Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1027267 | Australasian Marketing Journal (AMJ) | 2010 | 8 Pages |
This experimental study utilised a sample of 131 online panel members to examine how service failure severity and perceived employee effort influence consumers’ postrecovery negative WOM and trust evaluations in the context of a 100% satisfaction guarantee. In this study, while the promised guarantee compensation is forthcoming, the failure remains uncorrected. Findings indicate that while the level of effort does not influence negative WOM when a major problem eventuates, high versus low levels of effort are appreciated for a minor failure. Evaluations of trust are enhanced when employees display a high versus a low level of effort across both minor and severe failure conditions. Overall, findings suggest that it would be unwise for organisations offering a “100% satisfaction or your money back” guarantee to rely too heavily on economic compensation to recover from service failures; the failure itself must also be rectified.