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The effects of harm directions and service recovery strategies on customer forgiveness and negative word-of-mouth intentions

Riza Casidy and Hyunju Shin

Journal of Retailing and Consumer Services, 2015, vol. 27, issue C, 103-112

Abstract: This study aims to investigate the direction of harm and the role of service recovery strategies on customer positive (i.e., forgiveness) and negative (i.e., word-of-mouth) intentions. We found that customer intentions are stronger among those who are directly affected by the service failure than indirectly affected customers. Further, we assess the role of service recovery in customer intentions after the service failure. The study findings contribute to the development of theory on the “other customers†effect by comparing the consequences of service failure directed at the focal customer and other customers and provide solutions to practitioners to reduce this damaging effect.

Keywords: Service recovery; Forgiveness; Word-of-mouth; Service failure; Compensation; Justice theories (search for similar items in EconPapers)
Date: 2015
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Handle: RePEc:eee:joreco:v:27:y:2015:i:c:p:103-112