Reducing consumer switching intentions following service failure : do empowerment and apology help?
Bhandari, Mahesh S. and Polonsky, Michael 2006, Reducing consumer switching intentions following service failure : do empowerment and apology help?, in ANZMAC 2006 : Advancing theory, maintaining relevance, proceedings, Queensland University of Technology, School of Advertising, Marketing and Public Relations, Brisbane, Qld., pp. 1-7.
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Patti, Charles H. Drennan, Judy Ali, Yunus van Dessel, Maria
Australian and New Zealand Marketing Academy Conference
Queensland University of Technology, School of Advertising, Marketing and Public Relations
Place of publication
This research explores the effectiveness of apology and empowerment as service recovery actions and their impact on consumers switching intentions within the hospitality industry. It also examines two different types of failure - process failure and outcome and whether consumer-switching intentions vary based on failure type. Results suggest that apology is effective in reducing switching intentions in both types of failure. Employee empowerment reduces switching intentions in outcome failure situations, but increases switching intentions in process settings. There is also an interaction effect of apology and empowerment in the outcome failure setting, but not in the process failure setting. Recommendations for managing service recovery are provided.
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