The role of perceived justice in service recovery on banking customers satisfaction and behavioral intentions: A case of South Africa

Service failure may not always be avoidable in business. The way in which it is managed may however have important implications of business success. This study investigates the role of perceived justice in service recovery on banking customers level of satisfaction and on their behavioral intentions. Data are collected using a structured questionnaire from 281 retail banking customers in Gauteng, South Africa. The findings show that procedural, interactional and distributive justice positively influence satisfaction and behavioral intentions. Satisfaction was also found to have strong influence on behavioral intentions. The findings point to the need for banks to have in place fair policies and systems for handling service failure. Banks also need to ensure that they treat their customers well during service recovery and that they strive for outcomes that are fair to customers.