The effect of CSR on consumer behavioral responses after service failure and recovery

Abstract

Purpose This paper aims to examine the interconnection between the consumer perceived corporate social responsibility (CSR) and its effect on the post-recovery satisfaction and loyalty after service failures. Design/methodology/approach An intercept survey has been conducted during June to August, 2015, in the Delhi NCR area of India. The respondent to the survey includes the hotel customers who have experienced the service failure in the previous one year. The convenience sampling method has been used with the structured questionnaire. To test the proposed model, structural equation modeling is applied. Findings The finding of the present study provides the empirical evidence of the existence of a relationship between perceived CSR and customer post-recovery satisfaction and loyalty influenced by trust. Research limitations/implications The present study has suffered from the recall biases in the survey data. Although the responses were gathered from respondents on the basis of their actual service recovery experience in the preceding year, recall bias may have influenced the responses. The present study highlights a salient role of CSR initiatives, wherein managers can understand the influence of perceived in CSR and analyze the service recover encounters and ensure that recovery process improves the customer perception of CSR. Originality/value This study reinforces the significance of consumer perceived CSR and its effect on post-recovery satisfaction and loyalty after service failures.