Customer Service Failure Evaluations in Diverse Airlines Business Models

Abstract

Even though it is impossible to eliminate all failures in a service encounter, due to their negative outcomes, airlines' strive at minimizing failures as much as possible. Customers may act differently after failures, but the important point for airlines is to understand the underlying psychological mechanisms for prevention. In this regard, this study reveals the dynamics by which expectancies of passengers affect stability attribution, word of mouth (WOM) and repurchase intentions after exposing service failures in diverse airlines business models. Structural equation modeling is used to compare models in two airlines business contexts: low cost carriers (LCCs) and flagship airlines. Findings demonstrate that for LCC, passengers' expectations positively affect stability attributions. Additionally, stability attribution following flagship airlines service failure is found to have a negative effect on repurchase intentions. Finally, findings indicate that following both LCC and flagship service failures, stability attribution decreases WOM intention of passengers.