Service Failure and Recovery in Electronic Retailing: An Investigation of Product-Oriented and Service-Oriented Transactions

Service Failure and Recovery in Electronic Retailing: An Investigation of Product-Oriented and Service-Oriented Transactions

Nelson Massad, John C. Beachboard
Copyright: © 2009 |Pages: 15
DOI: 10.4018/irmj.2009070101
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Abstract

Appropriate vendor response to service failures (i.e., service recovery) may provide a means to strengthen their customer relationships. Service recovery is a well-investigated concept in the bricks-and-mortar environment, and there is a growing body of empirical research exploring service failure and recovery in the electronic environment. The present study addresses a gap in the literature by exploring how vendors recover from service failures with product-oriented transactions (e.g., online purchasing of books, apparel) and with service-oriented transactions (e.g., online banking). Failures and recoveries in product-oriented and service-oriented transactions were explored after the content analysis of 513 customer-reported incidents. The findings show that vendors are not effectively recovering from service failures, regardless of the type of transaction. Results and implications of these findings are also discussed.

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