Determining adequate tangible compensation in service recovery processes for developed and developing countries: The role of severity and responsibility

Silke Bambauer-Sachse and Landisoa Rabeson

Journal of Retailing and Consumer Services, 2015, vol. 22, issue C, 117-127

Abstract: This study examines effects of different compensation types on satisfaction with the service recovery in different failure severity and responsibility conditions. We additionally integrate cultural and economic developmental differences by studying two completely different countries (Madagascar and Switzerland). We propose a framework based on social exchange, regulatory focus, and attribution theories to explore differences in satisfaction with service recovery across these countries. The empirical results indicate that satisfaction with service recovery as a consequence of using different types of tangible compensation varies considerably depending on cultural and person-specific factors.

Keywords: Satisfaction with service recovery; Responsibility; Failure severity; Economic development; Cultural differences (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:joreco:v:22:y:2015:i:c:p:117-127

DOI: 10.1016/j.jretconser.2014.08.001

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