Do organizational policies matter? The impact of service guarantee on customer perceptions of recovery fairness

Crisafulli, B., Singh, Jaywant and Riley, Francesca Dall'Olmo (2014) Do organizational policies matter? The impact of service guarantee on customer perceptions of recovery fairness. 43rd EMAC European Marketing Academy conference: Paradigm shifts & Interactions, Valencia, Valencia, Spain. 03 - 06 Jun 2014.

Record type: Conference or Workshop Item (Paper)

Abstract

Delivering fair service recovery is crucial to restoring customer satisfaction and repatronage. This study contends that organizational policies impact recovery fairness perceptions. Underpinned by signaling and justice theories, the study examines the influence of service guarantees on customer perceptions of recovery fairness. Given that businesses extensively use service guarantees, knowledge on perceptions of fairness towards such policies is relevant to designing effective guarantees. Employing a scenariobased experiment, this study shows that fairness varies according to the type of guarantee payout. The pledge for monetary compensation has differential impact on fairnessperceptions, discount offers lower fairness and increase negative motive attributions. Theoretical and managerial implications are discussed.

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