Yuan-Shuh Lii

The joint effects of compensation frames and price levels on service recovery of online pricing error

Purpose – The purpose of this research is to explore the joint effect of compensation frames and product‐price levels on consumer attitudinal reactions and behavioral intentions after a service failure involving online pricing error.Design/methodology/approach – A 2 (compensation frames: dollar off versus percentage off) x 2 (product‐price levels: high‐price versus low‐price) between‐subjects factorial design was used to test the hypotheses.Findings – The findings indicate that consumers perceive a price reduction for compensation framed in dollar terms as more (less) fair than the same price reduction framed in percentage terms for high‐price product (low‐price product). The higher consumer perceptions of compensation fairness are, the more likely consumers are to have positive post‐recovery satisfaction and trust. Consequently, consumers who are satisfied with the compensation effort are more likely to trust the service firm, engage in positive eWOM behavior, and purchase the item.Practical implications...

Handling online service recovery

Much of service recovery research was based on brick-and-mortar, not online games.Post-recovery trust is vital for loyalty behaviors in the online game context.Trust is fundamental for forming trust relationships after online service failures.The results help to design marketing strategies for online game service recovery. This study examines online service recovery influenced by the relative effects of four dimensions of justice (distributive, procedural, interpersonal, and informational) on consumer attitudinal reactions (satisfaction and trust) and their subsequent effects on behavioral intentions (e-WOM and repurchase intention) in online games. A web-based survey of Taiwan Internet forums was used to collect data and yielded 265 valid responses. Structure equation modeling was conducted to assess the proposed relationships. Results revealed that all four dimensions influenced satisfaction and trust, with distributive justice producing the strongest relative effect in the online game context. As expected, positive perceptions of online service recovery efforts not only left customers satisfied and trusting, but also generated positive e-WOM about their service experiences as well as encouraged them to continue the service. An important contribution of this study for service recovery concerns the differential effects of perceived justice on post-recovery trust that is vital in forming loyalty behaviors in the online game context. Trust is a fundamental principle not only for establishing online exchange relationships but also for establishing trust relationships after online service failures. The results have the potential to design better marketing strategies for online game service recovery.

What Men and Women Really Want: Differences in Gender-Based Evaluations of Service Recovery Efforts

ABSTRACT This article presents a model of the effects of perceived justice dimensions (distributive, procedural, and interactional) on consumer attitude (satisfaction and trust) and behavioral intention (extra-role behaviors and repurchase intention). Additionally, gender is considered as a moderating variable in the proposed model. A survey was carried out among undergraduate students in a large university in Taiwan. Findings indicate that perceived justice influences satisfaction and trust, which then mediates customer extra-role behaviors and repurchase intention. Concerning the moderator, gender, men and women pay attention to distributive justice differently.