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The negative effects of failed service recoveries

Author

Listed:
  • Ana B. Casado

    (Universidad de Alicante)

  • Juan Luis Nicolau

    (Universidad de Alicante)

  • Francisco Mas Ruiz

    (Universidad de Alicante)

Abstract

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.

Suggested Citation

  • Ana B. Casado & Juan Luis Nicolau & Francisco Mas Ruiz, 2008. "The negative effects of failed service recoveries," Working Papers. Serie EC 2008-07, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    • Handle: RePEc:ivi:wpasec:2008-07
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    References listed on IDEAS

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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    desviación doble; comportamiento de queja del consumidor; modelos Logit multinomiales con coeficientes aleatorios (RCL); recuperación del servicio. Double deviations; consumer complaining behavior (CCB); multinomial logit models with random coefficients (RCL); service recovery.;
    All these keywords.

    JEL classification:

    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages

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