The effect of choice and perceived control on customer satisfaction: The psychology of service recovery
Abstract
Service failure and recovery have started to draw marketing academic and practitioners' attention, as service failures are among the major causes of customer switching behavior. Well-executed service recovery following a service failure can make customers more satisfied than they would have been had the failure not occurred in the first place. The present study strives to explore a possible way for service providers to effectively recover from service failures. Accordingly, utilizing a quasi-experiment, the current investigation examined the following issues: (1) the effect on perceived control of providing customers different service recovery alternatives from which they can choose; (2) the impact of perceived control on customers' service recovery satisfaction; (3) the influence of service importance on the foregoing relationship; and (4) the association between service recovery satisfaction and satisfaction with the entire service encounter. The findings revealed that providing customers the opportunity to choose from alternative service recovery options increases their sense of control. In addition, perceived control was found to be positively associated with a higher degree of customer satisfaction with service recovery efforts. This study, however, failed to support the expected moderating role of service importance on the relationship between perceived control and customer satisfaction with service recovery efforts. The effect of perceived control on customer satisfaction did not vary regardless of service importance. Finally, results indicated that customer satisfaction with service recovery efforts was positively related to their satisfaction with the entire service experience (i.e., service encounter). Based on the findings of this study, the current work offers theoretical advancements to the services literature. Additionally, several managerial and future research implications can be derived. These issues, therefore, are also addressed.
Degree
Ph.D.
Advisors
Dubinsky, Purdue University.
Subject Area
Marketing
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