Microsoft Word Luan van Lan Anh 13072022(fixed) doc BỘ GIÁO DỤC VÀ ĐÀO TẠO NGÂN HÀNG NHÀ NƯỚC VIỆT NAM TRƯỜNG ĐẠI HỌC NGÂN HÀNG THÀNH PHỐ HỒ CHÍ MINH LƯƠNG LAN ANH THE EFFECTS OF RECOVERY SERVICE ON C[.]
Trang 1TRƯỜNG ĐẠI HỌC NGÂN HÀNG THÀNH PHỐ HỒ CHÍ MINH
LƯƠNG LAN ANH
THE EFFECTS OF RECOVERY SERVICE ON
CUSTOMER SATISFACTION LEADING TO SWITCH INTENTION AND WORD-OF-MOUTH ABOUT
VIETJET AIR
LUẬN VĂN THẠC SĨ
Thành phố Hồ Chí Minh - Năm 2022
Trang 2TRƯỜNG ĐẠI HỌC NGÂN HÀNG THÀNH PHỐ HỒ CHÍ MINH
LƯƠNG LAN ANH
THE EFFECTS OF RECOVERY SERVICE ON
CUSTOMER SATISFACTION LEADING TO SWITCH INTENTION AND WORD-OF-MOUTH ABOUT
Trang 4During my thesis time, I got loads of backings and supportive gestures from numerous people This thesis would not have been accomplished without those valuable input, support, counsel, and advice
First and foremost, I would like to express my deepest thanks to my instructor – Phd Tran Van Dat – lecturer at Banking University of Ho Chi Minh City – for his believable and unreserved help, valuable advices and recommendation Thank for his effort and wide knowledge to make my topic possible, his suggestions, direction and advices are always highly appreciated and greatly contributing to the success of this thesis
I would also like to express my sincere appreciation to the professors and lecturers for their guidance during my academic years at the University of Banking The knowledge and skills that I have learned, have assisted me in the completing of this thesis
Last but not least, honestly the most supported ones are my family Words fail me to express my thankfulness for my parents for their endless love To all the above, and so many more, I just simply want to say again “Thank you for all your encouragement, support, and love”
Trang 5This study aims to understand the influence of key service recovery strategies including offering apology and compensation on customer satisfaction From there, find out the relationship between customer satisfaction and intention to switch and WOM about VietJet Air This study uses the main method of quantitative research with a sample of 260 The research subjects are VietJet Air’s passengers who have ever faced any service failure such as flight delay, flight cancellation, lost baggage, and some other problems Research results supported all the proposed theories in this article In particular, the service recovery campaign including apology and compensation affects customer satisfaction, which is an important contribution in practical application Customers who are hurt and generate negative feelings when experiencing service failures, they will need sincere apologies and adequate compensation In addition, the positive influence of customer satisfaction on conversion intention was also supported in this study When a passenger is satisfied with an airline, their intention to use another airline is unlikely to occur, a and positive word of mouth about the airline will also increase Nevertheless, this research also had some limitation, which was highlighted in the body research
3 Keywords
Service recovery, customer satisfaction, switching intention, WOM, VietJet Air
Trang 6đã lấy bối cảnh của ngành hàng không Việt Nam, cụ thể là VietJet Air
Nghiên cứu này nhằm mục đích tìm hiểu ảnh hưởng của các chiến lược khôi phục dịch vụ chính bao gồm đưa ra lời xin lỗi và bồi thường có tác động như thế nào đối với sự hài lòng của khách hàng Từ đó, tìm ra mối quan hệ giữa sự hài lòng của khách hàng và ý định chuyển đổi và WOM về VietJet Air Nghiên cứu này sử dụng phương pháp chính là nghiên cứu định lượng với mẫu là 260 Đối tượng nghiên cứu là những hành khách của VietJet Air đã từng gặp sự cố dịch vụ như chậm chuyến, hủy chuyến, thất lạc hành lý, và một số vấn đề khác Kết quả nghiên cứu đã chấp nhận tất
cả các lý thuyết được đề xuất trong bài nghiên cứu này Đặc biệt, chiến dịch khôi phục dịch vụ bao gồm xin lỗi và bồi thường ảnh hưởng đến sự hài lòng của khách hàng, là một đóng góp quan trọng trong việc áp dụng thực tế Những khách hàng bị tổn thương
và nảy sinh cảm giác tiêu cực khi gặp sự cố dịch vụ, họ sẽ cần lời xin lỗi chân thành và đền bù thỏa đáng Ngoài ra, ảnh hưởng tích cực của sự hài lòng của khách hàng đến ý định chuyển đổi cũng được chỉ ra trong nghiên cứu này Khi một hành khách hài lòng với một hãng hàng không, ý định sử dụng hãng hàng không khác của họ sẽ khó xảy ra,
sự truyền miệng tích cực về hãng hàng không đó cũng sẽ tăng lên Tuy nhiên, nghiên cứu này cũng có một số hạn chế, điều này đã được nhấn mạnh trong bài nghiên cứu chi tiết dưới đây
3 Keywords
Khôi phục dịch vụ, sự hài lòng của khách hàng, ý định chuyển đổi, truyền miệng, VietJet Air
Trang 7LIST OF SPORTENED WORDS
WOM - word of mouth
CFA - Confirmatory Factor Analysis
Trang 8CONTENT
CONTENT vi
LIST OF TABLE viii
LIST OF PICTURES x
Chapter 1: INTRODUCTION 1
1.1 Research background 1
1.2 Research objectives 5
1.3 Research question 6
1.4 Research scope 6
1.5 Research method 6
1.6 Research significance 7
1.6.1 Theoretical significance 7
1.6.2 Practical significance 7
1.7 Proposal structure 8
Chapter 2: LITERATURE REVIEWS 9
2.1 Term and definitions 9
2.1.1 Definitions 9
2.1.2 Theorical model – justice theory 14
2.2 Previous research 15
2.2.1 Global research 15
2.2.2 Domestic research 26
2.3 Research gaps and contribution 27
2.4 Research hypotheses 28
2.5 Research model 32
3.1 Research process 35
3.1.1 Qualitative research 35
3.1.2 Quantitative research 36
3.2 Adjust scale 39
3.3 Data processing method 41
3.3.1 Cronbach Alpha Analysis 41
3.3.2 EFA analysis 42
3.3.3 Confirmatory Factor Analysis – CFA 44
3.3.4 SEM structure 45
Chapter 4: RESULTS AND DISCUSSIONS 47
4.1 Overview of the research samples 47
4.2 Crosstabulation 54
4.3 Reliability of scale 55
4.4 Exploratory factor analysis (EFA) 56
4.5 CFA 58
4.6 Structural equation modeling 61
4.7 Hypothesises testing 63
4.8 Discussion 63
Chapter 5: CONCLUSION AND IMPLICATIONS 67
5.1 Conclusion 67
5.2 Managerial implications and theoretical contributions 68
5.2.1 Theoretical contributions 68
5.2.2 Managerial implications 70
5.3 Limitations and Recommendation for Future Studies 71
REFERENCES i
APPENDIX 1: PRE-TEST QUESTIONAIRE xiii
Trang 9APPENDIX 2: BẢNG CÂU HỎI TRƯỚC KHI THỰC HIỆN THU THẬP DỮ LIỆU
CHÍNH THỨC THỰC NGHIỆM xiv
APENDIX 3: OFFICAL QUESTIONNAIRE xv
APPENDIX 4: BẢNG CÂU HỎI CHÍNH xviii
APPENDIX 5: DATA – MEAN INDEXES xxii
APPENDIX 6: DATA – AVE AND CR VALUES xxiii
Trang 10LIST OF TABLE
Table 1 Service recovery definitions (Source: Author collected) 9
Table 2 Other service recovery previous research in global 23
Table 3 Likert scale (5 level) 36
Table 4 Collecting data timing (Source: The author) 38
Table 5 “Aplogy” scale 40
Table 6 “Compensation” scale 40
Table 7 “Customer satisfaction” scale 40
Table 8 “Switching intention” scale 41
Table 9 “Word of Mouth” scale 41
Table 10 Sample characteristics of gender (Source: SPSS 22 statistics) 47
Table 11 Sample characteristics of age groups (Source: SPSS 22 statistics) 47
Table 12 Sample characteristics of age groups (Source: SPSS 22 statistics) 48
Table 13 Occasions that respondents use the airplane the most 48
Table 14 Airplane brands that respondents mostly fly with 48
Table 15 Repondents’ level educations (Source: SPSS 22 statistics) 48
Table 16 (AP1) VietJet Air make a public apology immediately 49
Table 17 (AP2) Passengers expect aplogies which could show their staff’s sincerity (Source: SPSS 22 statistics) 49
Table 18 (AP3) The apologies significantly help their customers more reduced anger, negative impression with VietJet Air (Source: SPSS 22 statistics) 50
Table 19 (AP4) An apology from the airline was essential to respondents 50
Table 20 (CP1) VietJet Air has taken appropriate compensation policies to solve the issue (Source: SPSS 22 statistics) 50
Table 21 (CP2) Providing compensation enhances their customers positive emotions (Source: SPSS 22 statistics) 50
Table 22 (CP3) When VietJet Air offers compensation, their customers prefer monetary compensation (Source: SPSS 22 statistics) 51
Table 23 (SF1) Customers feel pleased with the dealing of the specific event 51
Table 24 (SF2) When I decided to travel with VietJet Air, I believe I made the proper choice (Source: SPSS 22 statistics) 51
Table 25 (SF3) VieJet Air did all I expected (Source: SPSS 22 statistics) 52
Table 26 (SF4) Customers felt satisfied with the overall service recovery actions to their service failures (Source: SPSS 22 statistics) 52
Table 27 (ST1) Recently, customers have searched and checked product price of other airline brands (Source: SPSS 22 statistics) 53
Table 28 In the future, customers will not reduce the frequency travelling VietJet Air have that had a bad experience (Source: SPSS 22 statistics) 53
Table 29 (ST3) Customers not require the services of a different airline companies (Source: SPSS 22 statistics) 53
Table 30 (WO1) Customers will tell friends / family about how the airline solved the problems they had (Source: SPSS 22 statistics) 54
Table 31 (WO2) I am likely to share positive opinions to friends and family about my overall experience with VietJet Air (Source: SPSS 22 statistics) 54
Table 32 (WO3) I am likely to share positive opinions to friends and family about my overall experience with VietJet Air (Source: SPSS 22 statistics) 54
Table 33 On which occasions that each gender chooses the airplane the most? 54
Table 34 Which airplane brands that each gender mostly fly with 55
Table 35 Reliability Statistics (Source: SPSS 22 statistics) 55
Table 36 Item-Total Statistics (Source: SPSS 22 statistics) 56
Table 37 KMO and Bartlett's Test (Source: SPSS 22 statistics) 57
Trang 11Table 38 Total Variance Explained (Source: SPSS 22 statistics) 57
Table 39 Rotated Factor Matrix (Source: SPSS 22 statistics) 58
Table 40 The value of CFA Standardized Regression Weights 60
Table 41 The correlation coefficient (Source: AMOSS 24 statistics) 61
Table 42 Regression Weights (Source: AMOSS 24 statistics) 63
Table 43: Mean values (Source: SPSS 22 statistics) xxii
Table 44: AVE and CR values xxiii
Table 45: Discriminant Validity xxiv
Table 46: Gender cross AP1 xxv
Table 47: Gender cross AP2 xxv
Table 48: Gender cross AP3 xxv
Table 49: Gender cross AP4 xxvi
Table 50: Gender cross CP1 xxvi
Table 51: Gender cross CP2 xxvi
Table 52: Gender cross CP3 xxvii
Table 53: Gender cross SF1 xxvii
Table 54: Gender cross SF2 xxvii
Table 55: Gender cross SF3 xxvii
Table 56: Gender cross SF4 xxvii
Table 57: Gender cross ST1 xxviii
Table 58: Gender cross ST2 xxviii
Table 59: Gender cross ST3 xxix
Table 60: Gender cross WO1 xxix
Table 61: Gender cross WO2 xxix
Table 62: Gender cross WO3 xxx
Trang 12LIST OF PICTURES
Figure 1 Flight delays of airlines in February 2022 4
Figure 2 Nikbin and et al, (2015) research framework 16
Figure 3 Eucharia and Kalu (2017) research framework 17
Figure 4 Xu et al (2019) research framework 18
Figure 5 Van Vaerenbergh et al (2019) framework of the service recovery journey 20
Figure 6 Ali et al (2020) research framework 21
Figure 7 Lin et al (2019) research framework 21
Figure 8 Al Rasyid et al (2021) research framework 22
Figure 9 Nguyen et al (2021) research framework 26
Figure 10 Quoc et al (2021) research framework 27
Figure 11 Proposal research model 33
Figure 12 Research design 38
Figure 13 CFA model (Source: AMOSS 24 statistics) 59
Figure 14 SEM mode (Source: AMOSS 24 statistics) 62
Trang 13Chapter 1: INTRODUCTION 1.1 Research background
As a result of the globalization trend, domestic businesses are finding it more difficult to compete Businesses must preserve and increase their power in order to take advantage of other businesses and rivals, as well as maintain their position, in order to sustain and grow the marketplace As a result, successful entrepreneurs have a thorough understanding of their clients and rivals Businesses would like to achieve high levels of consumer satisfaction and happiness in order to promote brand loyalty and encourage others to do the same (Famiyeh et al., 2018) When service failure occurs, the dissatisfaction of the customer may have an impact on his subsequent consumption behavior (Shandong, 2018) The certain level of failure between service customers and service providers is positive, regardless of how well the service process
is planned or how qualified employees are educated (Lee and Hu, 2004) Glasly (2018) found that 92% of respondents said they would not continue to purchase from a company after three or less negative experiences As a result, how to restore service in
a timely manner to please customers twice is a topic worth investigating Service recovery is essential when a service failure occurs because their first service failure, 26% of those surveyed said they would stop buying (Forbes, 2018) When recovery is very poor, 63 percent of customers cut back spending, according to a study by the Temkin Group (2016) of 10,131 customers from 20 sectors and 315 firms In addition, consumers maybe quietly turn to the competitor or spread bad word of mouth (Singh, 1990) Although businesses cannot ensure error-free service delivery, they could ensure that service errors are resolved in a timely manner that meets customers’ expectations Compensation, apologizing, demonstrating remorse, and providing clarification are the kind of solutions for service recovery (Gelbrich and Roschk, 2011) Service recovery has been marked as an important component to achieving consumer satisfaction (Andreassen, 2001), and is therefore critical for increased consumer loyalty with brand (Stauss and Friege, 1999) However, businesses that adopt turnaround plans do not have what consumers desire, causing 60% of consumers dissatisfied (Walker and Jean, 2018) According to the Customer Rage Study (2015),
76 percent of consumers would like an apology but only 32 percent get one, and 40–50 percent want reimbursement but only 10 – 20% get it While, within aviation industry,
Trang 14airline service delays and unsuccessful recovery attempts have received a lot of media coverage Edvardsson (1992) illustrated that delays and canceled flights accounted for
82 percent of dissatisfaction The frustration stemmed specifically from the lack of details provided about the delay (Etemad, 2017) The airline industry is facing a public relations crisis as a result of service delays and unsuccessful turnaround attempts (Shen, 2017) In the context of Covid 19 pandemic, it effects on the travelling industry including air transport, hotel chain, and etc Early indications of the effects on air travel, cruises, and lodging have been damaging (Stefan, 2020) The most common approach used by airlines to improve from service failures is service recovery (Chou, 2015) In consequences, the “right” recovery techniques in the present context could
be enforced for effective service recovery
In the aviation context, because of the essence of the operation mechanism they are prone to service failures (Steyn et al., 2011) Most airline passengers might well have such expectations prior to their imminent journey (Coye, 2004), but their actual experience may differ from their expectations due to service failures Cancelled flights, distractions, or delays, attitudes of ground and cabin staff, accidents, booking issues, and overbooking of flights have all been identified as causes of service disruptions in the airline industry (Bamford and Xystouri, 2005) According to Chang and Chang (2010), these air service failures can be extremely costly for businesses, as customers often turn to other airlines after such a bad experience The most common technique used by airlines to improve from service disruptions was service recovery (Chou, 2015) There are many previous research papers that have found the relationship between service recovery and customer satisfaction carried out in many different countries and have focused on customer viewpoints in measuring their level
of satisfaction First of all, Reza (2017) looked at how airline passengers' perceptions
of service recovery output/process influenced their loyalty and satisfaction According
to Migacz et al (2018), the most successful recovery technique for airline management will be to concentrate on compensating customers beyond their standards While using online customer feedback for airline services, Xun Xu et al (2019) investigated the impacts of multiple airline service failure attributes and related recovery behavior on customer consumption emotions, satisfaction, and suggestion probability using deep learning, sentiment analysis, and robotic process automation
Trang 15Anderson, Baggett, and Widener (2009) showed that customer satisfaction is impacted negatively by service disruptions and positively by subsequent service recovery actions Moreover, preliminary studies on offline bad experience and recovery has shown a strong link between customer satisfaction and service recovery, as well as corresponding constructive behavioral intentions Michel (2001) looked into the matter further and discovered that the impact of recovery on satisfaction are highest when consumer standards of recovery are only partially met In the research of Coverly et al (2002), it would be imprecise and potentially misleading to claim that service failure leads to service recovery, which results in satisfaction, engagement, retention, and profitability
According to the data of the Civil Aviation Authority of Vietnam in 2019, VietJet Air is the airline with the highest flight delay rate among domestic airlines Until the first of 2022, the flight delay rate has not improved, still keeping the rate of 23.5%, which means that there will be 1 flight delay in every 4 flights, although the number of flights has the strongest growth (146.8%) Vietjet Air's punctuality rate decreased by 15.2% over the same period and sharply decreased by 17.8% compared
to the previous month The latest new on the evening of June 4, 2022, many passengers complained to Tuoi Tre hotline about Vietjet Air's flight VJ605 from Cam Ranh to Ho Chi Minh City, which was delayed continuously, making hundreds of passengers angry (Tuoitre, 2022) In addition, this brand also encountered many other service errors such as refusal to serve people with disabilities, luggage being searched, etc For example, on December 25, 2018, a Vietjet Airlines flight from Cam Ranh to
Ho Chi Minh City had a technical problem after taking off, turned around but landed
on the wrong runway, which had not been put into operation waterfall at Cam Ranh airport (Tuoitre, 2018) Another reports that Vietjet Air's flight delay without notice, without an apology is reported by a passenger on flight VJ778 from Nha Trang to Hanoi in 2020 (Dau tu Vietnam, 2020) Moreover, on January 21 of 2022, a customer accused Vietjet Air of deliberately canceling a flight to force the customer to change to the next flight and pay an additional transfer fee (Tuoitre, 2022) These issues will led
to a significant decrease in customer satisfaction and many people from refuse to choose to VietJet Air next time However, VietJet Air is a low-cost airline in Vietnam with a lot of service errors, but with price characteristics, many customers still try to
Trang 16endure these mistakes and wait for an improve from VietJet They have used a strategy
of ticket discounts to draw customers and broaden their marketing network In the beginning, they sold tickets for unoccupied seats for 0 VND or at a low price; these tickets were sold ahead of time by a few weeks to increase the flight occupancy rate (Nguyen, 2020)
In addition, the situation of the 4th wave of COVID-19 epidemic continued to develop very complicatedly, causing air transport businesses, which were already difficult, to now fall into a very difficult situation A flights’ traffic were decrease, passengers were absent, airports were stopped, airlines continuously reported losses In the report in 2020 and the first 5 months of 2021, with the aviation industry, the Ministry of Planning and Investment said that the market had the most serious decline, the demand for air transport in 2020 decreased by 34.5 - 65.9%, revenue of aviation enterprises decreased by 61% compared to 2019 However, in the fourth quarter of
2021, Vietjet's revenue from air transport reached VND 2,789 billion, down compared
to the same period last year However, for the whole year of 2021, VietJet Air achieved consolidated revenue of VND 12,998 billion, consolidated profit after tax of VND 100 billion, up 46% compared to 2020 (Vietnam Plus, 2022) This can be easily explained because the stressful Covid-19 situation, people lost their jobs and stayed at home in a long time for a social distance, resulting in their financial situation also declining In addition, VietJet Air also provides free Covid-19 testing for passengers when choosing this airline, creating more convenience for their passengers
Figure 1 Flight delays of airlines in February 2022 (source: Civil Aviation Authority of Vietnam)
Trang 17The following are some of the study's key contributions: First, this research looks at how service failures and recovery actions affect satisfaction Second, finding the relationship between customer satisfaction leading to negatives/ positive WOM and intention to switch in the context of the aviation service industry in Vietnam The results also provide further evidence of the importance of service restoration through compensation and timely apology from the airline that will be smart factors in improving customer satisfaction when they have a bad experience in the era of social commerce with fierce competition at present Therefore, numerous studies on service recovery was conducted in other countries at the moment, but there is still a scarcity of systematic study of aviation service recovery and customer satisfaction in Vietnam There are not any research papers focusing on the relationship between service recovery and customer satisfaction leading to the switching intentions and word of mouth for Vietjet Airs Furthermore, it created an opportunity to monitor the transformation of passengers' perceptions regarding how airlines recover from disappointment over time As a result, the author recognizes the necessity to conduct
this research by reviewing previous studies “The effects of recovery service on customer satisfaction leading to switch intention and word-of-mouth about VietJet Air” Based on the findings, the author proposed a marketing strategy for aviation
businesses, emphasizing the use of high-quality services to improve VietJet Air competitiveness The next section of this thesis is a summary of the analysis, which includes the theoretical foundation, methodology and materials, as well as the findings and discussion Finally, the author summarizes the most important observations and discusses the consequences of future study
1.2 Research objectives
The overall objectives of this study is to determine which variables of service recovery (compensation and apologies) have an effect on customer satisfaction, resulting in changing intention and WOM about Vietjet Air It could contribute to the success of recovery process in aviation service Thus, it makes a conclusion and provide better understanding about the service recovery in this sector
The study has the identify sub-objectives:
Trang 18- Exploring which variables belonging to service recovery (compensation and apologies) have an impact on customer satisfaction
- Evaluating how customer satisfaction could impact on switching intention and word of mouth (WOM) towards VietJet Air
- Managerial implications to solve problems existing in recovery service for aviation company especially VietJet Air
1.3 Research question
There are three main research questions listed as below:
(1) What which variables belonging to service recovery have an impact on customer satisfaction? How is the level of each service recovery variables
impact on the satisfaction and what is the positives/negatives impacts?
(2) When customers are satisfactied with the recovery service of the aviation company, how it effects on their switching intent and word of mouth about this
(2) Research time: The research was carried out from September 2021 to December
2021
1.5 Research method
This article was carried out using a mixed approach of qualitative and quantitative research
Trang 19- Qualitative research approach: The approach refers to the process of forming
the basis about how suitable of the questionnaire and find out which variable should be having in the research An in-depth interview or Focus Groups with experts (who is a Vietnamese customer witnessing in bad experience during using VietJet service) will be conducted as part of qualitative research to determine the usage of terminology in the questionnaire, as well as the modification of terminology Based on this foundation, the author proposes a research model suitable for the current context
- Quantitative research approach: the questionnaire survey will be conducted in
Viet Nam to collect information Online questionnaires are used in quantitative analysis The priority data collected from VietJet Air’s customers were cleaned and would analyze by the SPSS 22 software (for Cronbach Alpha analysis, ANOVA and etc) and AMOS 20 software (for SEM models analysis)
- Statistics description of describing the research sample:
• Cronbach's Alpha analysis
1.6.2 Practical significance
The airline industry necessitates a high level of personal contact between airline employees and passengers; miscommunication may result in service failure Therefore,
Trang 20as the aviation industry develops, this study shows the importance of service recovery because it affects more or less passenger satisfaction At the same time, it also creates
a steppingstone for marketing professionals in the aviation field to understand satisfaction from the customer's point of view
1.7 Proposal structure
Chapter 1: INTRODUCTION
Chapter 2: LITERATURE REVIEW
Chapter 3: RESEARCH METHOD
Chapter 4: DATA ANALYSIS AND DISCUSSION
Chapter 5: CONCLUSION AND IMPLICATIONS
CONCLUSION
The research paper's first chapter provides readers with a better understanding of the research problem by addressing basic concerns such as why the topic was chosen, research objectives, subjects, and study scope In addition, the author offered the research techniques and structural design in this chapter, which served as a foundation for additional investigation in the following chapters
Trang 21Chapter 2: LITERATURE REVIEWS 2.1 Term and definitions
2.1.1 Definitions
Service defined
Since the early 1960s, researchers have been debating and clarifying the definition and notion of service Although there is a significant corpus of service research that acknowledges a plethora of service definitions and ideas, some of the more generally recognized and cited definitions in recent literature are as the table below:
Table 1 Service recovery definitions (Source: Author collected)
A service encounter is a one-on-one interaction between a
company and a consumer
Price, Arnould and Tierney (1995)
It is a pivotal moment in which the customer is either
satisfied or dissatisfied
Albrecht and Zemke
(1995)
A service is any activity or benefit that one person can
provide to another In which the object provided must be
intangible and does not lead to any ownership of an object
The production of a service may or may not be tied to a
physical product
Philip Kotler (1992)
A service is an activity that has an intangible element
attached to it and involves the interaction of the service
provider with the customer or with the customer property
The service does not involve the transfer of ownership of
the output
Adrian Payne (1994)
The Bureau of Labor Statistics published an analysis of the service industry in
2006, stating that the service sector of the US economy accounted for more than 75%
of US GDP and about 80% of all jobs at the time In Vietnam, service industry represented for 41% of the country's gross domestic product (GDP) (Statista, 2021) In recent years, this industry has consistently been the largest contributor to Vietnam's GDP However, customers are still dissatisfied with the quality of the service experience they experienced
Trang 22Service failures defined
The service failure literature can be split into two categories: 1/ research into noncatastrophic failures, such as ordinary service failures (e.g., Smith et al., 1999; it refers as minor incidents) or 2/ research into major incidents, such as defects or accidents that have the potential to cause serious harm to consumers, such as injury or death (Dawar and Pillutla, 2000) From the perspective of the customer, service failure happens when the service's quality and performance fall short of their expectations (Chahal and Devi, 2015) In the aviation conext, failure to provide airline service is regarded as a stressful scenario in the interaction between passengers and airline businesses (Ro, 2015) Many experts agree that if a service failure is not remedied, customers are more likely to spread unfavorable word-of-mouth (Barakat et al., 2015; Choi and Choi, 2014; Harrison, 2018; etc), reconsider their commitment to a company, develop switching behavior and potentially reduce a customer’s satisfaction permanently (Hocutt et al., 2006) In this research, the author clarified service failures such as s having a flight canceled, overbooked, or delayed, etc which is the same as the research of Barakat et al (2015)
Service Recovery Defined
Customers' perceived service deficiencies are a significant source of concern for service providers because of the possible impact on the service result (Anders, 2009) Therefore, service recovery is a choice taken by a business in response to a service failure (Gronroos, 1990) with the purpose of transforming the customer's frustration to satisfaction and thereby maintaining those consumers (Miller et al., 2000) Various authors have described service recovery in their own definitions; for instance, Johnston and Fernell (1991) describe it as "finding and coping with service failures", while itt is defined as "a process with a beginning and an end" by Zemke and Bell (2003) Addition to Hoffman and Kelly (2000), service recovery was defined as the processes by which a company admits fault for a service failure, fixes the problem, provides an expression, apologizes to the customer, obtains a compensation proposal, and remains gentle and courteous throughout the recovery process On the other hands, service recovery has been highlighted by researchers as a relatively underappreciated part of service marketing that requires more attention (Tax et al, 1998; Kim et al, 2003) Examples of recovery attempts include discounts, refunds, presents, and
Trang 23coupons, free service for a limited time, clarification of the mistake, empathy, and apologies (Jung and Seock, 2017) In the nearest years, Van Vaerenbergh et al (2019) defined service recovery as the process by which a company reacts to a customer's complaint in order to keep that customer When a consumer analyzes his or her service recovery experience, the perceived justice/ fairness of the complaint resolution procedure will have an influence on the consumer's satisfaction (Babin and et al., 2021)
In addition, service recovery actions are approaches that was used by service provider and its staff to recover consumer loyalty after a bad experience has caused frustration (Siu et al., 2013) When a business effectively performs service recovery from failures, customers feel more satisfied and are more committed to the connection (Tax et al., 1998) The key goal of service recovery attempts is to restore disappointed customers to a state of satisfaction by effectively implementing measures to minimize the harm to customer relationships caused by a customer dissatisfaction (Ha and Jang, 2009)
Service recovery is particularly important in the airline industry, because airlines would be able to reduce customer betrayal and improve their relationship with customers if they can effectively recover from service failures (Ali et al., 2020) Implementing successful service recovery after a bad experience might not result in negative outcomes (Hu et al., 2013) Service recovery has become an integral part of the service structure, designed to discourage disappointed customers from leaving and spreading negative word of mouth to prospective customers (Nikbin, 2015) Even if companies cannot fully eradicate service failures, Steyn et al (2011) indicated that they can introduce service recovery efforts as well as successfully handle these failures
in the future to sustain and perhaps even improve customer satisfaction and loyalty
As a result, the most efficient strategy to ensure consumers achieve the appropriate expectations is through service recovery activities (Pai et al., 2019)
Satisfaction and customer satisfaction defined
Oliver's study and conceptions of satisfaction in the late 1980s and early 1990s focused mostly on transaction-specific satisfaction Particularly, in 1981 she described satisfaction as "an appraisal of the astonishment inherent in a product acquisition and/or consumption experience," which is one of the most frequently recognized
Trang 24definitions according to the New Oxford American Dictionary, satisfaction is the 'filling of one's wishes, expectations, or needs, or the pleasure obtained from this (Jewell and Abatem, 2001) In a nutshell, satisfaction is a good emotion that occurs when one's desires or requirements are met (Liu et al., 2016).
Customer satisfaction is important to the business organization because it help the growth of the business (Kadir and Shamsudin, 2019) According to Kotler and Armstrong (2012) indicated customer satisfaction is almost the prerequisite to future purchasing behavior Customers who are pleased with the product or service they receive are more likely to buy from the same seller again (Rita et al.,2019) Thus, to make more revenue and build the business, the company must maintain and enhance current customers by providing satisfaction and bring new clients by promising higher value (Rosli and Nayan, 2020) It can be seen the firm's competitive edge was that it satisfied clients better than its competitors, going above and beyond their requirements and wishes (Minta, 2018)
Word-of-mouth (WOM) Defined
According to Söderlund (1998), the extent to which a client notifies friends, relatives, and coworkers about an experience that has resulted in a specific level of satisfaction is referred to as word-of-mouth (WOM) In the nearer year, WOM was characterized by Harrison-Walker (2001) as “informal, individual communication about a brand, a product, an organization, or a service between a perceived amateur communicator and a receiver” So it means there is no contain further official consumer communication from an organization (Jan et al., 2018) In addition, it also was described as interpersonal communication about a service or product between a perceived noncommercial communicator and a receiver (Daniels et al., 2004) In 2016, customers conveying information about goods, services, brands, or companies to other consumers was known as word-of-mouth (Rosario et al., 2016) While, WOM was also clarified as a verbally or in writing referral of a service or product by a satisfied consumer to prospective consumers (Ngoma and Ntale, 2019) Thus, WOM might contain not only promotional communications from the company, but also official complaints and suggestion from customers (Marchand et al., 2017) According to existing research, contentment, loyalty, perceived value, and customer experiences all affect word-of-mouth (Jalilvand et al., 2017; Rosario et al., 2016) As a result, word-
Trang 25of-mouth is particularly crucial for service providers whose services are mostly intangible and rely on expertise or credibility (Balaji et al., 2017)
There are 2 trends of WOM which are negative WOM and positive WOM Particularly, customers who had a positive experience are more likely to spread the news through word-of-mouth, such as recommendations to others (Matos and Rossi, 2008) Positive WOM (PWOM) can encourage customers buy speedier (Libai et al., 2013) and avoid switching intention (Money, 2004; Wangenheim and Bayón, 2007) Customer identification, consumer commitment (Brown et al., 2005), consumer trust, perceived value (Matos and Rossi, 2008), and service quality (Harrison-Walker, 2001) are all factors that contribute to positive WOM On the other hands, negative word of mouth (NWOM) generally arises as a result of customers' discontent with their purchase experience, and they tell others about their unsatisfactory experience with the product or service Therefore, positive word of mouth is beneficial to the enterprise's performance, whereas bad word of mouth communication harms the enterprise's interests and degrades its image However, Arndt’s study (1967) discovered that negative word-of-mouth dissemination had a more than two-fold influence on lower sales than good word-of-mouth sales The reason behind this is that when a consumer hears unfavorable word-of-mouth about a product, they are likely to believe that the product is not good enough (Qi, 2018) On the contrary, consumers will not be viewed as high-quality items if they have favorable information about a
product or brand (Qi, 2018)
Switching intention
Switching behavior has risen as a result of simple access to information about items and their qualities from many companies (Grigoriou et al., 2018) Kaur et al (2012) defined customer switching behavior as when a customer ignores one business provider's services and switches to another While Harianja et al (2017) described
"switching intentions" as a measure of the chance or certainty that consumers will switch from their present supplier to a new one According to Kazmi et al (2021), customer moving of exchange and relationships with rival companies is known as switching intention Keaveney (1995) listed the driver factors to switching intention such as price, annoyance, core service failures, service meeting failures, staff responses to service failures, competitive difficulties, ethical issues, and unintended
Trang 26variables As a result, switching intentions from current customers might result in a large drop in earnings and a company's turnover (Sun et al., 2017) Thus, it can be seen
as the opposite of consumer loyalty (Bolton et al., 2004)
2.1.2 Theorical model – justice theory
Attribution theory (Swanson and Hsu, 2011), mental accounting theory (Chuang et al., 2012), equity theory (Wen and Chi, 2013), and the disconfirmation paradigm have all been used to investigate service recovery assessments (McCollough
et al., 2000) Thus, the current study employs the most widely utilized theory in service recovery research, as recommended by Tax et al (1998) is the justice theory of Rawls (1971) The prior study showed over 60% of service rehabilitation assessments were based on this three-dimensional model of justice (Siu et al., 2013) Justice theory has been proposed to be an "efficient evaluative method and a strong indicator of service recovery satisfaction among customers" and has been used to reveal many significant findings (Kim et al., 2012) Kennedy-McColl and Sparks (2003) pointed out that was based on the idea that "customers' satisfaction and potential loyalty levels will depend on whether the consumer felt that they were treated equally, and that justice was done." Intitially, social psychology is the fundamental of justice theory (Babin et al., 2021) It explains how individuals react cognitively and behaviorally to complex disputes, the justice concept is intensively investigated in both consumer behavior (Homburg et al., 2007; Vaerenbergh et al., 2019) and organizational behavior (Colquitt et al., 2001; Haynie et al., 2016)
According to Chebat and Slusarczyk (2005), perceived justice is related to service failure and recovery because its features include elements of fairness and equality theory, meaning that service provider-customer interactions should be equal
In addition, based on justice theory, customers' judgments of procedural justice, distributive justice, and interactional justice are based on the economic and social relationships involved in in-service failures It is critical for service companies to understand the key components of justice, including distributive, procedural, and interactional justice, in order to establish a sustainable recovery strategy (McColl-Kennedy and Sparks, 2003) To begin with, distributive justice was described by Maxham and Netemeyer (2002) as the “degree to which customers believe they have been treated equally with respect to the actual recovery outcome.” Moreover, concerns
Trang 27about measuring distributive justice emerge from the potential for uncertainty among consumers in distinguishing between fairness, need, and equality, as well as the challenges of evaluating input and performance from the same perspective as both customers and providers (Mattila and Patterson, 2004) Distributive justice in service recovery is when it comes to what they would have received before the service failure occurred (Cheng et al., 2018) Consequently, procedural justice was described in the literature as an organization's step-by-step behavior in resolving problems (Ha and Jang, 2009) The "adequacy of conditions or process" in decision-making is often referred to as procedural justice (Tax et al., 1998) Thirdly, interactional justice has been studied extensively in the context of consumer satisfaction when a service failure
or perceived injustice occurs (Cheng and et al, 2018) For airline passengers, distributive and interactional justice had an effect on their satisfaction with a specific experience (McCollough et al., 2000) Furthermore, Lin et al (2011) found while all three dimensions of justice have a significant impact on consumer satisfaction, only distributive justice has a positive impact on repurchase intentions, and only interactional justice has a significant negative impact on negative word-of-mouth advertisements In the airline industry, Wen and Chi (2013) discovered that all three justice variables have a direct or indirect impact on passengers' post-recovery satisfaction, repurchase plans, and WOM Whereas, Nikbin and Hyun (2015) found that procedural and interactional justice had an indirect impact on recovery satisfaction, but distributive justice seemed to have no effect
2.2 Previous research
2.2.1 Global research
Fristly, the relationship between perceived justice and service recovery (distributive, procedural, interactional, and informational), failure attributions (stability and controllability), recovery satisfaction, and loyalty is investigated in the study of Nikbin and et al., (2015) A survey of 263 air travelers in Malaysia who had encountered a service failure and then a service recovery within the previous year yielded data on perceived justice, failure attribution, recovery satisfaction, and customer loyalty In terms of distributive, procedural, and interactional fairness, the findings demonstrate a significant link between perceived justice and recovery satisfaction Consumer loyalty was significantly influenced by customer satisfaction
Trang 28with the recovery process In terms of procedural, interactional, and informational justice, the inclusion of failure attributions of stability and controllability as moderators suggests that both stability and controllability affected the connection between perceived justice and recovery satisfaction Figure 2 presented the model However, there are some drawbacks to this study First, because the study is limited to
a single service-oriented industry (the airline industry) in a single country, any extrapolation of the findings to other industries or areas should be done with caution The sample size is the second limitation The study used a convenience sample strategy with 263 participants Finally, since the findings are based on a cross-sectional survey, they may represent some bias due to the respondents' memories
In addition, Migacz et al., (2018) pointed out that service recovery has been a critical problem for all service providers, the airline industry faces unique challenges, involving (1) the effect that some service failures would have on large numbers of customers at a time; (2) service failures can result in substantial loss in comparison to other services; and (3) flying can cause feelings of anxiety The data was collected via Mturk's self-reported measure, which showed that all three justice dimensions had an effect on air travelers' satisfaction with service recovery Therefore, it was also discovered that the most successful recovery plan for airline management would be to concentrate on offering rewards above and above what was anticipated However, the current study used a scenario-based experimental approach and focused on service recovery and airlines Previous research on service recovery and airlines had been limited to on-site surveys (airports) and consumer recollection Nevertheless, there are certain limitations to the current study that can be used to guide future research To
Figure 2 Nikbin and et al, (2015) research framework
Trang 29begin with, the study used a scenario-based experiment, which may have weakened respondents' visceral responses to service failures and recoveries when compared to
"actual" consumption circumstances Second, the situation script did not specify the reason for a flight cancellation
A study was undertaken by Eucharia and Kalu (2017) to investigate the association between service failure recovery and customer loyalty in the Nigerian airline industry (figure 3 represented the research model) Using multiple regressions for the studies, a theoretical framework was built to empirically prove the links that exist between the two variables A total of 200 questionnaires that were released to different airline passengers, but 115 questionnaires were returned, and 107 of which were acceptable for the analysis The results found that there is a link between issue recognition and client loyalty, according to the findings, while there is also a cause-and-effect relationship between timeliness and client loyalty However, apologizing has a detrimental impact on loyalty Therefore, airline companies should develop alternative service recovery measures in the event of a service failure, as well as limit the number of repeating incidents that result in frequent customer apologies (Eucharia and Kalu, 2017)
Figure 3 Eucharia and Kalu (2017) research framework
Trang 30Besides, Xu et al (2019) also conducted research on service recovery which explores the effects of airline service failures and subsequent recovery behavior on customer consumption emotions, satisfaction, and recommendation probability using online customer feedback for airline services via online customer reviews This study found that compensation for the current trip, whether financial or non-financial, will help customers deal with their negative emotions, while compensation for future travel has little effect on feelings The findings also showed as opposed to compensations, positive employee attitudes, habits, and timely service and recovery efforts produce more positive emotions while alleviating negative emotions Travelers who fly full-service flights and in business class are more affected by service delays and prompt, efficient, and adequate recovery efforts than travelers who fly low-cost airlines and in economy class However, one main limitation was pointed out that customers who are exceedingly satisfied or extremely unsatisfied are more likely to publish online reviews to communicate their happiness or dissatisfaction than customers who have more intermediate satisfaction and experiences, which is the study's principal weakness Figure 4 presented the research model However, customers who are exceedingly satisfied or extremely unsatisfied are more likely to publish online reviews to communicate their happiness or discontent than customers who have more intermediate satisfaction and experiences, which is the study's primary weakness
Figure 4 Xu et al (2019) research framework
Trang 31Matikiti and Roberts (2019) also conducted research to look into the factors that influence service recovery satisfaction and customer loyalty among airline business customers A standardized questionnaire was used to collect 320 airline passengers in South Africa but 300 were valided for analyzing, accounting for 94% response rate The presented hypotheses in the study were investigated using structural equation modeling (SEM) and partial least squares As a result, it was discovered that recovery aspirations and perceived equity have a significant impact on recovery satisfaction, which in turn has a significant effect on the overall satisfaction, confidence, and engagement Customer commitment is antecedent by confidence and overall satisfaction, according to the report, and customer commitment has a strong relationship with positive word of mouth The level of previous service results was also found to mediate the relationship among recovery satisfaction and engagement Therefore, it made recommendations, such as encouraging consumer confidence in the service delivery process by being transparent on how they address service failures and remaining committed to their service recovery commitments to customers Airlines can also improve positive WOM by providing adequate service recovery Nevertheless, the key drawback was data being collected using a cross-sectional approach So, upcoming research may need to apply a longitudinal approach to the entire service recovery process, from the moment of service failure until the resolution
of the problem
Van Vaerenbergh et al (2019) considered service recovery in a more special aspect, which was the service recovery journey (SRJ) (Figure 5.) They considered show that SRJ was initially conceived as the result of a service failure that has three phases: pre-recovery, recovery, and post-recovery Then they combine the findings from 230 research articles on organizational reactions to service failures with the innovative SRJ approach Following that, they offered a comprehensive series of research questions that will help us learn more about the pre-recovery, recovery, and post-recovery phases, as well as the connection between the customer's usual trip and the SRJ Finally, they examined the management consequences of adopting an SRJ viewpoint and suggested 6 guidelines for recovery research aiming to influence business practice However, Van Vaerenbergh et al.’s study do have limited knowledge about the customer's normal travel and the SRJ They believe there are two
Trang 32components of this link that need to be investigated further Besides, the pre-purchase stage was not deeply discussed on service recovery, but it affects customers’ decision-making process (Lemon and Verhoef, 2016)
Ali et al (2020) also stated that a firm's service failure and recovery can have a significant impact on customer satisfaction as well as the strength of its relationship with its consumers, regardless of other firms' attempts to build solid relationships with their customers in the long term Their model was showed in figure 6 below As a result, they set out to undertake research into the relationship between service failure and recovery and AirAsia passenger satisfaction The information was received from
361 domestic passengers who flew out of Kelantan's Sultan Ismail Petra Airport According to the results, service failure has a poor significant association with passenger satisfaction, while service recovery has a positive significant correlation with passenger satisfaction However, this finding only found in Malaysia, so maybe not reflect approriately for Vietnamese insights
Figure 5 Van Vaerenbergh et al (2019) framework of the service recovery journey
Trang 33Lin et al (2021) discovered that adopting a proactive and appropriate service strategy to calm customer unhappiness is critical for accomplishing the goal of sustainable operation in the airline sector (Figure 7.) This study employed structural equation models to send 300 interviews to Taiwanese customers, with 279 valid responses received and a data gathering rate of 96.33 % via a questionnaire survey Confirmatory factor analysis and SEM models was used for testing hypothesises The Lin et al.’s findings revealed a considerable supportive association between service recovery and customer satisfaction Politeness, recompense, and the quickness with which a service is remedied have a consistent and substantial impact on satisfaction; brand authenticity and perceived authenticity operate as a moderator As a result, the findings of the study can be used as a reference for the airline sector in terms of service recovery and customer happiness However, the study merely gives a broad overview of this topic, failing to emphasize the distinction between service failure recovery and customer recovery satisfaction
Figure 6 Ali et al (2020) research framework
Figure 7 Lin et al (2019) research framework
Trang 34Al Rasyid et al (2021) was conducted research on service recovery because of the plane crash on Indonesian customer beliefs Their subject was a low-cost carrier airline in Indonesia The primary goal of this research is to determine the relationship between service failure, service recovery, and consumer trust With simple random sampling, the study employed quantitative approaches and probability sampling techniques The survey was sent to 190 people who had heard about the plane tragedy SMART PLS was used to analyze the data This research showed that service failure, service recovery, and consumer trust are all linked The highlight point that they found whenever airlines do service recovery efforts, they need examine the causes of the plane crash and evaluate the accident, which makes their potential passengers feel less worried about flying with the airline Apart from the valuable insights, the study has some drawbacks The research only subjected to low-cost carrier airlines, so whether premium airlines would find these findings In addition, this study also focuses on only typically accident event which was the plane crash, so will other accident events occur with the same impact on customer trust Research model was showed in figure 8
Figure 8 Al Rasyid et al (2021) research framework
Trang 35In addition, there are many research articles on service service in many
different aspects, which are summarized by the author in Table 2 below
Table 2 Other service recovery previous research in global
Researcher Subject Finding and Results Limitation
the role of empathic response in hospitality customers’continuous usage intention
Applying four different test scenarios, when it comes to service recovery, a high-empathy Artificial Intelligence response can boost users' desire to use the service again
• Customers do not take AI service failures critically, the experimental situations used in this paper were restricted to examples with a low degree of failure
• The conceivable combinations of interactive forms are no longer limited to text and voice, thanks
to the diversification of forms of human–computer
interaction
• As a new service technology, AI has the potential
to build new corrective forms
Trang 36and approaches that go beyond the empathic reactions discussed here Chong, K
W., and
Ariffin, A A
M (2022)
Disentangling the dynamics of service failure and service recovery in peer-to-peer
accommodations:
a triadic perspective
• Failure caused by guests (as opposed to failure caused by hosts or platforms) has the least negative consequences in terms of recovery
satisfaction and repurchase intention toward a host/platform
• Customer-involved recovery is less effective than single recovery (i.e., host or platform)
The main limitation
is choosing 1 typical service failure situation and
2 service recovery scenarios, which can not be represented for the entire service recovery context
strategies
Empathy and apology from service employees were found to have a moderating effect on the association between the severity of a service failure and
reconciliation, retribution, and avoidance
The sample participants were all residents of the United States, which limits the context of the findings
satisfaction and customer loyalty:
The results showed that service recovery
dimensions are strongly linked to customer
The most significant limitation is the research
Trang 37S (2018) evidence from
Malaysia’s hotel industry
satisfaction and that customer satisfaction and loyalty have a positive relationship
environment, which
is restricted to the hotel industry in Malaysia
Singh, J., &
Crisafulli, B
(2015)
Managing online service
recovery:
procedures, justice and customer satisfaction
Customer satisfaction can
be restored, switching is significantly lowered, and positive word of mouth is increased when services are recovered online
The participants in the study were frequent users of airtime and/or retail services who had previously
experienced at least one service failure The study used an experimental research design, which ensured that the findings were internally valid Chou (2015) An analysis of the
relationship between service failure, service recovery and loyalty for Low Cost Carrier travelers
Service recovery has a favorable effect on attitude and behavior loyalty, while service failure has a good influence on service recovery, according to the research Both apologies and compensation have only a partial mediation effect between delivery failure and attitude and behavior loyalty, according
to the empirical findings
Research only in the context of low-cost airline
services
Trang 382.2.2 Domestic research
The topic of “service recovery” has not been explored much by Vietnamese authors Some research related to service recovery has been done intensively in recent years In which, Nguyen et al (2021) discovered that service recovery affects international tourists' contentment and word of mouth about homestays in the hospitality business The findings highlight the significance of service recovery in tourists' assessments of service quality and image The data was analyzed using structural equation modeling The findings reveal that service recovery is comprised of three dimensions: distributive justice, interactional justice, and procedural justice The studies encompass Cronbach's Alpha, Exploratory Factor Analysis (EFA), Confirmatory Factor Analysis (CFA), and Structural Equation Modeling, all of which are used to test the study hypotheses (SEM) Their model was presented in figure 9
The research from Quoc et al (2021) was conducted to show how the severity
of service failure, service recovery, customer happiness, and loyalty to the Vietnamese international hospital system are all linked (figure 10.) The data for the study came from 303 participants who had used services at overseas hospitals and had service problems The study found that service failure has three components: system failure, request failure, and behavior failure, using Structural Equation Modeling to analyze Besides, distributive justice, procedural justice, and interactional justice are the three components of service recovery The degree of a service failure has a significant effect
on service recovery, and service recovery has a significant relationship with customer satisfaction, resulting in an increase in customer trust in international hospitals in
Figure 9 Nguyen et al (2021) research framework
Trang 39Vietnam However, this study was not conducted in the context of aviation, which will lead to many differences because of the different contexts
2.3 Research gaps and contribution
Vietnam's aviation sector is the world's fifth fastest expanding According Trade.gov (2020), Vietnam is anticipated to have the greatest average growth rate in Southeast Asia between 2016 and 2021, at 17.4 percent, compared to 6.1 percent in ASEAN A burgeoning tourism industry, the introduction of low-cost airlines, and robust economic growth are all important drivers of this expansion In 2019, the Civil Aviation Administration of Vietnam showed Vietnam's airports attracted 116 million passengers, up 12 percent over the previous year They also indicated that amount of cargo moved climbed by 11 percent to 1.5 million tons, while the number of flights climbed by 13 percent to 740,000 From the recent remarkable development of the aviation industry in Vietnam, administrators as well as researchers in the world and in the country seem to have forgotten the topic of service recovery in aviation industry Today, along with the dramatic increase, service failures are also common in any airline companies Especially, for low-cost airlines, when service is not focused, leading to errors when providing services to passengers, it is very necessary for researchers and managers to pay attention Moreover, previous studies conducted research on "service recovery" in fields such as restaurants and hotels, unintentionally forgetting the country's aviation industry From the above shortcomings, it has created
Figure 10 Quoc et al (2021) research framework
Trang 40the impetus for this study to study service recovery strategies in the aviation sector, especially low-cost airline - VietJet Air
an important procedure (Martin et al., 2018) by providing a thorough explanation, expressions of remorse and regret, and acknowledgment of guilt (Radu et al., 2019) Since then, customers' positive feelings will be strengthened after service failures through empathy and apologies (Xu et al., 2018) Aw et al (2021) also indicated it can elicit the forgiveness from customers However, such apologies do not guarantee their ongoing purchase (Radu et al., 2019), but real apologies can help customers to be less antagonistic toward the company Furthermore, offering an apology is viewed as an image management strategy that helps the service provider to avoid client reprisal by desiring forgiveness and promising future good deeds (Radu et al., 2019) Consumers are more likely to accept brands' faults after receiving an apology, according to previous study (Riek and DeWit, 2018) Without the presence of an apology, customers cannot perceive the goodwill and sincerity of the service provider and, therefore, it is less likely that the customers would forgive the service provider (Honora et al., 2022) In addition, according to by Cowden et al (2018), cultural factors such as self-construal a are important in social interactions and are critical for forgiveness In this case, service failure is seen as a threat to interpersonal and social harmony Thus, expressing empathy via apologies is a relational-guided approach that not only resolves the customer's emotional state but also demonstrates an intellectual comprehension of the customer's position Thus, I hypothesise: