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International Review of Management and Marketing Vol. 1, No. 4, 2011, pp.74-85 ISSN: 2146-4405 www.econjournals.com

Investigating the Moderating Role of Corporate Image in the Relationship between Perceived Justice and Recovery Satisfaction: Evidence from Indian Aviation Industry Vikas Gautam ICFAI University, Dehradun. India. Email: [email protected]

ABSTARCT: In the cont ext of pr es ent r es ear ch, author att empts t o br idge t he gaps in the lit er atur e b y invest igating p er ceived just ice dimens ions a nd t o exa mine whet her br and ima ge p lays mod er ating r ole in t he r elat ions hip s b et ween p er ceived just ic e and r ecover y satisfact ion. T he stu dy is bas ed on pr imar y data, collect ed fr om t h e air customer s in develop ing cou ntr y, I ndia. T he f ir st model of t he hier ar chica l r egr ess ion ana lys es indicat ed t hat all t hr ee just ice dimens ions of distr ib utiv e just ice, pr ocedur al just ice, a nd int er act ional just ice ar e p os itively r elat ed t o r ecover y satis fact ion, and t he eff ect of distr ibutive just ice on r ecover y satis factio n was str onger t han int er actiona l just ice, and subs equ ently, ef f ect of int er actiona l just ice on r ecover y satisfact ion was str onger than pr ocedur al justice. T he r esu lt s also conf ir med t hat all t hr ee int er action t er ms wer e s ignif icant, which s hows t hat cor por at e ima ge p la ys a moder at ing r ole b et ween p er ceived just ice dimens ions a n d r ecover y satisfact ion. Keywords: C or por at e ima ge; distr ibut ive jus tice; pr ocedur al just ice; int er act iona l just ice; I ndian a viat ion industr y. JEL Classifications: C10, L93, M31

1. INTRODUCTION I n the s er vice envir onment, it is a lmost imposs ib le t o pr ovi de hass le fr ee s er vice r ou nd t he clock du e t o u niqu e natur e of s er vices. It har dly matt er s ho w exceptiona l t he s er vice an or ga nizat ion deliver s, ever y or ganizat ion st ill oft en ma kes mistakes in meet ing t he exp ectations of mor e dema nding cust omer s, wh o ha ve a pr op ens it y t o b e mor e dema nding and less loya l t han ever b ef or e. It is imp oss ib le t o ensur e hu ndr ed p er cent er r or fr ee s er vices to cust omer s du e t o uniqu e natur e of s er vices ( Bit ner , 1993). del Rio-L anza et al. (2009) ar gu e that even t h e most cust omer or ient ed or ga nization wit h t he str ongest qualit y pr ogr am is u nlikel y to b e ab le t o eliminat e all s er vice failu r es. S er vice fa ilur e caus es cust omer dissatis fact ion wit h t he s er vice pr ovider , and du e t o that cust omer s ma y ex it silent ly, spr ea d a negat ive wor d of mout h, r ais e t heir comp laints t o t he op er ator , or continu e wit h the sa me s er vice pr ovider r egar dless of t heir dissat isfact ion (K im et al., 2009). Ser vice R ecover y r ef er s t o t he act ions ta ken b y a compa ny in r ejoinder t o a s er vice failur e (s ee Figur e 1). Failur es occu r becaus e of var ious r eas ons like: t h e s er vice ma y b e u nava ilable when pr omis ed; it ma y b e deliver ed b ehind schedu le or too leisur ely; t he outcome ma y b e er r oneous or ina dequat ely ex ecut ed a nd emp loyees ma y b e discour t eous. All t his t yp e of failur es br ings ab out negat iv e f eelings a nd r esp ons es fr om cust omer s. If not r es olved, t hen t hes e s er vice failur es ma y r esu lt in cust omer s lea ving, t elling ot her cust omer s ab out t heir negat iv e exp er iences a nd even cha llenging t he comp any t hr ou gh cust omer ’ s r ights or lega l wa ys.

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Fig ure 1. Recov ery Parado xo n Past r es ear ch has r evea led t hat, r esolving customer pr ob lem eff ect ively a n d eff icient ly has a stur dy impact of cust omer ’ s satisfaction, loyalt y a nd b ott om lin e p er f or mance. T her ef or e, cust omer s who ex p er ience s er vice fa ilur es, but eventua lly satisf ied bas ed on s er vice r ecover y ef f or ts by t he or ganization, will b e mor e loya l tha n t hos e whos e issu es ar e not r es olved in the du e cour s e of t ime. T he cust omer s who compla in and ha ve t heir pr ob lems r es olved s w ift ly, ar e much mor e likely t o patr ona ge t he sa me s er vice pr ovider a gain tha n t hos e whos e comp la ints ar e not r es olved in t ime. T he cust omer s, who never comp lain ar e less likely t o r epatr onage. Smit h and Bolt on (2 002) a ddr ess ed s er vice r ecover y as a moment of tr uth f or the compa ny, which is decis ive f or gr atif ying its cust omer s as well as cor r ob or atin g its ass ociations wit h t hem. Gr onr oos, (1988) def ined s er vice r ecover y as the act ions an or ga nization takes in or der t o r esp ond t o a ser vice failur e. Spar ks an d McC ollK ennedy (2001) def ined s er vice r ecover y str ategies as the str ategies pr acticed b y a n or ganization and its employees to come back the cust omer to a state of satisfact ion. T he f inal goal of s er vice r ecover y is t o appeas e dissatis f ied cust omer s all the wa y thr ou gh app osit e act ions in or der t o less en p ot ent ia l har m t o cust omer r elations hips caus ed by failur e of s er vices (Ha and Jang, 2009). Spar ks and M cC oll-K ennedy (2001 ) ar gu e t hat r es ear cher s acr oss t he wor l d ha ve ut ilized just ice t heor y as the ma in fr amewor k f or invest igating s er vic e r ecover y pr ocedur es in or der to compr ehend eff ect ive s er vice r ecover y mor e vitally. Accor ding to just ice t heor y, p er ceived ju stice is a mu lti - dimens iona l concept compr is ing t hr ee dimens ions na mely: distr ibut ive, pr ocedu r al, a nd int er act iona l just ice. R egar dless of t he r ecent a dvances with r ef er ence t o t he eff ects of p er ceived just ice on p ost -r ecover y satis faction, t her e is still need t o find out how r ecover y eff or ts ma de b y s er vice pr ovider af f ect cons equ ent cust omer s’ r ecover y satisfact ion. del Rio-La nza et al. , (2009 ) su ggest ed t hat ther e is a r ich int er est i n exp lor ing t he r elative imp or tance of t he dimens ions of p er ceived just ice o n r ecover y satis faction b ecaus e t hes e dimens ions do not exp lain r ecover y satisfact io n in equal r elative imp or tant ma nner . I n the f indings of t he stu dy, author s str ess ed that ther e is ur gent need t o analyze t he dimensions of p er ceived just ice s epar atel y r ather t ha n a ggr egat e f or m. Lat er , study r ecommend ed cons ider ing r ole o f moder ating fact or s in t he r elations hips b et ween p er ceived just ice a nd r ecover y satisfact ion. Among t hes e var iables, t hey r ecommended stu dying cust omer s’ ima g e about the compa ny’s br and, and globa l satisfact ion wit h t he company a nd t heir attr ibutions of t he caus es of the pr ob lem. On t he ot her ha nd, r egar dless of th e

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imp or tance of br and ima ge, litt le ef f or t has b een ma de t o exa mine t he r ole of br and ima ge in r elation t o p er ceived justice r egar ding s er vice r ecover y eff or ts an d r ecover y satisfact ion. Mor eover , Chebat and S lusar czyk (2005 ) exa mine t hat t he exp licit eff ects of the t hr ee just ice dimensions on cust omer loy alty ar e qu it e diver s e f or m ea ch ot her . But lit er atur e has not b een f ou nd r elat ed t o eff ect of p er ceived just ice dimens ions on satis faction wit h s er vice r ecover y. Maxham a nd N et emeyer (2002 ) invest igat ed the eff ects of p er ceived just ice on satisfact ion wit h s er vice r ecover y, but t hey di d not invest igat e t he r elative eff ects of t he p er ceived just ice dimens ions. Bas ed on the above backgr ou nd, cur r ent stu dy att empts to br idge t he gaps i n the lit er atur e b y invest igating p er ceived just ice dimens ions a nd t o exa mine whet her br and ima ge p lays mod er ating r ole in t he r elat ions hips b et ween p er ceived just ic e and r ecover y satisfact ion. 2. LITERATURE RE VIEW AND HYPOTHESES DEVELOPMENT Ser vice pr ovider s and cust omer s can not a void t he incidents t hat take p lac e dur ing excha nge pr ocess es. C ons equ ent ly, t hey a nticipat e flax en b eha viour fr o m ea ch ot her and t hey do t heir appr aisal based on p er ceived just ice. Ju st ice t heor y b y Ada m (1963) stat es t hat in ever y excha nge that ta kes p lace, p eop le eva luat e t h e inputs a gainst t he outcomes and compar e t hem wit h t hos e of ot her s in par allel situations. I n t he incident t hat t her e is an equilibr iu m b et ween t hem, t he ex chang e is cons ider ed as ‘fa ir ’, but if t he outcomes do not meet wit h t he p er s on’ s exp ectations, then t his r esu lts in discr imina tion. Past lit er atur e r elat ed t o s er vic e failur e a nd r ecover y has pr es ent ed substant ial evidence of t he appr opr iat eness of the concept of just ice as a s our ce f or u nder st anding t he pr ocess of s er vice r ecover y and its out comes (S mit h et a l. 1999; T ax, Br own, and C handr ashekar an, 1998; Blodgett et al., 1997; Godwin a nd Ross, 1992 ). Distr ib utive justice: del R io-Lanza (2009) def ined distr ibutive just ice as t h e assignment of tangib le r es our ces b y t he company t o r es olve a nd r ecomp ens e f or a s er vice fa ilur e. Accor ding t o Wa lst er et al. (1973), when a n individua l p er ceives that b enef its ha ve not b een allocated equ itably; he/s he exp er iences distr ess, whic h in tur n mot ivat es him/ her t o r ef ur bis h t he distr ibut ive just ice. Var ious author s acr oss the wor ld like: G odwin and R oss, (1 992); H of f ma n et al. , (1995); S mit h et al. (1999) pr ovided evidence bas ed on t heir emp ir ical stu dies t hat p er ceived fair ness of tangib le out comes have a p osit ive eff ect on r ecover y eva luation . Pr evious lit er atur e in s er vice r ecover y has measur ed distr ibut ive justice wit h t h e help of f ive var iab les, na mely: just ice, f air ness, need, valu e, and r ewar d’ of out comes (C hebat and Slusar czyk, 2005; Wir tz and Mattila, 2004 ; Smit h et al., 1999). Pr ocedur al Just ice: del Rio-Lanza, (2009) def ined pr ocedur al just ice as th e techniqu es the company us es to dea l wit h the pr ob lems ar ising dur ing s er vic e deliver y in t er ms of access ib ilit y, timin g/sp eed, pr ocess contr ol, dela y a n d flex ib ilit y to a dapt to the consu mer s ’ r ecover y needs. Mor eover , accor ding t o Davidow (200 3) pr ocedur al just ice inclu des policies, pr ocedur es, and t ools t hat fir ms us e t o supp or t commu nication wit h cus tomer s and sp ecif ically, t he t ime tak en to pr ocess comp la ints and t o ar r ive at a decis ion. Mattila (2001 ) in t he cont ext of s er vice r ecover y def ined pr ocedur al just ice as the cust omer ’s p er cept ion f or th e s ever al stages of pr ocedur es a nd pr ocess es need ed t o r ecover t he failed s er vice. Past lit er atur e supp or t ed s ix su b - dimens ions f or pr ocedur al justice like; f lexibilit y, access ib ilit y, pr ocess contr ol, decis ion contr ol, r esp ons e sp eed, a nd acceptance o f r esp ons ib ilit y ( del R io-La nza, 2009; T ax, Br own, and C handr ashekar an, 1998 ; Blodgett et al., 1997; T hibaut and Walker , 19 75). I nt er actiona l Just ice: Spar ks a nd McColl-K ennedy (20 01) def ined int er act ional justice in t he cont ext of s er vice r ecover y t hat t he eva luation of t h e degr ee t o which t he cust omer s have exp er ien ced jus t ice in hu ma n int er act ions fr o m


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the emp loyees of s er vice or ga nizat ion dur ing the s er vice r ecover y pr ocess. Findings fr om t he past lit er atur e su ggest ed s ix sub dimens ions f or int er act ional just ic e na mely; cour tes y, honest y, of f er ing exp la nations, empat hy, e ndea vour , and off er in g apologies ( del R io- Lanza, 2009; McColl -K ennedy a nd Spar ks, 2003; Clemmer , 1988; T ax et a l., 1998). G ener ally, int er act ional just ice f ocus es on int er p er s ona l int er act ions dur ing s er vice deliver y pr ocess. Cor por at e ima ge: Cor p or ate ima ge ma y b e def ined as p er ception of an or ganization held in consu mer memor y a nd wor ks as a f ilt er which inf lu ences t h e p er cept ion of t he op er ation of the company (Gr onr oos, 1998; K eller , 1993). Dob n i and Zinkha n (1 990) def ined cor por at e ima ge as the r epr es entation of a br and in t h e consu mer ’s mind t hat is linked t o a n off er ing. K eller , (199 3) ar gu ed t hat cor p or at e ima ge can b e s een as a s et of p er cept ions about a br and t he consu mer f or ms as r ef lect ed b y br and associations . Accor ding t o N gyu n a nd L ela nc (2001 ) cor p or at e ima ge is r elat ed t o t he dif f er ent p hys ical and beha viour al attr ibut es of t he company, like; b usiness na me, ar chit ectur e, var iet y of goods or s er vices, tr adit ion, ideology, and to t he f eeling of qualit y commu nicat ed b y each p er s on int er act ing wit h th e clients of the compa ny. T he cor por at e br and is intangible in natur e and inva luabl e f or the or ga nization. R ob er t a nd D owling (2 002) ar gu ed that t he cor p or ate br and is a valuab le intangib le ass et, t hat is har d t o imp er s onat e, a nd which ma y help cor por ation in achieving susta ined sup er ior financial p er f or ma nce. G ood br an d ima ge not only indicat es t hat the br and ha s a posit ive ima ge but a ls o ex hib it s a higher level of br and ima ge str engt h in compar ison t o ot her br ands (K im and K im, 2005). Per ceived just ice a nd r ecover y satisfact ion: T he ma in pur p os e of s er vic e r ecover y ef f or ts is to bu dge a cust omer fr om a state of dissat isfact ion t o a state of satisfact ion (Z emke, 1993 ). Wir tz and Mattila (2004 ) sp ecif y t hat r ecover y out comes, pr ocedur es, and int er act iona l tr ea t ment have a comb ined ef f ect on p ost r ecover y satisfact ion. S atisfact ion and futur e loyalt y of cust omer s ar e dep endent o n their f eelings on whet her t hey ha ve b een tr ea ted fa ir ly or not. I n gener al, cust omer s exp ect a s er vice r ecover y t o b e fair in or der t o r ecover t heir satisfact ion a n d loyalt y. Nu mer ous aut hor s have f ou nd t hat all t hr ee f or ms of just ice inclu din g distr ibut ive justice, pr ocedur al just ice, int er actional just ice ha ve a pos it ive eff ect on over a ll s er vice r ecover y satis faction (K im et al, 2009; dos Sant os a nd Fer nandes, 2008; Kar ande et al., 2007; Kar atep e, 2006; Kau and L oh, 2006 ; Patter son et a l., 2006; O k et al. , 2005; S mit h, Bolt on, a nd Wa gner , 1999 ; T ax et al., 1998; Clemmer a nd Schneider , 1996;). T hes e stu dies wer e conduct ed in diff er ent s er vice industr ies like; hot el cust omer s, mob ile p hone bu yer s, Under gr aduat e students, Air line pass enger s. On t he bas is of above backgr ou nd, f ollowing hyp ot hes es ar e pr op os ed in t h e cont ext of pr es ent stu dy: H1. T her e ex ists a p os it ive r elations hip b etween p er ceived just ice a nd r ecover y satisfact ion.  H1a. T her e ex ists a pos it ive r elations hip b et ween distr ibut ive just ice a n d r ecover y satisfact ion.  H1b. T her e ex ists a pos it ive r elations hip b et ween pr ocedur al just ice an d r ecover y satisfact ion.  H1c. T her e ex ists a pos it ive r elat ions hip b et ween int er actiona l just ice an d r ecover y satisfact ion. Per ceived just ice, r ecover y satisfact ion and br and ima ge : Past lit er atur e hyp ot hes izes t hat cor por ate ima ge influ ences cust omer s ’ satisfact ion ( Andr eass en and Lindesta d, 1998). Ngu yen a nd L eb lanc (2001) ar gu ed t hat high level o f cor por at e ima ge is r elat ed t o a b ett er p er cep tion of t he qualit y, bus iness na me a nd ideology of an or ga nizat ion. G ood br and ima ge not only indicat es t hat the br and has a pos it ive ima ge but als o s hows a higher level of br and ima ge str engt h t ha n ot her br ands K im a nd K im, (2005 ). T hus, a good cor p or ate ima ge is vita l f or compa nies.


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Consu mer s who bu ild up a p os it ive mental ima ge of a br and will ha ve a pr op ens it y towar ds high cust omer satis facti on t hr ou gh a ha lo ef f ect wher e all t hings linked wit h t he br and ar e s imilar ly valenced (Lai et al., 2009). T he r eact ion of t hes e t yp e of situat ions assur e consu mer s t hat even if s er vice fa ilur es occur qu it e oft en, when cust omer s ha ve a pos it ive mental ima ge of a br and, they will t hink t hat th e compa ny will b enef it t hem in futur e cour s e of time. H ence, t he eff ect of p er ceived just ice du e t o r ecover y eff or ts ma de b y cor por ate, who got p os itive menta l ima ge, might have a str onger impact on t he r ecover y satis fa ct ion of cust omer s. I n t he past lit er atur e r elat ed t o t he pr es ent stu dy, aut hor did not f ind enou gh pr evious stu dies, who ha ve exa mined t he mod er at ing r ole of cor p or ate ima ge in r elation t o p er ceived just ice in s er vice r ecover y. T her ef or e, cur r ent r es ear ch pr op os es the f ollowing hyp ot hes es : H 2 : T he ef f ect of p er ceived just ice on r ecover y satis faction is higher given cust omer s ha ve a pos it ive ima ge of the cor p or ation.  H 2 a : T he eff ect of distr ib utive justice on r ecover y satisfact ion is higher given cust omer s ha ve a pos it ive ima ge of the cor p or ation.  H 2 b : T he ef f ect of pr ocedur al just ice on r ecover y satisfact ion is higher given cust omer s ha ve a pos it ive ima ge of the cor p or ation.  H 2 c : T he eff ect of int er actiona l just ice on r ecover y satisfact ion is higher given cust omer s ha ve a pos it ive ima ge of t he cor p or ation.  3. CONCEPTUAL FRA MEWORK OF THE STUDY T he conceptual fr amewor k of t his stu dy was hyp ot hes ized accor ding t o t h e ob ject ives of t he stu dy a nd t he lit er atur e consult ed f or t he pr es ent stu dy (S ee f igur e 2). Fig ure 2. Fra mework o f st udy

Distributive Justice

Procedural Justice

Interactional Justice

Corporate Image

Recovery Satisfaction

Distr ib utive, pr ocedur al a nd int er act ional just ices will aff ect r ecover y satisfact ion (H 1 a , H 1 b , H 1 c ). M or eover , cor por ate ima ge p la ys moder ating r ol e b et ween t he r elations hip b et ween distr ibut ive, pr ocedur al, and int er act iona l just ices and r ecover y satisfact ion ( H 2 a , H 2 b , H 2 c ).


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4. RESEARCH METHODOLOGY 4.1. Meas urement Scales Mult ip le it em scales wer e us ed t o measur e ea ch constr uct in t his stu dy. Most ly validat ed measur ing s cales wer e us ed wit h s light modif ications t o meet t h e ob ject ives of the stu dy. All t he s cales u nder study wer e measur ed on s even p oint Liker t’s s cale r anging fr om ‘str ongly disa gr ee” ( 1) t o “str ongly a gr ee” (7 ). Wher ea s in t he cas e of cor p or ate ima ge, t hr ee it ems wer e on s even-p oint sca le of “Ver y Low” and “ Ver y H igh” a nd the 4t h it em wit h “Much Wor s e” a nd “Much Bett er ”. T o meet the ob jectives of t he stu dy, distr ibut ive just ice was measur ed b y a four - it em scale adopt ed fr om Blodgett et a l., (1997) and S mit h et al., (1999 ). T he pr ocedur a l just ice was measur ed b y a f our - it em sca le adapt ed fr om Blodgett et a l. (1 997) an d Kar atep e (2006 ). T o measur e the int er act iona l justice constr uct, we us ed a five - it em scale a dapt ed fr om Kar atep e (2006 ), S mit h et al., (1999), and T ax et al. ( 1998). T h e r ecover y satis faction sca le was meas ur ed by a f our - it em s cale a dapt ed fr o m Maxha m a nd N et emey er (2002 ). T he f our -it em sca le f or cor p or ate ima ge wa s adapt ed fr om Z eit ha ml ( 1988), and S elnes (1 993). 4.2. Dat a Co llect io n Pr imar y data wer e collect ed fr om p eople who tr avel b y air lines op er at ing i n I ndia n a viation industr y. T he r esp ondents wer e appr oached b y t he r es ear cher at air por ts at the time, when t hey wer e wa it ing t o b oar d p lane. T he pr ocedur e of appr oaching a ir cust omer s at t hat time was helpf ul wit hout having t o obta i n cust omer r ecor ds in a dva nce b y r equ est ing depar t ment of I ndia n a viat ion. A scr eening qu estion was as ked t o check if r esp ondents encou nt er ed a ny s er vic e failur e wit h air line op er ator s dur ing t he past s ix mont hs. T he str uctur ed qu estionna ir e was administ er ed a mong target p opu lation b y r es ear cher hims elf . Since, t he qu estionna ir e was adapt ed f or m p ast studies, s o it was imp er ative t o t est it f or suitabilit y t o I ndian cont ext and s er vice industr y. A pilot stu dy was conduct ed t o ascer tain t he su itabilit y of t he constr ucts ( n=52 ) in I ndian a viatio n industr y s ett ing. R eliab ilit y check has b een p er f or med t o know t he su itabilit y of t h e constr uct for this industr y and cont ext. Af ter ascer taining the su itab ilit y of t h e study constr ucts, the qu est ionnair e was admi nist er ed t o t he cust omer ’s sa mp le s iz e of 217 r esp ondents. S ince p ilot stu dy r es ult s wer e in t he favour of t he constr ucts, thos e r esp ons es wer e a ls o inclu ded in the samp le. Out of t he 217 collect ed, 19 qu estionna ir es wer e eit her incomp let e or t he ans wer s wer e f ou nd t o b e u nr eliab le, lea ving a r ema ining 198 qu est ionna ir es that wer e r eta ined f or fur ther data analysis. 4.3. Demog raphic Pro file T he str uctur ed qu est ionnair e us ed in t he study inclu ded a sect ion on cust omer ’s pr of ile, as var ious demogr ap hic a nd ot her fact or s wer e likely t o inf lu ence t he cust omer s er vices off er ed by t he compa ny. I nf or mation on demo gr ap hic a nd s ocio- economic f eatur es may als o b e helpfu l t o pr ovide s er vices eff ect ively. A demo gr ap hic pr of ile of t he r esp ondents cons ist ed of age, gender , mar ital status, educat ional qualif ications, emp loyment status, and mont hly income. Among t he r esp ondents 61.4 per cent wer e of the age gr oup 28 to 40 year s, and 2 3 p er cent of 27 year s and b elow a ge gr ou p. A good mix of ma le a nd f ema l e r esp ondents was f ou nd in t he data collect ed compr is ing ma les wit h 52.3 p er cent an d f ema les wit h 47.7 p er cent. T he ma jor it y of the r esp ondents wer e mar r ied (62 .5 p er cent), as p er centa ge of u nmar r ied was 37.5 p er cent. T her e wer e mor e p os t gr aduat e r esp ondents (59.6 p er cent ) t han gr aduat e a nd ot her s. M or eover t h e occupat ional var iables s howed t hat the r esp ondents had ma jor p or tion of pr of essiona ls (72.4 p er cent), wher e as the p er centa ge of s elf emp loyment, ot her s wer e 19.5 p er cent, 5.7 p er c ent r esp ect ively. I n t he sur vey it was als o f ou nd t hat th e r esp ondents ca me fr om dif f er ent income ba ckgr ou nds; a ma jor par t of t hem (64.7 p er cent) ear ned mor e t ha n Rs.40, 000 p er mo nt h but less t ha n Rs.40, 000 wer e only 35.3 per cent.


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5. DATA ANALYSIS AND FINDI NGS T he SPSS soft war e packa ge 17.0 ver s ion w as used f or a nalyzing t he data collect ed f or this study. T he M icr os oft –Ex cel s oft war e packa ge was als o us ed t o ma ke s ome basic computati ons like calculation of t he a ver age va lu es, sta ndar d deviat ion et c. 5.1. Reliabilit y Test T o t est t he r eliab ilit y of t he s et of it ems f or ming t he s cale a measur e of constr uct r eliabilit y (Cr onbach’s alp ha) was comput ed. Cr onbach’s alp ha is us efu l in measur ing how well a s et of var iables or it ems measur e a s ingle, one dimens iona l lat ent constr uct. T he alp ha valu es of 0.70 or gr eater r epr es ent satisfact or y r eliabilit y of t he it ems meas ur ing t he constr uct ( dimens ion) an d r eliabilit y less t han 0.60 is consider ed p oor (S ekar an, 2003). I n t he cur r ent stu dy, Cr onbach’s alp ha valu e f or all constr ucts r anges fr om 0.752 t o 0.903 (S ee tab le 1 ), which ensur es t hat constr ucts us ed f or t he stu dy ar e qu it e r eliable. Table 1. Reliability A nalys is Res ults Na me o f Co nst ruct No. of it ems Cor por at e I ma ge Recover y Satisfact ion Distr ib utive Justice Pr ocedur al Just ice I nt er actiona l Justice

4 4 3 3 5

Cro nbach’s A lpha Value 0.786 0.752 0.903 0.812 0.796

No. of Res po ndents 198 198 198 198 198

5.2. Exploratory Factor Analysis Explor ator y fact or a nalys is was p er f or med in t he stu dy t o check whet her t h e data collect ed ar e cons ist ent wit h t he p r escr ib ed str uctur e. T he r esu lts f or exp lor ator y fact or analys is wit h KMO (0.88 3), Bar tlett’s T est of Sp her icit y (Chi squar e 1673.314, s ignif icance 0.000) pr oves that exp lor ator y fact or ana lys is don e wit h t he eleven stu dy var iables is eff ect ive. T hr ee fact or s wer e extr act ed us ing the met hods of pr incipal comp onen t analys is. T he t hr ee fact or s extr act ed fr om t he stu dy var iables exp lain 77.74% of t h e var iance. Pr incipal C omp onent Ana lys is using var imax r otation wit h Ka is er Nor ma lizat ion was emp loyed t o f ind the dimens iona lit y of t he data set collect ed. T he loa dings of t he dimensions identif ied in fact or ana lys is wer e stab le. Each of the var iable loa ded high on a s ingle fact or . T he s elect ed fact or s wer e bas ed on Eigen valu es equa l t o or gr eat er t han 1.00. Cut -off p oint was 0.40 in cas e of cur r ent study. Factor loa dings matr ix is s hown in T able 2. 5.3. Multiple Regression Analysis Hier ar chical r egr ess ion a nalys es wer e condu ct ed on t he pr imar y data collect ed t o t est t he stu dy hyp ot hes es. Mor eover , same t yp e of r egr ess ion attempt ed to invest igat e t he r elat ions hip b et ween p er ceived just ice dimens ions a nd r ecover y satisfact ion and t he moder ating r ole of cor p or ate ima ge in t he r elat ions hip b et ween p er ceived just ice and r eco ver y satis fact ion. T he f ir st model of t he hier ar chical r egr ess ion ana lys es indicat ed t hat all thr ee just ice dimens ions of distr ib utive just ice, pr ocedur al just ice, a nd int er actiona l just ice ar e p os it ively r elat ed t o r ecover y satisfact ion (S ee t he tab le 3 ) . T his pos it ive r elat ions hip of p er ceived just ice dimens ions wit h r ecover y sat isfact io n suppor ts H yp ot hes es H 1 a , H 1 b , a nd H 1 c . T his model supp or ts t he fact t hat the ef f ect of distr ibut ive just ice on r ecover y satis faction was str onger t ha n int er act iona l just ice, and subs equ ent ly, eff ect of int er act ional justice on r ecover y satis factio n was str onger tha n pr ocedur al just ice.


Table 2. Facto r Loadings Matrix Variable

Facto r Loadings 1

I nt er actiona l Justice1

81

2

0.483

3

.892


.926

0.451 0.491


0.513

.808


0.441

.656


0.411

.585

Pr ocedur al Just ice1

0.511

.770


0.421

.611


0.433

Distr ib utive Justice1

.813


.883


.716

.823 0.542 0.551 0.472

Table 3. Multiple Regression Results Model

Variable

Beta value (Stnd.)

Pr oc edur a l Just i ce

0. 317

Di st r i but i ve Just i c e In t er a ct i on a l Just i c e

0. 483

R

0. 851

R Square

0. 725

Adjusted R Square

0. 708

F Value

63. 637

Change Statistics R Square Change 0.725

F change 63. 637

1

0. 393

T he s econd mod el of t he ana lys is invest igated t he dir ect ef f ect of cor p or at e ima ge on r ecover y sat isfact ion. R esu lts of t he stu dy pr ovid ed evidences of dir ect pos it ive impact of cor p or ate ima ge on r ecover y satisfact ion (S ee t he tab le 4 b elow). Table 4. Multiple Regression Results Model

Variable

R

R Square

Adjusted R Square

F Value

0. 783

0. 771

32. 206

Beta value (Stnd.) Pr oc edur a l Just i ce

0. 213

Di st r i but i ve Just i c e

0. 253

In t er a ct i on a l Just i c e

0. 264

Cor por a t e Im a ge

0. 521

2

0. 885

Change Statistics R Square F change Change .0798 32. 206


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5.4. Moderat io n A nalys is T hir d model of t he stu dy r evea led t he moder ating ef f ect and int er act io n ter ms b et ween p er ceived just ice dimens ions and cor p or ate ima ge (S ee t he table 5) . All t he t hr ee stat ed hyp ot hes es H 2 a , H 2 b , a nd H 3 c wer e supp or t ed. It mea ns t hat i n all t he t hr ee dimens ions, int er act ion t er ms wer e s ignif icant, which s hows t hat cor por at e ima ge p la ys a moder at ing r ole b et ween p er ceived just ice dimens ions a n d r ecover y satisfact ion, not r ejecting a ny H yp othes es. Table 5. Moderat io n A nalys is Res ults Model

3

Moderating Variable

R Beta value (Stnd.)

Cor por a t e Im a ge X Pr oc edur a l Just i ce

0. 207

Cor por a t e Im a ge X Di st r i but i ve Just i c e

0. 712

Cor por a t e Im a ge X In t er a ct i on a l Just i ce

0. 404

R Square

0. 926 0. 858

Adjusted R Square

F Value

0. 842

9. 897

Change Statistics R Square F Change change 0.073 9. 89 7

6. DISCUSSION T he r esu lts of t he stu dy r evea led t hat all t he t hr ee dimens ions of p er ceived just ice na mely; distr ibut ive just ice, pr ocedur al just ice, and int er actiona l justice ar e pos it ively r elated t o r ecover y satis faction. T he stu dy mod el supp or ts t he fact t hat the ef f ect of distr ibut ive just ice on r ecover y satis faction was str onger tha n int er act ional justice. T his finding of t he stu dy is cons ist ent wit h t he past stu dies conduct ed b y Max ha m a nd N et emeyer , (20 02), and S mit h, Bolt on, and Wa gner , (1999). Fur ther it was f ou nd that the ef f ect of int er actiona l just ice on r ecover y satisfact ion is str onger t ha n pr ocedur al just ice. T he impact of distr ibut ive just ic e on r ecover y satis fact ion appear s to b e str onger t han t hat of int er act ional just ice, which is cons ist ent wit h the pr evious f indings of S mit h, Bolt on, and Wagner , (1999) and Max ha m a nd N et emeyer (2002 ) . T he mo ment ous r ole of distr ibut iv e just ice in inf lu encing cust omer satis fact ion wou ld b e supp or t ed b y fa ir distr ibut iv e tr eat ment in t er ms of dis cou nts, r efu nds et c. that ar e imp or tant in r etur ning bac k satisfact ion fr om I ndian a ir customer s. T hus, ma na gement of I ndia n aviatio n industr y s hou ld ex ecut e an ef f ect ive wa y of distr ibut ive justice. M or eover , I ndia n aviat ion ma na gement s hou ld a ls o imp lement an eff ect ive wa y of int er actiona l just ice such as app ear ing cour t eous and r es p ectfu l, of f er ing ap ologies, and s howin g empat hy a nd attent iveness, s ince int er act ion just ice was f ou nd a n imp or tant pr edict or of r ecover y satis faction in t he stu dy. I nt er action t er ms of all t he t hr ee dimens ions of t he p er ceived just ice wer e f ou nd s ignif icant, which supp or ts t he fact t hat cor p or ate ima ge p la ys a moder at ing r ole in t he r elations hip a mong all t he t hr ee dimens ions of p er ceived just ice. T his r esu lt supp or ts the p lea that cor p or ate ima ge will af f ect the eff ects of pr ocedur a l just ice on r ecover y satisfact ion. 6.1. Manag erial I mplicat io ns Fo T he St udy Pr es ent stu dy pr op os es f ollowing key imp lications f or India n aviat ion ma na gement based on t he findings :  T he aviat ion ma na gement s hou ld f ocus on tr aining emp loyees t o ma ke t hem under sta nd ab out t he asp ects of p er ceived just ice, t he fair distr ibut iv e tr eat ment, int er p er s onal commu nication is impor tant t o the cust omer s.  I n or der t o incr eas e distr ibutive just ice which ha d a str onger r elations hip wit h r ecover y satis fact ion; ma nagement of I ndia n aviat ion should develo p sp ecif ic monetar y comp ensation gu idelines while tr aining b ot h fu ll -t ime a n d par t-time emp loyees to qu ickly and pr op er ly r eact to var ious s er vice failur e


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situations. M or eover , they need t o tr ain fr ont des k staff t o off er pr op er arr ays of comp ensations wit h similar valu es and let their cust omer s s elect the b est comp ensat ion.  Regar ding, distr ibutive tr eat ment tr aining, they s hou ld als o emp loy a tr aining pr ogr am, which sp ecifically illustr ates t he r eact ions impr oving t h e int er act ional just ice pr act ice t hr ou gh t eaching how t o pr op er ly tr eat angr y and fr ustr ated cust omer s, wit h the help of empathy a nd apology. 6.2. Limit at io ns A nd Fut ure R esearch Like all ot her stu dies, t his r es ear ch als o s uff er s fr om var ious limitations , that cur b the gener alization of t he f indings and pr ovides avenu es t o the r es ear cher s f or futur e r es ear ch. S ince t he pr es ent stu dy only f ocus ed on one s er vice industr y (I ndian a ir line industr y) and in a sp ecif ic develop ing nat ion, the r esu lts cannot b e gener alized t o ot her s er vice s ect or s and diff er ent geogr ap hical locat ions. H ence, futur e r es ear ch can r ep licat e t his stu dy in ot her s er vice s ect or s a nd diff er ent cou ntr ies t o validat e t he r esu lts of this stu dy. Mor eover , futur e r es ear ch ma y als o s ear ch f ew ot her mod er ating var iables in t he r elations hip b et ween p er ceived just ic e wit h s er vice r ecover y and r ecover y satis fact ion. 7. CONCLUSIONS Ear lier r es ear ch in the ar ea of s er vice r ecover y has help ed t he r es ear cher s t o under sta nd t he imp or tant r ole of p er ceived ju stice on r ecover y satis fact ion. T hou gh, the cur r ent r es ear ch fur ther mor e invest igat ed the r ole of cor por at e ima ge in s er vic e r ecover y s ituations. Cur r ent stu dy att empts to br idge t he gaps in t he lit er atur e b y investigat ing p er ceived just ice dimens ions and t o exa mine whet her br and ima g e pla ys moder ating r ole in t he r elat ions hips b et ween p er ceived just ice a nd r ecover y satisfact ion. T he f ir st model of t he hier ar chical r egr ess ion ana lys es ind icat ed t hat all thr ee just ice dimens ions of distr ib utive just ice, pr ocedur al just ice, a nd int er actiona l just ice ar e p os it ively r elat ed t o r ecover y sat isfaction, a nd t he ef f ect of distr ibut iv e just ice on r ecover y satisfact ion was str onger t ha n int er act ional just ice, an d subs equ ent ly, ef f ect of int er act ional just ice on r ecover y satisfact ion was str onger tha n pr ocedur al justice. T he r esu lts a ls o con fir med t hat all t hr ee int er act ion t er ms wer e s ignif icant, which s hows t hat cor p or ate ima ge pla ys a moder ating r ol e b et ween p er ceived justice dimens ions and r ecover y satis faction. REFERENCES Ada ms, J. S. (1963). T owar d an u nder standing of inequ it y. J our na l of Ab nor ma l a n d Socia l Psychology, 67, 422-36. Andr eass en, T . W., Lindestad, B. (1998 ). Customer loya lt y and complex s er vices : the impact of cor por at e ima ge on qua lit y, customer satisfact ion and loyalt y f or customer s wit h var ying degr ees of s er vice exp er t is e. I nt er nationa l Jour nal of S er vice I ndustr y Mana gement, 9 (1), 7–23. Bit ner , M. J. (1993). Mana ging t he evidence of s er vice. I n Scheu ing, E.E., Chr ist op her , W.F. (E ds), T he S er vice Qualit y Handb ook, Amer ica n Management Ass ociat ion ( AM ACOM ), N ew Yor k, N Y, 358 -70. Blodgett, J.G., Hill, D. J., T ax, S. S. (1997). T he ef f ects of distr ibut ive, pr ocedur al, and int er act ional just ice on p ost- comp laint b eha viour . Jour na l of R etailing, 73(2), 185-210. Chebat, J. C., Slusar czyk, W. (2005). H ow emot ions mediat e t he eff ects of p er ceived just ice on loya lt y in s er vice r ecover y s ituat ions : a n emp ir ica l stu dy. J our na l of Bus iness R es ea r ch, 58(5 ), 664-673. Clemmer , E.C., Schneider , B. (1996 ). Fair s er vice. I n T . A. Swar tz, D. E. Bowen, & S. W. Br own ( E ds.), Adva nces in s er vices mar ket ing and ma na gement (pp. 109–126). Gr eenwich, CT : J AI Pr ess.


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