Losses loom longer than gains: Modeling the impact of service crises on perceived service quality over time

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dc.citation.issue5
dc.citation.volume52
dc.contributor.authorGijsenberg MJ
dc.contributor.authorvan Heerde HJ
dc.contributor.authorVerhoef PC
dc.date.available2015-10
dc.date.issued2015-10
dc.description.abstractService providers sometimes face mass service failures. These problems occur across service industries, ranging from severe Internet outages to major delays for airlines or trains. The literature has not yet addressed the following key question: How do service crises affect perceived service quality (PSQ) over time? To answer this question, the authors introduce a Double-Asymmetric Structural Vector Autoregressive model. It captures not only the short- and long-term effects of objective service performance on PSQ but also the differential effects of service crises versus service restoration. The authors analyze a unique data set from a major European railway company, spanning seven years of monthly observations. During this period, severe winter weather caused dramatic service crises. The authors find that performance losses loom larger than gains in the short run and also have permanent negative effects on PSQ in the long run. Consequently, a crisis followed by a restoration will result in a net negative long-term effect on PSQ. The impact of a crisis also depends on the prior trend in objective service performance.
dc.description.confidentialFALSE
dc.description.publication-statusPublished
dc.format.extent642 - 656
dc.identifier.citationJournal of Marketing Research, 2015, 52 (5), pp. 642 - 656
dc.identifier.doi10.1509/jmr.14.0140
dc.identifier.elements-id256867
dc.identifier.harvestedMassey_Dark
dc.identifier.issn1547-7193
dc.identifier.urihttps://hdl.handle.net/10179/9593
dc.publisherAmerican Marketing Association
dc.relation.isPartOfJournal of Marketing Research
dc.subjectservice crises
dc.subjectservice quality
dc.subjecttime-series models
dc.subjectprospect theory
dc.subject.anzsrc1505 Marketing
dc.titleLosses loom longer than gains: Modeling the impact of service crises on perceived service quality over time
dc.typeJournal article
pubs.notesNot known
pubs.organisational-group/Massey University
pubs.organisational-group/Massey University/Massey Business School
pubs.organisational-group/Massey University/Massey Business School/School of Communication, Journalism and Marketing
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