THE IMPACTS OF ONLINE RETAILING SERVICE RECOVERY AND PERCEIVED JUSTICE ON CONSUMER LOYALTY

Effective service failure recovery has been recognized as an important strategic tool for online retailers due to the dramatic growth of the online retail sector and the importance of service failures recovery in online environment. This study investigates the impacts of service failure recovery and perceived justice on consumer loyalty for online retailing service. By conducting a scenario-based experiment, it is found that perceived distributive justice positively affects recovery satisfaction and positive word-of-mouth; and that procedural justice has a positive impact on recovery satisfaction and repatronage intention. A comparison between researches on online service failure recovery and researches for offline setting is then presented. The research findings can provide valuable insights for online retailers to develop effective service recovery policies and procedures.