JAFMS
Journal of Accounting, Finance & Management Strategy


 

 

 

 


Volume 12, Number 2, December 2017


The Impact of Perceived Service Recovery and Involvement on Customer Behavior Patterns: The Mediated Effects Examination

Abstract

The prevention of service failure is important to the stable operation of a company. However, it is practically difficult to achieve absolutely zero service failure. Instead, it would be more critical to consider the level of customer’s emotional involvement and offer effective service recovery strategy after customer complaints. This study aims to examine the effects of service recovery and customer involvement on customer behavior patterns, including the relationship quality, complaint behaviors, and switching intention. This study takes airline service industry as an example, and adopts the Hierarchy Regression Analysis to verify our mediated relationship model. The result shows that the psychological service recovery strategies are effective for decreasing customer complaints both in public and in private. The effect is also present in the customer involvement in services and their choices. Besides, this study finds the quality of customer relationship is not the mediator of the relationship between service recovery, customer involvement and switching intention. More critical insights and implications are finally proposed for practical management and further researches.

Keywords: Service Recovery, Customer Involvement, Customer Behavior, Airline Service Marketing, Hierarchy Regression Statistical Testing

JEL Classification: C12, M31