Service Recovery and Fairness Perceptions in Collectivist and Individualist Contexts

Abstract

As in other social exchanges, cultural norms and values are likely to influence customers’ perceptions of fairness and satisfaction with the service recovery process. This study contrasts the impact of two recovery attributes (compensation and explanation) on customers’ postrecovery perceptions in a cross-cultural context (East-Asia versus United States). The results from this experimental study indicate that compensation seems to drive customers’ fairness perceptions, in particular with American consumers. Offering an explanation for the failure had a positive impact on customer perceptions regardless of the customer’s cultural orientation. Finally, the study’s findings show that perceived fairness is directly linked to postrecovery satisfaction.