Is corporate reputation a double-edged sword? Relative effects of perceived justice in airline service recovery Online publication date: Wed, 01-Jul-2015
by May-Ching Ding; Ching-Wei Ho; Yuan-Shuh Lii
International Journal of Economics and Business Research (IJEBR), Vol. 10, No. 1, 2015
Abstract: This study aims to test empirically airline passengers' perceptions of the relative importance of justice dimensions following a service failure and recovery. In addition, airline reputation is proposed to moderate the relationship between justice dimensions and attitudinal responses. A survey of 271 airline passengers who had prior experience with service failure and recovery was analysed using structural equation modelling. The results indicate that all three justice dimensions affected satisfaction and trust, with distributive justice presenting the strongest relative effect. Perceived justice also generated positive eWOM and repurchase intentions. For airlines with a better corporate reputation, the effects of perceived justice dimensions on recovery satisfaction and trust were greater. This study points to the important halo effect of corporate reputation as a means of establishing sustainable marketing strategies in service recovery.
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