In an era of intense competition, banks must prioritize the establishment of enduring customer connections by implementing efficient service recovery measures. Nevertheless, because of the inherent human factor involved in the delivery of banking services, even the most outstanding institutions cannot ensure flawless service that consistently satisfies every customer's requirement. Service failures are unavoidable, as humans are susceptible to errors. Therefore, it is crucial to comprehend how to effectively execute service recovery procedures to minimize the repercussions of service failures. Hence, banks are facing a huge difficulty in developing service recovery strategies that can improve consumer satisfaction, behavioral intentions, and relationship quality in the event of service outages. However, scholars have given it little attention. As a result, this study aims to fill the existing gap in the literature by examining the impact of service recovery strategies and customers' perceptions of recovery justice on post-recovery satisfaction, customers' emotions, relationship quality, and their behavioral intentions, including repurchase intentions and word-of-mouth. Furthermore, it examines how the severity of service failure influences the impact of this approach. This study utilizes a quantitative methodology that is based on a survey approach. The proposed strategy was implemented in the banking industry in Egypt and Spain, with an online questionnaire distributed to customers of Egyptian and Spanish banks who had encountered service problems and failure within the previous year. As a result, from Egypt, a total of 517 samples were gathered, whereas from Spain, 500 samples were collected. The data were analyzed using Smart PLS 4 for structural equation modeling. The study found notable cross-cultural disparities between the Egyptian and Spanish samples in terms of the influence of service recovery strategies on perceived recovery justice. Nevertheless, no significant effect was noted in the impact of recovery justice on customer positive emotions, as consistent results were seen in both countries. On the other hand, there were noticeable differences in how recovery justice affected negative feelings and post-recovery satisfaction. Moreover, the influence of post-recovery satisfaction on consumer trust, affective commitment, and behavioral intentions, such as intentions to repurchase and engage in word-of-mouth, did not show significant variations across different cultures. Furthermore, the impact of the severity of service failure on the relationship between recovery justice and emotions showed noteworthy differences between the two cultural groups. Hence, these findings emphasize the significance of taking cultural nuances into account when creating and executing service recovery techniques. Thus, this is because customers' interpretations and reactions may vary depending on cultural circumstances, which might impact the effectiveness of these efforts. The current study has yielded valuable insights for academics by utilizing the same model on two distinct samples (Egypt and Spain). Consequently, it has shed light on how social and cultural disparities among banking customers in various countries, even within the same European region or the Middle East, can significantly impact their behavior after a service failure.
| Identifer | oai:union.ndltd.org:ua.es/oai:rua.ua.es:10045/148527 |
| Date | 20 September 2024 |
| Creators | Ali, Attia Abdelkader |
| Contributors | Andrei, Andreia Gabriela, Ruiz Moreno, Felipe, Universidad de Alicante. Departamento de Marketing |
| Publisher | Universidad de Alicante |
| Source Sets | Universidad de Alicante |
| Language | English |
| Detected Language | English |
| Type | info:eu-repo/semantics/doctoralThesis |
| Rights | Licencia Creative Commons Reconocimiento-NoComercial-SinObraDerivada 4.0, info:eu-repo/semantics/openAccess |
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