The University of Southampton
University of Southampton Institutional Repository

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
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
0261-5177
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
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, 381-392. (doi:10.1016/j.tourman.2019.05.008).

Record type: Article

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.

Text
TM Accepted Version - Accepted Manuscript
Restricted to Repository staff only until 19 June 2021.
Request a copy

More information

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

Catalogue record

Date deposited: 29 Apr 2020 16:30
Last modified: 05 May 2020 16:30

Export record

Altmetrics

Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×