It is now well recognised that an effective service recovery program is an essential part of firms??? service quality programs and critical to generating customer satisfaction and loyalty. A number of studies have investigated the impact of service recovery efforts (compensation, speed of response, etc.) on post-recovery satisfaction, mostly in Western countries. However, despite the importance of global markets, very few have examined how Eastern consumers react to service recovery efforts. Furthermore, none have examined the impact of cultural value orientation (cultural values measured at the individual level) in implementing effective service recovery programs. This is one of the few studies that have attempted to avoid the ecological fallacy, i.e., assume all consumers within a country are culturally homogeneous. Based on Justice Theory, this research conducted in Thailand, employed an experimental design to investigate how customer evaluations of service recovery efforts are influenced by interplay of the consumer???s cultural value orientation and service recovery attributes (apology, compensation, cognitive control, recovery initiation, and formality). The results reveal that cultural values of power distance, uncertainty avoidance and collectivism do indeed interact with a firm???s recovery tactics to influence perceptions of justice. In other words, the impact of a firm???s tactics is culturally dependent, and consumer expectations and perceptions of service recovery efforts vary, depending on customers??? cultural value orientation. Finally, all three forms of justice (distributive, procedural, interactional) along with disconfirmation of expectations, positively impact on overall service recovery satisfaction. Unlike previous studies, we found evidence to indicate that there is a temporal sequence associated with the three justice dimensions i.e., interactional and procedural justice precede and thus impact perception of distributive (outcome) justice. The results have implication for marketing theory as well as managerial action.

It is now well recognised that an effective service recovery program is an essential part of firms??? service quality programs and critical to generating customer satisfaction and loyalty. A number of studies have investigated the impact of service recovery efforts (compensation, speed of response, etc.) on post-recovery satisfaction, mostly in Western countries. However, despite the importance of global markets, very few have examined how Eastern consumers react to service recovery efforts. Furthermore, none have examined the impact of cultural value orientation (cultural values measured at the individual level) in implementing effective service recovery programs. This is one of the few studies that have attempted to avoid the ecological fallacy, i.e., assume all consumers within a country are culturally homogeneous. Based on Justice Theory, this research conducted in Thailand, employed an experimental design to investigate how customer evaluations of service recovery efforts are influenced by interplay of the consumer???s cultural value orientation and service recovery attributes (apology, compensation, cognitive control, recovery initiation, and formality). The results reveal that cultural values of power distance, uncertainty avoidance and collectivism do indeed interact with a firm???s recovery tactics to influence perceptions of justice. In other words, the impact of a firm???s tactics is culturally dependent, and consumer expectations and perceptions of service recovery efforts vary, depending on customers??? cultural value orientation. Finally, all three forms of justice (distributive, procedural, interactional) along with disconfirmation of expectations, positively impact on overall service recovery satisfaction. Unlike previous studies, we found evidence to indicate that there is a temporal sequence associated with the three justice dimensions i.e., interactional and procedural justice precede and thus impact perception of distributive (outcome) justice. The results have implication for marketing theory as well as managerial action.

Situações nas quais a compensação financeira pode ser eficaz na recuperação da confiança após o duplo desvio têm sido negligenciadas pela literatura de marketing. O objetivo principal desta dissertação foi identificar situações em que a compensação financeira imediata é mais eficaz do que táticas de recuperação não financeiras (i.e. pedido de desculpas, promessa de não ocorrência de mesma falha no futuro) na restauração da confiança após o duplo desvio. Especificamente, visou examinar a moderação do tipo de violação (se financeira ou não) no efeito de diferentes táticas de recuperação (i.e. pedido de desculpas, promessa de não ocorrência de mesma falha no futuro e compensação financeira) sobre a recuperação da confiança após o duplo desvio; e investigar a mediação das atribuições no efeito da compensação financeira sobre a recuperação da confiança após o duplo desvio. Os resultados encontrados através de dois estudos experimentais realizados com diferentes populações e contextos de serviços indicam que a compensação imediata é mais eficaz do que o pedido de desculpas e a promessa na recuperação da confiança após o desvio duplo somente quando a falha inicial implicou em perda financeira para o cliente. Quando a falha inicial não gera perdas monetárias, todas as três táticas possuem efeitos similares. Além disso, verificou-se que a atribuição de benevolência explica ao menos parte do efeito da compensação monetária sobre a recuperação da confiança na situação de falha monetária. / Situations in which financial compensation may be effective to rebuild trust after a double deviation have been neglected by the marketing literature. The main objective of this thesis was to identify situations in which immediate financial compensation is more effective than non-financial recovery tactics (i.e., apology, promise that the failure will not repeat in the future) in trust restoration after double deviation. It specially aimed to examine the moderation of the type of failure (whether financial or not) in the effect of different recovery tactics (ie apology, promise, and financial compensation) on trust recovery after double deviation; and investigate the mediation of attributions in the effect of financial compensation on trust recovering after the double deviation. The results found, through two experimental studies conducted with different populations and service contexts, indicate that immediate compensation is more effective than apology and promise to repair trust after double deviation only when the initial failure causes a financial loss for the client. When the initial failure does not refer to monetary losses, all three tactics had similar effects. In addition, it has been found that the attribution of benevolence explains at least part of the effect of monetary compensation on trust recovery in the situation of monetary failure.

Situações nas quais a compensação financeira pode ser eficaz na recuperação da confiança após o duplo desvio têm sido negligenciadas pela literatura de marketing. O objetivo principal desta dissertação foi identificar situações em que a compensação financeira imediata é mais eficaz do que táticas de recuperação não financeiras (i.e. pedido de desculpas, promessa de não ocorrência de mesma falha no futuro) na restauração da confiança após o duplo desvio. Especificamente, visou examinar a moderação do tipo de violação (se financeira ou não) no efeito de diferentes táticas de recuperação (i.e. pedido de desculpas, promessa de não ocorrência de mesma falha no futuro e compensação financeira) sobre a recuperação da confiança após o duplo desvio; e investigar a mediação das atribuições no efeito da compensação financeira sobre a recuperação da confiança após o duplo desvio. Os resultados encontrados através de dois estudos experimentais realizados com diferentes populações e contextos de serviços indicam que a compensação imediata é mais eficaz do que o pedido de desculpas e a promessa na recuperação da confiança após o desvio duplo somente quando a falha inicial implicou em perda financeira para o cliente. Quando a falha inicial não gera perdas monetárias, todas as três táticas possuem efeitos similares. Além disso, verificou-se que a atribuição de benevolência explica ao menos parte do efeito da compensação monetária sobre a recuperação da confiança na situação de falha monetária. / Situations in which financial compensation may be effective to rebuild trust after a double deviation have been neglected by the marketing literature. The main objective of this thesis was to identify situations in which immediate financial compensation is more effective than non-financial recovery tactics (i.e., apology, promise that the failure will not repeat in the future) in trust restoration after double deviation. It specially aimed to examine the moderation of the type of failure (whether financial or not) in the effect of different recovery tactics (ie apology, promise, and financial compensation) on trust recovery after double deviation; and investigate the mediation of attributions in the effect of financial compensation on trust recovering after the double deviation. The results found, through two experimental studies conducted with different populations and service contexts, indicate that immediate compensation is more effective than apology and promise to repair trust after double deviation only when the initial failure causes a financial loss for the client. When the initial failure does not refer to monetary losses, all three tactics had similar effects. In addition, it has been found that the attribution of benevolence explains at least part of the effect of monetary compensation on trust recovery in the situation of monetary failure.

Purpose: The aim of this thesis is to gain an understanding what it is within the vacation offering that makes certain customers dissatisfied with a service recovery effort. Design/methodology/approach: The basis of the thesis is a qualitative approach since we want to gain an understanding about what it is in the service failure and service recovery that make customers dissatisfied. Although, a quantitative approach will be used as a supplement to the qualitative approach in order to seek patterns that we can interpret. By combining these approaches, it should enable us to gain an understanding about the customer’s dissatisfaction. Findings: The study found that the package holiday organizations seem to handle the service recovery process well. Therefore, we propose that when a negative emotion occurs, the customer’s glorification of the offerings benefits get destroyed, creating their dissatisfaction. This makes it hard for the organization to perform a successful service recovery no matter the severity of the service failure since the hedonic values the customer was seeking becomes lost. Furthermore, the customers create expectations when seeking hedonic values, which make it difficult for the organizations to perform their initial offering successfully. We also emphasize the need of an expansion of the service recovery framework. There is a need of a shift from the organizations efforts to the customers experience within the service recovery process. Research limitations/implications for future research: This thesis emphasizes the need for further research concerning how organizations can perform a successful service recovery when hedonic values are a part of the offering. Hence, the focus in future research could be to develop methods for performing service recovery when hedonic values are in play. Furthermore, this thesis could only give propositions about what is causing the customers dissatisfaction, but could not find any core happenings causing the customers dissatisfaction. Therefore, future research could focus to gain a deeper understanding about what source that has caused the customers dissatisfaction. Furthermore, other dimensions surrounding the customers experience needs to be taken into consideration in future research. Practical implications: When hedonic values are in play, the customer’s expectations for the product or service becomes high. Therefore, 6 organizations face a lot more pressure when providing their service or, if a failure has occurred, service recovery. Keywords: service failure, service Recovery, justice dimension, hedonic values, satisfaction

Sammanfattning Titel: Fastighetsmäklarens felhantering Nivå: Examensarbete på Grundnivå (Kandidatexamen) i ämnet företagsekonomi Författare: Adam Fröberg & Ramazan Ra Be Handledare: Akmal Hyder Datum: 2022 – Juni  Syfte: Syftet med uppsatsen är att skapa förståelse för hur enskilda fastighetsmäklare arbetar med service recovery för att åtgärda tjänstemisslyckande, service failure, som uppstår. Metod: Denna studie har tillämpat en kvalitativ forskningsmetod med ett induktivt förhållningssätt. Studiens data har samlats in via semistrukturerade intervjuer och totalt genomfördes åtta intervjuer med fastighetsmäklare. Resultat och slutsats: Studien visar att fastighetsmäklare har en gemensam uppfattning om att när missnöje uppstår är det viktig att ta reda på orsaken till problemet samt lösa det så snabbt som möjligt. Fastighetsmäklarens viktigaste verktyg är kommunikation, i from av, informationsutbyte, tydlighet samt god återkoppling. Åtgärdens snabbhet och initiering är de två viktigaste service recovery åtgärderna för en fastighetsmäklare.  Examensarbetets bidrag: Studien kan nyttjas praktiskt av enskilda fastighetsmäklare som vill jämföra sitt arbetssätt mot andra fastighetsmäklare. På en operativ nivå uppmanar studien till att se över om det finns oönskade arbetssätt hos fastighetsmäklare påmäklarbyrån. Teoretiskt bidrar studien med en beskrivning av fastighetsmäklarensfelhantering samt poängterar de viktigaste service recovery åtgärderna för en fastighetsmäklare. Förslag till vidare forskning: Ett förslag till vidare forskning är att studera hur service recovery hanteras av fastighetsmäklare utifrån kundens perspektiv. Detta är för att belysa kundens version av hur missnöje hanteras. Nyckelord: Service Recovery, Service Failure, Recovery Attributes, Word of Mouth, elektroniskt Word of Mouth

Aim: When service failures occur, companies must use service recovery actions to recover customer satisfaction. The service recovery paradox refers to the paradox which occurs when a customer is more satisfied after successful service recovery, than they would have been if no failure had occurred. The purpose of this thesis is to examine the effectiveness of using the anchoring effect to lower the threshold value for service recovery paradox occurrence in a specific service failure scenario in the hotel industry. I.e., using the anchoring effect, this thesis aims to reduce monetary compensation required for the service recovery paradox to occur in the specific scenario. Method: 225 respondents were given a survey based on a scenario of a service failure in the hotel industry. The method used was a between-subject experimental design survey, manipulating anchor size, with 5 conditions; SEK 200, SEK 450, SEK 700, SEK 950, and no anchor, to see if the different conditions affected requested compensation whilst customer satisfaction remained constant. Gender and age of the participants was also measured to see if the requested compensation rates depended on these variables. Results: Results showed that it was possible to reduce monetary compensationrequired to reach the SRP by using anchoring values. The control group, which was given the scenario without any anchors, rendered a higher requested compensation than all groups which were given anchors. Furthermore, results showed that the mean compensation required to reach the SRP for the scenario decreased as the anchor values decreased, which indicates that the lower the anchor is set the lower the claim for requested monetary compensation becomes. Finally, the results indicated that age was a relevant variable whilst gender was not a relevant variable regarding compensation requirements. Contribution: Reaching the SRP can sometimes be expensive, especially when it comes to major service failures such as double-booked hotel rooms as is analysed in this thesis. The main contribution of this thesis is to provide an instrument for managers with which they might reach the SRP at lower costs. The results from this research can be directly implemented by managers in similar situations in the hotel industry and may also be used as a foundation for reaching the SRP in other industries as well as other scenarios. Suggestions for future research: As this survey only analyses Swedish participants, results may not be directly applicable to hotels in other cultures. Future research should, thus, focus on examining whether results vary depending on geographic and cultural factors. Other aspects that should be further investigated are what causes the differences in answers between different age groups and if gender displays any differences in other cultures, as it does not seem relevant with Swedish participants. Furthermore, the same surveys, with adjustments, could be used to conduct similar research on other scenarios and in other industries. Finally, researching whether anchoring levels below the lowest anchor used in this thesis, SEK 200, could further lower the required compensation would provide a more complete framework for this research.

Title: Where Service Recovery Meets its Paradox - A search for the level of Service Recovery required for the Service Recovery Paradox to occur in the Hotel Industry  Level: Student thesis, final assignment for Bachelor Degree in Business Administration  Author: Beatrice Nylander & Andreas Edström  Supervisor: Patrik Sörqvist  Date: 2021 – June  Aim: The purpose of this study was to, within the hotel industry, investigate at what level of service recovery the service recovery paradox will come into existence.  Method: Two surveys have been conducted where 190 respondents were introduced to a scenario- based service failure in the hotel industry. Survey 1 collected data about the amount of monetary compensation that customers felt they needed post service failure, in order to subsequently feel a little more satisfied than in the case of an error-free service experience (the point for service recovery paradox). In survey 2, customer satisfaction was then measured at three different levels of compensation after service failure. The three levels were the mean from survey 1, mean -1 SD, and mean +1 SD. This with the aim to, in an independent sample, test whether the point for service recovery paradox in survey 1 causes the paradox to arise in survey 2 or not.  Result & Conclusions: In the event of a specific service failure in the hotel industry, the level of service recovery paradox, through monetary compensation, was found. Survey 1 (N = 40) determined the compensation level to be SEK 1204. The same compensation level was confirmed as a sufficient level to achieve the service recovery paradox in survey 2 (N = 150).  Contribution of the thesis: Service failures are often not completely avoidable, especially not in the hotel industry. This study helps to understand the level of monetary compensation that may be required to achieve the service recovery paradox, in the event of a specific service failure in the hotel industry. The results from this study contribute to guidance in service recovery and give hotel managers knowledge of what monetary compensation level they should apply to restore customer satisfaction and also avoid overcompensation, in case of service failures.  Suggestions for future research: Future researchers should assume that service industries and service failures are all unique. Failure scenarios need to be described in detail in order for results to be applicable by managers. Future research may also examine the anchoring effect in order to avoid overcompensation if possible. SRP researchers who examine the hotel industry in particular may investigate the SRP level of additional customer segments that travel; alone, at work, with friends or with children. Although SRP might occur because of service recovery, repurchase intentions might decrease. A major challenge for future researchers will therefore be to measure how customer satisfaction after service failure and recovery stands long term. Another suggestion is to conduct the study again, but with real service failures and with real compensation.  Keywords: service failure, service recovery, service recovery paradox, service recovery hotel industry, customer satisfaction

No description available.

Title: Service Failure och Service Recovery inom snabbmatskedja branschenLevel: Bachelor’s degreeFörfattare: Sami Sami & Aya BelkhairSupervisor: Peter EkDate: 2022 - JuneAim: The purpose of the study is to explore the methods that leaders and employees in the fast-food industry apply to create a Service Recovery (SR).Method: Qualitative study based on a deductive research approach, the interpretation of the result has been in accordance with a thematic analysis method. The empirical data has been collected with the help of semi-structured interviews that have taken place on site.Result and conclusion: The study has proven that the methods used for Service Recovery in the fast-food industry differ in details from the ordinary restaurant industry. Customers have more options in the form of offerings and easier access to the restaurant, which leads to their complaints being compensated more effectively. Contribution of the thesis: The attention of new Service Failure in the fast-food industry that did not occur in previous studies.Suggestion for future research: Investigate why different restaurants within the same franchise have varying SRs and guidelines.Keywords: Service Recovery, Service Failure, Interpersonal Failure, Core Failure, Processual Failure, Brand Credibility, Justice Theory