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© CAB International 2017. Service Failures and Recovery in Tourism and Hospitality: 1
A Practical Manual (ed. E. Koc)
A service failure is any type of error, mistake, deciency or problem occurring during
the provision of a service. The consumption of tourism and hospitality services involves
a high degree of uncertainty and risk (Namasivayam and Hinkin, 2003). The inherent
variability in tourism and hospitality services is attributable primarily to two factors:
the heavy reliance on human service providers and the near impossibility of quality in-
spections prior to consumption (Zeithaml etal., 1990; Chan etal., 2007).
Service-quality problems or service failures in service businesses occur due to the
following service-quality gaps (Parasuraman etal., 1991):
● The knowledge or perception gap: Difference between the customers’ service expect-
ations and service managers’ perceptions of the customers’ service expectations.
● The standards gap: Difference between service managers’ perceptions of customer
expectations and the service procedures, standards and specications established.
● The delivery gap: Difference between service-quality specications and the actual
service delivered to the customers.
● The communications gap: Difference between what is communicated to the cus-
tomer and the actual service delivered.
Service-quality models such as SERVQUAL are widely used to identify and measure the
probable causes of the above gaps (Parasuraman et al., 1991; Koc, 2006). The
SERVQUAL model focuses on the service-quality elements of reliability, assurance, tan-
gibles, empathy and responsiveness (Parasuraman etal., 1988).
No matter how good service-quality systems are, it is believed that service failures
are inevitable (Goodwin and Ross, 1992; Levesque and McDougall, 2000), but dissat-
ised customers are not (Michel, 2001). This is mainly to do with the service character-
istics of intangibility, inseparability, heterogeneity and perishability.
As service failures cause customer dissatisfaction, they threaten the survival and
growth of service businesses (Koc, 2006; Coulter, 2009; Weber, 2009; Koc, 2010, 2013;
Wang etal., 2014). Service failures trigger negative emotions and negative behavioural
intentions for customers (Gregoire et al., 2009; Ha and Jang, 2009; Wen and Chi,
2013). These negative emotions and ensuing behavioural intentions may include customer
dissatisfaction (Kelley et al., 1993; Koc, 2017), negative word-of-mouth (Mattila,
2001), customer switching (Keaveney, 1995; Pranić and Roehl, 2013), increased costs
(Armistead etal., 1995), and lower employee performance and morale (Bitner etal.,
1994; Lee etal., 2013).
Tourism and hospitality can be considered as highly service failure-prone indus-
tries because of the increased customer–employee contact and the service features of
Introduction: Service Failures
and Recovery
Erdogan Koc
1
6 E. Koc
Chapter 13 Cross-Cultural Aspects of Service Failures and Recovery
Chapter 14 Disappointment in Tourism and Hospitality: the Inuence of Films on
Destinations
Although various educational and training aspects of service failures and recovery are
explained and discussed in almost all of the chapters, this part of the book specically
concentrates on education and training in relation to service failures and recovery.
Written by Isil Arikan Saltik, Ugur Caliskan and Umut Avci, Chapter 11 provides an
introduction to staff training for service failures and recovery. In Chapter 12, Ali
Dalgic, Derya Toksöz and Kemal Birdir explain employee empowerment and the role of
speed in efcient and effective service recoveries. Chapter 13 explores the cross-cultural
aspects of service failures and recovery. In this chapter Erdogan Koc reviews some of
the important cross-cultural theories on service failures and recovery and recent re-
search ndings on the topic.
In Chapter 14, Anna Irimiás, Gábor Michalkó, Dallen J. Timothy and Mariangela
Franch provide a case study example of how lms as a marketing communications tool
may cause disappointment (service failure perception) for destinations.
My wholehearted thanks go to all the contributors who have worked so hard to
produce this exceptionally useful and original book. I also would like to acknowledge
the support and assistance of CABI, in particular, Claire Partt, Emma McCann, Rebecca
Stubbs and Tim Kapp, and Alison Foskett for copy-editing work. I hope readers will
nd the book both interesting and useful.
Erdogan Koc
Professor of Services Marketing and Management
Bandirma Onyedi Eylul University, Turkey
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ural and interactional fairness perceptions. Journal of Business Research 25, 149–163.
Introduction: Service Failures and Recovery 7
Gregoire, Y., Tripp, T.M. and Legoux, R. (2009) When customer love turns into lasting hate: the
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8 E. Koc
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© CAB International 2017. Service Failures and Recovery in Tourism and Hospitality: 9
A Practical Manual (ed. E. Koc)
Learning Objectives
After reading this chapter, you should be able to:
● Dene and explain a service failure.
● Explain when and why a service failure occurs.
● List and describe the different types of service failures.
● Describe how hospitality managers can learn from service failures.
● Explain how to properly deal with a service failure in a hospitality setting.
● Describe the important steps that lead to selecting the most appropriate recovery
strategy for a specic service failure.
2.1 Introduction
Ideally, tourism and hospitality businesses would run smoothly most of the time according
to set plans, free from service failures. Customers would always be happy because of
the absence of problematic situations and there would be no reason to complain or
become dissatised about the services provided. However, in reality this is not feasible
because the hospitality industry has unique characteristics that mean that it has to deal
with the unexpected and with external factors that are out of hospitality organizations’
control, such as the weather, ever-changing customer needs and the so-called ‘impossible
customer’. Therefore, it is critical to understand service failure, its types, when and how
it happens and how it can be handled more effectively. This will help increase awareness
of the importance of recognizing and accepting service failure and that service failure is
a valuable tool that will help the hospitality organization improve, build stronger, better,
long-lasting relationships with affected customers and take the hospitality organization
to higher levels of success that would never have been achieved had this service failure
not taken place.
2.2 Service Failures in Tourism and Hospitality
Service failures in hospitality settings are inevitable, can be caused by a variety of dif-
ferent factors and could happen at any time. Tourism and hospitality managers should
Understanding and Dealing
with Service Failures in Tourism
and Hospitality
Christina K. Dimitriou
2
Understanding and Dealing with Service Failures in Tourism and Hospitality 25
Further Reading
Ford, R.C., Sturman, M.C. and Heaton, C.P. (2012) Managing Quality Service in Hospitality:
How Organizations Achieve Excellence in the Guest Experience. Delmar, Cengage
Learning, Clifton Park, New York.
Hoffman, K.D., Kelley, S.W. and Rotalsky, H.M. (1995) Tracking service failures and employee
recovery efforts. Journal of Services Marketing 9, 49–61.
Michael, S., Bowen, D. and Johnston, R. (2009) Why service recovery fails: tensions among cus-
tomer, employee, and process perspectives. Journal of Service Management 20, 253–273.
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and outcome-based service failure: an empirical examination. Doctoral dissertation, Victoria
University, Melbourne, Australia.
Craig, D.E. (2013) Reviews, Ratings and Revenue: Managing Reputation in the Age of Social
Media. International Hotel, Motel & Restaurant Show (IHMRS), New York.
Ford, R.C., Sturman, M.C. and Heaton, C.P. (2012) Managing Quality Service in Hospitality:
How Organizations Achieve Excellence in the Guest Experience. Delmar, Cengage
Learning, Clifton Park, New York.
Guchait, P., Pas¸amehmetog˘ lu, A. and Dawson, M. (2014) Perceived supervisor and co-worker
support for error management: impact on perceived psychological safety and service re-
covery performance. International Journal of Hospitality Management 41, 28–37.
Hoffman, K.D., Kelley, S.W. and Rotalsky, H.M. (1995) Tracking service failures and employee
recovery efforts. Journal of Services Marketing 9, 49–61.
Koc, E. (2006) Total quality management and business excellence in services: the implications
of all-inclusive pricing system on internal and external customer satisfaction in the Turkish
tourism market. Total Quality Management & Business Excellence 17, 857–877.
Koc, E. (2010) Services and conflict management: cultural and European integration perspec-
tives. International Journal of Intercultural Relations 34, 88–96.
Koc, E. (2013) Power distance and its implications for upward communication and empower-
ment: crisis management and recovery in hospitality services. The International Journal of
Human Resource Management 24, 3681–3696.
Koc, E., Ulukoy, M., Kilic, R., Yumusak, S. and Bahar, R. (2017) The influence of customer par-
ticipation on service failure perceptions. Total Quality Management & Business Excellence
28, 390–404.
Kotler, P., Armstrong, G., Harris, L.C. and Piercy, N. (2014) Principles of Marketing, 6th edn.
Pearson Education, Harlow, UK.
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Prentice Hall, Upper Saddle River, New Jersey.
Michael, S., Bowen, D. and Johnston, R. (2009) Why service recovery fails: tensions among
customer, employee, and process perspectives. Journal of Service Management 20,
253–273.
26 C.K. Dimitriou
Miller, J.L., Craighead, C.W. and Karwan, K.R. (2000) Service recovery: a framework and
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Prentice Hall, Upper Saddle River, New Jersey.
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cation on customer satisfaction, repurchase intentions, and word-of-mouth intentions. Journal
of Service Research 15, 262–279.
© CAB International 2017. Service Failures and Recovery in Tourism and Hospitality: 27
A Practical Manual (ed. E. Koc)
Learning Objectives
After reading this chapter, you should be able to:
● Understand and explain the expectancy disconrmation paradigm.
● Explain justice theory in relation to the service recovery process.
● Explain the service recovery paradox.
● Understand and explain script theory and social learning theory to understand ser-
vice failures and recovery processes.
3.1 Introduction
Service failures are inevitable in all service organizations, including hospitality and
tourism. One of the major reasons is the labour-intensive nature of the hospitality in-
dustry (Mattila and Ro, 2008). As these failures will occur, it is critical to understand
the theories and models associated with both service failure and service recovery. There-
fore, this chapter presents and discusses the expectancy disconrmation paradigm,
justice theory, cultural models to service recovery, the service recovery paradox, script
theory and social learning theory. By gaining a greater understanding of these models
and theories, rms and managers will be able to better create and execute stronger re-
coveries to service failures in their hospitality and tourism business and interactions.
3.2 Expectancy Disconrmation Paradigm
The dominant theoretical model with regards to satisfaction and dissatisfaction is the
expectancy disconrmation paradigm (Oliver, 1977). According to the expectancy dis-
conrmation paradigm, customer satisfaction is the consequence of an evaluation pro-
cess in which the customer judges his or her expectations of how the service should be
performed against the actual service experience (Oliver, 1993). Customer expectations
are dened as internal standards or benchmarks against which customers judge or
measure the quality of service they receive (McDougall and Levesque, 1998). As shown
in Fig. 3.1, disconrmation is dened as the gap between an individual’s pre-purchase
expectations and perceived actual performance of the product/service (Oliver, 1993).
More specically, consumers’ expectations are conrmed when expectations equal the
Service Failures and Recovery:
Theories and Models
Melissa a. Baker
3
Service Failures and Recovery: Theories and Models 39
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proach to service recovery. Journal of Marketing 71, 194–214.
Wirtz, J. and McColl-Kennedy, J. (2010) Opportunistic customer claiming during service re-
covery. Journal of the Academy of Marketing Science 38, 654–675.
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Walsh, G., Gouthier, M., Gremler, D.D. and Brach, S. (2012) What the eye does not see, the
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International Business Review 21, 957–967.
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Psychology 11, 181–192.
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recovery. Journal of the Academy of Marketing Science 38, 654–675.
42 © CAB International 2017. Service Failures and Recovery in Tourism and Hospitality:
A Practical Manual (ed. E. Koc)
Learning Objectives
After reading this chapter, you should be able to:
● Understand basic emotions people have.
● Explain the relationship between emotions, service encounters, service failures and
recovery.
● Explain the components of emotional intelligence in relation to service encounters.
● Understand the difference between surface acting and deep acting and their impli-
cations for the customer and for the individual service employee.
● Understand and explain how tourism and hospitality businesses may benet from
recruiting staff with emotional intelligence and emotional labour.
4.1 Introduction
Human beings are needs-driven. They have fundamental needs for subsistence, protec-
tion, affection, understanding, participation, leisure, creation, identity and freedom
(Max-Neef et al., 1991). Each of these needs can be categorized along the existential
dimensions of being (qualities), having (things), doing (actions) and interacting (set-
tings). When any of the above needs are not satised, human beings feel deprived and
tense (Koc, 2016). Feelings are mental experiences of body states that signify a physio-
logical need (i.e. they are mental experiences that accompany a change in body state
such as hunger – or increasing level of hunger when a customer is kept waiting for his
dinner), which arise as the brain interprets emotion (Damasio and Carvalho, 2013,
p.143). While in general it is believed that feelings are sparked by emotions, it may
work other the way around, i.e. feelings may spark emotions too. For example, just
thinking about a rude service employee can trigger an emotional response of anger.
From a consumption perspective, the main motivation behind purchasing and
consumption is the satisfaction of needs to reduce tension and reach homeostasis, a
state of physiological and psychological equilibrium. Service failures delay gratica-
tion and increase tensions people may have. For this reason, while customers engage in
Emotions and Emotional
Abilities in Service Failures
and Recovery
Erdogan Koc, gulnil aydin, aybEniz aKdEniz ar
and HaKan boz
4
Emotions and Emotional Abilities in Service Failures and Recovery 53
Questions
1. What are the basic emotions people have? How do these emotions relate to service encoun-
ters, service failures and recovery?
2. How can emotions be measured?
3. What is emotional intelligence or emotional quotient? How does it differ from IQ?
4. What are the components of emotional intelligence? How do they relate to service encoun-
ters, service failures and recovery?
5. What is emotional labour? What is the difference between surface acting and deep acting?
6. Why is it important to recruit staff with emotional intelligence and emotional labour in tourism
and hospitality businesses?
Further Reading
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Need to Know to Put Your EQ to Work. Fireside, New York.
Goleman, D. (2006) Emotional Intelligence. Bantam, New York.
Hochschild, A. (1983) The Managed Heart. University of California Press, Berkeley, California.
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56 © CAB International 2017. Service Failures and Recovery in Tourism and Hospitality:
A Practical Manual (ed. E. Koc)
Learning Objectives
After reading this chapter, you should be able to:
● Understand the memorable nature of service failure.
● Understand the inuence of memory on consumer behaviour.
● Identify factors contributing to memorability of service failure.
● Understand the importance of provision of service recovery.
● Understand memory bias: fading affect bias.
5.1 Introduction
Service failures in the hospitality and tourism industry often occur because of the incon-
sistent nature of the service products, coupled with the inevitability of human errors
(Kim and Jang, 2016; Kim, 2016). Researchers have noted that service failures lead to
undesirable future consumer behaviour. For example, Kim and Chen (2010) found that
dissatised customers who experienced service failures would engage in any one or a
combination of the following actions: exit (i.e. never return), complaints and negative
word-of-mouth. While the service failure literature covers diverse issues, such as con-
sumer satisfaction (Sparks and Browning, 2010; Iglesias, 2009), complaint behaviours
(Bodey and Grace, 2006; Ekiz and Au, 2011; Namkung etal., 2011) and service recov-
eries (Kim etal., 2009; Matos etal., 2011; Kwon and Jang, 2012; Fu etal., 2015), few
studies have discussed the mechanism through which negative service experiences affect
future behaviour. Therefore, this chapter aims to discuss the memorable nature of ser-
vice failures that mediates consumer behaviour, with a focus on the working mechan-
isms of the human brain.
5.2 Memorable Nature of Service Failure
Researchers in the eld of memory have noted that individuals are likely to remember
emotional information vividly (Kensinger etal., 2007). They have found that emo-
tional events are more often associated with eld memories in which the individual
Memorable Service
Experiences: A Service Failure
and Recovery Perspective
Jong-Hyeong Kim
5
Memorable Service Experiences: A Service Failure and Recovery Perspective 65
Questions
1. Why is service failure observed more frequently by firms in the service industry than by firms
in other industries?
2. What are some of the well-known consequences of service failure in service firms?
3. Think about an actual example of a service failure you experienced in a restaurant. Based
on the magnitude of eight different losses suggested by Krishna etal. (2011), what was the im-
pact of the service failure on your subsequent behaviour?
4. Why do individuals rely on their previous experiences during choice-processing and decision-
making about future consumer behaviours, as presented in this chapter?
5. Do you agree with the statement ‘Traumatic events are remembered in more detail, involve
more emotional content and are recollected more often than other emotional life experiences?’
Please support your answer with a discussion based on your own experiences.
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Kim, J.H. (2016) Memorable tourism experiences: conceptual foundations and managerial im-
plications for program design, delivery, and performance measurement. In: Sotiriadis, M.
and Gursoy, D. (eds) The Handbook of Managing and Marketing Tourism Experiences.
Emerald Group, Bingley, UK, pp. 431–450.
Kim, J.H. and Jang, S.C. (2016) Factors affecting memorability of service failures: a longitudinal
analysis. International Journal of Contemporary Hospitality Management 28, 1676–1701.
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70 © CAB International 2017. Service Failures and Recovery in Tourism and Hospitality:
A Practical Manual (ed. E. Koc)
Learning Objectives
After reading this chapter, you should be able to:
● Understand the underlying reasons why people make causal attributions.
● Understand the basic tenets of attribution theory.
● Understand the causal dimensions of customer attribution.
● Understand the inuence of customer participation on customer service failure
perceptions and attribution.
● Identify the factors inuencing customer attribution.
● Discuss the outcomes of service failure and customer attribution.
6.1 Introduction
Clara and Mark were planning a dinner for their anniversary on Saturday. One of their
close friends recommended a steakhouse in town. It had received many commendations on
TripAdvisor.
On Saturday evening, Clara and Mark were impressed by the spectacular design and the
serene ambience of the restaurant. They were greeted by a friendly host and were seated in
an aesthetically pleasing part of the restaurant that allowed them to enjoy the décor.
When placing their orders, the service staff informed them that several of the items on the
menu were not available. As it was their rst visit, Clara and Mark asked the service staff
to make a recommendation. When the food was served, it did not taste good. Furthermore,
they found some of the items rather expensive.
If you were Clara or Mark, how would you have responded to the situation? Would
you keep quiet, complain to the manager or decide not to patronize the restaurant
again? If you were Clara or Mark, would you blame the staff for making a dishonest
recommendation, or the chef for not cooking the food well or the manager for not
holding enough stock? Or would you think you were responsible for listening to your
friend’s or the staff’s recommendation? Or would you attribute the entire unpleasant
incident to bad luck? Would it have been different if it had not been an anniversary
dinner or if you had been to the restaurant several times before?
Customer Attribution in Service
Failures and Recovery
Poh Theng (BeaTrice) Loo and huey chern Boo
6
80 P.T. Loo and H.C. Boo
Koc, E., Ulukoy, M., Kilic, R., Yumusak, S. and Bahar, R. (2017) The influence of customer par-
ticipation on service failure perceptions. Total Quality Management & Business Excellence
28, 390–404.
McQuilken, L. and Robertson, N. (2013) Who chose this restaurant anyway? The effect of re-
sponsibility for choice, guarantees, and failure stability on customer complaining. Journal
of Hospitality & Tourism Research 37, 537–562.
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© CAB International 2017. Service Failures and Recovery in Tourism and Hospitality: 83
A Practical Manual (ed. E. Koc)
Learning Objectives
After reading this chapter, you should be able to:
● Understand and explain the role played by technology in tourism and hospitality.
● Explain hotel technology adoption.
● Explain how technology enables both employees and customers to enhance satis-
faction in service encounters.
● Explain customer relationships in terms of brand image, online reviews, informa-
tion search and (dis)satisfaction in social media and technology.
● Understand how tourism and hospitality businesses can manage service recovery in
social media.
● Understand the inuence of technology on service personnel.
● Understand the newly emerging issues in technology.
7.1 Introduction
The proliferation and spread of a variety of rapidly advancing technologies is dramat-
ically altering the essence of service encounters and affecting all aspects of service pro-
vision and consumption. Hospitality service experiences occur between the rm and the
target customer segments (external marketing), the rm and frontline employees (in-
ternal marketing) and the frontline employees and target market segments (interactional
marketing) (Baker and Magnini, 2016). While traditional service encounters have been
facilitated by interpersonal contact based on the dyadic relationship between employees
and customers, the changing landscape of service encounters is based on the dynamic
relationship between employees, customers and technology (Parasuraman, 1996; Bitner
etal., 2000), as shown in Fig. 7.1.
Technology is one of the three most important research priorities in service re-
search (Ostrom etal., 2015). Increasingly, service rms are establishing more efcient
and customer-focused technologies (e.g. smartphones, tablets, wearable devices, virtual
reality and cloud computing) through multiple modes (personal/face-to-face, self-service,
automated and social media) (Fellah, 2014; Rauch, 2014; Ostrom etal., 2015). For
instance, Accor, a leading global hotel group with a portfolio of 20 hospitality brands
Technology, Customer
Satisfaction and Service
Excellence
Minwoo Lee and MeLissa a. Baker
7
96 M. Lee and M.A. Baker
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100 © CAB International 2017. Service Failures and Recovery in Tourism and Hospitality:
A Practical Manual (ed. E. Koc)
Learning Objectives
After reading this chapter, you should be able to:
● Understand self-service technologies in tourism (denition and classications).
● Understand the benets/drawbacks of self-service technologies.
● Explain self-service technology failures (denition and types).
● Understand self-service technology recovery strategies.
● Understand customer participation in self-service technology recovery.
● Evaluate the effectiveness of self-service technology recovery activities.
8.1 Introduction
The technological revolution has facilitated increased implementation of various
technological interfaces by the tourism sector, thus enabling customers to deliver ser-
vices independent of direct employee involvement (Meuter et al., 2000; Oh et al., 2013).
This self-service technology usage requires the active involvement of the customer in
the delivery of the core service offering, which may have both positive and negative im-
plications for their experience (Hilton et al., 2013). Self-service technology usage may
empower customers by providing them with more control over the service they obtain,
but it may also force them into unwanted ‘work’ and responsibilities (Kelly et al., 2017).
The leveraged role of tourism customers as producers of the service poses questions
regarding the readiness of customers to undertake their active role as ‘quasi-employees’
and deliver positive tourism experiences (Lawlor, 2010). With the ever-increasing
amount of technology being utilized in the tourism sector, it is essential that research
does not recognize technology only as enhancing the tourism experience, but also explores
how it may possibly destroy this experience and lead to service failures (Neuhofer, 2016).
With the increasing importance placed on technology in the tourism experience (e.g.
Gretzel and Jamal, 2009; Neuhofer et al., 2013) and the critical inuence of self-service
technology failures on customer satisfaction (Meuter et al., 2000), the effective recovery
from self-service technology failures becomes necessary to ensure that customers receive
superior tourism experiences. Therefore, the focus of this chapter is the customer per-
spective on the impact of self-service technology failure and recovery on their service
experiences in the tourism sector. The chapter begins with a review of denitions and
Self-Service Technologies:
Service Failures and Recovery
Petranka kelly, Jennifer lawlor and Michael
Mulvey
8
118 P. Kelly et al.
Further Reading
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Dabholkar, P. and Spaid, B. (2012) Service failure and recovery in using technology-based
self-service: effects on user attributions and satisfaction. The Service Industries Journal
32, 1415–1432.
Kelly, P., Lawlor, J. and Mulvey, M. (2017) Customer roles in self-service technology encounters
in a tourism context. Journal of Travel & Tourism Marketing 34, 222–238.
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122 © CAB International 2017. Service Failures and Recovery in Tourism and Hospitality:
A Practical Manual (ed. E. Koc)
Learning Objectives
After reading this chapter, you should be able to:
● Understand the inuence of other customers in service encounters in tourism and
hospitality.
● Explain the main components of social servicescape.
● Understand the consequences of service failures caused by other customers.
● Explain the components of emotional intelligence in relation to service.
● Explain how service failures caused by other customers could be recovered.
9.1 Introduction
Social inuence plays an important role in the consumption process (Bearden and Etzel,
1982). This is especially true in the hospitality industry, which often involves sharing
the physical environment with others, such as fellow customers. As many services are
performed in the presence of other customers, customers naturally affect each other
during the service experience, both directly and indirectly. Martin (1996) suggests that
customers affect one another in the service context directly through interpersonal en-
counters or indirectly by being part of the environment. Often, the presence and behav-
iours of other customers have a stronger impact on inuencing an individual’s perception
of service quality than the contact with service personnel (Lehtinen and Lehtinen,
1991). Consequently, the other customers’ behaviour creates a part of the atmosphere
that becomes an environmental stimulus. Tombs and McColl-Kennedy (2003) suggest
that other customers inuence the focal customer’s affective and cognitive responses by
being a part of the service experience environment. As such, other customers can either
directly or indirectly affect one’s service experience.
Due to the inseparability and heterogeneity of service, service failures are unavoid-
able in service encounters (Maxham and Netemeyer, 2002). Since most hospitality en-
vironments represent shared territory and space for customers, service failure that
originates from the misbehaviour of other customers is also inevitable in hospitality
and tourism contexts (Huang and Wang, 2014). Many people may have encountered
children screaming in a restaurant or a customer in the hotel room next door being
The Inuence of Other
Customers in Service Failure
and Recovery
Kawon Kim and melissa a. BaKer
9
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Huang, W.H. (2008) The impact of other-customer failure on service satisfaction. International
Journal of Service Industry Management 19, 521–536.
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© CAB International 2017. Service Failures and Recovery in Tourism and Hospitality: 135
A Practical Manual (ed. E. Koc)
Learning Objectives
After reading this chapter, you should be able to:
● Understand the role and potential of group consumption in tourism and hospitality.
● Explain the group service interaction process.
● Understand the contexts in which group service failures take place.
● Understand and explain the concept of emotional contagion and its inuence on
service failures and recovery processes.
10.1 Introduction
Service is a concept based on a complex and subjective evaluation (Gronroos, 1988, p.10).
Until the 1980s, advances in goods and commodity marketing were not capable of solving
the problems in service marketing, which caused marketers to emphasize services (Mucuk,
1999, p. 322). Marketers have come to attach great importance to customers’ perceptions,
attitudes and behaviours regarding service experience as well as customer satisfaction and
loyalty (Yüksel and Yüksel, 2003, p. 53). Characteristics that distinguish services from
goods (intangibility, non-standardization, inseparability of production and consumption,
and perishability) have obliged businesses to consider different dimensions of service in
their strategies (Parasuraman et al., 1985, p. 42; Kotler et al., 2010, p. 35). Co-consumption
and service interaction are at the forefront when the characteristics of service are con-
sidered, and most particularly the inseparability of production and consumption. The
relationships between buyers and sellers, or businesses and customers, are essential to
achieve desirable results from service marketing efforts (Solomon et al., 1985, p. 99; Suss-
kind, 2004, p. 22). Customers carry out an evaluation process about a business and its
services throughout the whole consumption period (before, during and after), considering
interactions with employees and businesses (Shamdasani and Balakrishnan, 2000, p. 399).
In the tourism and hospitality industry, one of the biggest service industries, service
interaction is crucial (Koc and Boz, 2014, p. 144). This interaction occurs mostly with
group customers, as customers engage with restaurants, hotel accommodation, tours,
etc. mainly with their families, friends and co-workers (Huang et al., 2014, p. 181). For
example, studies reveal that children between the ages of 13 and 21 inuence more than
Emotional Contagion and the
Inuence of Groups on Service
Failures and Recovery
A. Celil CAkiCi And OzAn Guler
10
Emotional Contagion and the Influence of Groups on Service Failures and Recovery 155
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Ok, C., Back, K.J. and Shanklin, C.W. (2006) Service recovery paradox: implications from an
experimental study in a restaurant setting. Journal of Hospitality & Leisure Marketing 14,
17–33.
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160 © CAB International 2017. Service Failures and Recovery in Tourism and Hospitality:
A Practical Manual (ed. E. Koc)
Learning Objectives
After reading this chapter, you should be able to:
● Dene staff training, service failure and service recovery.
● Explain the importance of staff training in service failure and recovery.
● Offer training recommendations to overcome service failure and manage the service
recovery.
11.1 Introduction
As previously explained, tourism and hospitality bear all the general service character-
istics of intangibility, heterogeneity, inseparability and perishability (McLaughlin,
1996). As the tourism and hospitality industry is labour intensive, employees may be
considered the most important resource of a tourism and hospitality business. Em-
ployees can help establish a competitive advantage and strongly inuence the success of
the business. As staff training improves the knowledge, skills and abilities of personnel
(Cannon, 2008), training of employees can make a signicant contribution to the sus-
tainability and success of the business (Hayes and Ninemeier, 2009). Hence, staff train-
ing can be considered a strategic tool for tourism and hospitality businesses.
When training service employees, special attention should be paid to developing
self-condence in service employees. When service employees have self-condence, they
can make efcient, effective and timely decisions to deliver high-quality services (Ro
and Chen, 2011). Service training not only improves frontline employees’ ability to
cope with various issues, but also develops employees’ knowledge, ability and skills
that are instrumental in meeting and surpassing customers’ overall demands (Bamford
and Xystouri, 2005).
11.2 Importance of Trained Staff for Efficient Service Recovery
Service failures occur during service encounters in which employee performance does
not meet customer expectations (Hoffman and Bateson, 1997). Hence, service failures
pose a major challenge for service businesses (Berry and Parasuraman, 1992). Irritated
customers can be transformed into loyal customers by effective service recoveries. Busi-
nesses must not rely on incidental service recovery by one individual and should ensure
Staff Training for Service
Failures and Recovery
IsIl ArIkAn sAltIk, UgUr CAlIskAn And UmUt AvCI
11
Staff Training for Service Failures and Recovery 177
Questions
1. How do we define service failure and recovery?
2. Why is training important for service recovery?
3. What are the main reasons for service failures?
4. What is the relationship between staff training and service recovery success?
5. How can the service recovery process be managed?
Further Reading
Bell, C. and Ridge, K. (1992) Service recovery for trainers. Training and Development 46, 58–62.
Cannon, D. (2008) Contributing to employee development through training and education. In:
Tesone, D.V. (ed.) Handbook of Hospitality Human Resources Management. Routledge,
New York, pp. 373–390.
Hart, C.W.L., Heskett, J.L. and Sasser, W.E.J. (1990) The profitable art of service recovery.
Harvard Business Review 68, 148–156.
Hayes, D.K. and Ninemeier, J.D. (2009) Human Resources Management in the Hospitality
Industry. John Wiley & Sons, Hoboken, New Jersey.
Jong, A.D. and de Ruyter, K. (2004) Adaptive versus proactive behaviour in service recovery:
the role of self-managing teams. Decision Sciences 35, 457–491.
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Cannon, D. (2008) Contributing to employee development through training and education. In:
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Hayes, D.K. and Ninemeier, J.D. (2009) Human Resources Management in the Hospitality
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© CAB International 2017. Service Failures and Recovery in Tourism and Hospitality: 181
A Practical Manual (ed. E. Koc)
Learning Objectives
After reading this chapter, you should be able to:
● Understand and explain the importance of empowerment in relation to service
recovery.
● Understand the concept and types of internal communication.
● Explain the relationship between integrated internal communications and service
recovery.
● Understand the role of waiting time in service failures and recovery processes.
12.1 Introduction
Employee empowerment, communication and speed are of vital importance to minimize
the frequency of service failures and increase the ability to respond to them efciently
(Boshoff, 1999; Davidow, 2000). The authority of the employee, allowing autonomy,
coupled with employee empowerment training and open communication, have a signi-
cant inuence on the efciency and effectiveness of service recovery (Boshoff and Allen,
2000; Liao, 2007; Swanson and Hsu, 2011). Another important factor is internal com-
munication. Internal communication enables employees to be more service-focused, es-
pecially when provided with relevant training (Melton and Hartline, 2010). Thus, service
failures decrease and employees can effectively convey customer feedback to relevant
departments (Michel etal., 2009). Moreover, Gong etal. (2014) emphasize that per-
sonnel empowerment and communication with managers (internal communication) are
important factors in the service recovery process. Another important point is waiting
time (Butcher and Heffernan, 2006), which may be perceived as part of service failure
and may require service recovery and speed for service improvements (Conlon and
Murray, 1996; Wirtz and Mattila, 2004; Valenzuela and Cooskey, 2012). Inability to
provide specied support to employees (in terms of empowerment and internal commu-
nication) and service to customers (in terms of waiting time and speed) may have a nega-
tive impact on businesses. While negative results may increase work stress and burnout
The Role of Empowerment,
Internal Communication,
Waiting Time and Speed
in Service Recovery
Ali DAlgic, DeryA Toksöz AnD kemAl BirDir
12
The Role of Empowerment, Internal Communication, Waiting Time and Speed in Service Recovery 193
Questions
1. Why is employee empowerment important in service recovery?
2. Why is the speed of service recovery important? What are the consequences if service
recovery is late?
3. Explain Maister’s theory in terms of waiting time.
4. What is internal communication and the relationship between internal communication and
service recovery?
5. Explain Hocutt and Stone’s model in terms of service recovery.
6. What kinds of practices can be made to reduce the waiting time and the perceived waiting
time in a service business?
Further Reading
Carson, P.P., Carson, K.D., Eden, W. and Roe, C.W. (1998) Does empowerment translate into
action? An examination of service recovery initiatives. Journal of Quality Management 3,
133–148.
Hocutt, M.A. and Stone, T.H. (1998) The impact of employee empowerment on the quality of a
service recovery effort. Journal of Quality Management 3, 117–132.
Melton, H.L. and Hartline, M.D. (2010) Customer and frontline employee influence on new
service development performance. Journal of Service Research 13, 411–425.
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© CAB International 2017. Service Failures and Recovery in Tourism and Hospitality: 197
A Practical Manual (ed. E. Koc)
Learning Objectives
After reading this chapter, you should be able to:
● Understand the implications of inseparability from the perspective of social exchange
and interaction.
● Understand the importance of social interactions and exchange from the perspective
of service encounters.
● Explain the inuence of culture on service encounters, service failures and recovery.
● Explain the main dimensions of culture and their inuence on service encounters,
service failures and recovery.
● Understand the role of intercultural sensitivity on service encounters, service failures
and recovery.
13.1 Introduction: Social Interaction and Exchange in Services
The inseparability of services implies that the production and consumption of services
take place at the same time, i.e. with the participation of both customers and service
personnel. Although certain preparations can be made beforehand, in most service situ-
ations the customers and service providers need to engage in an interaction or exchange
for the service performance to take place. Hence, these service encounters can be viewed
as social interactions and exchanges (Barker and Härtel, 2004; Scott et al., 2008;
Gruber etal., 2009; Koc, 2010; Koc and Bozkurt, 2017).
As mentioned in Chapter 1 (this volume), tourism and hospitality services often
require constant and intense interactions between customers and service personnel, so
they are usually referred to as people businesses (Kim etal., 2007; Dolnicar etal., 2011;
Koc, 2013). The quality of these social interactions is extremely important because cus-
tomers usually base their service quality evaluations on these interactions and ex-
changes alone (Koc, 2006; Prayag and Ryan, 2012; Rauch etal., 2015) and make their
various decisions based on these evaluations, such as whether to continue with the same
service provider or not. According to research, customers’ perceptions of service inter-
actions signicantly inuence their satisfaction and service quality evaluations (Kim
et al., 2010). Moreover, depending on the quality of social interactions, service per-
sonnel in tourism and hospitality establishments can be used as a signicant marketing
communications tool (Koc, 2003).
Cross-Cultural Aspects of
Service Failures and Recovery
Erdogan Koc
13
Cross-Cultural Aspects of Service Failures and Recovery 209
Sharma, P., Tam, J.L. and Kim, N. (2015) Service role and outcome as moderators in intercul-
tural service encounters. Journal of Service Management 26, 137–155.
Sizoo, S. (2008) Analysis of employee performance during cross-cultural service encounters at
luxury hotels in Hawaii, London and Florida. Asia Pacific Journal of Tourism Research 13,
113–128.
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214 © CAB International 2017. Service Failures and Recovery in Tourism and Hospitality:
A Practical Manual (ed. E. Koc)
Learning Objectives
After reading this chapter, you should be able to:
● Understand the role of lms as marketing communications tools in developing
images about a tourist destination.
● Explain the concept of disappointment as an emotion.
● Understand the communications gap occurring as a result of lm-induced tourism.
● Understand how consumers respond to service failures and express their
dis appointment.
14.1 Introduction
When sons of the aristocracy, on returning from the Grand Tour, unwrapped the
canvases purchased as souvenirs of Venice, Canaletto’s fascinating views of the city of
lagoons amazed the public. The landscape artist majestically used two-point linear per-
spectives to create the illusion of space. His highly rened detailing of the Venetian
architecture aimed to recreate the city’s unique milieu. In the 18th century, the Italian
painter engaged his public in a virtual journey, nurturing their desire to visit Venice per-
sonally. Canaletto, long before the era of tourism, managed to turn the attention of the
world to his city. Two centuries later, lm, a new visual technology, has contributed to
Venice’s international fame. As Fernand Braudel asserts in his volume on Venice, ‘lms,
more than literature, are the best introduction to the city’ (2013, p. 34). Venice’s popu-
larity as a tourism destination has increased by hundreds of thousands of tourists over
the last decade. Since the era of on-location lming (for example, Othello, released in
1951), Venice has also become a popular location for lms, such as Death in Venice
(1971) by Luchino Visconti, Indiana Jones and the Last Crusade (1989), The Merchant
of Venice (2004), Casino Royale (2006) and The Tourist (2010), starring Johnny Depp
and Angelina Jolie.
In addition, since 1932 the Italian city has hosted one of the world’s most presti-
gious lm festivals. Each year, La Biennale creates a symbiosis between the lm industry
and tourism, conveying the festival’s appeal to attract thousands of tourists and lm
Disappointment in Tourism
andHospitality: the Inuence
of Films on Destinations
AnnA IrImIás, Gábor mIchAlkó, DAllen J. TImoThy
AnD mArIAnGelA FrAnch
14
226 A. Irimiás etal.
Further Reading
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Hudson, S. and Ritchie, J.R.B. (2006) Film tourism and destination marketing: the case of Cap-
tain Corelli’s Mandolin. Journal of Vacation Marketing 12, 256–268.
Michalkó, G., Irimiás, A. and Timothy, D. (2015) Disappointment in tourism: perspectives on
tourism destination management. Tourism Management Perspectives 16, 85–91.
Tooke, N. and Baker, D. (1996) Seeing is believing: the effect of film on visitor numbers to
screened locations. Tourism Management 17, 87–94.
Volo, S. and Irimiás, A. (2016) Film tourism and post release marketing initiatives: a longitudinal
case study. Journal of Travel and Tourism Marketing 33, 1071–1087.
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