The effect of service recovery on customer loyalty: the role of perceived food safety

Abstract

Purpose – This study aims to focus on the food industry and empirically examine the mediating role of consumers’ perceived food safety on the relationship between a company’s service recovery and customer loyalty. In addition, consumers’ demographic characteristics and their influences on the relationship between perceived food safety and customer loyalty are determined. Design/methodology/approach – A survey was carried out through a structured questionnaire which was administered to the public. Using a small intercept interview, a random sample of 836 usable questionnaires was collected in Greece. Exploratory and confirmatory factor analyses were applied to validate the proposed constructs. The causal relationships among constructs were examined using structural equation modeling. Findings – According to the findings, consumers’ perceived food safety partially mediates the effect of a company’s service recovery on customer loyalty. The socio-demographic profile of consumers (gender, marital and parenthood status) also significantly influences the underlying factors of product and the loyalty attributes. Practical implications – This study enriches the existing literature of food safety by examining the distinct role that consumers’ perceptions play in forming loyalty, highlighting the importance of companies’ recovery efforts. The results obtained from this analysis offer a better understanding of consumer behavior toward food safety – encouraging and supporting food companies to successfully design their marketing strategies. Food safety issues also have become increasingly important in international trade, which makes it essential to understand consumer perceptions and behavior toward food safety. Originality/value – This study fills the identified literature gap and contributes to the literature, as no previous study has examined the proposed relationships in the food sector, taking into consideration food safety issues.