A conceptual framework and empirical investigation of service failure-recovery strategy and its impact on institutional trust

Abstract

Public trust in institutions has been declining over the past few decades. Marketers have long been interested in understanding the causes of institutional mistrust and developing new strategies to reverse these problematic trends. This dissertation categorizes the causes of institutional mistrust and proposes a previously undefined cause of institutional mistrust; buyer beware. In this dissertation, buyer beware is defined and conceptualized as a service failure recovery strategy (SFR). Buyer beware and service guarantees are conceptualized as proactive SFR strategies and are compared in this study. This dissertation is structured in a two-essay format with each essay investigating different aspects of the SFR literature. Essay 1 maps the essential topics of interest in the field of SFR. The full range of the SFR literature is expansive, complex and heterogenous. Essay 1 follows a scoping literature review format and makes a contribution to the SFR literature by providing an accessible tool for researchers and practitioners. Essay 2 makes several contributions to service failure-recovery and institutional trust literature. Essay 2 provides several SFR conceptual models as well as an empirical model that demonstrates buyer beware impacts firm reputation, customer loyalty, intention to litigate, and institutional trust.