Investigating Customer Perception of Online Businesses’ Service Recovery: A Combination of Expectation-Confirmation Theory, Satisfaction-Loyalty Theory, and Perception of Justice
Investigating Customer Perception of Online Businesses’ Service Recovery: A Combination of Expectation-Confirmation Theory, Satisfaction-Loyalty Theory, and Perception of Justice

Summary/Abstract: This current study investigated the perception of Generation Z customer in the online business according to the service recovery. We combined the Perception of Justice Theory, Expectation Confirmation Theory, and Satisfaction-Loyalty Theory for the construct to investigate the Generation Z perception on service recovery. Several hypotheses were proposed and a structural equation model with confirmatory factor analysis was conducted to answer these hypotheses. A total of 158 people participated in this research. The results showed promising findings and nine out of twelve hypotheses were accepted. The correlation between Courtesy and perception of justice was revealed to have the strongest correlation. This finding indicates that Generation Z’s perception of online businesses service recovery was strongly affected by how the business shows Courtesy to them. The results also showed that even though when the service recovery was judged to be satisfying for the customer, they were not likely to be loyal. Several practical and managerial interpretations were discussed. Ensuring consumers to stay loyal will help online businesses to grow and sustain.

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