Managing online service recovery: procedures, justice and customer satisfaction

Abstract

Purpose The Internet has changed the way services are delivered and has created new forms of customer-firm interactions. Whilst online service failures remain inevitable, the Internet offers opportunities for delivering efficient service recovery through the online channel. Notwithstanding, research evidence on how firms can deliver online service recovery remains scarce. This study investigates the impact of two online service recovery strategies - online information and technology-mediated communication - on customer satisfaction, switching and word-of-mouth intentions. Design/methodology/approach A scenario-based experiment is employed. Data are analysed using partial least squares structural equation modeling (PLS-SEM). Findings Online information and technology-mediated interactions can be used as online service recovery strategies. When fair, online service recovery can restore customer satisfaction, lower switching and enhance positive word-of-mouth. Interactional justice delivered through technology-mediated communication is a strong predictor of satisfaction with online service recovery. Yet, customers in subscription services show greater expectations of online service recovery than those in non-subscription services. Research limitations/implications Further research could examine the impact of online service recovery on relational constructs, such as trust. Since customers participate in the online recovery process, future research could investigate the role of customers as co-creators of online service recovery. Practical implications Service managers should design online recovery strategies that meet customer need for interactional justice, for example, bespoke emails, and virtual chat communications showing genuine customer care. Originality/value Online information and technology-mediated communication function as online service recovery strategies. Customer perceptions of