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Guarantee policies and employee behaviour as signals of service recovery fairness

Guarantee policies and employee behaviour as signals of service recovery fairness
Guarantee policies and employee behaviour as signals of service recovery fairness
Prior research acknowledges the importance of delivering just (fair) service recovery following service failures, with a focus on the impact of employee recovery efforts on consumer attitudes and intentions. Extant studies, however, overlook how service guarantees function in a recovery context, even though these policies are extensively used by companies. This study contends that both service guarantee policies and employee behaviour function as signals of the firm’s benevolence and employees’ competence in handling service failures fairly. The study investigates signaling effects during service recovery and examines how these effects vary between firms with differential levels of reputation. Employing a scenario-based experiment in banking and car repair services, the impact of guarantee terms (payout, ease of invocation) and employee behaviours (employee concern, communication) on customer post-recovery trust in the firm and in the employee is examined. Results reveal that guarantee terms and employee behaviours signal recovery fairness and convey the qualities of trustworthiness of the firm and its employees. Guarantee payout and employee communication show a stronger influence on post-recovery trust when delivered by well-reputed firms. The results have important managerial implications for designing effective guarantee policies and for leveraging signals during service recovery encounters.
Crisafulli, B.
150dbcd8-a886-4dd0-af40-507c379fbc24
Singh, Jaywant
db6316ed-e404-4c5a-873c-6e97c94fe531
Dall'Olmo Riley, Francesca
c2690b09-a881-46a6-8784-f9a0d1faa8b1
Crisafulli, B.
150dbcd8-a886-4dd0-af40-507c379fbc24
Singh, Jaywant
db6316ed-e404-4c5a-873c-6e97c94fe531
Dall'Olmo Riley, Francesca
c2690b09-a881-46a6-8784-f9a0d1faa8b1

Crisafulli, B., Singh, Jaywant and Dall'Olmo Riley, Francesca (2015) Guarantee policies and employee behaviour as signals of service recovery fairness. Academy of Marketing 2015, University of Limerick, Limerick, Ireland. 07 - 09 Jul 2015.

Record type: Conference or Workshop Item (Paper)

Abstract

Prior research acknowledges the importance of delivering just (fair) service recovery following service failures, with a focus on the impact of employee recovery efforts on consumer attitudes and intentions. Extant studies, however, overlook how service guarantees function in a recovery context, even though these policies are extensively used by companies. This study contends that both service guarantee policies and employee behaviour function as signals of the firm’s benevolence and employees’ competence in handling service failures fairly. The study investigates signaling effects during service recovery and examines how these effects vary between firms with differential levels of reputation. Employing a scenario-based experiment in banking and car repair services, the impact of guarantee terms (payout, ease of invocation) and employee behaviours (employee concern, communication) on customer post-recovery trust in the firm and in the employee is examined. Results reveal that guarantee terms and employee behaviours signal recovery fairness and convey the qualities of trustworthiness of the firm and its employees. Guarantee payout and employee communication show a stronger influence on post-recovery trust when delivered by well-reputed firms. The results have important managerial implications for designing effective guarantee policies and for leveraging signals during service recovery encounters.

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More information

Published date: 8 July 2015
Venue - Dates: Academy of Marketing 2015, University of Limerick, Limerick, Ireland, 2015-07-07 - 2015-07-09

Identifiers

Local EPrints ID: 436915
URI: http://eprints.soton.ac.uk/id/eprint/436915
PURE UUID: 1d875358-5a4f-4d2b-910e-7fb912029205
ORCID for Jaywant Singh: ORCID iD orcid.org/0000-0002-0766-0162

Catalogue record

Date deposited: 14 Jan 2020 17:30
Last modified: 10 Nov 2021 04:00

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Contributors

Author: B. Crisafulli
Author: Jaywant Singh ORCID iD
Author: Francesca Dall'Olmo Riley

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