Behavioural responses to service encounter involving failure and recovery: the influence of contextual factors

This study investigates two features of customer satisfaction within the context of service failure and recovery: (i) the effect of perceived justice on customer satisfaction and (ii) the effect of customer satisfaction on repurchase intentions, negative word-of-mouth, and intention to complain. The study takes into account the influence of important contextual factors, including severity of failure, recovery responsiveness, attitude toward complaining, switching cost, and the relationship level. Based on a survey of 556 customers with complaints in Brazil, the results supported the influence of perceived justice on satisfaction and of satisfaction on behavioural responses. Specifically, findings revealed that perceived failure severity, attitude toward complaining, and switching costs were the more relevant contextual factors, as these were significantly associated with satisfaction, intention to complain, and negative word-of-mouth.