SERVICE RECOVERY ACTIVITIES AND CUSTOMER SATISFACTION: MEDIATING ROLE OF JUSTICE DIMENSIONS TOWARDS FUTURE INTENTION

Abstract

Purpose The purpose of this research paper is to find out the influence of service recovery activities towards justice dimensions, as well as the influence of customer satisfaction towards future intention. Design/methodology/approach A questionnaire of 40 statements was distributed online to 400 young adults, adults, and elderlies who had ever stayed at 4-star hotels in Central Jakarta. The questionnaire was validated through construct validity and reliability with the result all questions were converged to its factor respectively and no discriminant problem. Validity at the range of 0.716 to 0.910 and reliability at the range of 0.869 to 0.982. Demographic variables asked were gender, age, and nationality. To test the theoretical framework and hypotheses, Structural Equation Modeling was used. Findings It is found that service recovery activities significantly influence justice dimensions. The output also presented that customer satisfaction has significant influence on future intention. Originality/value This research is the first study that discuss service recovery of 4-star hotels and its influence towards customer satisfaction and future intention in Central Jakarta. The researcher also wants to find out the influence of justice dimensions towards customer satisfaction since there are previous studies that said customer satisfaction is influenced significantly and some others said it is not.