The role of perceived justice and emotions in service recovery process: insights from the banking sector

Purpose This study investigates the impact of service failure severity, service recovery strategies and customers’ perceptions of recovery justice on post-recovery satisfaction, customers’ emotions and repurchase intentions in the banking sector of countries with different socio-cultural contexts. Design/methodology/approach The study employed a quantitative survey approach in the banking sector across Egypt and Spain. Online questionnaires were distributed to bank customers who experienced service failures within the past year. The final sample comprised 910 respondents (410 Egyptian and 500 Spanish). Data analysis was conducted with Smart PLS 4 for structural equation modeling. Findings Results showed that service failure severity negatively influenced recovery strategies only in Spanish banks. Service recovery strategies positively affected perceived recovery justice, which enhanced positive emotions and reduced negative ones across both countries. While perceived recovery justice and positive emotions increased post-recovery satisfaction, negative emotions decreased it. Besides, post-recovery satisfaction influenced repurchase intentions in both countries, though its mediating role between recovery justice and repurchase intentions was significant only for Spain. Educational level emerged as a significant moderator only in the Egyptian context. Originality/value The study developed and empirically examined a comprehensive conceptual model of the drivers and outcomes of post-recovery satisfaction in the banking sector. Providing meaningful insights into how social and cultural differences between customers in different countries can sometimes result in dramatically different behaviors following a service failure, the study highlights the need to adapt accordingly the strategies and the management processes of service recovery.