Effects of differential methods of compensation and employee empowerment on customer satisfaction and loyalty in service recovery
Bhandari, Mahesh Singh and Polonsky, Michael 2007, Effects of differential methods of compensation and employee empowerment on customer satisfaction and loyalty in service recovery, in ANZMAC 2007 : 3Rs, reputation responsibility relevance, University of Otago, School of Business, Dept. of Marketing, Dunedin, New Zealand, pp. 2705-2712.
Australian and New Zealand Marketing Academy Conference
University of Otago, School of Business, Dept. of Marketing
Place of publication
Dunedin, New Zealand
This research examined the effects of varying compensation (refund and replacement) and employee empowerment (empowered and non-empowered) in service recover situations, using a 2x2 experiment. Analysis was undertaken using mean contrasts and ANOVA's. Findings suggest that empowerment and refund independently impact on post recovery consumer loyalty and satisfaction, but there is no interaction effect.
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