The Role of Emotions and Trust in Service Recovery in Business-to-Consumer Electronic Commerce

This study proposes a service recovery model to describe how cumulative satisfaction, loyalty and word-of-mouth are affected by complaints. The model is based on the role of positive and negative emotions in satisfaction with service recovery processes, with trust acting as a mediator of the relationship between satisfaction with service recovery and cumulative satisfaction, and between positive and negative emotions, satisfaction with service recovery and loyalty. The sample for this study consists of 303 business-to-consumer e-commerce users who made a complaint after an electronic transaction. The results show that positive emotions are a key factor in satisfaction with service recovery processes; this is in contrast to the major role that negative emotions have traditionally played in these models. Furthermore, trust mediates the relationship between satisfaction with service recovery and cumulative satisfaction, and between positive emotions and loyalty. Trust has an important influence on loyalty, and cumulative satisfaction is a strong predictor of word-of-mouth. While prior satisfaction with service recovery studies usually investigated only negative emotions and satisfaction with a specific transaction, this research considers both positive and negative emotions, as well as the mediating effect of trust on the relationship between satisfaction with a specific transaction and cumulative satisfaction.

[1]  Nadine Hennigs,et al.  Determinants of Consumers' Perceived Trust in IT-Ecosystems , 2010, J. Theor. Appl. Electron. Commer. Res..

[2]  Lawrence C. Stewart,et al.  Designing Systems for Internet Commerce , 1998 .

[3]  C. Fornell,et al.  The American Customer Satisfaction Index: Nature, Purpose, and Findings , 1996 .

[4]  F. Selnes Antecedents and consequences of trust and satisfaction in buyer‐seller relationships , 1998 .

[5]  Wynne W. Chin How to Write Up and Report PLS Analyses , 2010 .

[6]  P. Franses,et al.  The effect of relational constructs on customer referrals and number of services purchased from a multiservice provider: Does age of relationship matter? , 2002 .

[7]  Kevin Lane Keller Conceptualizing, Measuring, and Managing Customer-Based Brand Equity , 1993 .

[8]  Ruth N. Bolton,et al.  The effect of customers' emotional responses to service failures on their recovery effort evaluations and satisfaction judgments , 2002 .

[9]  W. Mangold,et al.  Word‐of‐mouth communication in the service marketplace , 1999 .

[10]  Laurette Dubé,et al.  Service provider responses to anxious and angry customers: different challenges, different payoffs , 2004 .

[11]  Michel Tenenhaus,et al.  PLS path modeling , 2005, Comput. Stat. Data Anal..

[12]  Qing Hu,et al.  Assimilation of Enterprise Systems: The Effect of Institutional Pressures and the Mediating Role of Top Management , 2007, MIS Q..

[13]  Dwayne D. Gremler,et al.  Twenty Years of Service Guarantee Research , 2009 .

[14]  Jagdip Singh,et al.  Agency and trust mechanisms in consumer satisfaction and loyalty judgments , 2000 .

[15]  Wynne W. Chin The partial least squares approach for structural equation modeling. , 1998 .

[16]  L. Harris,et al.  The four levels of loyalty and the pivotal role of trust: a study of online service dynamics , 2004 .

[17]  Jagdip Singh,et al.  Consumer Trust, Value, and Loyalty in Relational Exchanges , 2002 .

[18]  Alison Dean,et al.  The contribution of emotional satisfaction to consumer loyalty , 2001 .

[19]  Shankar Ganesan Determinants of Long-Term Orientation in Buyer-Seller Relationships , 1994 .

[20]  Martin A. Safer,et al.  Sources of Bias in Memory for Emotions , 2002 .

[21]  Moshe Davidow,et al.  Have You Heard the Word? the Effect of Word of Mouth on Perceived Justice, Satisfaction and Repurchase Intentions Following Complaint Handling , 2003 .

[22]  Janet R. Mccoll-Kennedy,et al.  Chapter 10 Customer Emotions in Service Failure and Recovery Encounters , 2006 .

[23]  Stephen S. Tax,et al.  Customer Evaluations of Service Complaint Experiences: Implications for Relationship Marketing: , 1998 .

[24]  Chao-Min Chiu,et al.  Antecedents of trust in online auctions , 2010, Electron. Commer. Res. Appl..

[25]  C. Fornell,et al.  Rational and Adaptive Performance Expectations in a Customer Satisfaction Framework , 1995 .

[26]  Youjae Yi A Critical review of consumer satisfaction , 1989 .

[27]  Michael D. Johnson,et al.  Service Equity, Satisfaction, and Loyalty: From Transaction-Specific to Cumulative Evaluations , 2003 .

[28]  Veronica Liljander,et al.  Customer Loyalty to Content-Based Web Sites: The Case of an Online Health Care Service , 2004 .

[29]  F. Lai,et al.  Understanding the Relationships of Quality, Value, Equity, Satisfaction, and Behavioral Intentions Among Golf Travelers , 2009 .

[30]  Mark A. Davis,et al.  Antecedents to customer expectations for service recovery , 1994 .

[31]  James G. Maxham,et al.  Modeling customer perceptions of complaint handling over time: the effects of perceived justice on satisfaction and intent , 2002 .

[32]  Christine T. Ennew,et al.  The impact of perceived justice on consumers' emotional responses to service complaint experiences , 2005 .

[33]  S. Hunt,et al.  The Commitment-Trust Theory of Relationship Marketing , 1994 .

[34]  P. Blau Exchange and Power in Social Life , 1964 .

[35]  J. Chébat,et al.  How emotions mediate the effects of perceived justice on loyalty in service recovery situations: an empirical study , 2005 .

[36]  Jennifer Aaker,et al.  Recalling Mixed Emotions , 2008 .

[37]  A. Gustafsson Customer satisfaction with service recovery , 2009 .

[38]  Manuela López,et al.  Determinants of E-WOM Influence: The Role of Consumers' Internet Experience , 2014, J. Theor. Appl. Electron. Commer. Res..

[39]  D. Kahneman,et al.  Duration neglect in retrospective evaluations of affective episodes. , 1993, Journal of personality and social psychology.

[40]  M. Schweitzer,et al.  Feeling and believing: the influence of emotion on trust. , 2003, Journal of personality and social psychology.

[41]  R. Marshall,et al.  Exploring Customer Loyalty Following Service Recovery , 2008 .

[42]  Wynne W. Chin Issues and Opinion on Structural Equation Modeling by , 2009 .

[43]  Poul Houman Andersen,et al.  Emotions, trust and relationship development in business relationships: A conceptual model for buyer–seller dyads , 2006 .

[44]  R. Oliver Customer delight: Foundations, findings, and managerial insight☆ , 1997 .

[45]  Joseph P. Cannon,et al.  An Examination of the Nature of Trust in Buyer–Seller Relationships: , 1997 .

[46]  T. Andreassen,et al.  From Disgust to Delight , 2001 .

[47]  D. Ferrin,et al.  Removing the shadow of suspicion: the effects of apology versus denial for repairing competence- versus integrity-based trust violations. , 2004, The Journal of applied psychology.

[48]  Pauline Ratnasingham Trust in Web-based electronic commerce security , 1998, Inf. Manag. Comput. Secur..

[49]  Stephen S. Tax,et al.  Customer Evaluations of Service Complaint Experiences: Implications for Relationship Marketing , 1998 .

[50]  R. Oliver A Cognitive Model of the Antecedents and Consequences of Satisfaction Decisions , 1980 .

[51]  W. Kim,et al.  The effects of perceived justice on recovery satisfaction, trust, word-of-mouth, and revisit intention in upscale hotels. , 2009 .

[52]  D. Aaker Building Strong Brands , 1995 .

[53]  A. Mattila The effectiveness of service recovery in a multi‐industry setting , 2001 .

[54]  Glenn Robert Bewsell Distrust, Fear and Emotional Learning: An Online Auction Perspective , 2012, J. Theor. Appl. Electron. Commer. Res..

[55]  Osman M. Karatepe Customer complaints and organizational responses: the effects of complainants' perceptions of justice on satisfaction and loyalty , 2006 .

[56]  Shih-Chieh Chuang,et al.  The Effect of Induced Positive and Negative Emotion and Openness-to-Feeling in Student’s Consumer Decision Making , 2007 .

[57]  Elsevier Sdol,et al.  International Journal of Research in Marketing , 2009 .

[58]  C. Fornell,et al.  Evaluating structural equation models with unobservable variables and measurement error. , 1981 .

[59]  A. Rangaswamy,et al.  Customer satisfaction and loyalty in online and offline environments , 2003 .

[60]  Anol Bhattacherjee,et al.  Understanding Information Systems Continuance: An Expectation-Confirmation Model , 2001, MIS Q..

[61]  Justin Kruger,et al.  What to Do on Spring Break? , 2003, Psychological science.

[62]  Danielle Fowler,et al.  A strategic approach to building online customer loyalty: integrating customer profitability tiers , 2006 .

[63]  R. Sohi,et al.  IT competency and firm performance: is organizational learning a missing link? , 2003 .

[64]  Rodolfo Vázquez-Casielles,et al.  Satisfaction with service recovery: Perceived justice and emotional responses , 2009 .

[65]  Beatriz Moliner Velázquez La formación de la satisfacción/insatisfacción del consumidor y del comportamiento de queja: aplicación al ámbito de los restaurantes. , 2004 .

[66]  J. Nunnally Psychometric Theory (2nd ed), New York: McGraw-Hill. , 1978 .

[67]  Craig A. Smith,et al.  Patterns of cognitive appraisal in emotion. , 1985, Journal of personality and social psychology.

[68]  Rex B. Kline,et al.  Principles and Practice of Structural Equation Modeling , 1998 .