Customer reactions to service failure and recovery in the restaurant industry: A covariance-based sem approach

• Published in: Proceedings of the 27th International Business Information Management Association Conference - Innovation Management and Education Excellence Vision 2020: From Regional Development Sustainability to Global Economic Growth, IBIMA 2016
• Main Author: Abd Rashid M.H.; Ahmad F.S.; Hasanordin R.
• Format: Conference paper
• Language: English
• Published: International Business Information Management Association, IBIMA 2016
• Online Access: https://www.scopus.com/inward/record.uri?eid=2-s2.0-84984601456&partnerID=40&md5=ac8c3f1c0128e72975f2182d1997b471

The current study examines the antecedents of recovery satisfaction among 338 customers who experienced service failures at casual restaurants in Malaysia. Data was analyzed using Covariance-Based Structural Equation Modelling (CB-SEM) technique via the utilization of Analysis of Moments Structures (AMOS). Findings indicate that distributive justice, procedural justice, and interactional justice were significantly related to customers' post-recovery satisfaction. Interactional justice demonstrates the strongest effect on recovery satisfaction compared to the other two dimensions. The study has enhanced the understanding of the antecedents of recovery satisfaction and has implications for marketing researchers and restaurateurs. It also confirms the appropriateness of justice theory in examining service recovery efforts performed by the restaurateurs. Further suggestions for future research are offered. Copyright © 2016 International Business Information Management Association