The effect of service recovery on customer loyalty: the role of perceived food safety

Does the Consumer Sociodemographic Profile Influence the Perception of Aspects Related and Not Related to Food Safety? A Study in Traditional Spanish Street Markets

Street food markets are important for local economic development, but they must also meet visitors' demands while operating. Since consumers' trust is based on their perception on different aspects of these markets, the aim of this work was to study which factors most affected their purchase decision criteria. A total of 950 surveys were collected in 21 street markets (Canary Islands, Spain), recording data from the consumers' estimation on food safety-related items (i.e., hygiene conditions of market installations, products, and food handlers) as well as other categories (i.e., prices and staff professionalism). The gathered data let us determine whether sociodemographic consumers variables like age, gender, or education level influenced their perceptions. The scores showed a strong correlation, the subsequent principal components analysis explained 81% of variability only with the first two components. The level of tolerance toward all items underlies in the first component, which was significantly higher for those aged 60 and older, but no significant correlation was found for gender or level of education. The youngest participants were more demanding about food safety-related aspects, while the middle-aged group was more critical of prices. This was especially true of females, who demanded better quality:price ratios. Knowing these preferences could facilitate the development of more effective marketing strategies, helping make street markets more competitive.

Understanding the impact of the relationship quality on customer loyalty: the moderating effect of online service recovery

Purpose

The purpose of this study is to examine the impact of the relationship quality on customer loyalty. The moderating role played by online service recovery in this study is further discussed.

Design/methodology/approach

A quantitative Web-based survey study was conducted to statistically test these relationships among relationship quality, service recovery and customer loyalty. Data collected from 183 respondents were taken for analysis through partial least squares.

Findings

The findings reveal that relationship quality has significant influence on customer loyalty, whereas service recovery has moderated effect on the relationship between relationship quality and customer loyalty.

Research limitations/implications

The respondents of this study were recruited from online panels; thus, a purposive sample could be a biased indication of the characteristics of the actual population. Therefore, it is suggested that future researchers enroll subjects from a statistical population that accurately represents the entire population and, in addition, that they collect more responses to increase the generalizability of the findings.

Practical implications

Because failures in service delivery are inevitable, recovery of such encounters thus represents a significant challenge for service firms. Hence, this study proposes concrete suggestions for firms to manage and operate e-commerce websites, as well as to enhance relationship quality and customer loyalty.

Originality/value

Service failures have been the bane of e-commerce, compelling customers to either abandon transactions entirely or switch to a physical competitor. Many firms have realized the importance of maintaining strong relationships with customers to enhance their loyalty. However, previous literature has a few studies conducted on the relationships among service recovery, relationship quality and customer loyalty in the e-commerce context. Therefore, it is meaningful to identify these relationships.