Investigating the effectiveness of monetary vs. non-monetary compensation on customer repatronage intentions in double deviation

Abstract

This article examines the effectiveness of monetary and non-monetary service recovery strategies on repatronage intentions in double deviation when the magnitude of service failure is perceived as intense by consumers. The results of this study suggest that the combination of monetary and psychological compensations has the strongest effect on the intentions of the repatron. Furthermore, the delayed payment and apology used alone do not have an impact on the likelihood that a customer will repurchase from a store repeatedly, while immediate payment and promises lead to a significant increase in reparation intentions and to the alleviation of negative customer emotions. Managerial implications and future research are provided.