Examining the Impact of Locus and Justice Perception on B2b Service Recovery

Abstract

Purpose - This paper aims to examine the relationships between locus of attribution, recovery justice perceptions, recovery satisfaction and repurchase intention after a B2B service failure. Design/methodology/approach - Structural equation modeling was used to analyze 300 customer surveys from hospitality businesses. The connections between the selected variables were explored through path analysis using AMOS 24. Findings - Based on the results, the more that business customers blame their wholesalers after a service failure, the less they perceive the procedures in the recovery process as fair. Findings also indicate that in the recovery process, interactional connections through fair treatment and inclusion of customer opinions are important to achieve high recovery satisfaction levels. Moreover, if business customers perceive the monetary compensation provided as fair, their recovery satisfaction increases, and recovery satisfaction then helps to retain these business customers after a service failure. Research limitations/implications - Starting from the locus of blame, this study highlights the after-failure calculation that business customers make in considering their recovery justice perceptions and the resulting satisfaction level. Practical implications - The findings have relevance for B2B relationships. This study provides practical processes for failure and recovery management in B2B settings, especially for wholesale providers who function as resellers rather than as manufacturers. Originality/value - The contributions from this study are largely due to examining B2B service failure and recovery as a process that starts at the pre-recovery stage with the locus of attribution followed by recovery justice perceptions. Whereas other studies have focused more on justice perceptions, the authors go back a step in the recovery process to better understand the antecedents of repurchase intention in B2B transactions.