A model of customer satisfaction with service encounters involving failure and recovery

Amy K. Smith, Ruth Bolton, Janet Wagner

Research output: Contribution to journalArticle

1303 Citations (Scopus)

Abstract

Customers often react strongly to service failures, so it is critical that an organization's recovery efforts be equally strong and effective. In this article, the authors develop a model of customer satisfaction with service failure/recovery encounters based on an exchange framework that integrates concepts from both the consumer satisfaction and social justice literature, using principles of resource exchange, mental accounting, and prospect theory. The research employs a mixed-design experiment, conducted using a survey method, in which customers evaluate various failure/recovery scenarios and complete a questionnaire with respect to an organization they recently had patronized. The authors execute the research in the context of two different service settings, restaurants and hotels. The results show that customers prefer to receive recovery resources that match the type of failure they experience in amounts that are commensurate with the magnitude of the failure that occurs. The findings contribute to the understanding of theoretical principles that explain customer evaluations of service failure/recovery encounters and provide managers with useful guidelines for establishing the proper fit between a service failure and the recovery effort.

Original languageEnglish (US)
Pages (from-to)356-372
Number of pages17
JournalJournal of Marketing Research
Volume36
Issue number3
StatePublished - Aug 1999
Externally publishedYes

Fingerprint

Customer satisfaction
Service encounter
Service failure
Resources
Mental accounting
Prospect theory
Hotels
Managers
Experiment design
Accounting theory
Social justice
Consumer satisfaction
Questionnaire
Scenarios
Evaluation
Restaurants

ASJC Scopus subject areas

  • Business and International Management
  • Marketing
  • Economics and Econometrics

Cite this

A model of customer satisfaction with service encounters involving failure and recovery. / Smith, Amy K.; Bolton, Ruth; Wagner, Janet.

In: Journal of Marketing Research, Vol. 36, No. 3, 08.1999, p. 356-372.

Research output: Contribution to journalArticle

@article{c694783204004dc8a609bee5e3004cba,
title = "A model of customer satisfaction with service encounters involving failure and recovery",
abstract = "Customers often react strongly to service failures, so it is critical that an organization's recovery efforts be equally strong and effective. In this article, the authors develop a model of customer satisfaction with service failure/recovery encounters based on an exchange framework that integrates concepts from both the consumer satisfaction and social justice literature, using principles of resource exchange, mental accounting, and prospect theory. The research employs a mixed-design experiment, conducted using a survey method, in which customers evaluate various failure/recovery scenarios and complete a questionnaire with respect to an organization they recently had patronized. The authors execute the research in the context of two different service settings, restaurants and hotels. The results show that customers prefer to receive recovery resources that match the type of failure they experience in amounts that are commensurate with the magnitude of the failure that occurs. The findings contribute to the understanding of theoretical principles that explain customer evaluations of service failure/recovery encounters and provide managers with useful guidelines for establishing the proper fit between a service failure and the recovery effort.",
author = "Smith, {Amy K.} and Ruth Bolton and Janet Wagner",
year = "1999",
month = "8",
language = "English (US)",
volume = "36",
pages = "356--372",
journal = "Journal of Marketing Research",
issn = "0022-2437",
publisher = "American Marketing Association",
number = "3",

}

TY - JOUR

T1 - A model of customer satisfaction with service encounters involving failure and recovery

AU - Smith, Amy K.

AU - Bolton, Ruth

AU - Wagner, Janet

PY - 1999/8

Y1 - 1999/8

N2 - Customers often react strongly to service failures, so it is critical that an organization's recovery efforts be equally strong and effective. In this article, the authors develop a model of customer satisfaction with service failure/recovery encounters based on an exchange framework that integrates concepts from both the consumer satisfaction and social justice literature, using principles of resource exchange, mental accounting, and prospect theory. The research employs a mixed-design experiment, conducted using a survey method, in which customers evaluate various failure/recovery scenarios and complete a questionnaire with respect to an organization they recently had patronized. The authors execute the research in the context of two different service settings, restaurants and hotels. The results show that customers prefer to receive recovery resources that match the type of failure they experience in amounts that are commensurate with the magnitude of the failure that occurs. The findings contribute to the understanding of theoretical principles that explain customer evaluations of service failure/recovery encounters and provide managers with useful guidelines for establishing the proper fit between a service failure and the recovery effort.

AB - Customers often react strongly to service failures, so it is critical that an organization's recovery efforts be equally strong and effective. In this article, the authors develop a model of customer satisfaction with service failure/recovery encounters based on an exchange framework that integrates concepts from both the consumer satisfaction and social justice literature, using principles of resource exchange, mental accounting, and prospect theory. The research employs a mixed-design experiment, conducted using a survey method, in which customers evaluate various failure/recovery scenarios and complete a questionnaire with respect to an organization they recently had patronized. The authors execute the research in the context of two different service settings, restaurants and hotels. The results show that customers prefer to receive recovery resources that match the type of failure they experience in amounts that are commensurate with the magnitude of the failure that occurs. The findings contribute to the understanding of theoretical principles that explain customer evaluations of service failure/recovery encounters and provide managers with useful guidelines for establishing the proper fit between a service failure and the recovery effort.

UR - http://www.scopus.com/inward/record.url?scp=0033238406&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0033238406&partnerID=8YFLogxK

M3 - Article

AN - SCOPUS:0033238406

VL - 36

SP - 356

EP - 372

JO - Journal of Marketing Research

JF - Journal of Marketing Research

SN - 0022-2437

IS - 3

ER -