An Empirical Study on the Customer Reponses to Service Recovery in the Context of Service Failure
Year
2005
Author(s)
Youjae Yi, Jaehoon Lee
Journal
Seoul Journal of Business
Volume
11(1)
Pages
1-17
This article examines how customers respond to various service recoveries by investigating the moderating role of service failure severity. Using a scenario-based experiment, the proposed model was tested in a mobile phone service industry. The results show that under the core service failure, high recoveries are more effective than low recoveries, whereas low recoveries are as effective as high recoveries under the peripheral service failure. The effects were assessed in terms of customers’ intentions such as repurchase intention and word-of-mouth communication.