Consumer responses to service recovery strategies: The moderating role of online versus offline environment

Abstract

In this article, we examine consumer reactions to two service recovery strategies: fixing the service failure for a fee and fixing the service failure for no fee and adding compensation. We expect that the more desirable recovery strategy will result in higher levels of satisfaction and higher postpurchase intentions. However, the effect of these recovery strategies on consumers' reactions is likely to be moderated by the setting (online versus offline). The empirical results support our predictions that the effect of the service failure recovery on satisfaction and postpurchase intentions would be stronger in offline media than in online media. Managerial implications thus are presented.