Turning service failures into customer loyalty: This study investigates the impact of customer equity considerations on service recovery across various service industries. By examining the roles of distributional, procedural, and interactional fairness, the research offers insights into how companies can effectively address service failures and build stronger customer relationships, which is very important for customer loyalty. Through an experimental study, the authors assess the impact of these fairness perceptions on perceived quality, satisfaction, loyalty, and trust. The findings reveal that distributional and procedural fairness significantly improve scores for service quality, customer satisfaction, loyalty, and trust, while interactional fairness primarily enhances customer trust perceptions. The results also suggest that the effects of equity considerations in service recovery are specific to different service industries. These findings offer valuable guidance for companies seeking to optimize their service recovery strategies and cultivate lasting customer loyalty.
This paper aligns with the scope of International Journal of Service Industry Management, which focuses on service management and marketing strategies. By examining the role of customer equity considerations in service recovery, the research contributes to the understanding of customer relationship management in service industries, a key area of interest for the journal.