Relationship between service recovery, customer satisfaction and customer loyalty: Empirical evidence from e-retailing

Anh Chi Phan · Ha Thu Nguyen · Thoa Xuan Thi Pham

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Customer Service Quality and Loyalty Consumer Behavior and Marketing Influence Customer churn and segmentation

Abstract

This paper presents the results of an empirical study on the relationship between service recovery quality, customer satisfaction and loyalty in Vietnam’s e-retailing. Structural Equation Modelling (SEM) is applied to analyze the data collected from experienced customers in online shopping in Vietnam from November 2018 to March 2019. The results of statistical analysis indicate that interactive fairness, outcome fairness, procedural fairness significantly impact on customer satisfaction which then increases customer loyalty. This study suggests that customer’s ability to locate and interact with technical support on a website and how a company treats the customer would significantly decide satisfaction and loyalty from customer. E-retailers in developing economies should consider service recovery process as the opportunity to gain customers’ purchase intentions.

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