The Service Recovery Paradox: Can Bad Be Good? An Empirical Investigation of the Transformation of Consumer Perceptions of Vacation Home Rental Products and Services Into the Overall Vacation Experience and What It Means for Future Business
Date of Award
Dissertation - Rollins Access Only
Doctor of Business Administration (DBA)
Dr. Jule Gassenheimer
Dr. Henrique Correa
This research on the transformation of consumer perceptions of vacation home rental products and services into the overall vacation experience and the role of service recovery in the vacation experience and with future business was inspired by Hirschman’s (1970) theoretical framework of exit, voice, and loyalty. Specifically, Hirschman (1970) provided the basis for understanding the various responses to decline in quality and why voicing complaints is important to companies trying to retain existing consumers and gain new consumers. The research utilized formative measures identified by a panel of vacation home rental company experts. The measures were evaluated through a guest experience survey by over 38,000 guests staying in vacation home rentals from May 2017 to April 2018. Partial Least Squares Structural Equation Modeling (PLS-SEM) was utilized to assess the formative measurement model, the structural models, moderator and mediator analyses, and the presence of the service recovery paradox. The research found that consumer perceptions significantly drive the quality of the overall vacation home rental experience. If consumer perceptions fall below expectations and consumers voice their failed expectations to service staff, a service recovery positively and significantly moderates the overall vacation home rental experience. The overall vacation experience, influenced by service recovery, positively and significantly mediates the guest’s willingness to recommend and willingness to return. Also, the research tested for the service recovery paradox between consumers who did not have failed expectations and no service recovery was necessary with consumers who had failed expectations, voiced their failed expectations, and received service recovery. The research did not find support for the service recovery paradox in vacation home rentals.
Hebeler, Robert M., "The Service Recovery Paradox: Can Bad Be Good? An Empirical Investigation of the Transformation of Consumer Perceptions of Vacation Home Rental Products and Services Into the Overall Vacation Experience and What It Means for Future Business" (2018). Dissertations from the Executive Doctorate in Business Administration Program. 17.