Psychological reports
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Psychological reports · Dec 2006
Randomized Controlled TrialAn experimental investigation of justice-based service recovery on customer satisfaction, loyalty, and word-of-mouth intentions.
Service recovery is related to many important organizational outcomes such as customer satisfaction, loyalty, and profitability. Within the theoretical framework of organizational justice, an experiment using a simulated "live" service failure was used to assess the effects of justice-based service-recovery strategies on customer satisfaction, loyalty, positive word-of-mouth intentions, and negative word-of-mouth intentions. ⋯ Satisfaction and loyalty for those in the failure conditions were equal to, although not higher than, in the no-failure control condition. Practical implications for organizational practices are discussed.