A Cross-National Comparison of Consumer Perceptions of Service Recovery

Abstract

This paper explores the cross-cultural impacts of service recoveries such as the consumer propensity to spread positive or negative word-of-mouth about casual dining restaurants. American and Korean consumers were compared in an effort to identify whether they had any differences or similarities in the effects of service recovery in terms of word-of mouth and future patronage. The results of the study reveal that consumers have different behaviors on service recoveries in terms of future patronage, word-of-mouth intent and loyalty according to their culture. In general, Korean consumers' word-of-mouth intent, patronage, and loyalty tended to increase more significantly than those of American customers after successful service recoveries.

Key Words:

• Service recovery
• service failure
• word-of-mouth communication
• loyalty