INTRODUCTION
Study background
Logistics plays a crucial role in supply chain management, defined by the Council of Supply Chain Management Professionals (CSCMP) as the planning and execution of forward and reverse flows, storage of products, and information exchange to meet customer expectations The importance of logistics management lies in its ability to enhance the efficiency and effectiveness of daily operations involved in delivering a company's products and services It enables the seamless movement of goods within nations, making global commerce possible.
The global logistics industry is expected to experience significant growth, with a compound annual growth rate (CAGR) of 6.5%, increasing from USD 7,641.20 billion in 2017 to USD 12,975.64 billion by 2027 In Vietnam, the logistics sector is thriving, boasting an annual growth rate exceeding 10% and contributing 7.02% to the national GDP, highlighting its substantial development potential.
The coronavirus disease 2019, also known as COVID-19, is a very contagious respiratory virus that was first identified in the Chinese province of Hubei in December
In 2019, the rapid transmission and threat of the coronavirus prompted governments to enforce strict measures to curb its spread This unprecedented response from both the public and businesses has raised concerns among analysts about potential long-term effects on the global economy By early March 2020, the World Health Organization officially declared the coronavirus outbreak a pandemic due to its widespread impact.
Guiyang Zhu and Mabel C Chou contend in a study released in 2020 that COVID-19 has disrupted enterprises and placed enormous strain on the global supply chain, h
The modern supply chain is increasingly fragile and vulnerable to disruptions, prompting businesses to prioritize the creation of resilient supply networks One effective strategy is the "Plus One" Diversification Approach, which highlights potential economic opportunities in neighboring nations previously dominated by major production hubs like China This approach can lead to cost reductions, offering both governments and companies lower manufacturing expenses while maintaining flexibility.
Logistics operations are crucial to the supply chain, emphasizing the need for improved quality control in logistics services, particularly in Vietnam and other emerging supply chain destinations The increasing complexity of supply chain management, coupled with external challenges, makes the logistics sector particularly susceptible to service failures Previous research has primarily examined the final stages of the supply chain, often from a business-to-consumer (B2C) viewpoint, focusing on the evaluation of failed recovery efforts.
Courier services are defined as fast, door-to-door delivery options for high-value items or urgent documents, distinguishing themselves from standard postal services through their speed, security, tracking capabilities, and personalized service These services vary widely in scope, delivery speed, customer demographics, operational activities, and geographic reach Research by Marijan Cingula in 2017 categorizes courier services into B2B (Business to Business), B2C (Business to Consumer), and C2X (Consumer to Anywhere), highlighting the diverse connections between shippers and consignees.
E-commerce operators face unique challenges, including the delivery of non-standard goods, managing return services, and navigating high demand volatility for products and shipment volumes Additionally, the dynamic management of delivery locations and timings, often referred to as the last mile, further complicates logistics in this sector.
3 providing courier services, particularly those in the B2C and C2X segments (Kawa,
In the realm of courier logistics, managing operations under stringent performance standards is crucial, as inadequate management can lead to a significant percentage of service failures An empirical study focusing on service failures in this sector can provide valuable insights into effective service recovery strategies and their impact on customer satisfaction.
Even top service providers can encounter delivery errors, leading to customer dissatisfaction (Berry, 1980) In Vietnam, where misconceptions about services are prevalent, addressing service failures is crucial Implementing effective recovery strategies not only enhances customer satisfaction but also fosters loyalty, ensuring a positive service experience.
Study motivation and Research gap
Numerous studies have explored the connection between service recovery and service recovery satisfaction, with most concluding that service recovery significantly influences satisfaction levels However, limited research has focused on the specific measurement methods of service recovery This study aims to utilize Justice Theory, proposed by Tax in 1998, to identify key elements that significantly contribute to this relationship Additionally, it will examine various moderators that may impact the relationship between service recovery and satisfaction, incorporating Attribution Theory as suggested by Weiner in 2000 The study will also apply Attribution Theory to analyze how these moderator variables interact with the service recovery-satisfaction relationship, measured through Justice Theory.
The shift of the supply chain from China to Vietnam highlights essential practical issues, particularly in the context of courier services This transition emphasizes the growing importance of B2C (Business to Consumer) and C2X (Consumer to Everything) segments, which are critical for adapting to evolving market demands and enhancing delivery efficiency.
Logistics and courier services play a crucial role in the supply chain as it transitions to Vietnam during this unique period Analyzing service recovery within this sector is essential for enhancing operational efficiency and customer satisfaction.
4 contribute significantly to the service operation management strategy for these firms in this field
This study addresses the research gap concerning the theoretical and practical aspects of service recovery and satisfaction It explores the relationship between service recovery and service recovery satisfaction, utilizing Justice theory to measure service recovery while examining Attribution theory as a moderating factor This analysis focuses on the Courier Logistics service sector, which has gained significant importance in Vietnam's service industry.
Study Objective, Questions
This study examines the relationship between service failure, service recovery, and customer satisfaction It aims to apply relevant theories to evaluate service recovery operations and identify factors that influence the connection between service recovery and customer satisfaction.
Specifically, there are two objects of this study including:
This article explores the relationship between Service Recovery (SR) and Service Recovery Satisfaction (SRS) through the lens of Justice Theory It examines how the three key elements of Justice Theory—distributive, procedural, and interactional justice—impact customer satisfaction during service recovery processes By analyzing these elements, the study aims to measure their influence on enhancing overall service recovery satisfaction.
This study investigates the moderating effects of Attribution Theory, specifically Perceived Control (PC) and Stability Attribution (SA), on the relationship between Service Recovery (SR) and Service Recovery Satisfaction (SRS) By analyzing these variables, the research aims to quantify the influence of PC and SA on the effectiveness of service recovery efforts and their impact on customer satisfaction.
The study is expected to resolve two main questions as below:
- Which is the relationship between the Service recovery (SR) and the Service recovery satisfaction (SRS) when using Justice theory to measure the Service recovery (SR)? h
The study examines the impact of Perceived Control (PC) and Stability Attribution (SA) on the relationship between Service Recovery (SR) and Service Recovery Satisfaction (SRS) It also explores how these factors interact with three key elements of service recovery: Interactive Justice, Procedural Justice, and Outcome Justice, to influence overall service recovery satisfaction.
Structure and Scopes of Study
The research was conducted from late January to April 2022, gathering data from customers of Courier Logistics firms across three provinces in Vietnam: Ha Giang, Tuyen Quang, and Hanoi Further details will be elaborated in the subsequent chapters.
This study begins with a comprehensive literature review to clarify key concepts and establish a framework for applying theories like Justice Theory and Attribution Theory in model development Following this, data is collected, filtered, and analyzed to derive meaningful results The findings are then presented, along with their implications Finally, the study concludes by identifying its limitations and offering suggestions for future research.
LITERATURE REVIEW
The Service recovery (SR)
Service failures occur when customers perceive a breakdown in a business's operations, such as delivery delays or incorrect account balances These failures happen when the service does not meet customer expectations, which can significantly affect a company's ability to retain or attract new clients It is crucial for businesses to address any issues in logistics customer service, as these failures can impact customers' overall perceptions of the brand.
Service recovery refers to a company's efforts to address and resolve an unhappy customer's complaint, aiming to turn them into a loyal client (Obiandu, n.d.) It involves the actions taken by a service provider following a service failure (Grünroos, 1988) Effective service recovery is essential, as it helps businesses engage with consumers and build lasting relationships (Parasuraman et al., n.d.).
Integrating customer satisfaction into service recovery transforms it into a strategic process aimed at restoring contentment for dissatisfied consumers Effective service recovery not only enhances customer satisfaction but also boosts referral intentions, word-of-mouth recommendations, loyalty, brand image, and trust This concept is further supported by the service recovery paradox, which highlights the potential benefits of successfully addressing service failures.
2000), which recognizes that good recovery may result in even more positive customer attitudes and behaviors than those exhibited before the issue occurring h
Figure 2.1: The service recovery paradox diagram
Source: de Matos et al., 2007
Effective service recovery is essential not only for client satisfaction but also for driving organizational change by addressing specific problem areas By leveraging insights gained from service failures, companies can enhance employee satisfaction, leading to improved staff retention and cost savings Additionally, successful service recovery helps prevent the recurrence of issues, thereby reducing customer dissatisfaction and potential financial losses This proactive approach fosters operational improvements, minimizes waste, and lowers the costs associated with problem resolution.
Approaching Justice theory as a means of determining service recovery, the public (S
S Tax et al., 1998), claimed that Justice theory entails decision-making propriety Over time, a three-dimensional understanding of the notion grew to encompass distributive/outcome justice (which addresses decision results), procedural justice (which addresses decision-making methods), and interactional justice (dealing with interpersonal behavior in the enactment of procedures and delivery of outcomes) Austin h
Justice encompasses both the outcomes of distributions and the processes through which these distributions are achieved and enforced (1979, p 24) In their research on e-service recovery, Collier and Bienstock (2006) utilized the framework established by Tax, Brown, and Chandrashekaran, identifying three key dimensions of e-service recovery: interactive fairness, procedural fairness, and outcome fairness.
Appendix A.1 of Justice Elements Definition and Associated Research by Tax, Brown, and Chandrashekaran (1998) presents a table that outlines the definitions and target dependent variables for three key dimensions of justice.
Interactive justice involves service providers maintaining communication with clients during the service recovery process, utilizing tools like call centers, tracking systems, and social media platforms for customer inquiries and feedback Procedural justice pertains to a business's return policy and the rights of buyers in cases of service failures, including the efficiency of issue resolution Lastly, outcome justice focuses on compensatory measures such as monetary restitution, complimentary services, or formal apologies to address customer grievances.
According to Chebat and Slusarczyk (2005), the three elements of justice significantly influence consumer loyalty in varying ways However, there is a lack of research exploring whether these justice aspects affect satisfaction with service recovery differently.
The Service recovery satisfaction (SRS)
Customer satisfaction (CSAT) is a key metric that evaluates how effectively a company's products and services fulfill or surpass customer expectations It is defined as the proportion of customers whose experiences with a company, its offerings, or services exceed predetermined satisfaction benchmarks.
Service recovery satisfaction, also known as satisfaction with complaint management, is the customer's evaluation of how effectively a service provider addresses a service failure This concept is crucial as it fosters strong customer relationships and reflects the extent to which consumers positively perceive the provider's recovery efforts Ultimately, it encompasses the emotions and attitudes customers experience following a service interaction or recovery process.
To, 2016) Satisfaction with service recovery may also result in good word-of-mouth and increased loyalty (Swastha Dharmmesta, 2014).
The Service recovery (SR) and the Service recovery satisfaction (SRS)
Effective service recovery tactics, such as identifying and explaining customer issues, expediting resolutions, providing compensation, and following up, significantly enhance customer satisfaction in recovery situations The principle of justice and fairness serves as the foundational theory for understanding service recovery dynamics.
As with complaint processing, consumers assess the justices of service recovery on three dimensions: outcome, procedural, and interactional justice (Goodwin & Ross, 1992);(S
S Tax et al., 1998); (de Ruyter et al., 1998) Additionally, as (S Tax & Brown, 2000) demonstrate, well-executed service recovery performance may assist customers in overcoming disappointment and anger, and can even restore a relationship As a consequence, interactive justice, outcome justice, and procedural justice all have a major effect on consumer satisfaction, which results in customer loyalty (Phan et al., 2021) The result of Phan et al also points that each Justices have different strength levels interacting to Customer satisfaction, obviously, on the E-retailing industry, the Interactive Justice has most important role on this impact
Nikbin's 2014 research extends beyond the E-retailing industry to the airline sector, highlighting the importance of Outcome Justice practices—such as refunds, vouchers, discounts, and free tickets—as essential strategies for restoring customer satisfaction among dissatisfied travelers This emphasis on distributive justice may explain its significant role in the aviation industry, particularly when contrasted with other sectors like hospitality, where customer engagement with service providers tends to be higher.
In the context of service recovery, the impact of interactional justice varies significantly across different industries, as indicated by Nikbin (2014) Each industry demonstrates unique results regarding the importance of various elements of Justice theory in their service recovery efforts.
Customer loyalty is often viewed as a direct result of customer satisfaction This study examines the connection between service recovery and service recovery satisfaction within the Courier Logistics industry, aiming to uncover the varying degrees of interaction among the three components of Justice theory and their impact on service recovery satisfaction.
H1: There will be a positive relationship between Interactive justice and SRS in Courier Logistics service
H2: There will be a positive relationship between Procedural justice and SRS in Courier Logistics service
H3: There will be a positive relationship between Outcome justice and SRS in Courier Logistics service.
The attribution theory on the role of service failure’s cause determination
Service failure in organizations can be attributed to various factors, as outlined in Appendix A.2 of Johnston's 1995 study Specifically, service operation failures account for 20% of issues, product, equipment, and facility failures make up 27%, while the majority, 53%, stem from customer-related failures.
The majority of failures in customer service can be attributed to consumer errors, which can be divided into two main categories: "problem customers" and negligent consumers Problem customers engage in serious misconduct, such as mistreating staff or being inebriated, while negligent consumers typically make minor, unintentional mistakes, like forgetting an item or arriving at the wrong time or place.
From the customer's viewpoint, a failure occurs whenever something goes wrong, regardless of who is at fault, highlighting the importance of accountability (Johnston, 2012) For example, if a courier is late with a delivery, the client may attribute the delay to the courier, who might be affected by external factors like road construction or internal issues at the dispatch facility This cycle of blame often leads to denial, which hinders the ability to learn from the experience and improve future service delivery (Johnston, 2012).
Control attributions significantly influence customer reactions following service failures When a service issue arises, the attribution of blame affects how customers respond; they tend to be more forgiving if they believe the business had minimal control over the situation Conversely, if customers perceive the failure as predictable and preventable, their forgiveness diminishes Understanding these dynamics is crucial for businesses aiming to manage customer satisfaction effectively after a service failure.
Attribution theory, as proposed by Weiner (2000), helps identify the cause of service failures by explaining how customers engage in spontaneous causal thinking to predict and manage their environment This theory highlights three key concepts that illustrate how customers assess service failures and attribute blame, as outlined by Folkes (1984).
- Locus of control: Who is responsible for the service failure - the customer or the service provider?
- Controllability as the Perceived control: Did the responsible party have control over the cause?
Stability attribution assesses the likelihood of a failure recurring, distinguishing between temporary issues that may be one-off occurrences and permanent problems that are stable over time.
If the firm has no control over the service failure (Controllability Perception) and the problem will likely occur again (Stability attribution), the attribution theory predicts that h
12 the customers are more likely to be dissatisfied than when the converse is true (Folkes
This research aims to clarify two key elements of Attribution Theory: Perceived Control, formerly known as Controllability, and Stability Attribution By focusing on the significant role of perception, the study will enhance understanding of how these elements influence individual interpretations of events.
2.5 “Perceived control” and “Stability attribution” interacting with the relationship between the Service recovery and Service recovery satisfaction
During the Covid-19 pandemic, the courier logistics industry faced significant challenges, including airport closures and reduced workforce due to health measures This resulted in delayed cargo releases, severe congestion, and increased rates of delivery errors However, when customers recognize the objective difficulties faced by the industry, their dissatisfaction with service failures tends to diminish.
Theoretically, customers attempt to deduce why a failure occurred, so this spontaneous causal thinking is especially typical in failure circumstances (Weiner, 2000) Customers are likely to wonder about the following:
“Who is to blame?” and,
“Did the person in charge have control over the problem whether or not?”
Customers often lack a clear understanding of a company's control over service failures, highlighting the importance of managing "Perceived Control" (Hui and Tse, 1996; Taylor, 1994) When failures arise, it is crucial for service staff to provide clients with acceptable and credible explanations (Dunning et al., 2004) Attribution theory emphasizes that customer perceptions significantly influence their responses; those who attribute mistakes to controllable factors tend to be less forgiving in their satisfaction ratings Research by Taylor (1994) indicates that when customers believe a delay is within the company's control, their frustration increases, leading to lower satisfaction levels.
Stability attribution plays a crucial role in customer perceptions, as it involves customers' beliefs about the likelihood of recurring failures based on their dissatisfaction with a product or service According to Blodgett, Granbois, and Walters (1993), when customers perceive a cause of failure as stable, they are more likely to expect similar issues in the future, which can significantly impact their overall satisfaction and loyalty.
Customers evaluate service failures by considering whether the causes are temporary or permanent If they perceive the issues as stemming from stable causes, they are likely to avoid the service provider in the future (Folkes, 1984).
Research shows that consumers who view service failures as consistent are less likely to return to a business Specifically, if customers believe that a restaurant's failure to provide a requested food item is due to a recurring oversight, their satisfaction diminishes, leading to a decreased likelihood of future visits.
Both the Perceived Control and the Stability Attribution interacting with the customer satisfaction are presented in the figure below:
Figure 2.2: The Perceived control, Stability Attribution correlating with the
In 2007, a meta-analysis by de Matos et al examined the relationship between service recovery and service recovery satisfaction, highlighting the influence of various methodological moderators, including research method (survey vs experiment), design (cross-sectional vs longitudinal), subject demographics (students vs non-students), and service categories (hotel, restaurant, and others) This study specifically addressed the context of courier logistics.
Stability of the failure cause
14 is considered a new subject in the Service category contributing to the new of this research
In addition to methodology, theoretical moderators such as failure severity, prior failure experience, stability attribution, and the company's control over failure also need to be considered Despite their significance, empirical testing of these moderators remains limited Therefore, De Matos (2007) recommends that future studies should further explore these theoretical moderators.
Nikbin's research, building on De Matos (2007), explores the airline industry's application of Attribution theory, highlighting the moderating effect of Stability attribution on the relationship between Outcome Justice and Service Recovery Satisfaction The findings indicate a negative impact, suggesting that customers' perceptions of fairness—encompassing procedural, interactional, and informational aspects—are diminished in the airline sector when failures are perceived as frequent rather than infrequent.
METHODOLOGY
Sample and data collection
This study employs quantitative research through a questionnaire survey, primarily distributing hard-copy questionnaires to participants in various provinces of Vietnam, including Ha Giang, Tuyen Quang, and Hanoi Additionally, a portion of the data collection was conducted via an online survey.
The onsite survey was conducted in Ha Giang and Tuyen Quang provinces for ease of data collection, utilizing courier companies to reach customers at post offices In contrast, online surveys were primarily carried out in Hanoi, where the availability of electronic devices among respondents is higher To ensure the reliability and validity of the data, appropriate and dependable quantitative methods were employed, which will be detailed in the following section.
The questionnaire comprises five sections, starting with demographic information such as gender, education level, age, marital status, and income The second section examines participants' usage characteristics, including their frequency of using courier logistics services, budget levels, experiences with service failures and recoveries, and their habits regarding sending and receiving cargo To minimize bias in responses, the questions were randomly mixed when the questionnaire was distributed.
The initial questionnaire, created in both Vietnamese and English, was distributed to approximately 10 reviewers employed by Courier Logistics companies like DHL, FedEx, TNT, and UPS to assess the clarity and understanding of each question Additionally, the questionnaire was shared with VJU students and some of the author's clients, yielding around 70 samples for a pilot test Following a review and consultation with the supervisor, the questionnaire was refined, resulting in modifications to its content and the number of observed items.
The final collection was conducted from 15 March to 20 April and tested on 23 April
The author distributed a survey to approximately 500 individuals who visited 11 post offices across three provinces, along with an additional 100 online participants After collecting and verifying the responses, 300 valid samples were retained for analysis, aligning with the targeted sample size.
Scales - Measurement
The measurement scales for each variable were developed based on established and reputable research, then tailored to enhance reliability within the context of Courier Logistics.
Each item was answered based on the 07 - Linkert scale from “Strongly Disagree” to
“Strongly Agree” When comparing with the 05 - Linkert scale, the study of Kraig
Finstad (2010) found that 7-point Likert scale items are more accurate, user-friendly, and better reflect respondents' true opinions compared to other scales These advantages make 7-point questions particularly suitable for surveys in usability studies, outperforming higher-order items Therefore, the author recommends using the 7-point Likert scale over the 5-point scale for satisfaction surveys.
Disagree Disagree Partly disagree Neutral Partly agree Agree Strongly
The variables and scales of measurement, it is presented in the table below: h
Table 3.2: The Variables and scales of measurement
NO CODE ITEMS CONSULTED SCALE
Folger and Konovsky (1989), Maxham and Netemeyer (2002), and Smith and Bolton (1998)
Blodgett et al (1997), Folger and Konovsky (1989), Maxham and Netemeyer (2002) and Smith and Bolton (1998)
Folger and Konovsky (1989), Maxham and Netemeyer (2002) and Smith and Bolton (1998)
Bitner (1990), Brown and Leigh (1996), and Davidow (2000)
Analytical Framework
This article presents a framework derived from a literature review on service failure, service recovery, and service recovery satisfaction It incorporates the Justice theory, which includes Interactive Justice, Procedural Justice, and Outcome Justice, to analyze service recovery activities Furthermore, it considers Attribution theory, specifically Perceived Control - Controllability and Stability Attribution, as a moderating factor in the relationship between these elements.
The study identifies Service Recovery Satisfaction as the dependent variable, influenced by the independent variables of Interactive Justice, Procedural Justice, and Outcome Justice Additionally, Perceived Control (PC) and Stability Attribution (SA) are proposed as moderating factors in this relationship.
Regarding the variables in the above framework, the content is detailed as below:
- The Interactive Justice: The capability of service providers to communicate with clients throughout the service recovery process (Tax & Brown, 1998);
- The Procedural Justice: A business’s return policy, regulation, and standard; the buyer’s rights in the event of a service failure; and the speed with which an issue may be remedied (Blodgett, 1997);
- The Outcome Justice: The result of recovery actions as monetary compensation, future complimentary services, payment restitution, or an apology (Smith, 1999).
Service recovery satisfaction refers to the level of satisfaction customers feel regarding how their complaints are managed, as highlighted by Tax, Brown, and Chandrashekaran in 1998 It can also be defined as the customer's evaluation of the effectiveness of a provider's response to a service failure, as noted in 2016.
- The Perceived control: Refer to the answer to the question: “Did the responsible party have control over the cause?”
Stability attribution assesses the likelihood of a failure recurring, determining whether its cause is a temporary issue or a permanent, ongoing problem Understanding this distinction is crucial for effective risk management and long-term planning.
Data analysis methodology
This study employed a quantitative method using IBM SPSS Statistics Subscription Trial version 26.0 to analyze data characteristics, measure the model, structure the model, and examine the moderating interaction among three variables related to Service Recovery Satisfaction.
The data is analyzed in the following stages:
Demographic Statistic: Making the demographic statistic for the control variables to see the characteristic of the sample collected
The descriptive analysis aims to evaluate the implementation of control variables, including Interactive Justice, Procedural Justice, Outcome Justice, Perceived Control, Stability Attribution, and Service Recovery Satisfaction.
Cronbach’s alpha is a crucial measure for assessing the reliability of scales, while exploratory factor analysis (EFA) simplifies a larger set of observations (K) into a smaller set of significant factors (F), where F is less than K Subsequently, factor loadings are utilized to create new variables, which are essential for evaluating subsequent correlations and regression analyses.
Pearson’s correlation analysis: To consider the correlation independence between these variables
Hypothesis testing - Regression: Analysis of Multiple Linear Regression to check and find the regression relationship between the independent variable and the dependent variables h
This study examines how Perceived Control and Stability Attribution influence the relationship between Service Recovery and Service Recovery Satisfaction By analyzing these moderating interactions, we aim to understand their impact on customer satisfaction following service recovery efforts.
3.4.1 Demographic Statistic and Descriptive analysis
Appendix B.1 details the survey characteristics, revealing that women comprise 59.3% of respondents, while men represent only 39% This indicates a significant trend, highlighting that express delivery services are predominantly utilized by women.
Nearly 80% of those surveyed are married, reflecting the demographic trends in two mountainous provinces of Vietnam, where early marriage is common The age distribution of respondents ranges evenly from 18 to 50 years old, highlighting the region's unique social characteristics.
The sample primarily consists of high school graduates, making up nearly 50% of the population studied Additionally, the income level predominantly falls within the range of 5-10 million VND, which reflects the economic conditions in two mountainous provinces.
Most users of courier logistics services opt for express delivery, with approximately 45% utilizing these services between 5 to 10 times a month or fewer In contrast, only about 7% of users rely on express delivery services 10 to 15 times per month.
The cost of courier logistics services typically remains under 1 million per month, representing 62.7% of usage Additionally, there are instances of no cost incurred, which is classified as passive service use, where recipients only receive goods without any service charges, with the expenses covered by the shipper.
The majority of habits involve sending and receiving goods at the post office Notably, the delivery rate at home (76%) surpasses that of the post office (55%), indicating a growing trend among users to passively receive goods at home, which accounts for 35% of deliveries.
Most of the respondents said that Courier Service Failure happens “Sometimes” (44.3%), then “Seldom” (38%), and “Common” (14%) Service failure recovery rates were mostly “Common” (58%), followed by “Regularly” (32.35)
The descriptive analysis in Appendix B.2 reveals that users provided relatively positive feedback on service recovery following courier service failures Specifically, the assessments of Interaction Justice, Procedural Justice, and Outcome Justice all recorded minimum values exceeding 5 points, indicating overall satisfaction post-recovery Notably, the Mean value for Outcome Justice is approximately 5.8, with a standard deviation of 0.87, suggesting that most users view Outcome Justice favorably Similar positive trends are observed in the assessments of Interaction Justice and Procedural Justice.
The Perceived Controllability variable has a mean value of approximately 5.9 and a standard deviation of around 0.89, suggesting that most users encounter errors that they believe are largely outside the control of service providers.
The Stability Attribution variable has a mean value approximately 5.9 above the average, indicating its significance However, its standard deviation of around 0.98 is slightly higher than that of other variables, suggesting the need for a more detailed analysis The author plans to explore this variable further using additional analytical tools.
3.4.2 Reliability test and Factor analysis to measure Model
According to Klarner, Sarstedt, Hoeck, and Ringle (2013), a crucial aspect of model assessment involves evaluating its reliability, which includes both indicator reliability and internal consistency reliability, as well as its validity, encompassing convergent validity and discriminant validity.
To assess the reliability of observed items for inclusion in a model's variable scale, Cronbach's Alpha testing is essential This test evaluates the correlation among observed items within the same variable, helping to identify which items effectively contribute to the measurement of the variable's concept By analyzing Cronbach's Alpha values, researchers can determine the trustworthiness and suitability of these observed items for use in their models.
23 the good variable indicate that the observed items are extremely excellent, indicating the variable’s features and the scales used for these variables
DISCUSSION AND IMPLICATION
The research reinforces the Justice theory, highlighting its three key elements in relation to Service recovery and Service recovery satisfaction Additionally, it examines the moderating effects of Perceived Control and Stability Attribution within the context of Attribution theory, focusing on cause determination These findings are elaborated upon in the following discussion.
The study reaffirms the significant relationship between service recovery and service recovery satisfaction through the lens of Justice theory, supported by reliable and valid scales from a sample of 300 respondents The findings align with previous research by A C Phan (2021), Omar Ali (2020), Wang and Zhang (2018), and Sciarelli (2017), enhancing the understanding of Courier Logistics service management in Vietnam Despite high-quality services, service failures are inevitable in the Courier Logistics sector, necessitating effective service recovery strategies to convert dissatisfied customers into loyal clients, as noted by Jame & Mona (2011) This retention leads to increased customer loyalty and reduces the need for costly new customer acquisition in a challenging market Regression analysis indicates that all three elements of Justice—Outcome Justice, Procedural Justice, and Interactive Justice—significantly impact service recovery satisfaction, with Outcome Justice having the most substantial effect, evidenced by a coefficient of 0.604 and a p-value of 0.0000 While the results are consistent with existing findings, they highlight differing interaction levels across various fields, such as the stronger emphasis on Interaction in e-retailing (Phan et al.).
In the Airline service industry, Outcome Justice plays a crucial role in customer relationships, overshadowing the significance of Procedural Justice (Davoud Nikbin, 2010) Similarly, in Courier Logistics, the emphasis is on Outcome, as customers prioritize factors like monetary compensation, future complimentary services, payment restitution, or even an apology (Smith, 1999).
Courier logistics providers should care about the policies of the outcome for their service recovery when the service failure occurs as the cargo is lost, delayed, damaged, etc
The findings highlight the moderating role of Perceived Control in the context of Service Recovery This research confirms a key aspect of attribution theory, demonstrating its significant impact on Service Recovery Satisfaction.
The study found that Perceived Control significantly moderates the relationship between Interactive Justice and Service Recovery Satisfaction, with coefficients of 0.117 and p-values of 0.00, indicating a strong positive effect Similarly, Outcome Justice also demonstrated a positive effect with a coefficient of 0.089 and a p-value of 0.04 These results align with Dematos' 2007 literature, which proposed that Controllability serves as a crucial moderator in these relationships.
Courier firms must clearly communicate the reasons behind service failures, especially when they result from uncontrollable events like natural disasters or pandemics, such as Covid-19 These circumstances can lead to significant cargo damage, loss, or delays, disrupting the supply chain It is essential for service staff to provide clients with credible explanations during these failures (Dunning et al., 2004) Customers tend to be less forgiving when they perceive delays as controllable issues, leading to increased frustration and decreased satisfaction ratings (Taylor, 1994).
This study highlights a significant unsupported finding regarding the role of Perceived Control in the relationship between Procedural Justice and Service Recovery Satisfaction Unlike previous research by Davoud Nikbin in 2014, which identified Perceived Control as a crucial moderator in airline service contexts, this study reveals that Perceived Control does not have a moderating effect between Procedural Justice and Service Recovery Satisfaction.
Service recovery satisfaction while it doesn’t affect the one between Outcome Justice and Service recovery satisfaction
The perceived control gap serves as a moderator in the relationship between Justices and service recovery satisfaction, with notable differences observed between the airline and courier logistics industries According to Dematos (2007), the industry context can influence the outcomes of service recovery interactions Each sector has its own standard operating procedures (SOPs), leading to variations in how interaction, procedure, and distribution are prioritized Consequently, the moderating effect of perceived control on the interplay between these elements and service recovery satisfaction becomes evident.
The study examined the moderator role of Stability Attribution within attribution theory, revealing that Stability significantly influences the relationship between Interactive Justice and Outcome Justice in relation to service recovery satisfaction However, the findings did not support a similar impact for Procedural Justice.
The study reveals a positive relationship between outcome justice and customer satisfaction, indicated by a coefficient of 0.11 and a P-value of 0.00, aligning with findings from Davoud Nikbin (2014) Conversely, the analysis of interaction justice shows a negative coefficient of -0.1 and a P-value of 0.03, suggesting that frequent changes in failure causes adversely impact service recovery satisfaction This highlights that customers prefer consistent failure explanations; for instance, they may accept delays due to airport congestion but become dissatisfied when faced with unexpected reasons like storms or fires.
Customers tend to be unacceptably rude, and they will become enraged if the customer service staff interacts with them
The high failure percentage in the courier logistics sector significantly impacts customer satisfaction, as clients become increasingly frustrated when informed of changing reasons for delivery failures.
In conclusion, the theoretical contribution is listed as:
Justice theory is essential for evaluating service recovery operations, particularly in relation to service recovery satisfaction, as it encompasses three key elements of justice Additionally, Attribution theory plays a crucial role in identifying the causes of service failures, serving as a necessary moderating factor when assessing the outcomes of service recovery efforts after addressing these failures.
While; the practical contribution is presented that:
In courier logistics, effective service recovery policies are crucial for ensuring customer satisfaction following service failures, as they involve compensation and promotions that address customer grievances The interaction between customer service staff and the recovery process plays a significant role in this context When handling customer claims, staff should clarify the firm's limitations in controlling certain issues, such as force majeure events If courier companies demonstrate a high level of control over failures, customer empathy tends to decrease, resulting in heightened disappointment, particularly concerning Interactive and Outcome Justice.
When addressing failure causes in recovery operations, it is crucial to consider their stability, as fluctuations can diminish the effectiveness of interaction justice Customers may feel uneasy if the reasons for failure change frequently However, if the underlying cause shifts while the outcome of the recovery remains satisfactory, customer satisfaction can actually increase, as they continue to receive effective compensation and positive results despite the changes.
LIMITATION AND FUTURE RESEARCH
This study empirically tests service management operation theories, reaffirming the connection between service recovery and service recovery satisfaction through the lens of Justice theory It also introduces attribution theory to examine the moderating effects of Perceived Control and Stability attribution on this relationship While the findings align with previous research, the study acknowledges limitations due to the restricted sample size and research timeframe.
The Courier Logistics sector is just one aspect of the broader logistics service industry and does not encompass the entire field Research should also focus on other critical segments, including ocean vessel shipping, airline shipping, railway shipping (1PL), and various third-party logistics (2PL, 3PL, and 4PL) providers.
The findings on the moderator role of Stability variables reveal discrepancies when compared to previous research, prompting the author to highlight the influence of varying service types This divergence contributes to a gap in Failure Percentage, impacting both Failure Perception and Failure Expectation The author advocates for future studies to investigate this gap, particularly in relation to differing service expectation levels For instance, the notable difference in customer perception and expectation during service recovery between five-star hotels and street food restaurants warrants attention Customers tend to exhibit more leniency towards lower-tier services compared to higher-end options, which often come with elevated expectations for quality Consequently, the interactions of moderators such as Controllability and Stability may vary, leading to inconsistent research outcomes.
It is essential to conduct thorough research on the specific standard operating procedures (SOPs) of each industry, as customer segments vary significantly between luxury and classic services For instance, some service providers prioritize staff interaction over outcomes, while others focus on delivering tangible results, making warranty policies a critical aspect of customer satisfaction.
The disparity in perceptions between customers and customer service staff significantly influences their interactions regarding customer feedback This gap can impact the outcomes of future research focused on recovery operations and service management.
1 Back, K.-J., & Parks, S C (2003) ARTICLE A BRAND LOYALTY MODEL INVOLVING COGNITIVE, AFFECTIVE, AND CONATIVE BRAND LOYALTY AND CUSTOMER SATISFACTION
2 Bolton, R N., & Wagner, J (1999) A Model of Customer Satisfaction with Service Encounters Involving Failure and Recovery In Article in Journal of Marketing Research (Vol 5) https://www.researchgate.net/publication/228555498
3 Chebat, J.-C., & Slusarczyk, W (2005) How emotions mediate the effects of perceived justice on loyalty in service recovery situations: An empirical study
Journal of Business Research, 58, 664–673 https://doi.org/10.1016/j.jbusres.2003.09.005
4 Choi, B., & La, S (2013) The impact of corporate social responsibility (CSR) and customer trust on the restoration of loyalty after service failure and recovery Journal of Services Marketing, 27(3), 223–233 https://doi.org/10.1108/08876041311330717
5 Collier, J E., & Bienstock, C C (2006) Measuring service quality in E-retailing
Journal of Service Research, 8(3), 260–275 https://doi.org/10.1177/1094670505278867
6 de Matos, C A., Henrique, J L., & Alberto Vargas Rossi, C (2007) Service recovery paradox: A meta-analysis Journal of Service Research, 10(1), 60–77 https://doi.org/10.1177/1094670507303012
7 de Ruyter, K., Wetzels, M., & Bloemer, J (1998) On the relationship between perceived service quality, service loyalty and switching costs International Journal of Service Industry Management, 9(5), 436–453 https://doi.org/10.1108/09564239810238848
8 Folkes, V S (1984) Consumer Reactions to Product Failure: An Attributional Approach Journal of Consumer Research, 10(4), 398 https://doi.org/10.1086/208978
9 Folkes, V S., & Kotsos, B (1986) Buyers’ and Sellers’ Explanations for Product Failure: Who Done It? Journal of Marketing, 50(2), 74–80 https://doi.org/10.1177/00222429860500020
10 Fornell, C., & Wernerfelt, B (1987) Defensive Marketing Strategy by Customer Complaint Management: A Theoretical Analysis In Journal of Marketing Research (Vol 24, Issue 4)
11 Goodwin, C., & Ross, I (1992) Consumer responses to service failures: Influence of procedural and interactional fairness perceptions Journal of Business Research, 25(2), 149–163 https://doi.org/10.1016/0148-2963(92)90014-3
12 Johnston, R C G S M (2012) Service Operations Management: Improving Service Delivery h
13 Maxham, J G (2001) Service recovery’s influence on consumer satisfaction, positive word-of-mouth, and purchase intentions Journal of Business Research, 54(1), 11–24 https://doi.org/10.1016/S0148-2963(00)00114-4
14 Maxham, J G., & Netemeyer, R G (2002) A longitudinal study of complaining customers’ evaluations of multiple service failures and recovery efforts Journal of Marketing, 66(4), 57–71 https://doi.org/10.1509/jmkg.66.4.57.18512
15 Mayank Halmare, A J S M (n.d.) Global Opportunity Analysis and Industry
Forecast, 2017–2027 Retrieved May 9, 2022, from https://www.researchandmarkets.com/reports/5322192/enzymes-market-type- source-reaction-type-and
16 Mccollough, M A., Berry, L L., & Yadav, M S (2000) An Empirical Investigation of Customer Satisfaction after Service Failure and Recovery Journal of Service Research, 3(2), 121–137 https://doi.org/10.1177/109467050032002
17 Mcquilken, L., Vocino, A., & Bednall, D (2014) The Influence of Procedural and Interactional Justice, and Disconfirmation on Customers’ Postrecovery Satisfaction
Evaluations Tetrad and SEM View project https://www.researchgate.net/publication/253538755
18 Obiandu, N (n.d.) Service Failure Recovery and Competitive Positioning of the Telecommunication Firms in Port Harcourt www.arcnjournals.org
19 Oflaỗ, B S., Sullivan, U Y., & Baltacioğlu, T (n.d.) AN ATTRIBUTION APPROACH TO CONSUMER EVALUATIONS IN LOGISTICS CUSTOMER SERVICE FAILURE SITUATIONS
20 Palmer, E J., & Hollin, C R (2000) The interrelations of socio-moral reasoning, perceptions of own parenting and attributions of intent with self-reported delinquency Legal and Criminological Psychology, 5(2), 201–218 https://doi.org/10.1348/135532500168092
21 Parasuraman, A., Berry, L L., & Zeithaml, V A (n.d.) Perceived Service Quality as a Customer-Based Performance Measure: An Empirical Examination of Organizational Barriers Using an Extended Service Quality Model
22 Phan, A C., Nguyen, H T., & Pham, T X T (2021) Relationship between service recovery, customer satisfaction and customer loyalty: Empirical evidence from e- retailing Uncertain Supply Chain Management, 9(1), 1–10 https://doi.org/10.5267/j.uscm.2020.12.007
23 Schroeder, R., & Goldstein, S M (n.d.) Operations Management in the Supply Chain, Decisions and Cases, Seventh Edition
24 Sciarelli, M., Nagm, A A., Dakrory, M I., Tani, M., & Khashan, M A (2017) Mediating Service Recovery Satisfaction in the Relationship between Internet Service Recovery and Customer Loyalty International Journal of Business and Management, 12(10), 24 https://doi.org/10.5539/ijbm.v12n10p24
25 Spreng, R A., Harrell, G D., & Mackoy, R D (1995) Service recovery: Impact on satisfaction and intentions Journal of Services Marketing, 9(1), 15–23 https://doi.org/10.1108/08876049510079853 h
26 Swastha Dharmmesta, B (2014) PERCEIVED JUSTICE IN SERVICE RECOVERY: STUDY OF EXPERIMENTAL DESIGN ON INDONESIAN CUSTOMERS https://www.researchgate.net/publication/262799170
27 Tax, S., & Brown, S (2000) Service recovery: Research inSights and practices Handbook of Services Marketing and Management, 271–286 https://doi.org/10.4135/9781452231327.n19
28 Tax, S S., Brown, S W., & Chandrashekaran, M (1998) Customer evaluations of service complaint experiences: Implications for relationship marketing Journal of Marketing, 62(2), 60–76 https://doi.org/10.2307/1252161 Tyler, T R (n.d.) Social Justice: Outcome and Procedure
29 Weiner, B (2000) Attributional Thoughts about Consumer Behavior Journal of Consumer Research, 27(3), 382–387 https://doi.org/10.1086/317592
30 Zhu, G., Chou, M C., & Tsai, C W (2020) Lessons Learned from the COVID-19 pandemic exposing the shortcomings of current supply chain operations: A long- term prescriptive offering Sustainability (Switzerland), 12(14) https://doi.org/10.3390/su12145858
31 Bloomberg The Coronavirus Is Infecting the Global Economy Here's How Available online: https://www.bloomberg.com/news/articles/2020-01-31/the- global-economy-isgetting-infected-by-the-virus (accessed on 31 January 2020)
32 National Post It's Official: 'Deeply Concerned' WHO Declares the COVID-19
Outbreak a Global Pandemic Available online: https://nationalpost.com/news/world/its-official-the-covid-19-outbreak-is-a globalpandemic (accessed on 11 March 2020)
33 Brinsmead, “Logistics service recovery and the role of technology”, 2007 InternationaSymposium on Communications and Information Technologies, 2007, pp 1361-1365
34 Nazlı Gỹlfem Gidener ệzaydin, “The Service Failure and Recovery Strategies in Logistics Service Sector”, 14/2016 Celal Bayar University Journal of Social Sciences
35 Oflaỗ, B S., Sullivan, U Y., & Baltacioğlu, T (2012) “An Attribution Approach to Consumer Evaluations in Logistics Customer Service Failure Situations.”,
Journal of Supply Chain Management, 48(4), 51–71
36 Logistics Industry Report 2018, 2019, 2020, Ministry of Industry and Trade of Viet Nam h
The table of Justice Elements Definition and Associated Research collected from Tax, Brown, and Chandrashekaran, 1998
Representative Research Distributive/Outcome Justice
Provision of outcomes proportional to inputs to an exchange
Satisfaction, repurchase intention, word of mouth
Equal outcomes regardless of contributions to an exchange
Outcome based on requirements regardless of contributions
Freedom to communicate views on a decision process
(1922) Kanfer et al (1987) Lind and Tyler (1988) h
Extend to which a person is free to accept or reject a decision outcome
Bitner, Booms and Tetreault (1990) Bowen and Lawler
Perceived amount of time taken to complete a procedure
Anger, uncertainty, Satisfaction, service quality
Adaptability of procedures to reflect individual circumstances
Bitner, Booms and Tetreault (1990) Narver and Slater
Provision of reason for a failure
Perceived veracity of information provided
Complaint evaluation, repurchase intention, satisfaction
Amount of positive energy put into resolving a problem
Provision of caring, individual attention
The types and proportions of failures in service organizations from Johnston, Robert (1995), “Service Failure and Recovery; Impact, Attributes and Process”, Advances in Services Marketing and Management: Research and Practice (4) 211-228
The product/equipment /facility failures (27%)
The demographic analysis of control variables SEX
Valid No need to pay 70 23.3 23.3 23.3
IJ IJ1 IJ2 IJ3 IJ4 IJ5 IJ6 IJ7 IJ8 IJ9
PJ PJ1 PJ2 PJ3 PJ4 PJ5 PJ6
The table of Cronbach’s Alpha test processes
- About IJ, the result of Cronbach’s Alpha testing is shown initially:
Cronbach’s Alpha Cronbach’s Alpha Based on
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach’s Alpha if Item Deleted
After remove the IJ3, IJ5, IJ7 and IJ8: h
Cronbach’s Alpha Cronbach’s Alpha Based on
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach’s Alpha if Item Deleted
- About PJ, the initial result shown:
Cronbach’s Alpha Cronbach’s Alpha Based on
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach’s Alpha if Item Deleted
After removing the PJ1, PJ6, it shown:
Cronbach’s Alpha Cronbach’s Alpha Based on
Scale Variance if Item Deleted
Cronbach’s Alpha if Item Deleted
- About OJ, the initial result shown:
Cronbach’s Alpha Cronbach’s Alpha Based on
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach’s Alpha if Item Deleted
After removing OJ3, it shown:
Cronbach’s Alpha Cronbach’s Alpha Based on
Scale Mean if Item Deleted
Scale Variance if Item Deleted
Cronbach’s Alpha if Item Deleted
- Other variables as PC, SA and SRS are good for index as:
Cronbach’s Alpha Cronbach’s Alpha Based on
Cronbach’s Alpha Cronbach’s Alpha Based on
Cronbach’s Alpha Cronbach’s Alpha Based on
The table of Factor analysis test for independent variables
Kaiser-Meyer-Olkin Measure of
Initial Eigenvalues Extractio n Sums of Squared Loadings
Rotation Sums of Squared Loadings
Extraction Method: Principal Component Analysis h
The table of Factor analysis test for dependent variable
Kaiser-Meyer-Olkin Measure of Sampling Adequacy .550
Bartlett’s Test of Sphericity Approx Chi-Square 1199.359 df 10
Compone nt Initial Eigenvalues Extraction Sums of Squared
Extraction Method: Principal Component Analysis a 1 components extracted h
APPENDIX C: THE QUESTIONAIRE OF SURVEY
THE RELATIONSHIP BETWEEN THE SERVICE RECOVERY & SERVICE RECOVERY SATISFACTION IN COURIER LOGISTICS SERVICE: AN EMPIRICAL EVIDENCE FROM VIETNAM
The Research Group at Vietnam Japan University, part of Vietnam National University in Hanoi, is currently investigating the effects of service recovery on customer satisfaction within the courier logistics sector This study aims to enhance the scientific understanding and improve the quality of courier logistics services in Vietnam.
All information is surveyed, and we will commit to keep this data confidential
We would love for you to take a moment to take this survey and fill out the form below
We sincerely thank you for your assistance in completing this survey
For all related issues, please contact me via email: 20117017@st.vju.ac.vn or Tel: 0966.874.834 (Nguyen Thanh Tung)
Here are the questions, you just need to tick to choose the answer, looking forward to your valuable cooperation:
Choose one of the following answers
Choose one of the following answers h
Choose one of the following answers
Choose one of the following answers
What is your average monthly income?
Choose one of the following answers h
How often do you use Courier Logistics Services in a month?
Choose one of the following answers
Please enter your comment here:
The level of budget that you use Courier Logistics Services for a month?
Choose one of the following answers
Please enter your comment here:
How often do you get Service Failure, Crash in Courier Logistics Services?
Choose one of the following answers
Where do you usually SEND goods? h
Choose one of the following answers
How often do you get the Service Recovery in Courier Logistics Services? (Including successful or unsuccessful remediation)
Choose one of the following answers
Where do you usually RECEIVE goods?
Choose one of the following answers
[SRP] [PC] [SA] [SRS] CUSTOMER’S PERCEPTION WHEN THE COURIER LOGISTICS SERVICE IS RECOVERIED
All services, including Premium Services, may encounter errors or issues This is also true for Courier Services, where failures or problems can arise Reflect on a past experience where you faced a Courier Service failure or problem to address the questions below.
The agreement levels for the questions ranged from 01 to 07, with Level 01 indicating total disagreement and Level 07 signifying total agreement The progression of agreement is as follows: Level 02 represents disagreement, Level 03 indicates partial disagreement, Level 04 is neutral, Level 05 shows partial agreement, and Level 06 denotes agreement It is important to note that responding to this question is mandatory.
Totally disagree Disagree Partly disagree Neutral Partly agree Agree Totally agree
[IJ1] You were taken care of by Courier Logistics Company staff when you complained about a service failure?
[IJ3] Have you reported the problem directly to the Courier
Logistics carrier employee? (Example: By phone, face-to-face )
[SRS2] Are you satisfied with how Courier Logistics staff handled service failures?
[PJ1] In the process of service recovery, have you been free to express your opinion?
[SRS5] You satisfied with the results of service recovery that the
Courier Logistics provider has done?
[PC4] No one is responsible for this service failure? h
[IJ2] Did the Courier Logistics carrier staff actively work to fix the service when something went wrong?
[PJ2] Overall, does the Courier Logistics carrier have a good procedure when it comes to service failure?
[SRS4] Did the Courier Logistics carrier show flexibility when it comes to recovery their service for you?
[IJ7] Contact information and troubleshooting instructions are easily found on the Courier Logistics carrier’s website?
[PC1] Does this service failure come from objective external circumstances?
[SRS4] In your opinion, the Courier Logistics carrier provided a satisfactory, flexible solution for me with this service failure?
[PJ5] Is the service recovery procedure satisfactory and consistent in the times of error correction?
[OJ4] The courier Logistics firm has many forms of compensation for loss? (Example: Cashback, Service Discount, For a higher service package, etc.)?
[IJ9] Did the Courier Logistics carrier staff interact with you quickly? h
[OJ5] Were the results of the service recovery reasonable and satisfactory?
[SA3] Is the cause of this problem not immutable and can be changed?
[PJ3] Did the Courier Logistics carrier try to solve the problem as quickly as possible?
[IJ4] Did you have a satisfactory explanation of the cause of the service failure from the Courier Logistics carrier staff?
[PC3] This service failure cannot be controlled by you or the
[OJ1] The service failure occurred has been fixed?
[SRS3] Are you satisfied with the process and tools that the Courier
Logistics provider uses to resolve service failures?
[PJ6] Can you appeal decisions after the service recovery is completed?
[IJ5] Were the Courier Logistics carrier employees honest when dealing with service failure?
[SA1] The cause of this service failure has a temporary element? h