The Effects of Service Fairness on Customer Recovery Satisfaction and Loyalty towards Internet Services A Comparative Study between Kenya and South Korea

Main Article Content

Ann Muthoki Kiio
Phanasan Kohsuwan

Abstract

A comparative study was conducted among consumers in Kenya and South Korea to determine the effects of perceived service fairness on customer recovery satisfaction and subsequent customer loyalty toward Internet services. Multimodal surveys were obtained from each country (N = 401 and 475, respectively). The findings revealed that informational fairness, trust, and commitment had significant influences on recovery satisfaction in South Korea, and customer recovery satisfaction had a significant relationship with customer loyalty in both countries. Significant differences in responses occurred between the two countries, possibly due to customer behaviors and cultures. Management might build up trust to increase the level of customer satisfaction through honesty, open communication, and thoroughly described procedures. Management could sustain customer loyalty by offering responsive solutions to customer complaints. Future research may reveal more factors that influence recovery satisfaction, such as relationship quality and compensation.

Downloads

Download data is not yet available.

Article Details

Section
Original Articles

References

Adams, J. (1965). Inequity in social exchange. Advances in Experimental Social Psychology, 2, 267–299. https://doi.org/10.1016/S0065-2601(08)60108-2

Akamai. (2017). The State of the Internet, Q1 2017 executive summary. https://www.akamai.com/us/en/ multimedia/documents/state-of-the-internet/q1-2017-state-of-the-internet-connectivity-executive-summary.pdf

Andreassen, T. (2001). From disgust to delight: Do customers hold a grudge? Journal of Service Research, 4(1), 39–49.

Baumgartner, H., & Homburg, C. (1996). Applications of structural equation modeling in marketing and consumer research: A review. International Journal of Research in Marketing, 13(2), 139–161.

Birir, C. (2020). Two loon balloons arrive in the country: Standard digital. https://www.standardmedia.co.ke/ article/2001366646/two-loon-balloons-arrive-in-the-country

Blodgett, J., Granbois, D., & Walters, R. (1993). The effects of perceived justice on complainants' negative word-of-mouth behavior and repatronage intentions. Journal of Retailing, 69(4), 399–428.

Blodgett, J., Hill, D., & Tax, S. (1997). The effects of distributive, procedural, and interactional justice on postcomplaint behavior. Journal of Retailing, 73(2), 185–210.

Boshoff, C. (1997). An experimental study of service recovery options. International Journal of Service Industry Management, 8(2), 110–130.

Businesswire. (2019, June 17). Kenya fixed broadband market statistics and analyses 2019. https://www. businesswire.com/news/home/20190617005781/en/Kenya-Fixed-Broadband-Market-Statistics-Analyses-2019

Byrne, B. (2013). Structural equation modeling with AMOS: Basic concepts, applications, and programming (3rd edition). Routledge.

Chiou, J. (2004). The antecedents of consumers’ loyalty toward Internet service providers. Information & Management, 41(6), 685–695.

Clement, J. (2020). Global digital population as of January 2020: Worldwide digital population as of January 2020. https://www.statista.com/statistics/617136/digital-population-worldwide/

Clemmer, E., & Schneider, B. (1996). Fair service. In T. A. Swartz, D. E. Bowen, & S. W. Brown (Eds.), Advances in services marketing and management (pp. 109–126). JAI Press.

Colquitt, J. (2001). On the dimensionality of organizational justice: A construct validation of a measure. Journal of Applied Psychology, 86(3), 386–400.

Colquitt, J. (2012). Organizational justice. In S. Kozlowski (Ed.), Oxford library of psychology. The Oxford handbook of organizational psychology, Vol. 1 (p. 526–547). Oxford University Press.

Colquitt, J., Greenberg, J., & Zapata-Phelan, C. (2005). What is organizational justice? A historical overview. In J. Greenberg, & J. A. Colquitt (Eds.), Handbook of organizational justice (pp. 3–56). Lawrence Erlbaum Associates.

Consumer and Public Affairs. (2018). How to make a complaint regarding communication equipment or service. http://www.ca.go.ke/index.php/how-to-make-a-complaint

Coulter, K., & Coulter, R. (2002). Determinants of trust in a service provider: The moderating role of length of relationship. Journal of Services Marketing, 16(1), 35–50.

del Río-Lanza, A., Vázquez-Casielles, R., & Díaz-Martín, A. (2009). Satisfaction with service recovery: Perceived justice and emotional responses. Journal of Business Research, 62(8), 775–781.

DeWitt, T., Nguyen, D., & Marshall, R. (2008). Exploring customer loyalty following service recovery: The mediating effects of trust and emotions. Journal of Service Research, 10(3), 269–281.

Ding, M., & Lii, Y. (2016). Handling online service recovery: Effects of perceived justice on online games. Telematics and Informatics, 33(4), 881–895.

Doll, W., Xia, W., & Torkzadeh, G. (1994). A confirmatory factor analysis of the end-user computing satisfaction instrument. MIS Quarterly, 18(4), 453–461.

Dwyer, F., R., Schurr, P., & Oh, S. (1987). Developing buyer-seller relationships. Journal of Marketing, 51(2), 11–27.

Fornell, C., & Wernerfelt, B. (1987). Defensive marketing strategy by customer complaint management: A theoretical analysis. Journal of Marketing Research, 24(4), 337–346.

Greenberg, J. (1993). The social side of fairness: Interpersonal and informational classes of organizational justice. In R. Cropanzano (Eds.), Justice in the workplace: Approaching fairness in human resource management (pp. 79 –103). Lawrence Erlbaum Associates.

Hair, J., Black, W., Babin, B., & Anderson, R. (2010). Multivariate data analysis (7th ed.). Prentice-Hall.

Homburg, C., & Fürst, A. (2005). How organizational complaint handling drives customer loyalty: An analysis of the mechanistic and the organic approach. Journal of Marketing, 69(3), 95–114.

Hu, L., & Bentler, P. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural Equation Modeling: A Multidisciplinary Journal, 6(1), 1–55.
Internet in South Korea. (2020, September 9). In Wikipedia. https://en.wikipedia.org/wiki/ Internet_in_South_Korea

Internet World Stats. (2019, November 16). Kenya: Internet usage stats and market reports. https://www. internetworldstats.com/af/ke.htm

Internet World Stats. (2020). Usage and population statistics: World Internet users and 2020 population stats. https://www.internetworldstats.com/stats1.htm

Kartiwi, M., Rfieda, A., & Gunawan, T. (2013, July 1–4). A conceptual framework for assessing electronic banking continued use. 8th International Conference on Information Technology in Asia (CITA). Kota Samarahan, Malaysia.

Kau, A., & Loh, E. (2006). The effects of service recovery on consumer satisfaction: A comparison between complainants and non‐complainants. Journal of Services Marketing, 20(2), 10–111.

Kemp, S. (2020, February 18). Digital 2020: South Korea [PowerPoint slides]. SlideShare. https://datareportal.com/reports/digital-2020-south-korea

Kim, T., Kim, W., & Kim, H. (2009). The effects of perceived justice on recovery satisfaction, trust, word-of-mouth, and revisit intention in upscale hotels. Tourism Management, 30(1), 51–62.

Kohsuwan, P., & Lawkobkit, M. (2013). The focal determinants of service fairness and service recovery satisfaction in cloud computing. AU-GSB e-JOURNAL, 6(1), 12–20.

Kwach, J. (2019). Importance of Internet in our life and education. https://www.tuko.co.ke/263579-importance-internet-our-life.html

Lawkobkit, M., & Speece, M. (2012, May 30–June 1). Integrating focal determinants of service fairness into post-acceptance model of IS continuance in cloud computing. 2012 IEEE/ACIS 11th International Conference on Computer and Information Science. Shanghai, China.

Li, X., Troutt, M., Brandyberry, A., & Wang, T. (2011). Decision factors for the adoption and continued use of online direct sales channels among SMEs. Journal of the Association for Information Systems, 12(1), 1–31.

MacCallum, R., Browne, M., & Sugawara, H. (1996). Power analysis and determination of sample size for covariance structure modeling. Psychological Methods, 1(2), 130–149.

Mattila, A., & Cranage, D. (2005). The impact of choice on fairness in the context of service recovery. Journal of Services Marketing, 19(5), 271–279.

Maxham, J., & Netemeyer, R. (2002). Modeling customer perceptions of complaint handling over time: The effects of perceived justice on satisfaction and intent. Journal of Retailing, 78(4), 239–252.

Maxham, J., & Netemeyer, R. (2003). Firms reap what they sow: The effects of shared values and perceived organizational justice on customers’ evaluations of complaint handling. Journal of Marketing, 67(1), 46–62.

McColl-Kennedy, J., & Sparks, B. (2003). Application of fairness theory to service failures and service recovery. Journal of Service Research, 5(3), 251–266.

McDougall, G., & Levesque, T. (1998). The effectiveness of recovery strategies after service failure: An experiment in the hospitality industry. Journal of Hospitality & Leisure Marketing, 5(2–3), 27–49.

McKetta, I. (2019). In-depth analysis of changes in world Internet performance using the Speedtest Global Index. https://www.speedtest.net/insights/blog/global-index-2019-internet-report/

Migacz, S., Zou, S., & Petrick, J. (2018). The “terminal” effects of service failure on airlines: Examining service recovery with justice theory. Journal of Travel Research, 57(1), 83–98.

Morgan, R., & Hunt, S. (1994). The commitment-trust theory of relationship marketing. Journal of Marketing, 58(3), 20–38.

Nusair, K. (2010). Examining the relationship among service recovery, affective commitment, calculative commitment, and trust for e-travel retailers. Information Technology & Tourism, 12(4), 317–330.

Ofori-Okyere, I., Asante, D., & Normanyo, S. (2016). An examination of customers’ evaluation of the justice theory as a basis for understanding the process of service recovery and satisfaction with recovery in the provision of national health insurance in Ghana. European Journal of Business and Innovation Research, 4(4), 28–47.

Oliver, R. (1999). Whence consumer loyalty? Journal of Marketing, 63(4), 33–44.

Parasuraman, A., Zeithaml, V., & Berry, L. (1985). A conceptual model of service quality and its implications for future research (SERVQUAL). Journal of Marketing, 49(4), 41–50.

Roberts-Lombard, M. (2020). Antecedents and outcome of commitment in Islamic banking relationships–an emerging African market perspective. Journal of Islamic Marketing, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JIMA-09-2018-0164

Ryssel, R., Ritter, T., & Gemünden, H. (2004). The impact of information technology deployment on trust, commitment and value creation in business relationships. Journal of Business & Industrial Marketing, 19(3), 197–207.

Savci, M., & Griffiths, M. (2019). The development of the Turkish Social Media Craving Scale (SMCS): A validation study. International Journal of Mental Health and Addiction, 1–15. https://doi.org/10.1007/s11469-019-00062-9

Shah, N., & Shah, S. (2010). Relationships between employee readiness for organisational change, supervisor and peer relations and demography. Journal of Enterprise Information Management, 23, 640-652. https://doi: 10.1108/17410391011083074

Sirdeshmukh, D., Singh, J., & Sabol, B. (2002). Consumer trust, value, and loyalty in relational exchanges. Journal of Marketing, 66(1), 15–37.

Smith, A., Bolton, R., & Wagner, J. (1999). A model of customer satisfaction with service encounters involving failure and recovery. Journal of Marketing Research, 36(3), 356–372.

Statistica research department. (2020). Internet usage in South Korea – Statistics & facts. Statistica. https://www.statista.com/topics/2230/internet-usage-in-south-korea/

Stewart, W. (2020). Internet history. https://www.livinginternet.com/i/ii_summary.htm

Tax, S., Brown, S., & Chandrashekaran, M. (1998). Customer evaluations of service complaint experiences: Implications for relationship marketing. Journal of marketing, 62(2), 60–76.

Vatanasombut, B., Igbaria, M., Stylianou, A., & Rodgers, W. (2008). Information systems continuance intention of web-based applications customers: The case of online banking. Information & Management, 45(7), 419–428.

Wang, F., & Head, M. (2007). How can the web help build customer relationships? An empirical study on e-tailing. Information & Management, 44(2), 115–129.

Wen, B., & Chi, C. (2013). Examine the cognitive and affective antecedents to service recovery satisfaction: A field study of delayed airline passengers. International Journal of Contemporary Hospitality Management, 25(3), 306–327.

Wirtz, J., & Mattila, A. (2004). Consumer responses to compensation, speed of recovery, and apology after a service failure. International Journal of Service Industry Management, 15(2), 150–166.

Zemke, R., & Bell, C. (1990). Service recovery: Doing right the second time. Training, 27(6), 42–48.