Consumer discrimination in service recovery situations

Abstract

Purpose

Discrimination in the marketplace has recently received increasing attention in marketing discussions, especially related to service encounters. This research explores the effect of receiving lower (vs higher) financial compensation than someone perceived to be from an upper social class (vs lower) on consumer reactions after a service recovery situation.

Design/methodology/approach

Two experimental studies with two different populations.

Findings

Individuals who receive less compensation than someone from a higher socioeconomic status tend to attribute differential treatment to discrimination. Both individuals who received less and who received higher compensation are willing to engage in negative word of mouth, however, only consumers who were discriminated against want to take revenge on the company.

Originality/value

Previous literature indicates that consumers' reactions after service problems are mediated by justice perceptions. This research offers a new perspective of social comparison in service recovery situations by considering the role of discrimination perceptions.

Citation

Rohden, S.F. and Pizzutti, C. (2023), "Consumer discrimination in service recovery situations", Marketing Intelligence & Planning, Vol. 41 No. 3, pp. 293-309. https://doi.org/10.1108/MIP-07-2022-0305