 When does a service guarantee work? The roles of the popularity of service guarantees and firm reputationLiyin Jin, Yunhui Huang and Yanqun He Tourism Management, 2016, vol. 57, issue C, 272-285 Abstract: Despite substantial research on service guarantees in the literature, little study has examined how the popularity of service guarantees (SG) in a particular industry affects the effectiveness of SGs. Through four studies, the authors demonstrate an interactive effect between the market-level factor (the popularity of SGs) and the firm-level factor (firm reputation) in affecting consumer's responses to a travel agency's actions in (not) offering an SG. When offering SGs is popular in a given market, consumers perceive a loss from the absence of SGs, and a high-reputation agency will outperform a low-reputation agency in consumer service evaluation when neither agencies offer SGs. However, if both agencies provide guarantees, the SG offered by the high-reputation agency does not necessarily lead to greater service evaluation than that offered by the low-reputation agency. The results reverse when offering SGs is rare in the market, as consumers perceive a gain from the presence of SGs. Keywords: Service guarantee; Prospect theory; Signaling theory; Popularity of service guarantees; Firm reputation (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:touman:v:57:y:2016:i:c:p:272-285 DOI: 10.1016/j.tourman.2016.06.008 Access Statistics for this article Tourism Management is currently edited by Chris Ryan More articles in Tourism Management from Elsevier |
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