The Impacts of Service Failure, Service Recovery on Customer Satisfaction and Loyalty in the Context of Online Shopping

Abstract

Abstract:

Most of previous studies just focused on the traditional service industries and there is still lack of service failure theoretical construction and empirical research under the context of online shopping service failure. Based on the service failure and recovery theory in the traditional service industries, this paper draws samples from 281 college students and corporate employers who have service failure experience, and adopts structural equation modeling to explore the relationships among service failure, service recovery, customer satisfaction after recovery and loyalty in the online shopping context. The results show that:for process failure, customers tend to get physical compensations, while for result failure, customers tend to get physical compensations; customers' cognition of tangible recovery can bring greater customer satisfaction and loyalty than that of psychology recovery; online shopping customer satisfaction after recovery has a positive impact on customer loyalty. The results reveal the specific influence paths of service failure, service recovery and effects, and also provide some guidelines for online business to make effective service recovery strategies.

Key words: online shopping, service failure, service recovery, customer satisfaction after recovery, customer loyalty

Jian Zhaoquan, Ke Yun. The Impacts of Service Failure, Service Recovery on Customer Satisfaction and Loyalty in the Context of Online Shopping[J]. , 2017, 29(1): 175-186.

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