Assessing the Effects of Service Recovery and Perceived Justice on Customer Satisfaction with SEM

The objective of this study is to validate a structural equation model of customer satisfaction with service failure/ recovery encounters and to simultaneously test the proposed hypotheses in a car warranty/claims setting. The proposed model based on exchange framework fits well to the empirical data from those respondents who have experienced the service failure/ recovery encounters. The findings provide managers with the understanding of the effective path from a specific recovery attribute to satisfaction through one of the perceived justice dimensions, which have effects on customer satisfaction. This research makes a contribution to both academicians and business practitioners by validating an integrated model to assess the effects of the recovery attributes and the role of perceived justice in the satisfaction model.