Turning Failures into Opportunities for Value Creation

Proceedings of the AMA Relationship Marketing Summit, Buenos Aires, 2007

20 Pages Posted: 28 Mar 2007 Last revised: 22 Dec 2007

See all articles by Tobias Donnevert

Tobias Donnevert

University of Mannheim - Department of Business Administration and Marketing

Maik Hammerschmidt

Mannheim Business School - Department of Marketing

Hans H. Bauer

University of Mannheim

Abstract

Product failures are critical incidents in customer relationships. Here, managers often focus on recapturing satisfaction through resolving the problem. It is largely neglected so far that there is a chance to lift secondary satisfaction (i.e., satisfaction after a failure and recovery activities) beyond the pre-failure level. To create such a "leverage effect", pure recovery services have to be expanded to value-added recovery services. Using a quasi experiment and data from real-life car breakdowns this study investigates if value-added (proactive) recovery services have a leverage effect on customer satisfaction. In that case failures could also be viewed as an opportunity for a firm.

This paper received the Sheth Foundation Best Paper Award at the AMA Relationship Marketing Summit

Keywords: Customer satisfaction, Proactive Services, Recovery Paradox, Quasi-Experiment

Suggested Citation

Donnevert, Tobias and Hammerschmidt, Maik and Bauer, Hans H., Turning Failures into Opportunities for Value Creation. Proceedings of the AMA Relationship Marketing Summit, Buenos Aires, 2007, Available at SSRN: https://ssrn.com/abstract=971276

Tobias Donnevert (Contact Author)

University of Mannheim - Department of Business Administration and Marketing ( email )

Germany

Maik Hammerschmidt

Mannheim Business School - Department of Marketing ( email )

Germany

Hans H. Bauer

University of Mannheim ( email )

Universitaetsbibliothek Mannheim
Zeitschriftenabteilung
Mannheim, 68131
Germany

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