A STUDY OF GRIEVANCE HANDLING AND ITS IMPACT ON CONSUMER PERCEPTION: THE CASE OF UBER & OLA
Keywords:
production, utility, studyingAbstract
The goal of any service provider is to satisfy the customer expectations in order to create a brand loyalty. However, no service provider can escape from the service errors as humans are involved in service delivery. Since the production and consumption of services usually occurs concurrently, the quality of a service is dependent upon the deliverability of the service provider and the recipient’s utility. Thus, in order to overcome the limitation of inevitable errors, service providers must be concerned with service recovery. As attracting new customers is costly as compared to retaining existing customers, it becomes another important reason for service providers to must try hard for efficient service recovery. This empirical investigation is designed to test effective recovery processes for service failures in e-hailing by studying the relationship between compensation, apology, and response time on perceived justice, service recovery satisfaction, and repurchase intention of the customer. Our sample consist 160 students from University of Delhi, India, who are active e-hailing service users. The findings indicate that all three e-hailing service recovery attributes appear to be key in creating satisfied customers based on their effects on perceived justice.
References
Agarwal, S., Mani, D. and Telang, R. (2021). The Impact of Ride-hailing Services on Congestion: Evidence from Indian Cities. SSRN Electronic Journal. doi:10.2139/ssrn.341062
Bhattacharya, A. (2019). Ola vs Uber: The latest score in the great Indian taxi-app game. Retrieved from https://qz.com/india/1545042/ola-vs-uber-the-latest-score-in-the-great-indian-taxi-app-game/
Bitner, M., Booms, B., & Tetreault, M. (1990). The Service Encounter: Diagnosing Favorable and Unfavorable Incidents. Journal of Marketing, 54(1), 71-84. doi:10.2307/1252174
Boshoff, C. (1997), “An Experimental Study of Service Recovery Options.”
Boshoff, C. and Leong, J. (1998), “Empowerment, attribution and apologising as dimensions of service recovery: An experimental study”, International Journal of Service Industry Management, Vol. 9 No. 1, pp. 24-47. https://doi.org/10.1108/09564239810199932
Boshoff, C. (2012). A Neurophysiological Assessment of Consumers’ Emotional Responses to Service Recovery Behaviors: The Impact of Ethnic Group and Gender Similarity. Journal of Service Research, 15(4), 401–413. https://doi.org/10.1177/1094670512453879
Brown, S.W., Fisk, R. P., & Bitner, M. J. (1994). The Development and Emergence of Services Marketing Thought.
Collier, J. E., & Bienstock, C. C. (2006). Measuring service quality in e-retailing. 9. De Ruyter, K., Wetzels, M., & Kleijnen, M. (2001). Customer adoption of e-service: an experimental study
Fang, Y.H., Chiu, C.M. & Wang, E.T. (2011). Understanding customers’ satisfaction and repurchase intentions: An integration of IS success model, trust, and justice
Goodwin, C., & Ross, I. (1992). Consumer responses to service failures: influence of procedural and interactional fairness perceptions
Hair Jr., J. F. et al. (1998). Multivariate Data Analysis with Readings. Englewood Cliffs, NJ: Prentice Hall.
Hair.Jr., J. F., Black., W. C., Babin., B. J., Anderson., R. E., & L.Tatham., R. (2006). Multivariant Data Analysis. New Jersey: Pearson International Edition.
Hair, J.F., Black, W.C., Babin, B.J., & Anderson, R.E. (2010). Multivariate Data Analysis. Seventh Edition. Prentice Hall, Upper Saddle River, New Jersey.
Holloway, B. B., & Beatty, S. E. (2003). Service Failure in Online Retailing: A Recovery Opportunity 16. Kelley, S.W. & Davis, M.A. (1994). Antecedents to customer expectations for service recovery 17. Lind, E. & Tyler, Tom. (1988). The Social Psychology of Procedural Justice. 10.2307/2073346. 18. Maxham III, J. G., & Netemeyer, R. G. (2002) a. A longitudinal study of complaining customers’ evaluations of multiple service failures and recovery efforts
Maxham III, J. G. (1999). Service recovery’s influence on consumer satisfaction, positive word-of mouth, and purchase intentions
Medjahed, B., Benatallah, B., Bouguettaya, A., Ngu, A.H.H., & Elmagarmid, A.K. (2003). Business to-Business Interactions: Issues and Enabling Technologies
Meru (2021). About us. Retrieved from https://www.meru.in/about-us/our-investors 22. Nextbigwhat (2016). The Curious Case Of Indian Cab Industry. Retrieved from https://nextbigwhat. com/indian-cab-industry/
Ok, Chihyung (2004). The effectiveness of service recovery and its role in building long term relationships with customers in a restaurant setting. Retrieved from https://core.ac.uk/download/pdf/5164187.pdf 24. Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research
Ranaweera, C. and Prabhu, J. (2003). On the relative importance of customer satisfaction and trust as 26. determinants of customer retention and positive word of mouth. Journal of Targeting, Measurement and Analysis for Marketing. Vol. 12, 1, pp. 82–90
ResearchAndMarkets.com report (2019). Online Taxi Services Market in India: Profiles of Leading Market Players Including ANI Technologies, Carzonrent and Uber India - ResearchAndMarkets.com. Retrieved from https://www.businesswire.com/news/home/20200515005415/en/Online-Taxi-Services-
Market-in-India-Profiles-of-Leading-Market-Players-Including-ANI-Technologies-Carzonrent-and Uber-India---ResearchAndMarkets.com
Santos, J. (2003). E-service quality!: A model of virtual service quality dimensions. 29. Smith, A. K., Bolton, R. N., & Wagner, J. (1999). A Model of Customer Satisfaction with Service Encounters Involving Failure and Recovery
Tax, S. S., & Brown, S. W. (1998). Recovering and learning from service failure. 31. Tax, S. S., Brown, S. W., & Chandrashekaran, M. (1998). Customer evaluations of service complaint experiences: implications for relationship marketing