ENOUGH IS ENOUGH! OR IS IT? FACTORS THAT IMPACT SWITCHING INTENTIONS IN EXTENDED TRAVEL SERVICE TRANSACTIONS

Abstract

In this article interrelationships between length of core service failure (defined as service delay), time of core service failure, and satisfaction with service recovery efforts are proposed. These interrelationships are hypothesized to impact customers' decisions to dissolve a service relationship. It was found that as the length of the core service delay increases and as that delay occurs later in the extended service transaction, satisfactory recovery efforts are less likely to reduce subsequent switching intentions. Components of recovery satisfaction, and how the impact of those components may vary in the case of extended service transactions were also examined. Compensation and service provider apology are found to have a greater impact on customer satisfaction than organizational initiation or response speed.

Keywords:

• Service failure
• service delays
• airlines

Notes

1. Initiation refers to an organization‐initiated recovery effort, that is, the service organization takes the initiative to respond to the failure before a complaint is lodged by the customer.

2. Looking for another airline could presumably depend on route traveled. Although this factor could potentially affect the strength of the Satisfaction→ Reduced Switching relationship, it is not expected to impact the hypothesized moderating effects.

3. Identification issues precluded the use of a structural equation model to examine the hypotheses. Therefore, a hierarchical regression analysis was employed.