TY - JOUR
T1 - The role of regulation and financial compensation on trust recovery
AU - Gasparotto, Lisiane Santos
AU - Pacheco, Natália Araujo
AU - Basso, Kenny
AU - Corte, Vitor Francisco Dalla
AU - Rabello, Gisele Costa
AU - Gallon, Shalimar
N1 - Publisher Copyright:
© 2018 Australian and New Zealand Marketing Academy
PY - 2018/2
Y1 - 2018/2
N2 - Although service recovery tactics have been extensively investigated, little is known about what firms should do when service recovery fails (i.e., double deviation). It is primordial to understand whether and how customer trust may be recovered after a double deviation. The results of an experimental study show that it is possible to recover customer trust through improvements in organizational processes (i.e., regulation) and discounts (i.e., financial compensation). Remarkably, regulation and financial compensation lead to similar trust levels, which means that these trust recovery tactics are equally successful. Moreover, attributions of benevolence explain why regulation and financial compensation can recover customer trust after a double deviation.
AB - Although service recovery tactics have been extensively investigated, little is known about what firms should do when service recovery fails (i.e., double deviation). It is primordial to understand whether and how customer trust may be recovered after a double deviation. The results of an experimental study show that it is possible to recover customer trust through improvements in organizational processes (i.e., regulation) and discounts (i.e., financial compensation). Remarkably, regulation and financial compensation lead to similar trust levels, which means that these trust recovery tactics are equally successful. Moreover, attributions of benevolence explain why regulation and financial compensation can recover customer trust after a double deviation.
KW - Discount
KW - Double deviation
KW - Organizational process
KW - Service failure
KW - Service recovery
KW - Trust violation
UR - https://www.scopus.com/pages/publications/85041591780
U2 - 10.1016/j.ausmj.2018.01.002
DO - 10.1016/j.ausmj.2018.01.002
M3 - Article
AN - SCOPUS:85041591780
SN - 1441-3582
VL - 26
SP - 10
EP - 16
JO - Australasian Marketing Journal
JF - Australasian Marketing Journal
IS - 1
ER -