The Importance of Consumer Brand Relationships for Successful Service Recovery Cid Gonçalves Filho, Fumec U Marc Fetscherin, Rollins College Marcelo Nacif Rocha, FCA Plinio Rafael Reis Monteiro, UFMG

Introduction On a strategic perspective the service recovery focuses on the consumer relationship, where the goal is not only correct a particular failure (Maxham & Netemeyer , 2002). Although the literature recognizes the importance of service recovery, little is known about the potential influence of brand relationships in these situations. Therefore, this research was designed to explore how Consumer-Brand Relationships influence a sense of justice and behavioral intentions in service recovery situations of the automotive industry.

Conceptual Background Service Recovery According with Tax, Brown and Chandrashekaran (1998), service recovery refers to actions taken by the companies in response to failures. Some authors (Brown, Cowles & Tuten, 1996; Smith, Bolton & Wagner, 1999) distinguish these two ways to begin a recovery process considering the first action – when a company starts the process - as service recovery and the second – when the client starts the process – as complaint management.

Conceptual Background – Antecedents of Satisfaction in a SR Theory of Justice from John Rawls (1999) The concept of Rawls´ Sense of Justice was endorsed by several authors (Thibaut & Walker, 1975; Clemmer, 1988; Oliver & Swan, 1989; Goodwin & Ross, 1992; Berry, 1995; Blodgett, Hill and Tax, 1997; Seiders & Berry, 1998; Tax, Brown & Chandrashekaran, 1998; Smith, Bolton & Wagner, 1999; Maxham & Netemeyer, 2002; Mayer, 2006; Karatepe, 2006; Siu, Yau & Zhang, 2013) involves three dimensions : distributive justice, procedural justice and interactional justice.

Conceptual Background Sense of Justice Distributive justice refers to the benefits and costs allocation between the parties in a transaction In the complaint context, the distributions are seen as the tangible results offered by the company to the client, for example, the product replacement or money back. Distributive justice is composed by the sub-dimensions: equity, equality and need (Tax, Brown & Chandrashekaran, 1998). Procedural justice regards to the companies policies and procedures during the complaints process, and covers the sub-dimensions: process control, decision control, accessibility, timming/speed, flexibility and responsibility (Thibaut & Walker, 1975; Blodgett Hill & Tax, 1997; Tax, Chandrashekaran & Brown, 1998). The interactional justice involves the way the company and/or employees treat and communicate with consumers during the process, composed by the sub-dimensions: honesty, politeness, effort, empathy, offer of apology and explanation/causal account (Clemmer, 1988; Tax, Chandrashekaran & Brown, 1998).

Hypothetical Model

Methodology Quantitative research Structured questionnaire online, appled by email to customers who have been pass through automotive services recovery process in the past 24 months, nationwide. On line Survey 368 respondents

Operationalization of Constructs

Findings

Nomological Validity

Findings Satisfaction has a R2 of 86%, and significant impacts on Intentions to Complain -0,58 New Purchase 0,48 Retaliation -0,43

Satisfaction received significante impacts from Sense of Justice: 1st Distributive 0,55 2nd Procedural 0,23 3rd Interactional 0,20 How the Consumer see that the final solution is fair and equilibrated in the terms of sharing costs and responsabilities Findings

Findings Brand Relationship Quality has impact on all 3 Dimensions of Justice Weights 0,48 to 0,43 – Explains at about 25% of sense of Justice BRQ is one key to forge possitive evaluations and attitudes in Brand Interactions, even in a “possible” more rational situation as fix a car that present failure

Final Conclusions Therefore, the study suggests that service recovery situations are not an isolated events, and could not be treated just observing and dealing with a specific problem, or managing the procedures and interactions in each event. It means that, with the same level of service recovery and treatment, consumer´s that evaluate a consumer-brand relationship more positively would be more satisfied and present higher perceptions of justice in all it´s 3 dimensions, leading to more positive behavioral intentions.

Cluster Analysis

Low ans High BRQ

Comparision Hign and Low BRQ

Thats it. Thank You !