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Where service recov...
Where service recovery meets its paradox : Implications for avoiding overcompensation
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Edström, Andreas (författare)
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Nylander, Beatrice (författare)
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- Molin, Jonas, 1972- (författare)
- Högskolan i Gävle,Företagsekonomi
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visa fler...
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- Ahmadi, Zahra, 1966- (författare)
- Högskolan i Gävle,Företagsekonomi
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- Sörqvist, Patrik, Professor (författare)
- Högskolan i Gävle,Avdelningen för ekonomi
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visa färre...
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(creator_code:org_t)
- Emerald, 2022
- 2022
- Engelska.
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Ingår i: Journal of service theory and practice. - : Emerald. - 2055-6225 .- 2055-6233. ; 32:7, s. 1-13
- Relaterad länk:
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https://doi.org/10.1...
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visa fler...
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https://hig.diva-por... (primary) (Raw object)
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https://urn.kb.se/re...
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https://doi.org/10.1...
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Abstract
Ämnesord
Stäng
- PurposeThe service recovery paradox (SRP) is the phenomenon that happens when customer satisfaction level post-service failure and recovery surpasses the customer satisfaction level achieved at error-free service. The aim of this study was to identify how large the size of compensation has to be at recovery for customer satisfaction to surpass that of error-free service (i.e. to identify a threshold value for SRP). The purpose of this is to inform managers how to restore customer satisfaction yet avoid overcompensation.Design/methodology/approachThe paper covers two studies. Study 1 used the novel approach of asking participants who had experienced a service failure in the hotel industry what amount of money (recovery) would make them more satisfied than in the case of error-free service. Study 2 then tested the compensation levels expressed by Study 1 participants to be sufficient for the service recovery paradox to occur.FindingsStudy 1 indicated that the threshold for the SRP was (on average) around 1,204 SEK, or just over 80% of the original room reservation price of 1,500 SEK (approx. $180). Study 2 found that (on average) the customer satisfaction of participants who received 1,204 SEK in compensation for service failure marked the point where it surpassed that of error-free service. Participants who received 633 SEK were less satisfied; participants who received 1,774 SEK were more satisfied.Research limitations/implicationsThe findings are context-specific. Future research should test the findings' generalizability.Practical implicationsThe approach used in this paper could provide managers with a tool to guide their service recovery efforts. The findings could help hotel managers to make strategic decisions to restore customer satisfaction yet avoid overcompensation, given a legitimate service failure in which the organization is at fault.Originality/valueNumerous previous studies have investigated the occurrence or absence of the SRP at predetermined compensation levels. This paper used a novel approach to find a quantitative threshold at which the magnitude of the recovery effort makes customer satisfaction surpass that of error-free service
Ämnesord
- SAMHÄLLSVETENSKAP -- Ekonomi och näringsliv -- Företagsekonomi (hsv//swe)
- SOCIAL SCIENCES -- Economics and Business -- Business Administration (hsv//eng)
Nyckelord
- Service recovery paradox
- Compensation
- Hotel industry
- Customer satisfaction
- Intelligent industri
- Intelligent Industry
Publikations- och innehållstyp
- ref (ämneskategori)
- art (ämneskategori)
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