Service Recovery Paradox: Implications from an Experimental Study in a Restaurant Setting

ABSTRACT This study assessed changes in customers' attitudinal and behavioral outcomes after experiencing a service failure and service recovery. This study utilized scenario experimentation, manipulating the three dimensions of justice at two levels each (2 × 2 × 2 between-groups factorial design). The MANOVA test found no recovery paradox effect in the experimental scenarios. Double deviation effect on revisit intention was observed in one scenario (low interactional justice, low procedural justice, and high distributive justice). Recovery efforts produced a slightly higher overall satisfaction and word-of-mouth intention in some scenarios. In most scenarios, customers' post-recovery overall satisfaction and behavioral intentions were not significantly lower than those of pre-failure. The findings indicate that recovery efforts are indispensable, but a service failure and recovery situation should not be considered as an opportunity to impress customers.

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