Service recovery, satisfaction and behaviour intentions: analysis of compensation and social comparison communication strategies

Rodolfo Vázquez-Casielles, Víctor Iglesias and Concepción Varela-Neira

The Service Industries Journal, 2010, vol. 32, issue 1, 83-103

Abstract: In the marketing literature, there is a great interest in learning how companies should behave after a service failure. From this perspective, different service recovery strategies have been proposed. This experimental study of the airline industry deals with this topic, indicating the benefits of carrying out, after a service failure, a financial compensation and/or an explanation based on social comparison. The results indicate when financial compensation and social comparison increase satisfaction and when they have a positive impact on different behaviour intentions (repurchase intentions, positive or negative word of mouth communication, and complaints to the company and/or third parties). There predictions on the effects of the service recovery strategies are developed on the basis of failure stability and the emotions (anger) brought on by it.

Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:taf:servic:v:32:y:2010:i:1:p:83-103

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DOI: 10.1080/02642069.2010.511187

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The Service Industries Journal is currently edited by Eileen Bridges, Professor Domingo Ribeiro, Ronald Goldsmith, Barry Howcroft and Youjae Yi

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