The purpose of this paper is to investigate the effects of organizational justice‐based recovery strategies and the mode of communication used following a service failure on key organizational variables including customer satisfaction, loyalty, and complaining behavior.
A scenario‐based experiment was used to depict a service failure and recovery experience involving a fictitious cellular phone provider. The scenario manipulated the type of organizational justice‐based recovery strategy and the mode of communication used during the recovery process. Surveys were used to measure participants' reactions to the experience.
The results of the study suggest no difference between the effect of justice‐based strategies on overall customer satisfaction or loyalty. However, participants who communicated in‐person or with a toll‐free number were more satisfied with the communication than those who used e‐mail. Customers were more likely to engage in informal negative word‐of‐mouth behavior than formally complaining to the company.
Future research should investigate the length of the recovery process, whether or not the problem was successfully solved, and the effect of customers' communication mode preference. Scenario‐based experiments need to be replicated using real life service encounters/simulations.
Implications for organizations developing recovery strategies include: the cost of the recovery effort; utilizing multiple channels to increase formal complaining; and differences between in‐person and technological strategies.
The present study investigated both service recovery and communication mode using an experimental manipulation.
