Customer Choice: A Preemptive Strategy to Buffer the Effects of Service Failure and Improve Customer Loyalty

David Cranage, Harish Sujan

Research output: Contribution to journalArticle

26 Scopus citations

Abstract

This study examined the impact on customer loyalty of giving customers an informed choice. The main objective was to find that if giving customers a choice in determining their service experience, and by providing relevant information about the choices, customer loyalty was maintained or improved following a service failure. The study examined the interactive effects of the foreseeability of the service failure on the choice manipulation. A 3 (choice: no choice, uninformed choice, or informed choice) by 2 (foreseeability: unforeseeable or foreseeable service failure) design was used to test the effects of informed choice on customer loyalty. The principal finding was that customer loyalty was highest in the informed choice and foreseeable condition. This would suggest that hospitality managers should give choices to their customers as well as relevant information about their choices. Additionally, it suggests that management identify possible service failures, making them foreseeable to both customer and management.

Original languageEnglish (US)
Pages (from-to)3-20
Number of pages18
JournalJournal of Hospitality and Tourism Research
Volume28
Issue number1
DOIs
StatePublished - Jan 1 2004

All Science Journal Classification (ASJC) codes

  • Education
  • Tourism, Leisure and Hospitality Management

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