal of Business Research, Elsevier, vol. 95(C), pages 376-391.
    9. Yuan-Shuh Lii & May-Ching Ding & Chih-Huang Lin, 2018. "Fair or Unfair: The Moderating Effect of Sustainable CSR Practices on Anticipatory Justice Following Service Failure Recovery," Sustainability, MDPI, vol. 10(12), pages 1-21, December.
    10. Vikas Gautam, 2011. "Investigating the Moderating Role of Corporate Image in the Relationship between Perceived Justice and Recovery Satisfaction: Evidence from Indian Aviation Industry," International Review of Management and Marketing, Econjournals, vol. 1(4), pages 74-85.
    11. Kuznar, Lawrence A. & Frederick, William G., 2003. "Environmental constraints and sigmoid utility: implications for value, risk sensitivity, and social status," Ecological Economics, Elsevier, vol. 46(2), pages 293-306, September.
    12. Watson, Stevie, 2012. "Consumer responses to service situations: Tests for main and interaction effects," Journal of Retailing and Consumer Services, Elsevier, vol. 19(3), pages 287-296.
    13. Wang, Yi-Shun & Wu, Shun-Cheng & Lin, Hsin-Hui & Wang, Yu-Yin, 2011. "The relationship of service failure severity, service recovery justice and perceived switching costs with customer loyalty in the context of e-tailing," International Journal of Information Management, Elsevier, vol. 31(4), pages 350-359.
    14. Weber, Karin & Sparks, Beverley, 2004. "Consumer attributions and behavioral responses to service failures in strategic airline alliance settings," Journal of Air Transport Management, Elsevier, vol. 10(5), pages 361-367.
    15. Wang, Kai-Yu & Liang, Minli & Peracchio, Laura A., 2011. "Strategies to offset dissatisfactory product performance: The role of post-purchase marketing," Journal of Business Research, Elsevier, vol. 64(8), pages 809-815, August.
    16. Alt, Elisabeth & Gelbrich, Katja, 2009. "Beschwerdebehandlung und Nachbeschwerdeverhalten im interkulturellen Kontext," Ilmenauer Schriften zur Betriebswirtschaftslehre, Technische Universität Ilmenau, Institut für Betriebswirtschaftslehre, volume 1, number 12009.
    17. Kuo, Ying-Feng & Wu, Chi-Ming, 2012. "Satisfaction and post-purchase intentions with service recovery of online shopping websites: Perspectives on perceived justice and emotions," International Journal of Information Management, Elsevier, vol. 32(2), pages 127-138.
    18. 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.
    19. Fan-Yun Pai & Tsu-Ming Yeh & Liang-Yu Lin, 2018. "Relationship Level and Customer Response to Service Recovery," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 140(3), pages 1301-1319, December.
    20. Park, Joohyung & Ha, Sejin, 2016. "Co-creation of service recovery: Utilitarian and hedonic value and post-recovery responses," Journal of Retailing and Consumer Services, Elsevier, vol. 28(C), pages 310-316.

    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:eee:joreco:v:22:y:2015:i:c:p:117-127. 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: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    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.