The influence of service failures on customer emotions amongst banking customers in Gauteng

• Published in: Journal of Contemporary Management Vol. 16; no. 1; pp. 376 - 401
• Main Authors: Lubbe, I, De Meyer-Heydenrych, C
• Format: Journal Article
• Language: English; Portuguese
• Published: JCMAN 01.01.2019
• Subjects: Banking industry; Customer emotions; Service failure; Service marketing; Social Issues; South Africa; Customer emotions; Service marketing and South Africa; Service failure; Banking industry
• ISSN: 1815-7440
• DOI: 10.35683/jcm18097.0019

There has been an increase in the demand for services in South Africa due to poor service delivery. Service providers in sectors such as the banking industry are recognised as those that deliver poor services. Customers’ demand for better services has increased the level of interaction required between banking service providers and customers, but this interaction could lead to increased levels of frustration and negative emotions if the service is not provided correctly. This study therefore aims to identify the influence of a service failure on the emotions experienced by customers following service failure in the banking industry which could assist banks in developing more strategic marketing strategies focused on customer satisfaction, service recovery and customer retention. Data were gathered amongst customers of the Big 5 banks who had experienced a service failure with the bank using convenience sampling in the Gauteng area of South Africa. Results from the 281 useable questionnaires analysed using factor analysis and correlation testing reveal that any service failure significantly increases the negative emotions customers’ experience. In most cases, customers experienced both external and situational emotions after experiencing the service failure by their bank such as anger, frustration and unhappiness. The study provides empirical evidence to bank marketers that a service failure will cause negative emotions amongst customers. This could then negatively impact the satisfaction levels of customers. Bank marketers therefore need to consider the negative emotions experienced by customers in their service recovery strategies such as apologising, providing compensation or ensuring the failure does not occur again in the future.