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The impact of online service recovery on customer satisfaction: Empirical evidences from service operations

  • Bin Gu*
  • , Qiang Ye
  • *Corresponding author for this work
  • University of Texas at Austin
  • School of Management, Harbin Institute of Technology

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

Online service recovery tools such as managerial responses are increasingly used by service providers to address customer concerns in online WOM platforms. In this paper, we analyze the effectiveness of such online service recovery effort on customer satisfaction using data retrieved from a major online travel agency in China. We find that online service recovery is highly effective among the least satisfied customers but has limited influence on other customers. Moreover, we show that the public nature of online service recovery introduces a new dynamic among customers. While online service recovery increases future satisfaction of the complaining customers who receive the recovery effort, it significantly decreases future satisfaction of those complaining customers who observe but do not receive the recovery effort. We show the result is consistent with the peer-induced fairness theory. In addition, this study reveals that a customer's satisfaction with a service provider demonstrates mean reversion over multiple interactions. It is important to control for such dependence in assessing the true impact of online service recovery.

Original languageEnglish
Title of host publication16th Americas Conference on Information Systems 2010, AMCIS 2010
Pages1790-1801
Number of pages12
StatePublished - 2010
Externally publishedYes
Event16th Americas Conference on Information Systems 2010, AMCIS 2010 - Lima, Peru
Duration: 12 Aug 201015 Aug 2010

Publication series

Name16th Americas Conference on Information Systems 2010, AMCIS 2010
Volume3

Conference

Conference16th Americas Conference on Information Systems 2010, AMCIS 2010
Country/TerritoryPeru
CityLima
Period12/08/1015/08/10

Keywords

  • Customer satisfaction
  • Expectations-confirmation theory
  • Online managerial response
  • Peer-induced fairness
  • Service operations
  • Service recovery

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