The impact of the recovery paradox on retailer‐customer relationships

Abstract

Purpose

The purpose of this paper is to determine the effects of recovery and strength of recovery on satisfaction and voice behaviors.

Design/methodology/approach

Two role‐playing experiments involving product failure followed by recovery at a video store were conducted. Data collected from students were analyzed using t‐tests and ANOVA.

Findings

Relationship satisfaction after a strong recovery was higher than it would have been, had the failure not occurred in the first place. In the case of store satisfaction, the original level was restored but not exceeded. Furthermore, customers appear to have an expectation threshold for customer recovery. A recovery effort that fell below this threshold led to sharply lower expectations. On the other hand, a customer recovery far beyond the customers' expectation threshold was no more effective than one that just exceeded it. Product satisfaction was lower regardless of the strength of recovery. Internal voice behaviors were higher following a customer recovery but a stronger recovery did not lead to any more internal voice behaviors than a weak recovery. External voice behaviors were not affected by a customer recovery.

Practical implications

The key to managing complaints in companies is to find just the right amount to spend for recovery. If the recovery is below the customer's expectation threshold, she will be dissatisfied. On the other hand, a recovery much above the customer's expectation threshold will not lead to any greater satisfaction, any more internal voice behaviors, or any fewer external voice behaviors.

Originality/value

The study looks at the influence of recovery on satisfaction with respect to store, relationship, and product. It also looks at the effect of recovery on internal and external voice behaviors.

Citation

Priluck, R. and Lala, V. (2009), "The impact of the recovery paradox on retailer‐customer relationships", Managing Service Quality: An International Journal, Vol. 19 No. 1, pp. 42-59. https://doi.org/10.1108/09604520910926809