Can ISO 9001 improve service recovery?

Purpose - This study aims to investigate whether ISO 9001 certification affects and enhances the relationships among customers' perceptions of service recovery and, consequently, customer satisfaction, perceived value and loyalty. In pursuit of this objective, the study also proposes a model linking loyalty and its antecedents to investigate the factors that might influence customer satisfaction and loyalty as well as the possible mediating effects of customer satisfaction. Design/methodology/approach - An online-based questionnaire was conducted to survey 123 online banking customers who have experienced at least one non-routine encounter while conducting online banking. Structural equation modeling and a multi-regression analysis were utilized to assess the relationships among the constructs. Findings - Service recovery was shown to be directly and positively related to customer satisfaction and perceived value, which, in turn, was found to significantly influence loyalty. The mediating role of satisfaction was partially supported. The results also showed that ISO 9001 certification has no influence on customers' perceptions of service recovery or on customer satisfaction, perceived value and loyalty. However, ISO 9001 certification improved the relationship between customer satisfaction and customer loyalty by approximately 47 percent. Practical implications - Service recovery can be used as a strategic driver in seizing new opportunities to enhance customer satisfaction and hence customer loyalty. This finding casts serious doubt on whether ISO 9001 helps to directly/indirectly strengthen customer loyalty. However, companies should consider ISO 9001 certification because it was shown to increase the loyalty of satisfied customers to firms. Originality/value - This study is the first to investigate the impact of ISO 9001 on service recovery.