Attila Yaprak and Sujay Dutta’s Reasearch has been accepted for publication at the Journal of Consumer Satisfaction, Dissatisfaction, and Complaining Behavior
Attila Yaprak, a professor of marketing and international business at the Mike Ilitch School of Business and Sujay Dutta have their paper “Finding the Sweet Spot: Optimizing Compensation in Proactive Service Recovery” accepted for publication at the Journal of Consumer Satisfaction, Dissatisfaction, and Complaining Behavior.
Abstract:
Extant service recovery research shows that compensation positively affects post-recovery consumer outcomes. However, optimal compensation strategies remain unclear. Our research examined the impact of compensation on the relationship between proactive or reactive vendor initiation and associated consumer outcomes in service failure-recovery situations, anchored in justice theory. Using vignettes, we conducted between-subjects studies and found that proactive initiation boosts consumer satisfaction and decreases negative word-of-mouth and anger/offense feelings. These effects were moderated by the level of compensation within specific failure severity boundaries. Our research contributes to the service recovery literature and offers vendors objective guidelines to make cost-effective compensation decisions.
- Fahmida Khanom
