TY - GEN
T1 - The impact of online service recovery on customer satisfaction
T2 - 16th Americas Conference on Information Systems 2010, AMCIS 2010
AU - Gu, Bin
AU - Ye, Qiang
PY - 2010
Y1 - 2010
N2 - Online service recovery tools such as managerial responses are increasingly used by service providers to address customer concerns in online WOM platforms. In this paper, we analyze the effectiveness of such online service recovery effort on customer satisfaction using data retrieved from a major online travel agency in China. We find that online service recovery is highly effective among the least satisfied customers but has limited influence on other customers. Moreover, we show that the public nature of online service recovery introduces a new dynamic among customers. While online service recovery increases future satisfaction of the complaining customers who receive the recovery effort, it significantly decreases future satisfaction of those complaining customers who observe but do not receive the recovery effort. We show the result is consistent with the peer-induced fairness theory. In addition, this study reveals that a customer's satisfaction with a service provider demonstrates mean reversion over multiple interactions. It is important to control for such dependence in assessing the true impact of online service recovery.
AB - Online service recovery tools such as managerial responses are increasingly used by service providers to address customer concerns in online WOM platforms. In this paper, we analyze the effectiveness of such online service recovery effort on customer satisfaction using data retrieved from a major online travel agency in China. We find that online service recovery is highly effective among the least satisfied customers but has limited influence on other customers. Moreover, we show that the public nature of online service recovery introduces a new dynamic among customers. While online service recovery increases future satisfaction of the complaining customers who receive the recovery effort, it significantly decreases future satisfaction of those complaining customers who observe but do not receive the recovery effort. We show the result is consistent with the peer-induced fairness theory. In addition, this study reveals that a customer's satisfaction with a service provider demonstrates mean reversion over multiple interactions. It is important to control for such dependence in assessing the true impact of online service recovery.
KW - Customer satisfaction
KW - Expectations-confirmation theory
KW - Online managerial response
KW - Peer-induced fairness
KW - Service operations
KW - Service recovery
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M3 - Conference contribution
AN - SCOPUS:84870330508
SN - 9781617389528
T3 - 16th Americas Conference on Information Systems 2010, AMCIS 2010
SP - 1790
EP - 1801
BT - 16th Americas Conference on Information Systems 2010, AMCIS 2010
Y2 - 12 August 2010 through 15 August 2010
ER -