Year: 2011
Type: article
Abstract: This paper examines the effi ciency of different service recovery compensation types, namely monetary, quasi-monetary and non-monetary compensation. All compensation types had the same economic cost for the company. Manipulation was conducted with the use of hypothetical scenarios within the experimental design. Experimental manipulation was satisfactory as indicated by the linear regression results. ANOVA was used for the analysis of average differences among service recovery compensation types. Results have shown that consumers prefer monetary compensation (greatest effi ciency) above the quasi-monetary and non-monetary compensation. There were no signifi cant differences between quasi-monetary and non-monetary compensation types. In case of severe service failure managers should give consumers a monetary compensation as a way of restoring their satisfaction. In cases of milder service failures quasi-monetary or non-monetary compensation are equally effi cient in restoring satisfaction.
Language: English
Subfield: Marketing
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2188766669