Unveiling the recovery time zone of tolerance: when time matters in service recovery

Jens Hogreve (), Nicola Bilstein () and Leonhard Mandl ()
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Jens Hogreve: Catholic University of Eichstaett-Ingolstadt
Nicola Bilstein: Catholic University of Eichstaett-Ingolstadt
Leonhard Mandl: Catholic University of Eichstaett-Ingolstadt

Journal of the Academy of Marketing Science, 2017, vol. 45, issue 6, No 6, 866-883

Abstract: Abstract This article examines the link between recovery time and customer compensation expectations for service failures that cannot be immediately redressed. First, we show that the relationship between recovery time and compensation expectations is nonlinear. Initially, in a recovery time zone of tolerance, compensation expectations do not increase. Beyond this zone, the relationship follows an inverted U-shape, such that compensation expectations first increase but decrease in the long run. Second, our results show that long recovery times are accompanied by additional negative effects, including lower satisfaction with the recovery and negative word of mouth, so postponing service recovery represents a poor option. Third, relationship strength functions as a moderator. First-time customers expect higher compensation earlier; relational customers display a recovery time zone of tolerance but claim considerably higher compensations afterwards. Fourth, communication initiatives like the separate provision of status updates or an explanation may limit increases in compensation expectations over time. Still, their joint usage creates a “too-much-of-a-good-thing” effect, suggesting that if the usage of communication initiatives is taken too far it may lead to negative outcomes such as increasing compensation expectations.

Keywords: Service recovery; Customer relationships; Service failure; Customer betrayal; Customer anger; Explanation; Equity theory; Complaint status updates (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (18)

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DOI: 10.1007/s11747-017-0544-7

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