Customer’s Tolerance for Failure of a Service Innovation: Opening the Black Box of the Recovery Process
Our research studies customers’ long-term behavior when facing the failure of a service innovation, as well as the service recovery initiated by the brand and its consequences. The case studied is that of the failure of a new concept store tested by a sport items retailer. Our comprehensive longitudinal approach is based on the analysis of online reviews and interviews with both employees and customers. Our results ultimately show the process by which customers grant a right to error to a company whose service innovation has failed.