Service recovery as a relationship tool and its impact on customer trust and loyalty

Abstract

The main goal of this paper is to examine service recovery under a strategic perspective, as a relationship tool. A theoretical model has been proposed and tested, with focus on interrelationships among specifi c evaluations of complaint process, trust, switching costs, perceived value, and loyalty. The fi ndings indicate that customer trust and loyalty are affected by the way complaints are resolved. Perceptions of justice affected satisfaction with complaint management. Consumer trust is strongly infl uenced by post-complaint satisfaction. Finally, both intentions of repurchase and word-of-mouth communication were infl uenced by trust, satisfaction and perceived value. Switching costs did not moderate the relationships between satisfaction, trust and loyalty, and demonstrated to have low infl uence on intentions of repurchase. Therefore, the creation of mechanisms that inhibit customers’ exit is not enough keep them, and an adequate complaint management may be an effi cient tool to develop long-termed relationships.