The effects of service failures and recovery on customer loyalty in e-services: An empirical investigation
Autor(a) principal: | |
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Data de Publicação: | 2009 |
Outros Autores: | |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/5307 |
Resumo: | Purpose – Despite having been widely studied in traditional (bricks-and-mortar) services, the effect of service failures and recovery (SFR) on customer loyalty has received only limited attention in the context of e-services. This paper sets out to empirically test the following set of hypotheses in an e-service setting: H1, service failures have a negative effect on customer loyalty intentions; H2, failure resolution has a positive effect on customer loyalty intentions; H3, satisfaction with the recovery has a positive effect on customer loyalty intentions; H4, outstanding recovery results in loyalty intentions which are more favorable than they would be had no failure occurred (service recovery paradox). Design/methodology/approach – The paper is based on an online survey of actual customers of a commercial e-banking service. Findings – H1-H3 are supported, suggesting that: the detrimental effects of failures are also present online; problem resolution leads to increased loyalty; despite the challenging nature of online failures and the reduced degree of human interaction, it is possible to achieve effective recovery in e-services. H4 is also supported. We observes a recovery paradox effect but it only take place for a small proportion of “delighted” customers, i.e. those who perceived an outstanding recovery. Although unlikely, the impact (size effect) of outstanding recovery on loyalty is substantial. Research limitations/implications – Future research should examine other types of e-services. Practical implications – E-service delivery systems should be designed with a strong failure-prevention mindset and include effective service recovery mechanisms. However, in general, e-service providers should not look at superior recovery as a substitute for error-free service. Despite not being a viable strategy in general, delighting customers in the recovery may make sense for the most profitable customers. Originality/value – The paper provides empirical evidence of the effects of SFRin the context of online service, an area which has received limited attention to date. Unlike other research, this paper draws on data from customers of an actual e-service and therefore benefits from increased external validity |
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The effects of service failures and recovery on customer loyalty in e-services: An empirical investigationElectronic commerceCustomer services qualityService failuresCustomer loyaltyBankingPortugalPurpose – Despite having been widely studied in traditional (bricks-and-mortar) services, the effect of service failures and recovery (SFR) on customer loyalty has received only limited attention in the context of e-services. This paper sets out to empirically test the following set of hypotheses in an e-service setting: H1, service failures have a negative effect on customer loyalty intentions; H2, failure resolution has a positive effect on customer loyalty intentions; H3, satisfaction with the recovery has a positive effect on customer loyalty intentions; H4, outstanding recovery results in loyalty intentions which are more favorable than they would be had no failure occurred (service recovery paradox). Design/methodology/approach – The paper is based on an online survey of actual customers of a commercial e-banking service. Findings – H1-H3 are supported, suggesting that: the detrimental effects of failures are also present online; problem resolution leads to increased loyalty; despite the challenging nature of online failures and the reduced degree of human interaction, it is possible to achieve effective recovery in e-services. H4 is also supported. We observes a recovery paradox effect but it only take place for a small proportion of “delighted” customers, i.e. those who perceived an outstanding recovery. Although unlikely, the impact (size effect) of outstanding recovery on loyalty is substantial. Research limitations/implications – Future research should examine other types of e-services. Practical implications – E-service delivery systems should be designed with a strong failure-prevention mindset and include effective service recovery mechanisms. However, in general, e-service providers should not look at superior recovery as a substitute for error-free service. Despite not being a viable strategy in general, delighting customers in the recovery may make sense for the most profitable customers. Originality/value – The paper provides empirical evidence of the effects of SFRin the context of online service, an area which has received limited attention to date. Unlike other research, this paper draws on data from customers of an actual e-service and therefore benefits from increased external validityVeritati - Repositório Institucional da Universidade Católica PortuguesaSousa, RuiVoss, Christopher A.2011-09-08T13:28:46Z20092009-01-01T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articleapplication/pdfhttp://hdl.handle.net/10400.14/5307engSOUSA, Rui; VOSS, Christopher A. - The effects of service failures and recovery on customer loyalty in e-services: An empirical investigation. International Journal of Operations & Production Management. ISSN: 0144-3577. Vol. 29, n.º 8 (2009), p. 834 - 86410.1108/01443570910977715info:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-12T17:10:05Zoai:repositorio.ucp.pt:10400.14/5307Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:05:31.345946Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
The effects of service failures and recovery on customer loyalty in e-services: An empirical investigation |
title |
The effects of service failures and recovery on customer loyalty in e-services: An empirical investigation |
spellingShingle |
The effects of service failures and recovery on customer loyalty in e-services: An empirical investigation Sousa, Rui Electronic commerce Customer services quality Service failures Customer loyalty Banking Portugal |
title_short |
The effects of service failures and recovery on customer loyalty in e-services: An empirical investigation |
title_full |
The effects of service failures and recovery on customer loyalty in e-services: An empirical investigation |
title_fullStr |
The effects of service failures and recovery on customer loyalty in e-services: An empirical investigation |
title_full_unstemmed |
The effects of service failures and recovery on customer loyalty in e-services: An empirical investigation |
title_sort |
The effects of service failures and recovery on customer loyalty in e-services: An empirical investigation |
author |
Sousa, Rui |
author_facet |
Sousa, Rui Voss, Christopher A. |
author_role |
author |
author2 |
Voss, Christopher A. |
author2_role |
author |
dc.contributor.none.fl_str_mv |
Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Sousa, Rui Voss, Christopher A. |
dc.subject.por.fl_str_mv |
Electronic commerce Customer services quality Service failures Customer loyalty Banking Portugal |
topic |
Electronic commerce Customer services quality Service failures Customer loyalty Banking Portugal |
description |
Purpose – Despite having been widely studied in traditional (bricks-and-mortar) services, the effect of service failures and recovery (SFR) on customer loyalty has received only limited attention in the context of e-services. This paper sets out to empirically test the following set of hypotheses in an e-service setting: H1, service failures have a negative effect on customer loyalty intentions; H2, failure resolution has a positive effect on customer loyalty intentions; H3, satisfaction with the recovery has a positive effect on customer loyalty intentions; H4, outstanding recovery results in loyalty intentions which are more favorable than they would be had no failure occurred (service recovery paradox). Design/methodology/approach – The paper is based on an online survey of actual customers of a commercial e-banking service. Findings – H1-H3 are supported, suggesting that: the detrimental effects of failures are also present online; problem resolution leads to increased loyalty; despite the challenging nature of online failures and the reduced degree of human interaction, it is possible to achieve effective recovery in e-services. H4 is also supported. We observes a recovery paradox effect but it only take place for a small proportion of “delighted” customers, i.e. those who perceived an outstanding recovery. Although unlikely, the impact (size effect) of outstanding recovery on loyalty is substantial. Research limitations/implications – Future research should examine other types of e-services. Practical implications – E-service delivery systems should be designed with a strong failure-prevention mindset and include effective service recovery mechanisms. However, in general, e-service providers should not look at superior recovery as a substitute for error-free service. Despite not being a viable strategy in general, delighting customers in the recovery may make sense for the most profitable customers. Originality/value – The paper provides empirical evidence of the effects of SFRin the context of online service, an area which has received limited attention to date. Unlike other research, this paper draws on data from customers of an actual e-service and therefore benefits from increased external validity |
publishDate |
2009 |
dc.date.none.fl_str_mv |
2009 2009-01-01T00:00:00Z 2011-09-08T13:28:46Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/article |
format |
article |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/5307 |
url |
http://hdl.handle.net/10400.14/5307 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.relation.none.fl_str_mv |
SOUSA, Rui; VOSS, Christopher A. - The effects of service failures and recovery on customer loyalty in e-services: An empirical investigation. International Journal of Operations & Production Management. ISSN: 0144-3577. Vol. 29, n.º 8 (2009), p. 834 - 864 10.1108/01443570910977715 |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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