THE MEDIATING ROLE OF SERVICE RECOVERY ON THE ASSOCIATION BETWEEN SERVICE FAILURE AND CUSTOMER LOYALTY IN AN ONLINE PLATFORM IN THE PHILIPPINES
DOI:
https://doi.org/10.18623/rvd.v22.n3.3266Palavras-chave:
Customer Loyalty, Direct and Indirect Effect, Mediator, Online Platform, Service Failure and Service RecoveryResumo
The study examines the linkages between service failures, service recovery, and customer loyalty in online platforms in the Philippines. Participants were all drawn from Region IV-A. Results of the analysis, using PLS-SEM 4, indicated that service failure had a strong positive direct effect on customer loyalty with a moderate effect, suggesting that customers remain loyal despite service failures due to prior trust or limited alternatives. Service recovery had a positive strong effect on loyalty, indicating its important crucial role in customer retention. On the other hand, the effect of service failure on service recovery was negative and marginally insignificant. Q² values for loyalty and service recovery were low, showing limited predictive ability of the model. Theoretically, findings challenge the bases of service literature, which commonly assume recovery as a mediator in the failure-loyalty relationship. Since service recovery does not act as mediators on the associations between service failure and customer loyalty in an online platform in the Philippines, this study suggest that recovery could work more as a moderator. This expands Expectation Disconfirmation Theory and Attribution Theory by pointing out cultural and market-specific features within the context of the Philippines. Practically, results mean that online platforms must focus on proactive measures, personalized service recovery strategies and efforts to keep customers engaged to maintain their loyalty even when service failures occur, and solutions should be customized to address the distinct features of consumer behavior. Combining both preventative measures and recovery strategies can help organizations build resilience against the negative fallout of service failures.
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