The Impact of Failure Severity, Prior Failure, and Company Control on Service Recovery Outcomes

Abstract

This study investigates the effects of differential levels of failure severity, prior service failures, and perceived company control on postrecovery satisfaction and negative word-of-mouth. The authors develop a theoretical model and hypotheses drawing on the prevention aspect of regulatory focus theory. The authors test the model via a scenario-based experimental design using the context of academic advising within a university setting. They find that that failure severity and company control are influential factors in the service recovery process, although prior failures did not affect satisfaction or negative word-of-mouth in a meaningful way. Theoretical and practical implications of these findings are discussed.