 The influence of failure severity and employee effort on service recovery in a service guarantee contextLisa McQuilken Australasian marketing journal, 2010, vol. 18, issue 4, 214-221 Abstract: This experimental study utilised a sample of 131 online panel members to examine how service failure severity and perceived employee effort influence consumers’ postrecovery negative WOM and trust evaluations in the context of a 100% satisfaction guarantee. In this study, while the promised guarantee compensation is forthcoming, the failure remains uncorrected. Findings indicate that while the level of effort does not influence negative WOM when a major problem eventuates, high versus low levels of effort are appreciated for a minor failure. Evaluations of trust are enhanced when employees display a high versus a low level of effort across both minor and severe failure conditions. Overall, findings suggest that it would be unwise for organisations offering a “100% satisfaction or your money back” guarantee to rely too heavily on economic compensation to recover from service failures; the failure itself must also be rectified. Keywords: 100% satisfaction guarantee; Service failure severity; Service recovery; Perceived employee effort; Negative WOM; Trust (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:aumajo:v:18:y:2010:i:4:p:214-221 DOI: 10.1016/j.ausmj.2010.07.003 Access Statistics for this article Australasian marketing journal is currently edited by Roger Marshall More articles in Australasian marketing journal from Elsevier |
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