Is guarantee compensation enough? The important role of fix and employee effort in restoring justice

We conducted an experiment examining the influence of guarantee compensation and other service recovery tactics on customers’ justice perceptions across hotel failures of varying severity. Our study was driven by a noted lack of research into the benefits of service guarantees as a recovery tool and past findings suggesting that hotel management may be relying too heavily on guarantee compensation to recover failures. Findings suggest that compensation, fix and failure severity jointly influence customers’ perceptions of distributive justice. Perceived employee effort has a large influence on guests’ perceptions of interactional justice, however, it does not interact with failure severity to influence justice.