Banding Together: Examining Effects of a Joint Stakeholder External Service Recovery
(A2019-9443)

AUTHORS

Karin Weber, Hong Kong Polytechnic University ; Cathy Hsu, Hong Kong Polytechnic University

KEYWORDS

Service Failure; joint service recovery ; consumer journey

ABSTRACT

This research assesses consumer responses to a service failure caused by one service provider and its impact on responses towards closely affiliated entities. It extended SFR research in multiple ways, namely by examining 1) a service failure sequence through the customer journey lens; 2) the effect of an external service recovery, that is, a recovery implemented by a firm other than the one that caused the original service failure; and 3) the effect of a joint service provider recovery, in contrast to the focus on the prevalent focus on a single firm service recovery. Data collection involved three experiments, set in an airline/hotel and within a festival context. Results indicated that consumer perceptions of and responses to the firm offering the external service recovery were more favorable when that firm was affiliated rather than unaffiliated with the firm causing the original service failure. US and Chinese respondents displayed significant differences in their responses.