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Factors influencing satisfaction with service recovery and word-of-mouth: an empirical study of banking industry in Malaysia
Muhammad Tahir Jan1, Nurbainy Susendra Mohd Anuar2, Naheed Sultan3.
Purpose - The purpose of this paper is to investigate the impact on external
attributions, unstable attributions, uncontrollable attributions, service recovery efforts on
customer satisfaction with service recovery. In addition, the paper also attempts to
investigate the impact of customer satisfaction with service recovery on word-of-mouth
intention. Design/methodology/approach – A self-administered questionnaire, adapted from
previous studies, was distributed through convenience sampling method to those customers
who had experienced service failures in the banks and had also afterwards complaints about
that experience. A total of 350 questionnaires were distributed in order to collect data for the
same purpose. Findings - The results show external attributions, unstable attributions,
uncontrollable attributions, service recovery efforts have significant effects on customer
satisfaction with service recovery. Moreover, there is also a significant positive impact of
customer satisfaction with service recovery on word-of-mouth intentions. Practical
implications – In the banking sector, service recovery is an important element in satisfying
the customers. As a result, this study will assist the banks in achieving higher profit, higher
market share and higher return by ensuring customer satisfaction when the complaints are
heard and addressed. It will also generate positive word of mouth, which may eventually
create a positive image of the banks. Originality/value – This paper is a unique attempt to
understand the critical factors behind customer satisfaction with regard to service recovery,
particularly in Malaysian banking industry. It also has many methodological and practical
implications.
Affiliation:
- International Islamic University Malaysia, Malaysia
- International Islamic University Malaysia, Malaysia
- International Islamic University Malaysia, Malaysia
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