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Psychological reports · Dec 2006
Randomized Controlled TrialAn experimental investigation of justice-based service recovery on customer satisfaction, loyalty, and word-of-mouth intentions.
- Terri Shapiro, Jennifer M Nieman-Gonder, Nicole A Andreoli, and Darlene Trimarco-Beta.
- Industrial and Organizational Psychology, 135 Hofstra University, Hempstead, NY 11549-1350, USA. terri.shapiro@hofstra.edu
- Psychol Rep. 2006 Dec 1; 99 (3): 864-78.
AbstractService recovery is related to many important organizational outcomes such as customer satisfaction, loyalty, and profitability. Within the theoretical framework of organizational justice, an experiment using a simulated "live" service failure was used to assess the effects of justice-based service-recovery strategies on customer satisfaction, loyalty, positive word-of-mouth intentions, and negative word-of-mouth intentions. Analysis indicated that strategies including interactional justice, distributive justice, and a combination of these were equally effective in maintaining customer satisfaction, loyalty, and positive word of mouth, and minimizing negative word of mouth after a service failure. No support for the service recovery paradox, that is, increased satisfaction following service failure and recovery compared to never having a problem, was found. Satisfaction and loyalty for those in the failure conditions were equal to, although not higher than, in the no-failure control condition. Practical implications for organizational practices are discussed.
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