Organizational and Customer Moderators of Service Recovery on Consumer Forgiveness in Health Care
Purpose: Marketing researchers want to better understand service recovery in terms of how failures impact consumers and the effectiveness of recovery strategies. Given the critical mediating role of forgiveness between service recovery and desired outcomes, the purpose of the current research is to pursue the richness of the service recovery model by exploring various interactive effects that affect the recovery-forgiveness relationship.
Methodology: This research empirically examines the role of organizational and customer variables as potential moderators in the health care industry using structural equation modeling, the preferred statistical methodology for examining latent continuous variables. We apply the Ping (1995) method of evaluating moderators involving latent continuous variables.
Findings: Support is found for seven of the nine moderators tested: severity of error, offense repetition, intention of the offense, incompetence perception, response effort and timeliness of response, and involvement. Variety seeking also had a modest effect.
Originality: This article contributes to the extant literature by examining the role of moderators on the service recovery-forgiveness relationship specific to healthcare and (2) introduce the Ping (1995) method of analysis to business academics.
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