IDEAS home Printed from https://ideas.repec.org/a/nup/jrmdke/v2y2014i4p5-20.html
   My bibliography  Save this article

Service Recovery, Satisfaction and Customers' Post Service Behavior in the Malaysian Banking Sector

Author

Listed:
  • Shaheen MANSORI

    (School of Business, Berjaya University College of Hospitality)

  • Goh Guann TYNG

    (Faculty of Business, Communications and Law, INTI International University)

  • Zarina Mizam Mohd ISMAIL

    (Institute of Educational Leadership, University Malaya)

Abstract

Financial services sector has become very competitive after Malaysia government's liberalization policy. In order to address the increased competition, banks have shifted their strategy from product-centered to a customer-centered strategy. This study tests a model related to the relationship between the service recovery, customer satisfaction and customer after purchase behavior. To test the proposed model, 370 self-administered questionnaires were distributed. The analyses based on Structural Equation Modelling (SEM) reveal direct relationships between perceived distributive justice, perceived procedural justice, perceived interactional justice and customer satisfaction in regard to service recovery. The results also show that customer satisfaction increases the level of trust among customers. There is also a high possibility that satisfied customers will spread positive word of mouth that can reinforce the good reputation of the service provider. Bootstrap is used to examine the mediation effects of satisfaction and the results show that customer satisfaction fully mediates the relationship between perceived interactional justice and word of mouth. The results also indicate that customer satisfaction partially mediate the following relationships; perceived distributive justice with word of mouth, perceived procedural justice with word of mouth and perceived interactional justice with perceive trust. However, the fact that this study is conducted by using cross sectional method, focuses on banking industry and covers a small area of the country should be taken into consideration for any generalization of results.

Suggested Citation

  • Shaheen MANSORI & Goh Guann TYNG & Zarina Mizam Mohd ISMAIL, 2014. "Service Recovery, Satisfaction and Customers' Post Service Behavior in the Malaysian Banking Sector," Management Dynamics in the Knowledge Economy, College of Management, National University of Political Studies and Public Administration, vol. 2(4), pages 5-20, April.
    • Handle: RePEc:nup:jrmdke:v:2:y:2014:i:4:p:5-20
    as

    Download full text from publisher

    File URL: http://www.managementdynamics.ro/index.php/journal/article/download/31/35
    Download Restriction: no
    File URL: http://www.managementdynamics.ro/index.php/journal/article/view/31/35
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Lai, Yung-Lien & Zhao, Jihong Solomon, 2010. "The impact of race/ethnicity, neighborhood context, and police/citizen interaction on residents' attitudes toward the police," Journal of Criminal Justice, Elsevier, vol. 38(4), pages 685-692, July.
    2. James G. Maxham, III & Richard G. Netemeyer & Donald R. Lichtenstein, 2008. "The Retail Value Chain: Linking Employee Perceptions to Employee Performance, Customer Evaluations, and Store Performance," Marketing Science, INFORMS, vol. 27(2), pages 147-167, 03-04.
    3. 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.
    4. 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)

    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. 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.
    2. McColl-Kennedy, Janet R. & Sparks, Beverley A. & Nguyen, Doan T., 2011. "Customer's angry voice: Targeting employees or the organization?," Journal of Business Research, Elsevier, vol. 64(7), pages 707-713, July.
    3. 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.
    4. Mattila, Anna S. & Cho, Wonae & Ro, Heejung (Cheyenne), 2011. "The role of self-service technologies in restoring justice," Journal of Business Research, Elsevier, vol. 64(4), pages 348-355, April.
    5. Abdul Saleem & Shifa Bibi & Asadullah Lakho & Salman Hussain, 2022. "Determinants Of Customer Switching Intention In Pakistan: A Case Of Cellular Services," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 11(3), pages 27-36.
    6. 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, September.
    7. 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.
    8. Surachartkumtonkun, Jiraporn & Patterson, Paul G. & McColl-Kennedy, Janet R., 2013. "Customer Rage Back-Story: Linking Needs-Based Cognitive Appraisal to Service Failure Type," Journal of Retailing, Elsevier, vol. 89(1), pages 72-87.
    9. Joseph Lok-Man Lee & Calvin Wah-On Cheng & Vanessa Shun-Wah Liu, 2022. "Core Chinese cultural values: Perceived justice and post-recovery satisfaction in higher education services," Service Business, Springer;Pan-Pacific Business Association, vol. 16(3), pages 743-770, September.
    10. 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.
    11. 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.
    12. Phimai Nuansi & Piya Ngamcharoenmongkol, 2021. "Proactive Complaint Management: Effects of Customer Voice Initiation on Perceived Justices, Satisfaction, and Negative Word-of-Mouth," SAGE Open, , vol. 11(3), pages 21582440211, September.
    13. Arora, Swapan Deep & Chakraborty, Anirban, 2021. "Intellectual structure of consumer complaining behavior (CCB) research: A bibliometric analysis," Journal of Business Research, Elsevier, vol. 122(C), pages 60-74.
    14. Gohary, Ali & Hamzelu, Bahman & Pourazizi, Lida & Hanzaee, Kambiz Heidarzadeh, 2016. "Understanding effects of co-creation on cognitive, affective and behavioral evaluations in service recovery: An ethnocultural analysis," Journal of Retailing and Consumer Services, Elsevier, vol. 31(C), pages 182-198.
    15. Zhou, Yuanyuan & Tsang, Alex S.L. & Huang, Minxue & Zhou, Nan, 2014. "Does delaying service-failure resolution ever make sense?," Journal of Business Research, Elsevier, vol. 67(2), pages 159-166.
    16. Kalamas, Maria & Laroche, Michel & Makdessian, Lucy, 2008. "Reaching the boiling point: Consumers' negative affective reactions to firm-attributed service failures," Journal of Business Research, Elsevier, vol. 61(8), pages 813-824, August.
    17. 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.
    18. Nobuyuki Fukawa & Sunil Erevelles, 2014. "Perceived Reasonableness and Morals in Service Encounters," Journal of Business Ethics, Springer, vol. 125(3), pages 381-400, December.
    19. Chebat Elise & Roth Yefim & Chebat Jean Charles, 2020. "How Culture Moderates the Effects of Justice in Service Recovery," Review of Marketing Science, De Gruyter, vol. 18(1), pages 21-41, September.
    20. Garaus, Marion & Wagner, Udo & Manzinger, Sandra, 2017. "Happy grocery shopper: The creation of positive emotions through affective digital signage content," Technological Forecasting and Social Change, Elsevier, vol. 124(C), pages 295-305.

    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:nup:jrmdke:v:2:y:2014:i:4:p:5-20. 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: Cristian-Mihai VIDU (email available below). General contact details of provider: https://edirc.repec.org/data/fmsnsro.html .

    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.