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Moral judgment and perceived justice in service recovery

Moral judgment and perceived justice in service recovery The purpose of this study is to examine the effect of perceived justice and consumer's moral judgment of a service failure on recovery outcomes.Design/methodology/approachThe research model is examined by adopting a field study approach followed by an experiment. The SPSS program with the PROCESS tool was used to analyze the simple moderation and moderated mediation effects.FindingsThe research findings show that consumer's moral judgment of a service failure moderates the relationship between service recovery (psychological compensation vs monetary compensation) and recovery outcomes (recovery satisfaction, negative word of mouth and repurchase intention). Moreover, the conditional indirect effect of service recovery on recovery outcomes through perceived justice is significant when service failure is seen as less moral. Specifically, consumers report lower perceived justice and react negatively to recovery measures when service failure is seen as less moral. In contrast, when consumers perceive a service failure as moral, a psychological compensation outperforms a monetary compensation, lessening negative word of mouth (NWOM).Originality/valueThese findings provide important insights into recovery measure development when considering consumer moral perspectives. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Marketing Intelligence & Planning Emerald Publishing

Moral judgment and perceived justice in service recovery

Marketing Intelligence & Planning , Volume 39 (4): 15 – May 12, 2021

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Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
0263-4503
DOI
10.1108/mip-01-2020-0032
Publisher site
See Article on Publisher Site

Abstract

The purpose of this study is to examine the effect of perceived justice and consumer's moral judgment of a service failure on recovery outcomes.Design/methodology/approachThe research model is examined by adopting a field study approach followed by an experiment. The SPSS program with the PROCESS tool was used to analyze the simple moderation and moderated mediation effects.FindingsThe research findings show that consumer's moral judgment of a service failure moderates the relationship between service recovery (psychological compensation vs monetary compensation) and recovery outcomes (recovery satisfaction, negative word of mouth and repurchase intention). Moreover, the conditional indirect effect of service recovery on recovery outcomes through perceived justice is significant when service failure is seen as less moral. Specifically, consumers report lower perceived justice and react negatively to recovery measures when service failure is seen as less moral. In contrast, when consumers perceive a service failure as moral, a psychological compensation outperforms a monetary compensation, lessening negative word of mouth (NWOM).Originality/valueThese findings provide important insights into recovery measure development when considering consumer moral perspectives.

Journal

Marketing Intelligence & PlanningEmerald Publishing

Published: May 12, 2021

Keywords: Service failure; Psychological compensation; Monetary compensation; Moral judgment; Perceived justice; Recovery outcomes

References