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The wide usage of IT enabled options for service delivery has increased the occurrence of irrepressible service failures in the contemporary banking landscape. The enhanced service quality levels exhibited by the dedicated employees suffer badly due to ever-increasing number of tech-driven service failures. The purpose of this study was to examine the linkages among constructs such as perceived service quality, perceived organizational service orientation, perceived automation quality, perceived employee proficiency and perceived service recovery quality to recovery satisfaction in the E-banking context. This investigation examined the moderating role of perceived initial negative feelings of the customer due to service failures, on recovery satisfaction. Data collected from 248 banking customers were analyzed by structural equation modeling approach using, Smart PLS 2.0 M 3, software to identify significant linkages among variables under study. Apart from perceived employee proficiency, all other variables significantly developed perceived service recovery quality leading to recovery satisfaction. Initial negative feelings from a service failure failed to cause significant moderating effect on post recovery satisfaction. The most disturbing service failures in the automated service delivery environment was identified as technical failures such as delay in online transactions, issues related to ATMs and interrupted connectivity. The study could establish that excellent service recovery quality develops service recovery satisfaction and customers gain more confidence in the bank and perceive higher value in their association with the bank.

An Empirical Study on Antecedents of Perceived Service Recovery Quality in E-banking Context