EconPapers    
Economics at your fingertips  
 

Capitalizing on Service Failures: Implications for Customer Engagement and Loyalty

Adil Zahoor

Business Perspectives and Research, 2023, vol. 11, issue 1, 81-93

Abstract: This study examines the driver influence of service recovery performance (SRP) on customer engagement (CE) and customer loyalty (CL) in the Indian retail banking setting. Data collected from a sample of 457 customers who had recent experiences of service failure formed the basis of the empirical investigation. All constructs under examination were measured through structured questionnaires developed in previous research work in this area of study. However, the validity and reliability of the scales were reassessed before the final data analysis. Empirical results indicate that SRP positively influences CE and, concomitantly, CL. Further, CE fully mediates the relationship between service recovery and CL. In addition, it was observed that the structural linkages among SRP, CE and CL are significantly moderated by the gender of the customer. Banking companies are, therefore, advised to consider service failures as an opportunity, rather than a threat, to nurture CE and loyalty. Also, the gender of the customer (male/female) must be considered in deciding the recovery approach.

Keywords: Service recovery performance; customer engagement; customer loyalty; gender; Indian banking (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/22785337211070377 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:busper:v:11:y:2023:i:1:p:81-93

DOI: 10.1177/22785337211070377

Access Statistics for this article

More articles in Business Perspectives and Research
Bibliographic data for series maintained by SAGE Publications ().

 
Page updated 2025-03-19
Handle: RePEc:sae:busper:v:11:y:2023:i:1:p:81-93