A Dynamic System Of E-Service Failure, Recovery And Trust

Researchers have highlighted the mediating role of trust in electronic circumstances. However, relatively few studies examine the links between e-trust and e-service recovery. This study explores eservice recovery in terms of trust issue. This study utilizes the system dynamics approach to build an e-recovery framework and subsequently conduct simulations to evaluate recovery performance. The results of this study reveal that trust is indispensable to a successful recovery, which can boost long term firm profitability. Perceived prior service quality also positively affects prior recovery e-trust when failures occur. Customers with low perceived quality will have higher e-trust and generate more profit for firms than other customers after recovery. Service severity negatively affects customer prior e-trust. Interestingly, customers who have experienced high failure severity but ultimately have their problems solved will have greater e-trust and generate more profit for the firm than those with low service severity after recovery. Customer participation is critical to recovery performance. The more customers contribute in recovery process, the higher post e-trust they will create. This study helps explain how e-trust plays a pivotal role in dynamic system e-service recovery.