Consumer discrimination in service recovery situations

Abstract

PurposeDiscrimination in the marketplace has recently received increasing attention in marketing discussions, especially related to service encounters. This research explores the effect of receiving lower (vs higher) financial compensation than someone perceived to be from an upper social class (vs lower) on consumer reactions after a service recovery situation.Design/methodology/approachTwo experimental studies with two different populations.FindingsIndividuals who receive less compensation than someone from a higher socioeconomic status tend to attribute differential treatment to discrimination. Both individuals who received less and who received higher compensation are willing to engage in negative word of mouth, however, only consumers who were discriminated against want to take revenge on the company.Originality/valuePrevious literature indicates that consumers' reactions after service problems are mediated by justice perceptions. This research offers a new perspective of social comparison in service recovery situations by considering the role of discrimination perceptions.