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Lukas P. Forbes
Data collection
The critical incidents obtained for this study were collected
using 106 undergraduate students from three different midwestern universities (one large state public, one small state
public and one private). These students were enrolled in
either a retailing course or a services marketing course. In
order to address potential bias issues (e.g., inappropriate
questions to sway answers towards intended outcomes;
interviewing based on convenience sample; unfamiliarity
with the study), several steps were taken during the research
process. First, prior to collecting the critical incidents, each
student was trained on the CIT and shown examples of
researchers using the CIT method. Second, students were
given instruction and guidance in conducting interviews and
encouraged to take notes during the interviews to seek
clarification in the event any questions arose during the
interview. Third, to ensure an adequate sample, each student
was instructed to recruit and conduct personal interviews with
five participants stratified by age; students were required to
sample five individuals from at least four of five designated
age categories, were allowed to use a maximum of one student
participant, and were required to use face-to-face interviews
(as opposed to previous studies which allowed phone
interviews (e.g. Forbes et al., 2005)). These constraints were
imposed in an effort to obtain a sample more representative of
the overall retail customer population. Interviewers were also
trained on SSTs and instructed to only collect SST CITs
from consumers in non-internet settings. Finally, to validate
the sample, random calls were placed to respondents
following data collection to ensure their participation was
valid and methodological procedures were followed.
During the interviews, respondents were told the definition
of an SST and then asked to recount a failure they
experienced during a purchase from any self-service
technology. After describing the failure, respondents were
then asked to describe the service recovery process (the survey
instrument used to gather the information regarding the
failure and recovery incidents is included in the Appendix,
Figure A1). A total of 508 critical incidents were gathered out
of a possible 530 (106 students assigned five incidents each).
A total of 22 incidents were deemed unusable and were
excluded from the analysis, resulting in a completion rate of
95.8 percent.
The demographic profile of our sample indicated that 270
of the respondents were male (53.1 percent) and 238 were
female (46.9 percent). The ages of the respondents were as
follows: four were under 18 years old (.7 percent), 138 were
between 18 and 24 (27.1 percent), 141 were between 25 and
34 (27.7 percent), 78 were between 35 and 44 (15.3 percent),
61 were between 45 and 54 (12.1 percent), 46 were between
55 and 64 (9.1 percent), and 40 were over 64 years old (7.9
percent). With regard to education, eight had some high
school education (1.6 percent), 71 had a high school diploma
or GED (13.9 percent), 215 had some college education
(42.3 percent), 127 held bachelors degrees (25 percent), and
87 had graduate level education (17.1 percent). Our data
appear to represent the broader population of self-service
technology users across the variables of gender, age and
education level (Pew Internet Study, 2002) and retail
consumers in general.
The study
Critical incident technique
This study builds upon previous research by examining
failures and recovery strategies in non-internet SST settings
through the critical incident technique (CIT). In the current
study, the CIT highlights service failure and the ensuing
recovery process, focusing on interactions between customers
and non-internet SSTs in which the interaction is negative.
Researchers have previously used this methodology to
investigate a variety of related issues such as the effect
service failures and recovery strategies within the hospitality
and retail industries (Hoffman and Chung, 1999; Kelley et al.,
1993); service failure and recovery within an e-tail
environment (Forbes et al., 2005); service failure in airlinecustomer relationships (Bejou et al., 1996); favorable and
unfavorable incidents within the service encounter in general
(Bitner et al., 1990; Gremler and Bitner, 1992);
communication difficulties (Nyquist et al., 1985); and
customer switching behavior (Keaveney, 1995).
As is usually the case with research using CITs (Flanagan,
1954; Nyquist et al., 1985), five steps were followed here.
Specifically, we determined the general aim of the activity,
formulated plans and specifications for the collection of
critical incidents, collected the data, analyzed the data, and
interpreted the data for our final report.
SST products
Products and services identified by respondents included
most major categories of consumer goods available in selfservice form (excluding any internet form) to include
banking, movie tickets, subway tokens, parking tickets,
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Lukas P. Forbes
Reliability
In order to assess the reliability of the nine failure types and
nine recovery strategies identified here, an independent judge
(with expertise in retailing) classified each of the CITs in the
sample based on the established failure and recovery
typologies. The classification of both failures and recoveries
was based on the primary failure and primary recovery
described in the critical incident. To begin the assessment
process, the independent judge was given the definition of
each failure type and each recovery strategy. The independent
judge was then given all 508 critical incidents in order to sort
Failure type
Forbes et al.
Current study self-service
Kelley et al.
(1993) retail failures (2005) e-tail failures technology failures (non-internet)
Frequency %
Frequency %
Frequency %
14.1
4.1
1.8
3.2
2.4
33.3
2.3
4.2
5.1
70.5
15.9
6.1
43.0
2.9
12.2
5.3
4.5
89.9
9.8
3.3
8.3
4.1
8.9
34.4
6.5
1.5
8.0
3.2
3.2
3.7
10.1
10.0
37.1
47.1
13.5
0.8
4.4
2.9
21.6
0.0
6.1
12.4
18.5
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Lukas P. Forbes
Table II Retail recovery strategies vs e-tail recovery strategies vs non-internet self-service technology recovery strategies
Failure type
Discount
Correction
Manager intervention
Correction plus
Replacement (via original channel)
Apology
Refund
Customer-initiated correction
Store credit
Unsatisfactory correction
Failure escalation
Nothing
Replace at brick and mortar
Intentional repeat purchase
Forbes et al.
Current study self-service technology
Kelley et al.
(1993) retail recovery strategies (2005) e-tail recovery strategies
recovery strategies (non-internet)
Frequency %
Frequency %
Frequency %
3.3
12.3
1.8
3.2
26.2
8.0
12.3
0.9
1.7
5.6
7.6
17.2
3.8
37.0
15.8
5.4
1.6
5.1
1.9
3.5
5.1
18.3
2.7
1.8
3.3
2.4
1.2
6.3
6.1
17.2
47.6
14.1
Results
The results of the sorting and classification process for our
data are reported below. First, the failure classification
scheme is discussed, followed by the presentation of the types
of recovery strategies identified. Table III includes the failures
identified through our analysis, their frequency and
percentage of occurrence within our sample, and the mean
respondent rating of the magnitude of each failure. Table IV
Table III Non-internet self-service technology failures
Failure type
Magnitude of
failurea,b
Frequency
Frequency %
50
17
42
21
45
175
9.8
3.3
8.3
4.1
8.9
34.4
5.62
5.32
3.6
5.27
4.9
51
188
239
10.0
37.1
47.1
5.55
3.91
31
63
508
6.1
12.4
100
6.42
6.61
4.69
Note: Magnitude of failure is rated on a scale of 1 (small failure) to 7 (large failure); Standard deviations are reported in parentheses
319
(1.78)
Lukas P. Forbes
Table IV Non-internet self service technology failure anecdotes (gender, age range, education level)
Slow/unavailable service
System pricing
Out of stock
Product defect
Bad information
Special order/request
Admitted customer error
Embarrassments
Unsure response
Called that national number for Social Security. Automated service had individual wait for over 15 minutes and then
disconnected her due to length of waiting time. Told her to return call at non-peak hours (F, 25-34, Bachelors Degree)
Went to car wash. The price charged on my credit card was more than the price listed at the car wash for the type of wash I
received (M, 35-44, 1-2 yrs college)
The vending machine was out of the product that I wanted to buy (M, 25-34, Bachelors Degree)
Used a catalog telephone operating system to order computer product, but when I received the product it was not working (M,
25-34, 1-2 yrs college)
The screen I used to order tickets to the musical was hard to read, and when I pressed the button to order orchestra section it
ended up giving me a seat in the far back, definitely not orchestra section (M, 45-54, Grad School)
I need a monogram for my wedding on the gifts for the groomsmen. I used a monogram machine outside of the mall store. It
made a mistake and put the monogram initials in the wrong order (F, 25-34, HS school degree)
I used an automatic parking machine at the campus lot. You had to park in a slot, take the number down, walk over the machine,
put in money and the slot, and then walk back to your car and display it on the windshield. I didnt do it properly and got a ticket
even though I paid to park!! (F, 18-24, 3-4 yrs college)
I am still mad about this! I was trying to get money out of machine in Chicago, late at night. There were many people waiting in
line for me. The machine gave me an incorrect amount of money and then ate my card! I kept trying to fix the problem while
everyone in line was yelling at me to hurry up. I was so angry and was very embarrassed. One guy yelled at me and said whats
the problem lady, cant you use an ATM machine and everyone laughed (F, 55-64, Bachelors Degree)
I paid a parking ticket out of state with their automated phone system. The system was a joke! I entered all of my information
and never received any verification that it was paid, nor did they give me a receipt via phone or mail. That ticket could still be
unpaid and I wouldnt know it! (F, 18-24, Bachelors Degree)
Lukas P. Forbes
1. Discount
Incidents in this recovery category included situations in
which the retailer approached the consumer using the SST
(unprompted), corrected the failure, and gave the customer a
discount on the item purchased. The mean level of customer
satisfaction associated with this recovery was 5.51 and the
mean propensity to switch rating was 2.61. This recovery
represented 1.8 percent of all recoveries.
2. Correction
This recovery strategy involved recovery incidents in which
the retailer approached the consumer using the SST
(unprompted), corrected the failure, but did nothing extra
for the consumer. Examples of recoveries classified in this
category included fixing a computer screen at a self-check out
lane that was malfunctioning or ensuring that the customer
received the correct item. The mean customer satisfaction
level for this recovery was 5.25 and the mean propensity to
switch rating was 3.21. This recovery represented 3.3 percent
of all recoveries.
3. Manager intervention
This category represents corrections in which the store
manager (i.e. a person in a position of leadership) came over
to rectify a service failure. For instance, a customer having a
problem at a self-check out station at Kroger had manager
Classification of recoveries
After classifying the non-internet SST failures, the next step
was to classify the recovery strategies described in the critical
incidents. These recoveries are presented in Table V. In
Table V Non-internet self service technology recovery strategies
Recovery
1.
2.
3.
4.
5.
6.
7.
8.
9.
Discount
Correction
Manager intervention
Apology
Customer-initiated correction
Unsatisfactory correction
Failure escalation
Nothing
Intentional repeat purchase
Frequency
Frequency %
Switching meana
Satisfaction meana
9
17
12
6
32
31
87
242
72
1.8
3.3
2.4
1.2
6.3
6.1
17.2
47.6
14.1
2.61
3.21
3.62
3.10
2.21
2.71
1.47
1.31
1.30
5.51
5.25
6.49
4.47
3.93
4.88
3.84
2.64
1.78
Notes: a Loyalty and satisfaction are rated on a scale of 1 (low loyalty/satisfaction) to 7 (high loyalty/satisfaction)
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Lukas P. Forbes
Table VI Non-internet self service technology recovery anecdotes (gender, age range, education level)
Discount
Correction
Manager intervention
Apology
Unsatisfactory correction
Failure escalation
Nothing
Intentional repeat purchase
No one helped me at the store, but there was an 800 number to call. When I called to complain, they sent me a discount
in the mail for 25 percent off my next purchase as a way to thank me but didnt do anything about my purchase I dont
even know if Ill buy something again anyway (F, 25-34, Bachelors Degree)
I bought the tram ticket and it was torn so you couldnt read the scan. Instead of using the fast line, I had to wait for the
person to help. I missed the first tram and had to wait for the next one. They gave me a new ticket but didnt even
apologize (M, 35-44, Bachelors Degree)
The manager came over to the self-service aisle when he saw I was getting frustrated. He eventually scanned everything
for me and even helped me bag it up (F, 45-54, some Grad School)
The store really didnt do nothing, they just sent over a clerk and he told me he was sorry for the problem but I dont
think he really cared (M, 25-34. 1-2 yrs college)
They sent me the correct sweater, two weeks later, and then they still made me pay to ship it back and pay for the new
sweater shipping (M, 18-24, 1-Bachelors Degree)
I was ordering a sweater with a phone service, and I had to call several different numbers. I kept getting pushed from
one person to another. Finally I got the person I needed to talk to (F, 35-44, Grad School)
The store did nothing. I couldnt even find someone to complaint to. [Store did] absolutely nothing (M, 55-64, Grad
School)
I desperately wanted a drink, and I put four $1 bills in the machine because the machine kept on eating my money but
never gave me a drink. Finally, after four times, I tried a different button and received my drink (M, 25-34, Bachelors
Degree)
8. Nothing
These incidents involved situations in which the self-service
firm did not attempt to resolve the failure or involved
situations in which the customer did not pursue a recovery
following the failure experience. Generally, these respondents
elected not to pursue a recovery with the firm due to the
perceived costs, either monetary or non-monetary, associated
with the recovery process. This recovery was associated with
our second-lowest level of mean customer satisfaction
reported (2.64). It also resulted in the second-highest
propensity to switch rating indicative of the recovery that
was second most likely to lead to switching (1.31). This
recovery was our largest recovery category (47.6 percent) in
terms of frequency of occurrence.
5. Customer-initiated correction
This recovery strategy involved failures that were resolved
when the customer called over the nearest available store
employee to help with the purchase process. The mean
customer satisfaction and propensity to switch scores
associated with this recovery were 3.93 and 2.21,
respectively, and this recovery represented 6.3 percent of all
recoveries.
6. Unsatisfactory correction
Recovery incidents included in this category were incidents in
which the customer received the item they had desired but did
not receive the items in the manner they expected. For
example, in one instance a customer was required to pay for
the return shipping of the item ordered. Mean levels of
customer satisfaction and propensity to switch associated with
this recovery strategy were 4.88 and 2.71, respectively. This
recovery represented 6.1 percent of all recoveries.
7. Failure escalation
Incidents included in this recovery category involved
situations where the customer was required to make
multiple contacts with the service firm, or continue to work
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Lukas P. Forbes
Discussion
Lukas P. Forbes
failure and recovery in the brick and mortar retail and e-tail
environments. All three studies (the current study along with
the previous two studies) utilized the CIT methodology,
followed parallel procedures in the collection and analysis of
data, and used the same measurement scales. However, any
comparison of findings across studies should be interpreted
with caution since each used independent samples and were
conducted over a ten-year period.
Across the failure categories, there are substantial variations
in frequency among traditional brick and mortar retail
settings (Kelley et al., 1993), e-tail only retail settings
(Forbes et al., 2005), and non-internet SST settings. In
traditional retail settings, the two largest areas for failure were
Product defects (33.3 percent) and Policy failure (14.1
percent). Conversely, Product defects only was found in 4.1
percent of non-internet SST failures and only 12.2 percent of
e-tail failures. Additionally, Policy failure was not found for
either non-internet SST or e-tail only settings. On the other
hand, the largest failure for non-internet SSTs was Customer
error (37.1 percent versus 1.5 percent for bricks and mortar
and 3.2 percent for e-tail) and Unsure response (12.4 percent
versus not found in the other two settings). These findings in
the area of failure magnify the significant differences between
these three types of retail settings; for management, they need
to clearly understand that a problem that might occur in their
store will likely be drastically different than a problem that will
occur on their online-store or their self-service station.
There are also interesting differences found in the area of
service recoveries for these three contexts. In the e-tail
research study, Forbes et al. (2005, p. 289) noted the the
similarity of recovery strategies implemented by traditional
brick and mortar retailers versus e-tailers. In non-internet
SST settings, however, those similarities do not exist. The
largest recovery strategy for non-internet SST settings, Do
nothing (47.6 percent), was experienced nearly three times as
frequently as the occurrence for bricks and mortar and e-tail
settings. Likewise, the third largest recovery (Intentional
repeat purchase, 14.1 percent) did not exist in the other two
settings. As with service failure, this suggests that
management recovery strategies for transactions occurring
in non-internet SST settings will be quite different than
bricks/mortar and e-tail environments.
Finally, an analysis of the comparison data reveals relatively
low loyalty at SST/e-tail settings, but high satisfaction, when
compared to bricks and mortar firms. Service firms need to
understand this discrepancy and take great lengths to have
more of a consistent balance between satisfaction and loyalty.
For instance, too often service firms use SSTs (both noninternet- and internet-based) simply as a way to save money,
without taking time up-front to ensure their customers are
ready for a change in process. By understanding the low
loyalty levels associated with all SSTs, firms can take steps to
ensure that customers have a more enjoyable process when a
failure occurs.
Implications
Managerial implications
An important insight emanating from this research is that
management strategies for traditional retail setting or e-tail
settings will not be perceived as successful in non-internet
SST settings. As noted, previous research comparing brick
and mortar to e-tail findings noted, in part, the similarities
(Forbes et al., 2005, p. 289) between those two settings. This
research, however, demonstrates that the non-internet SST
environment demands its own set of procedures for handling
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Lukas P. Forbes
References
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Further reading
Bitner, M.J., Booms, B.H. and Mohr, L.A. (1991), Critical
service encounters: the employees viewpoint, Journal of
Marketing, Vol. 58, October, pp. 95-106.
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Lukas P. Forbes
Appendix
Figure A1 Survey instrument
Corresponding author
Lukas P. Forbes can be contacted at: Lukas.Forbes@wku.edu
Lukas P. Forbes
327
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