Open AccessThe effects of service failures and recovery on customer loyalty in e‐services
Author(s) -
Rui Sousa,
Chris Voss
Publication year - 2009
Publication title -
international journal of operations and production management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.158
H-Index - 138
eISSN - 1758-6593
pISSN - 0144-3577
DOI - 10.1108/01443570910977715
Subject(s) - service recovery , loyalty business model , loyalty , business , service (business) , customer retention , context (archaeology) , marketing , customer satisfaction , set (abstract data type) , service quality , computer science , history , programming language , archaeology
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 n...
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