The impact of online service recovery on customer satisfaction: Empirical evidences from service operations

Bin Gu, Qiang Ye

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

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.

Original languageEnglish (US)
Title of host publication16th Americas Conference on Information Systems 2010, AMCIS 2010
Pages1790-1801
Number of pages12
StatePublished - Dec 1 2010
Event16th Americas Conference on Information Systems 2010, AMCIS 2010 - Lima, Peru
Duration: Aug 12 2010Aug 15 2010

Publication series

Name16th Americas Conference on Information Systems 2010, AMCIS 2010
Volume3

Other

Other16th Americas Conference on Information Systems 2010, AMCIS 2010
CountryPeru
CityLima
Period8/12/108/15/10

Keywords

  • Customer satisfaction
  • Expectations-confirmation theory
  • Online managerial response
  • Peer-induced fairness
  • Service operations
  • Service recovery

ASJC Scopus subject areas

  • Computer Science Applications
  • Computer Networks and Communications
  • Information Systems
  • Library and Information Sciences

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