Empowerment in Service Recovery: Implications in the Client's Perception Regarding Fairness and Loyalty

Abstract

Studies in Service Recovery (SR) demonstrate that equity in SR process is crucial to the customer’s satisfaction and loyalty. Front office employees are responsible for this process which, with their actions, they influence the perception in fairness. Thus, strategies focused on improving processes and the employees’ work performance, such as the empowerment, may expand qualities such as equity and, in turn, lead to customer loyalty. This work investigates these relationships through a survey on banking services. Data were analyzed through exploratory and confirmatory factor analyses and structural equation modelling. The results show that the empowerment brings greater equity to the SR process; consequently, it influences positively customer loyalty. In addition to proving these scenarios, this work contributes to the related literature, by integrating concepts from different fields of knowledge that benefit SR and studies in service management. Especially regarding empowerment (Operations), that involves human resources training and qualification (Human Resources Management), equity and loyalty in services (Marketing). From a managerial perspective, it is suggested that service organizations should implement specific SR training for their front-line employees, which promotes their empowerment.