What is it about?

The transition from service failure to brand loyalty represents both a critical challenge and an opportunity. Underpinned by the multi-theoretical foundation of equity theory, social exchange theory, expectancy disconfirmation theory, affect control theory and commitment-trust theory, this study examines the mechanisms through which service recovery efforts by a brand can transform dissatisfied customers into engaged and loyal patrons, exemplifying a service recovery paradox.

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Why is it important?

Employing structural equation modeling to analyze data from 638 survey responses, our findings illuminate the pivotal roles of distributive and procedural justice in crafting satisfactory service recovery experiences, overshadowing the negligible impact of interactional justice. Significantly, we uncover that fostering brand attachment amplifies the relationship between satisfaction derived from service recovery and subsequent brand engagement, wherein this engagement plays a vital role in developing brand loyalty. These insights collectively chart a clear and strategic course for brand managers to convert service failures into triumphant resolutions, enhancing brand engagement and loyalty amidst potential hiccups in service delivery. The implications of this study also extend beyond academic discourse by offering practical strategies for brands seeking to navigate service recovery with finesse.

Perspectives

This study redefines service failure as a strategic opportunity rather than a setback, revealing that fair outcomes (distributive justice) and transparent processes (procedural justice) significantly enhance customer satisfaction during recovery—more so than courteous interactions alone. Grounded in multi-theoretical perspectives, it shows that when customers are emotionally attached to a brand, effective recovery not only restores trust but deepens engagement, ultimately strengthening brand loyalty. By leveraging these insights, brands can transform service hiccups into pivotal moments for long-term customer commitment.

Dr. Manish Das
Tripura University

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This page is a summary of: From service failure to brand loyalty: evidence of service recovery paradox, Journal of Brand Management, March 2025, Springer Science + Business Media,
DOI: 10.1057/s41262-025-00380-5.
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