Service recovery evaluations: GLBT versus hetero customers

Although Gay, Lesbian, Bisexual, and Transgender (GLBT) customers have been acknowledged as a growing market segment in the hospitality and tourism industry, our understanding with regard to their perceptions of service encounters barely exists. During service encounters, outcome quality and process quality are generally understood as being the two main components of service evaluations. Yet, two competing theories (fairness heuristic and two-factor theories) suggest opposite patterns of interaction effects of the two qualities. This study examines the effects of outcome and process qualities on GLBT and heterosexual customers’ evaluation of service recovery in a hotel setting. Our findings, based on 374 respondents, suggest that the effects of process quality are more pronounced when outcome quality is favorable, thus supporting the two-factor theory. Also, GLBT customers’ overall recovery evaluation is more positive than heterosexual customers’. Implications of these findings for service managers are discussed.