Identifying Appropriate Compensation Types for Service Failures: A Meta-Analytic and Experimental Analysis
Roschk and Gelbrich use a meta-analysis and an experiment to examine how compensation type and failure type explain the recovery effect of compensation. Drawing on resource exchange theory, they propose new classifications of both. The strongest recovery effect generally appears when compensation is a resource similar to the failure it offsets: immediate money for a monetary failure, exchange for a flawed product, reperformance for a failed service, and psychological compensation for lack of attention.
Roschk and Gelbrich use a meta-analysis and an experiment to examine how compensation type and failure type explain the recovery effect of compensation. Drawing on resource exchange theory, they propose new classifications of both. The strongest recovery effect generally appears when compensation is a resource similar to the failure it offsets: immediate money for a monetary failure, exchange for a flawed product, reperformance for a failed service, and psychological compensation for lack of attention.
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Roschk, H., & Gelbrich, K. (2014). Identifying Appropriate Compensation Types for Service Failures: A Meta-Analytic and Experimental Analysis. Journal of Service Research, 17(2), 195-211. doi:10.1177/1094670513507486