Search results for "Service failure"
showing 4 items of 4 documents
Managing service shutdowns: Cash refunds or vouchers?
2022
Service shutdowns—extended disruptions of operations—caused by exogenous events are on the rise. Such shutdowns pose major challenges for service providers, customers, and regulators. Providers prefer vouchers as a means of service recovery to limit bankruptcy risk, whereas customers demand cash refunds or vouchers that include a generous bonus. Regulators, on the other hand, insist that customers must be granted the right to be reimbursed in cash. This paper shows that a zero bonus is optimal under the voucher-only strategy, whereas the provider should always include a positive bonus with the voucher under the hybrid strategy that allows customers to choose between the cash refund and vouc…
Money for nothing: The impact of compensation on customers’ bad-mouthing in service recovery encounters.
2022
As one of the retailer’s most potent recovery tactics to offset disgruntled customers, firms invest heavily in compensation to increase customer satisfaction and improve loyalty. However, the effectiveness of this tactic remains unclear. This study examines whether firm-offered compensation affects customers’ emotional responses and bad-mouthing behavior (i.e., telling others about a particular problem). Importantly, the study investigates whether the level of collaboration during the recovery encounter moderates the link between compensation and customers’ emotional responses, and whether collaborative efforts influence the effectiveness of compensation. The findings indicate that collabor…
How does information technology– based service degradation influence consumers’ use of services? An information technology–based service degradation …
2019
Information technology is crucial for modern services. Service delivery may include a complex mix of information technology and telecommunication providers, global networks and customers’ information technology devices. This research focuses on service failures that are caused by information technology problems, which we conceptualize as information technology-based service degradation (ITSD). When information technology-based service degradation occurs in a modern service, the information technology problem may originate from the service provider, another partner or any information technology equipment involved. But the customer may not be able to pinpoint the source of the problem immedi…
How does information technology-based service degradation influence consumers’ use of services? : An information technology-based service degradation…
2020
Information technology is crucial for modern services. Service delivery may include a complex mix of information technology and telecommunication providers, global networks and customers’ information technology devices. This research focuses on service failures that are caused by information technology problems, which we conceptualize as information technology-based service degradation (ITSD). When information technology-based service degradation occurs in a modern service, the information technology problem may originate from the service provider, another partner or any information technology equipment involved. But the customer may not be able to pinpoint the source of the problem immedia…