The Effect of Service Recovery on Customers’ Secondary Satisfaction in Banking Industry by Considering the Roles of Emotions
Subject Areas : Business StrategyWala Mirani 1 , Kambiz Heydarzadeh 2 , Mohammad Bemani Moghadam 3
1 - Department of Business management, Science and Research Branch,Islamic Azad University, Tehran, Iran
2 - Department of Business management, Science and Research Branch,Islamic Azad University, Tehran, Iran
3 - Department of Statistics, Faculty of Mathematical Sciences and Computer, Allameh Tabataba'i University, Tehran, Iran
Keywords: Customers’ Secondary Satisfaction, Service Recovery, Perceived Justice, Service Failure,
Abstract :
In recent years, a significant factor for success of service industry is the rate of meeting customers’ expectation and after service recovery satisfaction especially in banking system. The aim of this study is to fill the existing gaps in the marketing literature by providing a comprehensive model to examine the impacts of perceived justice on secondary satisfaction through the mediating role of positive and negative emotions. Further, this study is an attempt to explore the factors which have effects on post recovery satisfaction based on the perceived justice theory in Iranian banking system. The total numbers of respondents were 384 customers of bank who had experienced at least one time service failure. The hypotheses of this research were tested and analyzed by structural equation modeling and LISREL and PLS software. The findings suggest that the increase of distributive justice, procedural justice and interactional justice enhances post-recovery satisfaction as well as increases positive emotions and decreases negative ones. In addition, as well as positive emotions raises, the secondary satisfaction will grow while increase of negative emotions will result in reduction of secondary satisfaction.
Bichler, B. (2011). Service recovery experiences and the reformulation of buyer-seller relationships: An empirical investigation. Doctor of philosophy' thesis, faculty for business sciences, University of Vienna.
Blodgett, J. G., Hill, D. J. and Tax, S. S. (1997). The effects of distributive, procedural justice on behavior. Journal of Retailing, 73(2), 185–210.
Chebat, J. C. and Slusarczyk, W. (2005). How emotions mediate the effects of perceived justice on loyalty in service recovery situation: an empirical study. Journal of Business Research, 58(5), 664–673.
Chou, P. (2015). An analysis of the relationship between service failure, service recovery and loyalty for Low Cost Carrier travelers. Journal of Air Transport Management.47, 119-125.
DeWitt, T., Nguyen, D.T. and Marshall, R. (2008). Exploring customer loyalty following service recovery. Journal of Service Research, 10(3), 269–281.
Gohary, A., Hamzelu, B. and Alizadeh, H. (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, 31, 127-142.
Ha, J., & Jang, S. C. (2009). Perceived justice in service recovery and behavioral intentions: The role of relationship quality. International Journal of Hospitality Management, 28(3), 319–327.
Hooman, H. (2011). Structural equation modeling using LISREL. SAMT Publications, Fourth edition, Tehran.
Kelley, S. W. and Davis, M. A. (1994). Antecedents to customer expectations to service recovery. Journal of Academic Marketing, 22, 52–61.
Kim, J. H. and Jang, s. (2014). The fading affect bias: Examining changes in affect and behavioral in restaurant service failures and recoveries intentions. International Journal of Hospitality Management, 40, 109–119.
Kim, T., Kim, W. G. and Kim H. B. (2009). The effects of perceived justice on recovery satisfaction, trust, word-of-mouth, and revisit intention in upscale hotels. Tourism Management, 30, 51–62.
Kuo, Y. F. and Wu, C. M. (2012). Satisfaction and post-purchase intentions with service recovery of online shopping: Perspectives on perceived justice and emotions. International Journal of Information Management, 32, 127–138.
Lastner, M., Folse, J., Mangus, S. and Fennell, F. (2016). The road to recovery: Overcoming service failures through positive emotions. Journal of Business Research, 69(10), 4278-4286.
Lopes, E. and Silva, M. A. (2015). The effect of justice in the history of loyalty: A study in failure recovery in the retail context. Journal of Retailing and Consumer Services, 24, 110-120.
Mattila, A. (2001). The effectiveness of service recovery in a multi-industry setting. Journal of Services Marketing, 15(7), 583–596.
McQuilken, L. and Robertson, N. (2011). The influence of guarantees, active requests to voice and failure severity on customer complaint behavior. International Journal of Hospitality Management, 30, 953–962.
Mirzaei, KH. (2009). Research-Research casting-and Research writing (First volume). Jame’e shenasan publications, Tehran.
Ozgen, O., Kurt, S. D. (2012). Pre-recovery and post-recovery emotions in the service context. Managing Service Quality, 22(6), 592-605.
Ozkan-Tektas, O., Basgoze, P. (2017). Pre-recovery emotions and satisfaction: A moderated mediation model of service recovery and reputation in the banking sector. European Management Journal 35 (2017) 388-395.
Rio-Lanza, A. B., Vazquez-Casielles, R. and Diaz-Martin, A. (2009). Satisfaction with service recovery: Perceived justice and emotional responses. Journal of Business Research, 62.775–781.
Schoefer, K. (2008). The role of cognition and affect in the formation of customer satisfaction judgments concerning service recovery encounters. Journal of Consumer Behavior, 7(3), 210–221
Schoefer, K. and Ennew, C. (2005). The impact of perceived justice on consumer emotional responses to service complaints experiences. Journal of Services Marketing, 19(5), 261-270.
Smith, A. K., Bolton, R. N. and Wagner, J. (1999). A model of customer satisfaction with service encounters involving failure and recovery. Journal of Marketing Research, 36(3), 356–373.