Equity and repurchase intention following service failure

Abstract

Failure to consistently deliver promises is a likely outcome for high contact services. While many organizations create blueprints to recover from service failures, these tend to focus on production processes rather than the individual needs of customers. Develops a framework based on equity, for studying the effects on customers of service failure and recovery. In a study of restaurant customers, the construct of equity is found to be significantly correlated with respondents’ intention to repurchase. Significant differences in equity were observed between genders and age groups, suggesting that service recovery processes should be more closely tailored to the demographic characteristics of customers.