Article

Consumer Responses to Service Failures: Influence of Procedural and Interactional Fairness Perceptions

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Abstract

This study suggests that consumer responses to service failures may be influenced by perceptions of procedural and interactional fairness. Procedural fairness is operationalized as the consumer's opportunity to present information and express feelings, or “voice.” Interactional fairness is operationalized as an apology to the consumer. A 2 X 2 X 2 X 4 between-subjects experimental design manipulated levels of complaint outcome, apology, voice, and type of service. Apology and voice appeared to enhance fairness and satisfaction perceptions in the “favorable outcome” condition, when consumers were offered a discount or gift after service failure. When no tangible offering was made, apology and voice had lesser effect and in some instances were associated with lower perceptions of fairness and satisfaction. Implications for practitioners and researchers are discussed.

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... Customers' interactions with the service provider, complaint handling procedures, and service recovery results all create a sense of justice for customers. Therefore, this theory is suitable to become a basis for analyzing the service recovery process (Goodwin & Ross, 1992;Blodgett et al., 1997;Smith et al., 1999;Knox & Van Oest, 2014). Three important criteria to measure justice in service recovery are Distributive justice (DJ), Procedural justice (PJ), and Interactional justice (IJ). ...
... Interactional justice has a great impact on customer satisfaction in the process of service recovery (Homburg & Fürst, 2005;Maxham & Netemeyer, 2002). It was proved that there is a positive relationship between interactional justice and customer satisfaction in service recovery (Goodwin and Ross, 1992;Huang et al., 2015). From the above discussion, the hypothesis H2 is proposed as follows: ...
... This shows that the service recovery process through positive interaction, quick procedure, and the result that meets customers' expectations will satisfy customers. This result is consistent with the studies of Goodwin and Ross (1992), , Maxham and Netemeyer (2002), Smith and Bolton (2002), Homburg and Fürst (2005), Karatepe (2006), Fang et al., (2013), Huang et al. (2015). Table 5 suggests that hypothesis H3 is accepted with a 99% significance level. ...
Article
The objective of this study is to demonstrate the relationships among the severity of service failure, service recovery, customer satisfaction and loyalty towards the Vietnamese international hospital system. The research data were collected from 303 customers who have used services and experienced service failures at international hospitals. Applying Structural Equation Modeling, the study pointed out that service failure includes three dimensions, which are system failure, request failure, and behavior failure. Meanwhile, service recovery is made up of three dimensions which are distributive justice, procedural justice, and interactional justice. The severity of service failure positively affects service recovery and service recovery puts a powerful impact on customer satisfaction, thereby increasing their trust in international hospitals in Vietnam.
... Some studies have shown an unfavorable effect when combining interpersonal care with low levels of compensation. For example, the experimental study by Goodwin and Ross (1992) combines low (viz., small discount) or no compensation with the presence or absence of an apology. They found that an apology affects justice perceptions and satisfaction more positively when a tangible outcome is offered. ...
... In a more recent study, Kenesei and Kolos (2018) examine the interaction effect between employee affective delivery (which is related to empathy) and compensation in a restaurant setting (i.e., service delay). Contrary to the results of Goodwin and Ross (1992), Kenesei and Kolos (2018) found no sham or backfire effect: Employee affective delivery is more effective in terms of satisfaction with recovery when no compensation (vs. a discount) is offered. However, their experiment compares a rather rude to an empathetic reply from the employee 3 in a non-monetary setting, which logically results in a positive effect of employee affective delivery (viz., the customer does not lose money and does not ask for compensation). ...
... high) compensation with regard to perceived empathy and perceived quality of complaint handling. This interaction effect is contrary to the sham effect found in Goodwin and Ross (1992) and to the backfire effect predicted by Gelbrich and Roschk (2011), but consistent with the results in Kenesei and Kolos (2018) (despite the fact that their setting was quite different from ours). Our results thus indicate that customers who receive low compensation appreciate the agent expressing empathy (and perceive this empathetic behavior as such), as illustrated by examples (2) and (3): (2) This was the most pleasant way to be refused funds. ...
Article
This study investigates the effect of linguistic realizations of employee empathy (LREE) on brand trust in email responses to customer complaints. We explore possible mediating effects of perceived empathy and perceived complaint handling quality and we look into moderation effects of compensation (Study 1) or customer’s acceptance of blame (Study 2). Our aim is to find out if LREE have a negative or positive impact on the customer in cases of partial refunds, either because LREE are being perceived as insincere or as genuine expressions of concern. The results of two experiments show that LREE positively influence brand trust through higher perceived empathy and perceived complaint handling quality. However, the expected negative effect is not found, as LREE are more effective in a low versus high compensation condition. The effectiveness itself is not influenced by the acceptance of blame when a partial refund is offered.
... immediate/delayed monetary compensations, replacement goods, and performing services again. Compared to material compensations, apologies and explanations are symbolic recovery methods (efforts to make amends to consumers socially or psychologically; Smith et al., 1999) which are cost-efficient and easy to implement (Goodwin & Ross, 1992). Indeed, apology and explanation messages have been widely used by firms in telephone queue waitscustomers are often consoled by service providers by being told 'we apologize for your wait' followed by some explanations regarding why they have to wait. ...
... In the service recovery literature, apologies, as a form of symbolic recovery, have been found to convey the firm's sincerity (Gruber, 2011) and credibility (Davidow, 2000(Davidow, , 2003Roschk & Kaiser, 2013), which are likely to lead to customer empathy, forgiveness (Min et al., 2020;Struthers et al., 2008;K. Wang et al., 2020;Wei et al., 2020), restore satisfaction (Goodwin & Ross, 1992), and reduce the recipient's anger, aggression and reproach (Darby & Schlenker, 1982;Hodgins & Liebeskind, 2003;Ohbuchi et al., 1989). Therefore, we posit the following: ...
... Besides, lack of bargaining power, payment problems and monopoly are some of the other stakeholder conflicts (Buhalis, 2000;Ivanov et al., 2015). Also, unexpected service failures and inconvenience (Yildirim et al., 2018), not provided corrective actions or compensations (Goodwin & Ross, 1992). ...
... Similarly, given wrong information about facilities of an accommodation establishment is results dissatisfied and untrusted customers (Fountoulaki, Leue, & Jung, 2014). Additionally, PSCF may lead to negative BI because of low service quality (Zeithaml et al., 1996), uncovered service failures or guests' complaints (Goodwin & Ross, 1992;Smith, Bolton, & Wagner, 1999). ...
... Interactional justice is highly relational (Lee et al. 2018). In case of a service failure recovery, apologizing, accepting the blame, providing a candid explanation, showing courtesy, and expressing empathy are all designed to encourage positive perceptions toward interactional justice in a given situation (Goodwin and Ross 1992;Hazée et al. 2017). Previous studies have shown that perceptions of interactional justice are positively related to general recovery satisfaction (Sparks and McColl-Kennedy 2001;Smith et al. 1999) and that customers are concerned about whether the recovery process can be delivered with sufficient courtesy and respect (Prasongsukarn and Patterson 2012). ...
... Word of mouth may promote brand loyalty and help organizations gain new clients. Equity theory proposes that service providers can encourage customers to spread positive recommendations by responding fairly to any inequitable service failure (Goodwin and Ross 1992;Seiders and Berry 1998). Other studies establish a relationship between effective service recovery and subsequent positive word-of-mouth behavior (Blodgett et al. 1997;Jung and Seock 2017). ...
Article
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Previous studies have validated the service recovery model yet its applicability to education services remains unclear. This study aims to examine the link between perceived justice and post-recovery satisfaction in self-financing higher education. The research model was tested by conducting a scenario-based survey with 315 Chinese students. Relationship continuity is found to strengthen the relationship between interactional justice perceptions and satisfaction. The doctrine of the mean positively moderates the effects of perceived interactional and procedural justice on satisfaction. These results were then compared with a sample of 304 non-Chinese students, and the moderation effects were only observed among Chinese students.
... Service in the hospitality industry involves multiple interactions between the service providers and customers, and a high risk of service failures accompanies these interactions. Once failures occur, service providers must act to effectively offset customers' adverse reactions to prevent post-consumption customer dissatisfaction [3,4], passive recommendation behavior [5], increased switching [6], and decreased revenue [7]. An appropriate service-recovery mechanism allows service providers to alleviate these potentially adverse consequences and restore customers' positive attitudes and confidence. ...
... Later, scholars focused on exploring the consequences of service failure. They found that the inability to properly cope with service failure might result in consumer dissatisfaction [3,23,24], negative word-of-mouth behavior [5], increased switching behavior [6], diminished customer loyalty [25], and decreased revenue [7]. A recent study on customers' coping strategies when experiencing service failures found that the coping mechanism customers use varies depending on the different levels of service-failure severity [26]. ...
Article
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Service failure is inevitable. Although empirical studies on the outcomes and processes of service failures have been conducted in the hotel industry, the findings need more exploration to understand how different segments perceive service failures and the associated emotions differently. This approach enables hotel managers to develop more effective strategies to prevent service failures and implement more specific service-recovery actions. For analysis, we obtained a nine-year (2010–2018) longitudinal dataset containing 1224 valid respondents with 73,622 words of textual content from a property affiliated with an international hotel brand in Canada. A series of text-mining and natural language processing (NLP) analyses, including frequency analysis and word cloud, sentiment analysis, word correlation, and TF–IDF analysis, were conducted to explore the information hidden in the massive amount of unstructured text data. The results revealed the similarities and differences between groups (i.e., men vs. women and leisure vs. business) in reporting service failures. We also carefully examined different meanings of words that emerged from the text-mining results to ensure a more comprehensive understanding of the guest experience.
... More specifically, in a crisis, stakeholders want to vent out their complaints and expect their opinions to be heard. According to Goodwin and Ross (1992), consumers felt frustrated when the representative of a company did not listen patiently to their complaints. To demonstrate the company's willingness to hear them out, it can express empathy and understanding of the consumers' situation when apologizing. ...
... This is because stakeholders want to complain and express their dissatisfaction when affected by a crisis. The dissatisfaction is likely to be resolved if the organization hears out their complaints (Goodwin & Ross, 1992). When apologizing, the company can express its willingness to listen to the consumers. ...
Article
Combining different crisis response strategies of situational crisis communication theory, two studies examined the components of an appropriate crisis response strategy that includes an apology. Regarding the content of crisis responses, apologies that are combined with compensation were perceived to be more appropriate than those with scapegoating. In terms of the context of crisis responses, the two studies examined the timing of announcing the responses. In study 1, the appropriateness of an apology that was coupled with compensation decreased over time, while the appropriateness of the responses, in general, fluctuated over time in study 2. To further comprehend the mechanisms behind the appropriateness of the crisis responses, this research utilizes how well the organization responded to individuals’ dispositional needs to be heard. How well a response fulfilled the stakeholders’ needs to be heard explained 66 % of the variance of its appropriateness; the more the response was perceived to fulfill their desires to be heard, the more appropriate it was.
... An important, yet unexplored, recovery tool is a promise by the provider not to repeat the failure in the future, which can be effective in restoring trust in the provider following competence and integrity violations (Basso and Pizzutti 2016). Moreover, prior research has suggested combining monetary compensation with psychological recovery (i.e., apology and promise), yielding to a multipronged recovery effort (Goodwin and Ross 1992). Thus, research on the differential effects of recovery strategies following intentional failures is lacking, especially taking failure level (i.e., employee vs. firm) into account. ...
... The latter can be perceived as less sincere and convincing, which have been found to be key attributes for these recovery strategies to be effective (Roschk and Kaiser 2013;Schweitzer, Hershey, and Bradlow 2006). With regard to a combined monetary and psychological compensation that presents a particularly strong recovery effort (Goodwin and Ross 1992), no differences are expected regardless of the failure level. Thus, it is hypothesized: ...
Article
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Intentional service failures (e.g., overbooking or overcharging) have received little scholarly attention, despite their regular occurrence and immense costs. Using a multi-method approach combining experimental and field data from online reviews, it was found that intentional (vs. unintentional) failures lead to greater negative word of mouth (nWOM) and patronage reduction. This research extends these findings by demonstrating that intentional failures are less harmful when the failure is reversible (vs. irreversible) and occurs at an employee (vs. firm) level. Further, while either psychological (e.g., apology) or monetary compensation is effective in mitigating the consequences of intentional failures at an employee level, a combined service recovery (psychological and monetary) is the best solution when the failure is at a firm level. Drawing on attribution theory, the paper unveils the key role of trust (as opposed to justice) as the mechanism to explain the effects of intentionality on customers’ nWOM and patronage reduction.
... The service failure literature provides evidence that customers perceive a service failure as being more severe when purchase involvement is higher (Levesque & McDougall, 2009;Ostrom & Iacobucci, 1995). Not only does this suggest that the losses from a service failure for more-involved purchases are higher than those for lesserinvolved failure scenarios (Goodwin & Ross, 1992), but research also confirms that failure severity significantly impacts customer demands for reparation (Grégoire & Fisher, 2008;Kelley & Davis, 1994). It follows, then, that a customer's interpretation of the retailer's order fulfillment speed and delivery location convenience stockout recovery bundle might also be impacted by differences in the level of purchase decision involvement. ...
Article
To prevent customers from leaving stores empty‐handed when encountering a stockout, retailers increasingly leverage their inventory visibility and order fulfillment capabilities to implement “save the sale” tactics. Retailers have several logistics service options available in designing “save the sale” stockout recovery initiatives: “buy at store—ship from (different) store” and the “buy at store—ship from DC,” leading to different order fulfillment speeds. In addition, there is the home delivery approach, which is generally more convenient to customers than the option of store delivery for customer pick‐up. In this paper, we explore how customers evaluate and respond to varying elements of these “save the sale” stockout recovery services when experiencing an in‐store stockout. Building on justice theory and literatures on service recovery and impression formation, we develop a series of four experiments. We explain and provide empirical evidence for (1) why and how customers assess specific stockout service recovery dimensions (i.e., order fulfillment speed and delivery location) as more just, (2) how customers appraise the justice of these bundled stockout recovery dimensions, (3) how purchase involvement and monetary offers impact these perceptions, and (4) how justice perceptions and stockout recoveries impact the likelihood of “saving the sale.”
... Moreover, Smith et al. (1999) reveal that distributive justice affects service customers satisfaction with recovery the most in both hotels and restaurants. Similarly, Goodwin and Ross (1992) indicate that distributive justice highly influences satisfaction with complaint handling in restaurants. In addition, Tektas (2017) finds that both distributive and procedural justice highly affect customer satisfaction with service recovery more than the other dimensions of perceived justice since bank customers tend to focus on the results of the service recovery process. ...
Article
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The aim of this paper is to examine the impact of perceived justice on satisfaction with service recovery and how this satisfaction with service recovery can increase both Lebanese banks’ brand credibility and customer-based brand equity. The questionnaire was completed by a total of 403 bank customers. The findings of this paper indicate that perceived justice strongly influences satisfaction with service recovery. Similarly, satisfaction with service recovery affects both Lebanese banks’ brand credibility and customer-based brand equity. Moreover, the regression analysis demonstrates that satisfaction with service recovery partially mediates the relationship between perceived justice and brand credibility and customer-based brand equity.
... The following are the organizational response to customer complaints. Oliver and Swan (1989) Equality Equal outcomes regardless of exchange Greenberg (1990) Need Outcome based on requirements regardless of contributions Deutsch (1985) Procedural Justice Process control Freedom to contribute views on a decision process Goodwin and Ross (1992) Decision control The extent to which a person is free to accept or reject a decision Heide and John (1992) Accessibility Ease of engaging a process Bitner et al. (1990a, b) Timing/speed The perceived amount of time taken to complete the process Taylor (1994) Flexibility Accessibility to procedures Narver and Slater (1990) Interactional Justice ...
Chapter
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This chapter takes a look into the interplay of services marketing with the elements of the marketing mix. It is acknowledged that services have become a dominant force in today’s economy. Some of the important services marketing activities such as retail and health care are investigated and an effort is made to understand and appreciate the dynamics of these sectors. Simultaneously, the marketing mix has expanded to include three more Ps and their relevance and applicability to extant services marketing principles were researched and studied. In the end, the concept of social marketing for socially relevant and needed projects was studied as they are a very important vehicle of development in developing countries. Proper utilization of the service marketing mix builds brand awareness which finally results in customer loyalty. The marketing mix, in the process, must be supported by adequate service quality. So, services marketing today encompasses many facets of the economy and it is in the interest of the economy and society of developing countries to make full utilization of the concepts of services marketing and marketing mix.
... As such, most humans judge social interaction, at least in part, based on their fairness, by answering the questions "was this action reasonable, right, and just?" [4], and fairness perception influences a wide range of social and professional interactions [5]. Importantly, violations of fairness norms and expectations (perceived unfairness) can lead to adverse emotional and behavioral responses [6][7][8][9][10][11][12], and these can negatively affect social interactions and their outcomes [5,[13][14][15]. ...
Article
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Fairness is a key expectation in social interactions. Its violation leads to adverse reactions, including non-cooperation and dishonesty. The present study aimed to examine how (1) fair (unfair) treatment may drive cooperation (defection) and honesty (self-serving dishonesty), (2) dishonesty primes further moral disengagement and reduced cooperation, and (3) dishonesty weakens (substitutes) the effect of fairness on cooperation. The prisoner’s dilemma (Experiment 1 and 2) and die-rolling task (Experiment 2) were employed for capturing cooperation and dishonest behaviors, respectively. To manipulate perceived unfairness, participants were randomly assigned to play the prisoner’s dilemma game, where players either choose more cooperation (fair condition) or defection (unfair condition). Results of Experiment 1 (n = 102) suggested that participants perceive higher unfairness and behave less cooperatively when the other player primarily chooses defection. Results of Exp. 2 (n = 240) (a) confirmed Exp. 1 results, (b) showed that players in the unfair condition also show more self-serving dishonest behavior, and (c) that dishonest behavior weakens the effect of fairness on cooperation. Together, these results extended previous work by highlighting the self-serving lies when the opponent is fair trigger higher cooperation, presumably as a means to alleviate self-reflective moral emotions or restore justice.
... Most previous studies with regard to service failure and recovery have carried out research in various aspects (Hoffman, Kelley, and Chung 2003) such as general types of service failure (Bitner et al. 1990;Gremler and Bitner 1992), customer's attribution for failure (Bitner, Booms, and Mohr 1994;Folkes and Kostos 1986), customer's expectations regarding service recovery (Kelley and Davis 1994), customer's evaluation process related to recovery (Goodwin and Ross 1992;Hoffman and Kelley 2000), type of fairness perceived by customers in the service recovery process and consequent customer response and influence (Mattila and Patterson 2004;Patterson, Cowley, and Prasongsukarn 2006). However, most studies on service failure just examined if service recovery strategies are influential and did not try to find out which recovery strategy customers think important. ...
... The researchers grouped the factors which determine customers' perceived fairness into three dimensions or constructs of justice: procedural justice, interactional justice and distributive justice. The construct of procedural justice reflects the extent to which customers perceive the process of complaint handling to be timely, have control over the issue, are given the opportunity to express feelings about the problem and able to present information relevant to influence the results of the complaint (Goodwin & Ross, 1992;Tax et al., 1998, Min et al., 2014. Interactional justice, however, is the degree to which the customer recognizes the compensation received as a result of the complaint process to be fair (Bies & Shapiro, 1987;Gilliland, 1993;Siu et. ...
... Furthermore, customers also evaluate whether the ratio of their outcomes to the level of their inputs is equal to the ratio of the service provider and/or other customers (Van Raaij and Pruyn, 1998). Previous studies found a strong relationship between equity perceptions and customer satisfaction with service recovery (Goodwin and Ross, 1992;Liao, 2007;Sparks and McColl-Kennedy, 2001). ...
Article
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The COVID-19 pandemic has impacted nearly every country in the world and affected numerous industries. Many businesses stopped or restricted their operations, resulting in service failures. This study aims to investigate the effect of customer participation and service failure on customer recovery satisfaction in the airline industry. The research employed a scenario-based experiment with 180 respondents as the samples. Convenience sampling was adopted. The responses of customer recovery satisfaction were measured on a 7-point Likert scale. Exploratory factor analysis was then used to validate the measurement and a general linear model was carried out to examine the impacts of customer participation and service failure on customer recovery satisfaction. The results showed that when the failure was due to the COVID-19, the highest customer satisfaction occurred when customers jointly participated in service recovery. This study also revealed that increasing customer participation during the service failure due to pilots on strike resulted in decreased customer recovery satisfaction. The current study contributes to the existing literature related to customer participation in service recovery. This research also provides a practical contribution for service managers when designing the level of customer participation in service recovery.
... According to organizational behavior literature, distributive justice is fairness in reward given to customers in the complaint handling process. The basic principle of distributive justice starts with equity theory (Goodwin & Ross, 1992); equality theory (Greenberg, 1990), and need theory (Deutsch, 1985). The distributive equity model has been extensively tested in marketing research and consumer behavior (Greenberg, 1990;Badawi, 2012). ...
Article
The justice issue in the service recovery process has become an interesting topic especially in rural banks in Indonesia. There are two types of justice issues in handling the complaint process; distributive and informational. This study aims to analyze the effect of distributive and informational justice on complaint handling satisfaction. This study also examines the mediating role of positive and negative emotions on the effect of justice in post-merger rural banks. This research employs a survey by distributing a questionnaire to 238 customers who have complained to one of the post-merger rural banks in West Java and Yogyakarta. This study uses the structural equation modelling (SEM) method by WarpPLS software. The results reveal that distributive and informational justice have a positive effect on positive and negative emotions, while informational justice does not affect positive and negative emotions. Distributive and informational justice directly affect satisfaction over complaint handling. On the other hand, positive and negative emotions affect satisfaction over complaint handling. The findings of this study suggest that positive emotion also mediates the distributive justice effect on satisfaction over complaint. Lastly, positive and negative emotions do not mediate the informational justice effect on satisfaction over complaint handling at post-merger rural banks in West Java and Yogyakarta, Indonesia.
... Depending on the comparative process used, many scholars classify the process into two types: distributive and procedural. Distributive fairness refers to how resources or rewards are 4 allocated between the parties in a transaction, the measure in which there exists a fair report between the investment made and the reward received (Cox, 2001;Goodwin & Ross, 1992). Procedural fairness refers to fairness of the procedure by which a certain decision is made, "to the process underlying and leading to the eventual returns" (Maxwell, 2002;Diller, 2008). ...
Article
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This research aims to fill the gap in sustainable insurance product study. The central research question of this research is how to develop a fair pricing framework in order to design a sustainable financial product. Current profit testing method is arguably lack of policyholder considerations. The profitability decision under current method only considers profit margin for company. There is no profitability measurement for policyholder. To improve fairness under current pricing, the proposed study proposes a concept of equity in risk between company and policyholder. In order to establish equity in risk, profitability for policyholder needs to be defined and risk measure Conditional Tail Expectation (CTE) for company and policyholder is proposed as a solution. Fairness is achieved if CTE between company and policyholder falls within certain range. CTE generated under new framework could be used as a reference point to all stakeholders to assess the fairness of Unit Linked price. The target population for the study was any regular premium Unit Link product. This research used simple random sampling. From the population consisting of 34 companies 20 samples were drawn. Data is taken from the Indonesian Financial Service Authority. The data used is from the time period between 1 January 2015 and 30 June 2019. Using the CTE, this study finds that most of the Unit Linked pricing are far from fair. It is recommended that companies could be more efficient in their operating and distribution cost in order to be fairer to policyholder and therefore will make the product more sustainable.
... Distributive justice is very closely related to the improvement process. The result of research conducted by Blodgett et all, 1997;Goodwin and Ross, 1992;Hoffman and Kelley, 2000;and Tax et al. 1998, discount, giving coupons, refund, gift-giving, replacement, apology, and etc are form of compensation that is done as a form of accountability and apology for the business owner. ...
Conference Paper
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Customer dissatisfaction caused by service failure their received. Oftentimes customer dissatisfaction gives a bad impact to business owners because their share disappointed feeling to people they know or posted on their social media. This is expected to be able to contribute to the development of the tourism sector in the future in responding to tourist dissatisfaction, to prevent the emergence of post-visit disruptive behavior. So it does not interfere with the sustainability of the tourism sector. In this research was conducted in several tourist destinations in West Sumatra and involve 100 respondents selected by accidental sampling. Data processing is performed using Smart PLS 3.2.8. The results of this study indicate that distributive justice, has no significant effect on Customer Dissatisfaction directly and trough customer forgiveness.
... They also mentioned that explanation has power to transform negative perception to positive. Additionally, many prior studies identified three important factors greatly influence of consumers perception of fairness with service recovery including outcomes, procedural fairness and interactional treatment (Goodwin & Ross, 1992;Tax et al., 1998). In relation with interactional justice, Colquitt (2001) and Colquitt et al. (2001) suggested two important dimensions namely interpersonal treatment and informational fairness. ...
Article
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Delivering error free internet service is one of the utmost important challenges for internet service providers. Despite being natural phenomenon, disruption in internet service has catastrophic outcome for the organizations. One of the main consequences of this unwanted event is customers’ dissatisfaction, which eventually lead brand switching behavior. Generally, organizations provide explanation to their customers during this critical situation. Effectiveness of explanation, however, greatly depends on different methods. Therefore, this study tries to unveil the most effective dimension of explanation, which mitigate customer dissatisfaction in such unwanted situation. Applying simple random sampling from four main internet service providers’ database in Malaysia, this study managed to get 322 respondents, who gave complain about their service disruption during August to October 2014. Factor and regression analysis techniques had been applied to understand the most effective dimension of explanation. Results revealed that excuse has significant negative effect on gaining customer compassion. In contrast, apology become the most effective way of explanation followed by reference and justification during service failure. Indeed, this study is one of the limited literatures that provides deeper understanding of explanation in gaining customer compassion and eventually helps service industry to rethink their customer service strategies in gaining customer compassion, which ultimately keep their customer forever with them.
... In this respect, verbal recovery is an initial and indispensable part of the recovery effort of companies (Roschk and Kaiser, 2013). In addition, unlike utilitarian recovery, which experiences economic expenses such as goods, discounts and repayments and thus inflicts a considerable cost on companies (Smith et al., 1999;Dunn and Dahl, 2012), verbal recovery strategy is costless and therefore represents an affordable recovery method in restoring consumer retention (Goodwin and Ross, 1992). ...
Article
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The main purpose of this work is to evaluate the different psychological impacts of two initial verbal recovery strategies (gratitude vs empathetic apology) on the consumers' loyalty after a service failure. The proposed theoretical model also appraises the mediating role of two emotional responses (consumer forgiveness, consumer anger) and consumer self-esteem and the moderating role of self-oriented perfectionism. Two studies (i.e. an experimental design and a field study) are considered for this investigation to assess the effectiveness of gratitude expression versus empathetic apology on post-recovery loyalty and test the effects of mediators and the moderator applied between the verbal recovery strategies and post-recovery loyalty. The results of Study 1 revealed the supremacy of gratitude to empathetic apology in maintaining consumers' loyalty after service failure recovery. The better impact of gratitude expressed in increasing post-recovery loyalty is mediated through the elevation of consumers' forgiveness, the reduction of consumers' anger and consumers' self-esteem. The findings of Study 2 indicated that gratitude increases more post-recovery loyalty in individuals with a high level of self-oriented perfectionism. Future research could examine other service failure situations, different types of service recovery, mediators or moderators, which contribute to the service marketing literature. After a service failure, using gratitude expressions to consumers often makes them feel better and more valuable. This work increases service providers' knowledge in using proper expressions after a service failure to help elevate consumers' positive reactions resulting in maintaining their loyalty.
... If an enterprise can maintain 5% of its original customers, the profits generated by the enterprise can increase by approximately 25-85% [5]. Therefore, when the services provided by the logistics center do not meet expectations, customers will have an adverse reaction to the enterprise, causing a loss in customer loyalty [6]. In the current study, a statistical analysis was conducted after performing a customer service call recording of one logistics center. ...
Article
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This study uses the logistics center of a large organic retail store in Taiwan to analyze service blueprint and workflow, identifying the potential points of failure and thus serving as a basis for quality improvement. The failure mode and effect analysis (FMEA) model is an effective problem prevention methodology that can easily interface with many engineering and reliability methods. The utilized method integrates the failure mode and effect analysis (FMEA) and the Kano model to explore the possible occurrence of failures in the internal workflow and services of the studied logistics center. A two-stage survey was conducted. In the first stage, an investigation was conducted by 20 logistics experts on the FMEA’s key service failures. In the second stage, a questionnaire was filled out by 220 store staff to summarize the logistics service quality factors found in the Kano model. The results show that the degree of attention and satisfaction in the priority improvement items when there were service failures vary among the opinions of different internal employees and customers. The participants jointly believed that the items that need improvement are “Damaged incoming goods” and “A shortfall in the quantities of delivered goods”.
... Sangareddy et al. (2009) refer to elements such as politeness, honesty and explanation as important aspects of perceived interactional justice by the complainants. In another study Goodwin and Ross (1992) cite making a meaningful effort in resolving a complaint is amongst the primary factors influencing complainants' perception of interactional justice. The implications of effort in this context are rather generic, but examples such as "taking the responsibility of a failure" and "genuine attempt to resolve a failure" are widely mentioned in the literature (Folkes, 1984). ...
Article
E.ON is one of UK’s largest power and gas companies. E.ON’s new initiative known as ‘Target Operating Model’, which is believed to enhance customer experience and deliver operational benefits, is currently underway. The initiative includes enhancements in various areas such as training, processes, systems and website development. E.ON has a top-down approach in adopting the KPIs for these initiatives, starting from defining strategic objectives and cascading them to business function level. Strategic, operational, financial and team/individual performance represent a major objective for an organisation. To appreciate the extent to which corporate objectives are achieved and in order to evaluate the efficiency of business strategies, it is vital to define an integrated system of performance indicators capable of assessing processes with respect to the set targets and objectives at a given point in time. Moreover, managerial decisions should be based on a thorough knowledge of the current state of the business which cannot be attained in the absence of a performance measurement system. Such a system should be capable of informing management about the results obtained in all initiatives of the company. Given the importance of performance measurement systems for the success of a business, this report evaluates the adequacy of the KPIs used by E.ON. In addition, a business model is presented highlighting the best practices in ‘customer complaint resolution’ divisions within the utility sector. Primary research was conducted in the form of survey questionnaires and Structural Equation Modelling technique was adopted to detect a pattern in the complainants’ responses to the questionnaire. The survey measured consumers’ judgement about their respective energy suppliers’ customer complaint resolution process. We believe that the findings of this research have an imperative practical implication as the constructs of the model are chosen to test the appropriateness of KPIs in addressing the underlying principal determinants of ‘Loyalty’, which is the ultimate objective of the customer complaint resolution division. The research also tests the adequacy of the KPIs which are intended to meet the requirements identified by “Which?”, “Consumer Future” and Ofgem in order to bolster E.ON’s stance in the top rankings. Furthermore, a gap analysis is performed to identify KPIs that could be adopted by E.ON with respect to its strategic objectives. Using AHP methodology, the list of new KPIs are ranked based on SMART (Specific, Measureable, Attainable, Realistic and Time-sensitive) criteria. Finally, the report provides recommendations to E.ON summarising the KPIs that could be replaced and/or adopted as part of the organisation’s performance measurement system.
... The theory of justice appears as a dominant theoretical analysis in the service recovery context (Tax et al., 1998). The evaluation of customer perception on the fairness aspect of service recovery is determined by three factors: the outcome, procedural justice, and interactional treatment (Goodwin and Ross, 1992;Smith et al., 1999;Tax et al., 1998). ...
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This research was aimed to determine the direct and indirect effect of justice perception, which would be analyzed in this research and based on three dimensions as distributive justice, interactional justice, and procedural justice to the customer affection and loyalty of patients in Xxx Hospital Malang. The research population covered the patients or families who have complained about service failure in the hospital. This data was based on the data from the public relation of Xxx Hospital Malang in 2018. The total sample was 232 respondents who had been selected through the saturated sampling method. The data was analyzed through the Partial Least Square PLS technique in SmartPLS 3.0 program application. The research finding indicated that distributive justice did not significantly affect customer affection from the three construct dimensions of justice perception. In contrast, the interactional justice and procedural justice affected positively and significantly the customer affection, and then the customer affection affected positively and significantly patient loyalty. This result showed that the higher interactional justice and procedural justice of patients would determine the higher customer affection of patients to Xxx Hospital Malang. The higher customer affection would determine the higher patient loyalty. For further research is recommended to re-explore the research variables that might affect the customer affection and loyalty directly on similar research objects or other hospitals, for instance, customer satisfaction, revisit intention, WOM, and other aspects. The next researches should also be done by developing the research model and using samples with different characteristics.
... A stream of research has demonstrated that a successful service recovery management is the cornerstone in building foundation for a long-term relationship with the customer who has encountered service failures (Maxham, 2001;Smith et al., 1999;Tax et al., 1998). However, service failures can range from the ordinary cases to more major cases (Goodwin and Ross, 1992;Berry and Parasuraman, 1991;Gilly and Gelb, 1982) and perceived severity of cases has been identified as the mediating factor of an effective service recovery (McCollough et al., 2000;Smith et al., 1999;Limbrick, 1993;Zeithaml et al., 1993;Bell and Ridge, 1992). It is also found that service failure severity has a significant strong effect on service recovery satisfaction (Olson and Ro, 2020). ...
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The advent of Web 2.0 has encouraged restaurant customers to post online reviews, and oftentimes, not in favor of the company. When a service failure occurs, the customer may voice their complaints publicly online. The company, on the other hand, has the opportunity to respond to these complaints and use it as a part of their service recovery strategy. While some companies are responding to negative reviews, only a few have the knowledge on how to do it effectively. Built on perceived justice framework: distributive, procedural, interactional; and service failure severity type: outcome-process, major-minor, present study intends to understand different resolution styles adopted by the company to varying types of customer complaint. The findings outline: (1) the vast majority of the company exhibits only a low level of responsiveness to complaints; (2) there seems to be a correlation between physical and psychological loss with time loss, severe emotions and switching intentions; (3) however, different strategies depending upon service failure severity are yet to be implemented by the company; (4) while components in interactional justice are mostly performed, rude responses are also frequently applied. Further elaboration of the findings and insights for marketing practice are discussed in the text.
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This article focuses on low-income consumers facing social stigma in service encounters with contact employees. Research have regarded the income-consumers from the disadvantaged perspective but few from the stigmatized perspective. The literature tends to propose direct functional relationships between emotions and coping processes. Further studies suggested that emotional and cognitive appraisals interact to influence consumers' choice of coping strategies. Our study was designed using Critical Incident Technique and Content Analysis in 210 low income individuals. The results state the existence of that stigmatized behavior beyond the legitimate expected interaction between the parties involved. The construction of the stigma model evolution illustrated this research.
Chapter
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Thesis
Due to the unique characteristics of health services, it is inevitable that service failure occur in the service delivery process. Service failures cause dissatisfaction and complaints of customers purchasing service from health institutions, and then affect their intention to repurchase service from the institution. At this point, service recovery emerges as an important strategic method for eliminating the dissatisfaction caused by service failures, and continuing to repurchase service. Service recovery strategies are implemented as a corporate response to complaints to ensure customer satisfaction. These strategies are; It is evaluated in six dimensions by Davidow (2000) as timeliness, facilitation, attentiveness, apology, redress, and credibility. From this point of view, it is the main purpose of this study to determine the effect of implementing service recovery strategies, which consist of six dimensions, on the satisfaction and post-recovery behavior of customers who have complained in health institutions. In line with this purpose, the research was carried out by applying face-to-face questionnaire to 244 complainant participants in a private health institution in the within borders of Izmir province, which includes eighteen items for six service compensation dimensions and six items for satisfaction and repurchase intention developed by Davidow (2000). The data obtained at the end of the application were analyzed with the structural equation model and the research hypotheses were tested. The results of the analysis revealed that the credibility, attentiveness and redress dimensions of service recovery strategies have a significant effect on satisfaction and repurchase intention post-recovery. It has been proved that the apology dimension also has a significant effect on satisfaction after recovery, and that there is no significant relationship with repurchase intention. It was observed that timeliness and facilitation dimensions did not affect both post- compensation satisfaction and repurchase intention. In addition, it has been determined that the satisfaction achieved with recovery strategies has a significant effect on repurchase intention. Based on the findings of the research, it is thought that it will be more effective in positively affecting customer satisfaction and repurchase intention if health institutions offer service recoveries with different combinations.
Conference Paper
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Chapter
Extant literature on corporate social responsibility (CSR) and marketing shows that CSR plays an important role when a service fails; thus, application of recovery strategy becomes crucial for sustainable development. CSR creates greater performance expectations amongst stakeholders as well as helps to legitimise organisational activities when a service fails. This study maintains that CSR is crucially important not only in legitimising organisational actions, but in ensuring that stakeholders' loyalty, trust, and justice are assured. This CSR, service failure, and recovery nexus is more needed in the controversial extractive industry in Nigeria, which has a history of illegitimacy, irresponsible corporate responsibility, lack of accountability, and failure of justice, which have triggered and sustained corporate-stakeholder conflict. This landscape has negative impact on sustainable development, peace, and justice in the Niger Delta region of Nigeria, where oil is extracted.
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ASC2021/FALL II. International Academician Studies Congress 22-24 Ekim/October 2021 Bildiriler/Proceedings
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ASC2021/FALL II. International Academician Studies Congress 22-24 Ekim/October 2021 Bildiriler/Proceedings
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Emoticons are pictorial/textual depictions of facial expressions used in marketing communications. Little is known about how customers interpret positive or negative emoticons used by customer service employees in service failure contexts. We investigate the impact of emoticon type on customer satisfaction and re-purchasing intention, and examine the sequential mediating role of perceived sincerity and willingness to forgive. Results show that the use of a negative emoticon in a response leads to a higher level of customer satisfaction and re-purchasing intention than responses with a positive emoticon. We further demonstrate that customers perceive that the presence of a negative emoticon in a response is more sincere and generates a higher level of forgiveness than those responses that use positive emoticons, but only when the communal relationship is salient in the customer’s mind. Our findings offer important theoretical and practical implications in service failure contexts.
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Hizmet telafisi, karşılaşılan hizmet hatalarının yarattığı memnuniyetsizliği gidermede ve yeniden hizmet almanın devamlılığını sağlamada önemli bir stratejik yöntem olarak ortaya çıkmaktadır. Müşteri memnuniyeti sağlamak için şikâyetlere yönelik kurumsal bir cevap olarak hizmet telafi stratejileri uygulanmaktadır. Bu stratejiler; dakiklik, kolaylaştırma, nezaket, özür, düzeltme/onarım, güvenilirlik olarak altı boyutta değerlendirilmektedir. Buradan hareketle, hizmet hatası telafi stratejilerinin uygulanmasının sağlık kurumlarında şikâyette bulunan müşterilerin memnuniyeti ve telafi sonrası satın alma niyetleri üzerindeki etkisini belirlemek bu çalışmanın temel amacı olmaktadır. Bu amaç doğrultusunda araştırma verileri, İzmir ili sınırları içerisinde özel bir sağlık kuruluşundaki 244 şikâyetçi katılımcıya, yüz yüze anket uygulanarak toplanmıştır. Uygulama sonunda elde edilen veriler yapısal eşitlik modeli ile analiz edilerek araştırma hipotezleri test edilmiştir. Yapılan analiz sonuçları ile hizmet telafi stratejilerinden güvenilirlik, nezaket ve düzeltme/onarım boyutlarının, hizmet telafisi sonrası memnuniyet ve yeniden satın alma niyeti üzerinde anlamlı bir etkiye sahip olduğu ortaya koyulmuştur. Özür boyutunun da telafi sonrası memnuniyete etkisinin anlamlı olduğu; ancak yeniden satın alma niyeti ile anlamlı bir ilişkinin bulunmadığı saptanmıştır. Dakiklik ve kolaylaştırma boyutlarının ise hem telafi sonrası memnuniyeti hem de yeniden satın alma niyetini etkilemediği görülmüştür. Ayrıca telafi stratejileriyle sağlanan memnuniyetin, yeniden satın alma niyeti üzerinde anlamlı bir etkisinin bulunduğu tespit edilmiştir. Araştırma bulgularına dayalı olarak sağlık kurumlarının farklı kombinasyonlarla hizmet telafilerini bir arada sunmasının, müşteri memnuniyetini artırmada ve yeniden satın alma niyetini sağlamada daha etkili olacağı düşünülmektedir. Anahtar Kelimeler: Sağlık kurumları, hizmet hatası, hizmet telafi stratejileri, memnuniyet, yeniden satın alma niyeti MAKALE HAKKINDA * Bu çalışma, Prof. Dr. Özgür UĞURLUOĞLU danışmanlığında Buse METE tarafından hazırlanan "Sağlık kurumlarında hizmet hatası telafi stratejilerinin müşteri memnuniyeti ve yeniden satın alma niyeti üzerine etkisi" başlıklı yayınlanmamış yüksek lisans tezinden üretilmiştir.
While it is widely accepted that managing customer complaints is crucial for companies, the question of how best to manage these complaints is still a matter of debate. A growing number of studies highlight the effectiveness of digital complaint channels on customer behaviour and satisfaction, suggesting that direct human interaction is no longer necessary in the recovery process. Building on this observation, our research questions the interest of maintaining or not direct human interactions in the management of customer complaints. We carry a quantitative study on 427 respondents, which shows that when the recovery process involves human interaction, customers have a better perception of justice and of the company's relational efforts and are more satisfied with the resolution process. Customers are responsive to human interaction in the service recovery process. Thus, from a managerial point of view, complaint management should be part of a consumer centric approach that includes verbal exchanges (face to face or by phone). As tempting as it may seem to companies to completely digitize complaint management, we believe that maintaining direct human interactions is beneficial to customer relationships.
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Artificial intelligence (AI) failures are increasingly common as more and more companies race to implement AI solutions. The implementation of AI and its inevitable malfunctions are an unprecedented type of crisis for corporate communication professionals. This study reviews (1) 23 instances of AI failures, (2) subsequent corporate communication, and (3) resultant media coverage to investigate the various strategies employed to deal with AI failures. We also identify if these strategies lead to positive or negative responses and/or mitigation of the crisis. Results show that several response strategies included in extant crisis response frameworks can be effective in dealing with AI crises, whereas other strategies tend to be unsuccessful. Our analysis also points to the emergence of a crisis communication strategy that takes advantage of the uncertainty surrounding the accountability of AI to mitigate the crisis.
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This article proposes that the dyadic interaction between a service provider and a customer is an important determinant of the customer's global satisfaction with the service. Based on role theory, a theoretical framework is presented which abstracts some of the critical components of service encounters across industries.
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Recent social psychological work on procedural justice suggests that people given the opportunity to participate in a decision are more likely to see that decision as just than those given no such opportunity. The operation of this “fair process effect” in legal settings contributes to the legitimacy of those settings and to the stability of their structure over time. A similar, limited opportunity for participation by experimental subjects playing the role of employee in situations designed to model hierarchical, profit-oriented business enterprises produces a similar effect in some cases, but a 'frustration” effect in others. In this latter case, limited participation leads people to see the decision as less just than when no participation is allowed. Previous interpretations of these data neglect the possibility that those in the role of employees recognize a basic conflict of interest with employers in such enterprises and see limited participation as a strategic device to induce loyalty and commitment. This paper reinterprets these data in light of that possibility and argues that various forms of participation may benefit or harm the interests of employers and employees differently.
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Describes a general theory of social behavior-equity theory-consisting of 4 propositions designed to predict when individuals will perceive that they are justly treated and how they will react when they find themselves enmeshed in unjust relationships. Research conducted to test equity theory is summarized. Ways in which equity theory interlocks with other major social psychological theories are discussed. Some ways in which equity theory can be applied to understanding social problems are considered. (103 ref.) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
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Tested the hypothesis that the procedures used by leaders to allocate outcomes have an impact on leadership evaluations that is independent of outcome level or outcome fairness. Two studies tested this hypothesis within the context of 132 college students' evaluations of teachers, and two tested it within the context of citizen evaluations of political leaders; Ss in the latter 2 studies were 50 residents of a university town and 156 undergraduates. The procedural justice hypothesis was strongly supported by all 4 studies. In each, strong procedural influences on evaluation were found, influences that were independent of outcome level or outcome fairness. In addition, in both surveys of naturally occurring evaluations, variations in procedural fairness had a much greater impact on leadership endorsement than did variations in outcome level, outcome satisfaction, or outcome fairness. Findings suggest that in experimental settings, Ss can be sensitive to both outcomes and procedures. In natural settings, however, individuals focus on procedures rather than outcomes in forming their evaluations of leaders. (20 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
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Variation in decision making and allocation procedures has been shown to affect judgments of the fairness of the procedure and its outcome, but such effects have always been studied in the context of properly enacted procedures. It was hypothesized that the appearance of impropriety in the enctment of a fair procedure would increase the extent to which the procedure is judged in terms of its outcome. One hundred twenty undergraduate males and females were placed in the role of either defendant or observer with respect to an adversary procedure trial. Appearance of impropriety was manipulated during the trial by either including or not including evidence of a friendly personal relationship between the judge and the plaintiff's lawyer. The defendant was said to have either won or lost the case. A significant impropriety × outcome interaction on ratings of procedural fairness, unqualified by higher order effect, supported the hypothesis: a favorable outcome increased and an unfavorable outcome decreased the fairness of the procedure more when the impropriety was present. Discussion focuses on the implications of these findings for future investigation and theory on procedural justice and for practical issues.
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The research agendas of psychologists and economists now have several overlaps, with behavioural economics providing theoretical and experimental study of the relationship between behaviour and choice, and hedonic psychology discussing appropriate measures of outcomes of choice in terms of overall utility or life satisfaction. Here we model the relationship between values (understood as principles guiding behaviour), choices and their final outcomes in terms of life satisfaction, and use data from the BHPS to assess whether our ideas on what is important in life (individual values) are broadly connected to what we experience as important in our lives (life satisfaction).
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The process of exchange is almost continual in human interactions, and appears to have characteristics peculiar to itself, and to generate affect, motivation, and behavior that cannot be predicted unless exchange processes are understood. This chapter describes two major concepts relating to the perception of justice and injustice; the concept of relative deprivation and the complementary concept of relative gratification. All dissatisfaction and low morale are related to a person's suffering injustice in social exchanges. However, a significant portion of cases can be usefully explained by invoking injustice as an explanatory concept. In the theory of inequity, both the antecedents and consequences of perceived injustice have been stated in terms that permit quite specific predictions to be made about the behavior of persons entering social exchanges. Relative deprivation and distributive justice, as theoretical concepts, specify some of the conditions that arouse perceptions of injustice and complementarily, the conditions that lead men to feel that their relations with others are just. The need for much additional research notwithstanding, the theoretical analyses that have been made of injustice in social exchanges should result not only in a better general understanding of the phenomenon, but should lead to a degree of social control not previously possible. The experience of injustice need not be an accepted fact of life.
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Equity theory was applied to retail exchange situations to test hypotheses about subjects' perceptions of inequity and behaviors they would perform. Subjects in Group 1 made evaluative ratings of 16 hypothetical situations in which two sources of inequity, high price and poor service, were introduced, along with varying levels of shopping frequency and item cost. Subjects perceived high price inequity situations as less fair than low ones, and high service inequity situations as less fair than low ones when price inequity was low. When price inequity was high, subjects perceived high shopping frequency situations less fair than low ones. Subjects in Group 2 chose the behavior they would be most likely to perform in each situation. When inequity was present, most subjects chose leaving the store, although several chose complaining about price or service when shopping frequency was also high.
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A survey of consumer reactions to common purchases was conducted in 1975. Consumers perceive problems with many products and services, and voice complaints concerning about one-third of those problems. Third-party complaint processors play a very small role in buyer-seller disputes. Household status and type of problem influence perception of problems and choice of action or inaction. Satisfactory resolutions occur in somewhat more than half of voiced complaint cases. To increase voicing and fair handling of complaints, procedural changes at the buyer-seller level are suggested; to improve treatment of complaints that are not resolved at the buyer-seller level, improvements in community small claims courts are suggested.
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Automobile purchasers were surveyed about feelings toward their inputs to and outcomes from the sales transaction, as well as their perceptions of the inputs and outcomes of the salesperson. Structural equation modeling with maximum likelihood estimation shows two concepts advanced in the equity literature, fairness and preference (advantageous inequity), to be related differentially to input and outcome judgments. No necessary symmetry is observed between the weights attached to inputs and outcomes or between those attached to self and salesperson. When framed in a larger perspective involving satisfaction with the salesperson, the fairness dimension mediates the effect of inputs and outcomes on satisfaction whereas preference does not. The fairness influence is robust against the simultaneous inclusion of disconfirmation in the satisfaction equation. Satisfaction, in turn, is related strongly to the consumer's intention cognitions. The findings suggest that the retail sales transaction may differ in substantive ways from the subject-peer and worker-coworker comparisons in other disciplines and that models of interpersonal satisfaction in the sales transaction should include the mediating effect of the fairness dimension of equity. The managerial implications of these findings are discussed.
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Postulated that relative deprivation-based discontent is a function of "referent cognitions" about the outcomes available if a procedure had not been changed. Given a change in procedures, a high-referent condition exists when the old procedure would have yielded outcomes better than the new one, whereas a low-referent condition consists of outcomes from the old procedure that are no better than those from the new procedure. It was hypothesized that although discontent should generally be greater under high-referent than under low-referent conditions, this tendency would be qualified by the extent to which justifications are given for the change in procedures. Specifically, the hypothesized differences in discontent should be evident only when the justifications given are inadequate. This prediction was confirmed in an experiment in which 60 female undergraduates were led to believe that a change in the scoring procedure had made them the losers in a competition for a desirable reward. (14 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Article
Examined the effects of "voice" (participating in allocation decision making by expressing one's own opinion about the preferred allocation) on responses to an inequitable allocation. In addition to Ss' (82 female undergraduates) presence or absence of voice, Exp I manipulated (a) whether the allocation made by a "decision maker" (a confederate) was or was not made biased (due to self-interest) and (b) whether the S did or did not learn that a "co-worker" believed the allocation to be inequitable. Exp II, with 61 female high school students, manipulated presence/absence of voice and involved only a self-interested decision maker. In both experiments, the impact of voice was mediated by knowledge about the co-worker's opinion. When Ss had no knowledge about the co-worker's opinion (Exp I) or knew that the co-workers's opinion coincided with the decision maker's allocation (Exp II), there was evidence for a "fair process effect": Voice Ss expressed greater satisfaction than those with no voice. (21 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Article
Distributive justice (outcome fairness) was distinguished from procedural justice (fairness of the processes whereby outcomes are allocated). 80 6th-grade boys, tested individually, served as workers performing a card sorting task for 10 work periods. A manager (allegedly another boy, actually the E) decided after each work period how he and his worker would divide a monetary reward. The experiment varied the following: (a) outcome/inequity (unequal pay favoring the manager) vs equity (equal pay); (b) procedure/voice (worker tells manager the pay considered fair) vs mute (no statement of worker's opinion); and (c) sequence of payments over time/constant (same pay after each work period) vs improve (proportionately more pay going to worker each pay period). On measures of outcome fairness, a pay sequence that improved after voice was perceived as less fair than the same sequence that improved without voice, while a constant sequence was perceived more fair given voice than no voice (these tendencies were evidenced chiefly in the inequity conditions). On a separate measure of procedural fairness, voice workers expressed more satisfaction with the allocation process than did mute workers. (24 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Article
Results of a questionnaire administered to 22 retail executives show that in two-thirds of the firms, salespeople had the authority to provide redress to customers with problems, that no more than 5 or 10% of all customer complaints reached corporate headquarters, and that they believed that the consumer who complains is satisfied 90% of the time. It is suggested that the managerial use of complaints in policy making deserves research attention, as does the relationship between the satisfaction of complaints and subsequent buying behavior. (6 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
Article
The concept of justice is discussed, and the thesis is advanced that “equity” is only one of the many values which may underlie a given system of justice. Hypotheses about the conditions which determine which values will be employed as the basis of distributive justice in a group are proposed, with discussion centered about the values of “equity,” “equality,” and “need” and the conditions which lead a group to emphasize one rather than another value.
Article
This cross-cultural research examines the interaction between consumers and providers of nine different services, ranging from medical specialists to department store clerks, in the context of role theory. This approach views the service encounter as an event where consumers and providers play certain roles. Services can be classified in each culture by two dimensions from the psychological literature: power (to influence or control transactions) and commitment (referring to the long-term service relationship).Consumers in the United States and the Netherlands were asked to classify the services using power and commitment scales—and to predict how they would react in case of a problem. The results were then used to classify the nine services in the US and Dutch environment and to generate a matrix of role relationships. While Dutch consumers indicated greater likelihood of complaining for all services, the Dutch pattern across services appears to be remarkably similar to the American pattern. The identification of similarities is useful to managers in transferring successful marketing campaigns across service industries and countries.
Article
At the psychological level the reasons for holding or for changing attitudes are found in the functions they perform for the individual, specifically the functions of adjustment, ego defense, value expression, and knowledge. The conditions necessary to arouse or modify an attitude vary according to the motivational basis of the attitude. Ego-defensive attitudes, for example, can be aroused by threats, appeals to hatred and repressed impulses, and authoritarian suggestion, and can be changed by removal of threat, catharsis, and self-insight. Expressive attitudes are aroused by cues associated with the individual's values and by the need to reassert his self-image and can be changed by showing the appropriateness of the new or modified beliefs to the self-concept Brain washing is primarily directed at the value-expressive function and operates by controlling all environmental supports of old values. Changing attitudes may involve generalization of change to related areas of belief and feeling. Minimal generalization seems to be the rule among adults; for example, in politics voting for an opposition candidate does not have much effect upon party identification.
Article
Attribution theory provides the framework for predicting consumer responses to product failures. Study 1 surveyed reasons for and reactions to product failure and Study 2 manipulated reasons in an experiment. Reasons for product failure influenced reactions such as desiring a refund or an exchange for the product, perceiving that an apology is owed the consumer, and wanting to hurt the firm's business.
Article
The purpose of this paper is to report the development and estimation of a path model which examined predictors of patients' overall satisfaction with, and their intentions to revisit, the hospital. Specifically, the effects of patients' perceptions of hospital performance were expected to relate positively to confirmation of patients' expectations of hospital performance (i.e., with respect to treatment, services, etc.), and of being treated fairly, which subsequently would relate positively to overall satisfaction. Additionally, both patients' overall levels of satisfaction and perceptions of hospital performance were expected to relate directly and positively to patients' intentions to revisit the hospital. The results of this study should be of interest to both practitioners and academicians. The practitioner is concerned with maintaining or enhancing the competitive position of his institution. The perspectives on satisfaction explored in this paper will be discussed in terms of their implications for the effective control of patients' satisfaction and intentions to reutilize the hospital's services. The academician is interested in developing basic knowledge of the behavior of health care consumers. This paper contributes to patient satisfaction research by estimating the effects of a previously unexamined set of predictor variables and by utilizing an analytical tool (i.e., structural equation modeling) that is uniquely well-suited for such a study.
Conceptual Insights into Consumer Satisfaction with Services
  • Liechty
Effects of ‘Voice’ and Peer Opinions on Responses to Inequity
  • Folger
Consumer Perceptions of Costs and Benefits Associated with Complaining
  • Richins