Examining the trade-off between compensation and promptness in eWOM-triggered service recovery: a restorative justice perspective
Examining the trade-off between compensation and promptness in eWOM-triggered service recovery: a restorative justice perspective
Our research examines the effectiveness of monetary compensation and the promptness of response during electronic word-of-mouth (eWOM)-triggered service recovery. Drawing upon restorative justice theories, we explore three main questions: whether the hotel's response to negative online reviews are always beneficial; whether offering compensation or responding promptly is more efficient under different levels of service failure severity; and how the hotel's response influences consumers' future engagement through eWOM media. Experimental results reveal that making minimum online service recovery effort is only effective in fixing consumer attitudes for less severe service failures. Compensation is the optimal solution for less severe failures, while prompt response is optimal for more severe service failures. The hotel's responsiveness to negative reviews and the service recovery outcome positively influence consumers' future eWOM behaviours through the same online medium. Implications for hotels seeking cost-effective management of negative reviews and for online media owners are offered.
Compensation, Electronic word-of-mouth (eWOM), Media engagement, Online reviews, Restorative justice, Service failure severity, Service recovery, Speed of response
381-392
Liu, Hongfei
7d65edcf-20c9-452a-83c2-8b545b12f68c
Jayawardhena, Chanaka
4784a35a-cbc4-47df-ad75-2bf654463b76
Dibb, Sally
514cddf8-0eb6-4fff-9912-3741c8345ec3
Ranaweera, Chatura
cadd6b18-aff7-4c69-b31f-09214dfd7444
1 December 2019
Liu, Hongfei
7d65edcf-20c9-452a-83c2-8b545b12f68c
Jayawardhena, Chanaka
4784a35a-cbc4-47df-ad75-2bf654463b76
Dibb, Sally
514cddf8-0eb6-4fff-9912-3741c8345ec3
Ranaweera, Chatura
cadd6b18-aff7-4c69-b31f-09214dfd7444
Liu, Hongfei, Jayawardhena, Chanaka, Dibb, Sally and Ranaweera, Chatura
(2019)
Examining the trade-off between compensation and promptness in eWOM-triggered service recovery: a restorative justice perspective.
Tourism Management, 75, .
(doi:10.1016/j.tourman.2019.05.008).
Abstract
Our research examines the effectiveness of monetary compensation and the promptness of response during electronic word-of-mouth (eWOM)-triggered service recovery. Drawing upon restorative justice theories, we explore three main questions: whether the hotel's response to negative online reviews are always beneficial; whether offering compensation or responding promptly is more efficient under different levels of service failure severity; and how the hotel's response influences consumers' future engagement through eWOM media. Experimental results reveal that making minimum online service recovery effort is only effective in fixing consumer attitudes for less severe service failures. Compensation is the optimal solution for less severe failures, while prompt response is optimal for more severe service failures. The hotel's responsiveness to negative reviews and the service recovery outcome positively influence consumers' future eWOM behaviours through the same online medium. Implications for hotels seeking cost-effective management of negative reviews and for online media owners are offered.
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Accepted/In Press date: 7 May 2019
e-pub ahead of print date: 19 June 2019
Published date: 1 December 2019
Keywords:
Compensation, Electronic word-of-mouth (eWOM), Media engagement, Online reviews, Restorative justice, Service failure severity, Service recovery, Speed of response
Identifiers
Local EPrints ID: 439655
URI: http://eprints.soton.ac.uk/id/eprint/439655
ISSN: 0261-5177
PURE UUID: 5180bfd8-2993-4171-888b-ffd706b43fd6
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Date deposited: 29 Apr 2020 16:30
Last modified: 17 Mar 2024 05:31
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Contributors
Author:
Chanaka Jayawardhena
Author:
Sally Dibb
Author:
Chatura Ranaweera
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