The Doer Effect of Failure and Recovery in Multi-Agent Cases: Service Supply Chain Perspective

Abstract

Purpose The purpose of this paper is to explore the doer effect of service failure (SF), good prior experience (GPE) and recovery on overall customer satisfaction and repurchase intentions for multi-agents in tourism service supply chain (TSSC). It specifically focuses on internal and external failure and recovery. Design/methodology/approach The study employs a 2x2x3 between-subjects experimental design with 12 diverse scenarios. It aims to examine the main effects of GPE and the interaction effects of SF and recovery on overall customer satisfaction and repurchase intentions. Findings The main findings show that consumers do not show favorable behavioral outcomes when they have GPE with an affiliated party. Results of the experiments demonstrate that for hotels, there is no interaction effect between failure and recovery regarding overall customer satisfaction and repurchase intentions; however, for travel agencies, an interaction effect has been found. This indicates that an internal failure (by travel agency) should be recovered internally to increase the behavioral outcomes for travel agency. However, if there is an external failure (by hotel) then the essential thing is providing a recovery. Originality/value Although the service literature covers failure and recovery in diverse contexts, these concepts are rarely studied from a multi-agent perspective in the service supply chain literature. In such a chain, a failure by a different party may remain unresolved, and this may create a positive effect on another party, if they provide recovery for the failure. This means that the doer of the failure and/or recovery (the party responsible from the failure and/or recovery) may have an impact on behavioral outcomes. However, previous literature has neglected to focus on the important issue of which entity/party performs the failure and/or recovery, and the effect on behavioral outcomes. By focusing on a principal-agent relationship in a TSSC, the study aims to address this research gap.