The Effect of Service Recovery on Customer Satisfaction, eWOM, and Repurchase Intention in the Online Travel Agent (OTA) Industry in Indonesia with Service Failure Severity as Moderator

Abstract

Abstract. This study aims to determine the effect of service recovery on service failure severity, customer satisfaction, eWOM, and repurchase intention. This study adopts an online survey method by distributing 196 online questionnaires to Indonesian OTA users who experienced service failures within the past year. The proposed study model undergoes examination using a partial least square-structural equation model (PLS-SEM). The result reveals that service recovery variables positively and significantly affected customer satisfaction, eWOM, and repurchase intention, however, the severity of the service failure did not significantly impact the relationship between service recovery and customer satisfaction. This study aims to provide valuable insight that enables OTA industry practitioners in Indonesia to develop more effective service recovery strategies. It contributes to developing justice theory and the service failure severity factor as moderators of service failures in the Indonesian OTA industry and their effect on customer satisfaction, eWOM, and repurchase intention. Keywords: Service Recovery, Justice Theory, Online Travel Agent, Service Failure Severity, eWOM, Repurchase Intention