Influence of coupons on online travel reservation service recovery

Previous research on coupons has focused mainly on their marketing functions and face-to-face customer service. The present study integrated the face value and validity period of coupons into a model that determines customer satisfaction and repurchase intention in online tourism and hospitality service recovery. A randomly assigned scenario-based experiment was conducted with 196 respondents. Six scenarios involving a coupon remedy were developed, simulating two factorial dimensions: coupon validity period (half year vs. one year) and coupon face value (RMB 450/135/5). Empirical findings revealed that face value and validity period are significantly correlated with satisfaction after recovery. However, no significant correlation exists between face value and validity period, and repurchase intention. This study can help online vendors understand customers' perceptions of coupons when an online service failure occurs. For service excellence and financial returns, tourism and hospitality businesses have to identify and pay attention to remedying online service failures by using carefully designed coupons.