BUS535: Business Research Method

Research Topic:

Effect of Service Recovery on Initial

Disconfirmation, Recovery Disconfirmation,
Satisfaction and Customer Switching Intension‖ in E-
Business Context
Introduction:
 Service quality and service recovery play a significant role in customer
satisfaction and future purchase intentions.
 Every company often makes mistakes in meeting the expectations of today’s
customers. Customers are more demanding and less loyal than ever before
 Service failure causes customer dissatisfaction with the service provider, and
due to that customers may exit silently, spread a negative word-of-mouth,
voice their complaints to the operator
 Service recovery refers to the actions an organization takes in order to
respond to a service failure
 It is important to understand how customers‘ perceptions of service failure
and recovery may impact switching intentions
 Ultimate goal: To reduce potential damage to customer relationships caused
by service failures
Objective Of The Study:

 To analyze the impact of a service failure on customer

satisfaction in the e-business.
 To examine the impact of e-service quality and recovery
on satisfaction.
 To analyze how initial and Recovery disconfirmations
influence satisfaction when a service failure occurs.
Literature Review:

 Initial Disconfirmation:
 Initial disconfirmation refers to the discrepancy between service failure
expectations (expectation that the service might fail) and service performance
(initial perceptions of the service performance)
 When consumer requests are not satisfactorily fulfilled, services are not well-
delivered, or delivered services are lower than minimum expectations, then
service failures occur
 Positive disconfirmation leads to satisfaction and negative disconfirmation
results in dissatisfaction. (Performance Vs Expectation)
 Firms can increase their profits by 25–85% if they reduce their customer
defection rate by 5% (Reichheld & Sasser, 1990). It is essential for firms to
effectively minimize customers‘ switching intentions.
Literature Review:

Recovery disconfirmation:
 Recovery disconfirmation refers to the discrepancy between recovery expectations (a
consumer‘s expectations in regard to what the service provider will offer in order to
recover from the failure) and recovery performance (a consumer‘s perception of the
actions that taken by the service provider in response to the failure)
 Consumers form recovery expectations when a service failure occurs. They expect
service providers to take certain actions in response to the failure.
 When recovery expectation exceeds recovery performance, then a negative recovery
disconfirmation occurs, which results in post-recovery dissatisfaction. When recovery
performance is higher than recovery expectation, then a positive recovery
disconfirmation occurs, which results in post-recovery satisfaction.
Literature Review:

 Satisfaction:
 Customer satisfaction influences repurchase intentions, loyalty and post-
purchase behaviors, such as word- of-mouth advertising, switching and
complaining
 Customer satisfaction is also considered an indicator of switching intentions
 Customer satisfaction increases the customer retention rate but negatively
influencing switching intentions
 Customers expect a service recovery to be fair in order to recover their
satisfaction and loyalty
 Service recovery efforts is to move a customer from a state of dissatisfaction
to a state of satisfaction.
Literature Review:

 Switching Intention:
 The switching of consumer intentions refers to customers rejecting a product
or service in favor of a competitor's.
 If retailers do not keep their customer satisfied, competitors might directly
benefit
 Customers’ perceptions of switching costs also influence their switching
intentions. Switching costs refer to the time, efforts and money involved in
switching to a new service provider
 It is expected that as switching costs increase, customer switching intentions
decrease and vice versa.
Research Model:
Research Question and Hypothesis Development

Q1: Is there any Relationship between Initial Disconfirmation and Switching

Intention?
Null Ho 1: There is No relationship between Initial Disconfirmation and Switching
Intention.
Alternative Ha: There is a Relationship between Initial Disconfirmation and Switching
Intention.
Q2: Is there any Relationship between Recovery disconfirmation and Switching
Intention?
Null Ho: There is no Relationship between Recovery disconfirmation and Switching
Intention.
Alternative Ha: There is Relationship between Recovery disconfirmation and
Switching Intention.
Q 03: Is there any Relationship between Satisfaction and Switching Intention?
Null Ho: There is no Relationship between Satisfaction and Switching Intention.
Alternative Ha: There is Relationship between Satisfaction and Switching Intention.
Research Design and Methodology:

 Convenience Sampling Method will be used for this research because

this will be economic and also this method is popular mostly for
research.
 I will choose customers who are engaged in online transaction (E-
business Company) and the sample will be 100 units.
 The questionnaire had four sections:
1. Independent variable : Initial disconfirmation, recovery
disconfirmation, customer satisfaction
2. Dependent variable : Customer Switching intention
3. Demographic variables : age, gender, educational qualification
Data Analysis and Expected
Outcome
 Descriptive analysis will be used for the research
 Conduct one sample t-test to test the hypothesis to 95% significance level
 Stata software to find the results of hypothesis testing and regression analysis
based on Stata
1. The study will examine the relationships between Initial disconfirmation,
recovery disconfirmation, customer satisfaction and customer switching
intention
 It will suggest how Initial disconfirmation, recovery disconfirmation,
customer satisfaction has an effect on customer switching intention.
Limitations:

 We may realize later that sample size selected is not sufficient it may be
difficult to collect enough information.
 The research study may consume more time than expected
 Some of the respondents might not cooperate with us.
 Some respondents may think that it‘s waste of time.
 Possibility of getting biased information from respondents
 Some respondents may tick the questionnaire even without reading. In such
case we will face difficulty analyzing the data.
Conclusion:

 The aim of this paper is to analyze the impact of a service failure on customer
satisfaction in the online context. Specifically, the objectives are to examine
the impact of e-business service quality and recovery on satisfaction, and to
analyze the customers switching intention in the services of e-business
company.
 The result of this study will expose the importance and impact of service
failure and recovery in E-business in Bangladesh. Everyone will be able to
know how to provide an excellent service recovery in e-business context when
service fails and their customers are intend to switch.