The impact of the recovery paradox on retailer‐customer relationships

Randi Lynn Priluck · Vishal Lala

49 citations0/0 files storedManaging Service Quality

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Customer Service Quality and Loyalty Service and Product Innovation AI in Service Interactions

Abstract

Purpose The purpose of this paper is to determine the effects of recovery and strength of recovery on satisfaction and voice behaviors. Design/methodology/approach Two role‐playing experiments involving product failure followed by recovery at a video store were conducted. Data collected from students were analyzed using t‐tests and ANOVA. Findings Relationship satisfaction after a strong recovery was higher than it would have been, had the failure not occurred in the first place. In the case of store satisfaction, the original level was restored but not exceeded. Furthermore, customers appear to have an expectation threshold for customer recovery. A recovery effort that fell below this threshold led to sharply lower expectations. On the other hand, a customer recovery far beyond the customers' expectation threshold was no more effective than one that just exceeded it. Product satisfaction was lower regardless of the strength of recovery. Internal voice behaviors were higher following a customer recovery but a stronger recovery did not lead to any more internal voice behaviors than a weak recovery. External voice behaviors were not affected by a customer recovery. Practical implications The key to managing complaints in companies is to find just the right amount to spend for recovery. If the recovery is below the customer's expectation threshold, she will be dissatisfied. On the other hand, a recovery much above the customer's expectation threshold will not lead to any greater satisfaction, any more internal voice behaviors, or any fewer external voice behaviors. Originality/value The study looks at the influence of recovery on satisfaction with respect to store, relationship, and product. It also looks at the effect of recovery on internal and external voice behaviors.

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References

1994Determinants of Long-Term Orientation in Buyer-Seller Relationships 1990The Service Encounter: Diagnosing Favorable and Unfavorable Incidents 1998A Dynamic Model of the Duration of the Customer's Relationship with a Continuous Service Provider: The Role of Satisfaction 1987Defensive Marketing Strategy by Customer Complaint Management: A Theoretical Analysis 1984Consumer Reactions to Product Failure: An Attributional Approach 2000An Empirical Investigation of Customer Satisfaction after Service Failure and Recovery 2001Service recovery's influence on consumer satisfaction, positive word-of-mouth, and purchase intentions 1993A typology of retail failures and recoveries

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