Service recovery strategies for crowdsourced transportation: an examination of their impacts on user loyalty

Kum Fai Yuen, Simin Song, Xue Li, Xueqin Wang*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)

Abstract

Crowdsourced transportation (CT), which can be applied to passenger transportation and deliveries, is a growing business model, especially in modern societies. The service nature of CT which utilises public participation to provide transportation services makes it prone to service failures, which can cause users’ switching behaviour. Grounded on perceived justice and perceived value theories, the objectives of this study are to identify the service recovery strategies and to examine their impact on user loyalty (i.e. switching behaviour) after a service failure. In total, 549 survey responses were collected from CT users and analysed using structural equation modelling. Results show that five service recovery strategies can be employed by CT service platforms after a service failure, namely, ‘compensation’, ‘apology’, ‘problem solving’, ‘response speed’ and ‘explanation’. These strategies influence users’ perceived justice, which in turn influence user loyalty directly and indirectly via perceived value. The findings of this study have contributed to the development of a unified framework for service recovery in the context of CT and have several strategic management implications for CT service platforms to retain users.

Original languageEnglish
Pages (from-to)523-537
Number of pages15
JournalTechnology Analysis and Strategic Management
Volume35
Issue number5
DOIs
Publication statusPublished - 2023
Externally publishedYes

Bibliographical note

Publisher Copyright:
© 2021 Informa UK Limited, trading as Taylor & Francis Group.

ASJC Scopus Subject Areas

  • Strategy and Management
  • Management Science and Operations Research

Keywords

  • Crowdsourcing
  • service failure
  • service recovery
  • structural equation modelling
  • transportation

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