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• W2274215931 abstract "Firms frequently experience service failures, wherein performance is below customerexpectations. Seeking to address service failures, firms deliver service recovery. Extantresearch suggests that service recovery leads to customer satisfaction and repatronagewhen perceived to be fair (or just). Prior studies emphasise the role played by employeesin delivering fair service recovery. By contrast, the literature overlooks situations whereorganisational policies such as service guarantees pose a constraint to employee recoveryefforts. Service guarantees are widely used across several service sectors, and thesepolicies are invoked when services fail. Hence, service guarantees can be employed asrecovery strategies along with employee behaviour, both influencing customerperceptions of fairness, post-recovery attitudes and behaviour. Empirical research thatexplores customer perceptions of service guarantee and employee behaviour used asrecovery strategies is, therefore, topical.This thesis examines the impact of two guarantee terms – payout and ease of invocation– and two types of employee behaviour – concern and communication – on customerpost-recovery trust in the firm and in the employee, and in turn, commitment and loyalty.The thesis is theoretically underpinned by three well-established theories – Justice andAttribution Theories from social psychology, and Signaling Theory from informationeconomics. Justice Theory explains how service guarantee and employee behaviour elicitperceptions of recovery fairness. Signaling Theory elucidates how fair service guaranteeand employee behaviour influence post-recovery trust, by signaling the trustworthinessof the firm and of employees. The dual lens of Signaling and Attribution Theoriesexplains how a firm’s characteristic of reputation for fairness, and customer attributionof inferred motive influence perceptions of service guarantee and employee behaviouremployed as recovery strategies.A scenario-based experiment was conducted in two service contexts – banking and carrepair. The data were collected via an online self-completion questionnaire embeddinghypothetical scenarios of service failure and recovery. The sample was randomly selectedfrom a consumer panel owned by a reputed UK-based market research agency. Theconceptual framework of the thesis was tested by using Partial Least Squares StructuralEquation Modeling (PLS-SEM). The moderating effects of firm reputation for fairnessand inferred motive were tested by using the product indicator approach in PLS-SEM.Two pre-tests and a pilot study established the ecological validity of findings and thepsychometric properties of the measures. In the main study, 658 valid responses wereobtained.Results show that procedural fairness elicited by the ease of invoking the guarantee leadsto post-recovery trust in the firm, but distributive fairness elicited by guarantee payoutdoes not. Further, the effects of guarantee payout and ease of invocation are contingentupon the firm’s reputation for fairness. Interpersonal and informational fairness elicitedby employee concern and communication at the recovery stage lead to post-recovery trustin the employee. The effects of employee treatment and communication on post-recoverytrust are contingent upon inferred motive. Post-recovery trust in the firm and in theemployee, in turn, impact customer commitment and loyalty. Consistency of resultsacross banking and car repair enhances the generalizability of findings.This thesis extends knowledge in the domain of service recovery research and broadensunderstanding of the employed theoretical precepts. First, the thesis establishes thatservice guarantees employed as recovery strategies elicit perceptions of recovery fairness.Such knowledge offers conceptual development of the Justice Theory framework byenhancing understanding of what fair service recovery constitutes. Second, the thesisintroduces a new perspective to signaling research that considers how service guarantee and employee behaviour, with related interplay with firm reputation for fairness, signalthe trustworthiness of the firm and of employees, and thus influence customer trust. Third,the thesis contributes to the understanding of the impact of perceived recovery fairnesson trust by distinguishing between two trust referents - firm and employee. Fourth, thethesis demonstrates how customer perceptions of service recovery are contingent uponthe firm’s reputation and inferred motive." @default.
• W2274215931 created "2016-06-24" @default.
• W2274215931 creator A5024932439 @default.
• W2274215931 date "2015-10-01" @default.
• W2274215931 modified "2023-09-23" @default.
• W2274215931 title "Customer perceptions of guarantee policies and employee behaviour in service recovery : an investigation of justice, signaling and attributions" @default.
• W2274215931 hasPublicationYear "2015" @default.
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