Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/24475
Title: Monetary or nonmonetary compensation for service failure? A study of customer preferences under various loci of causality
Authors: Fu, H
Wu, DC
Huang, SS
Song, H 
Gong, J
Keywords: Combined compensation
Monetary compensation
Nonmonetary compensation
Perceived justice
Post-recovery satisfaction
Issue Date: 2015
Publisher: Pergamon Press
Source: International journal of hospitality management, 2015, v. 46, p. 55-64 How to cite?
Journal: International journal of hospitality management 
Abstract: When service failures occur, hotels adopt various strategies to compensate guests in order to maintain their satisfaction. This study examines the effectiveness of different post-failure compensation strategies in scenarios presenting various loci of causality. The results indicate that across all scenarios, strategies combining monetary and nonmonetary compensation result in higher customer satisfaction than those which offer one or the other. In addition, nonmonetary compensation results in higher satisfaction than monetary redress when the service failure has been caused by the hotel. The study also identified a partial mediation of the interaction effect of service failure causality and compensation type on customer satisfaction by three kinds of justice.
URI: http://hdl.handle.net/10397/24475
ISSN: 0278-4319
EISSN: 1873-4693
DOI: 10.1016/j.ijhm.2015.01.006
Appears in Collections:Journal/Magazine Article

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