Disconfirmation Dynamics in Service Recovery: Insights from Online Customer Reviews

Abstract

This paper analyzes the effects of service recovery and the double-deviation phenomenon on customer satisfaction using an analysis of online reviews. With the application of Word2Vec and AFINN sentiment analysis to 4793 Skytrax review comments, this paper bridges the gap between conceptual theories about customer behavior and big data analysis. Findings from this research indicate that although overall types of service recovery increase customer satisfaction, explanation is the most preferable yet effective type of recovery. Most importantly, this analysis shows that service recovery disconfirmation has been found to be a highly important moderator. When service efforts involve intangible actions, such as an apology or explanation, that fail to satisfy customers, they tend to perform worse than no recovery at all, thus supporting the double-deviation phenomenon. Compensation, however, has been found to be an efficient type of recovery since its impacts are not reduced much due to service recovery disconfirmation. These insights provide service providers with critical guidance on prioritizing transparent communication and avoiding poorly executed intangible recoveries.