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Is corporate reputation a double-edged sword? Relative effects of perceived justice in airline service recovery

Author

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  • May-Ching Ding
  • Ching-Wei Ho
  • Yuan-Shuh Lii

Abstract

This study aims to test empirically airline passengers' perceptions of the relative importance of justice dimensions following a service failure and recovery. In addition, airline reputation is proposed to moderate the relationship between justice dimensions and attitudinal responses. A survey of 271 airline passengers who had prior experience with service failure and recovery was analysed using structural equation modelling. The results indicate that all three justice dimensions affected satisfaction and trust, with distributive justice presenting the strongest relative effect. Perceived justice also generated positive eWOM and repurchase intentions. For airlines with a better corporate reputation, the effects of perceived justice dimensions on recovery satisfaction and trust were greater. This study points to the important halo effect of corporate reputation as a means of establishing sustainable marketing strategies in service recovery.

Suggested Citation

  • May-Ching Ding & Ching-Wei Ho & Yuan-Shuh Lii, 2015. "Is corporate reputation a double-edged sword? Relative effects of perceived justice in airline service recovery," International Journal of Economics and Business Research, Inderscience Enterprises Ltd, vol. 10(1), pages 1-17.
    • Handle: RePEc:ids:ijecbr:v:10:y:2015:i:1:p:1-17
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    Cited by:

    1. Rajat Kumar Behera & Pradip Kumar Bala & Nripendra P. Rana & Hatice Kizgin, 2022. "A Techno-Business Platform to Improve Customer Experience Following the Brand Crisis Recovery: A B2B Perspective," Information Systems Frontiers, Springer, vol. 24(6), pages 2027-2051, December.
    2. Park, Eunil, 2019. "Corporate social responsibility as a determinant of corporate reputation in the airline industry," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 215-221.
    3. Qaiser Rashid Janjua, 2017. "Service Failures and Consumer Responses: Exploring the Antecedents of Consumer Dissatisfaction and Propensity to Complain," Business & Economic Review, Institute of Management Sciences, Peshawar, Pakistan, vol. 9(4), pages 23-48, December.
    4. Ying Kai Liao & Chih Ying Wu & Giang Nu To Truong & Yen Thi Do, 2022. "The Roles of Service Recovery and Perceived Justice on Post-Recovery Satisfaction in M-Commerce," Sustainability, MDPI, vol. 14(22), pages 1-20, November.

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