Impact of service failure attributions on dissatisfaction: Revisiting attribution theory

This study investigates the impact of service failure attributions on customer satisfaction in retail banking. This was done using a 2×2×2 between-subjects experimental design. The findings demonstrate that customer satisfaction after experiencing a service failure is significantly influenced by customers’ perceived attributions regarding the failure. This paper contributes to the existing literature on service failure by drawing inferences from Heider’s (1958) attribution theory. This study empirically examines how service failure attributions affect customer-service provider relationships in the Indian retail banking industry. The information presented could be used to predict the extent of customers’ post-service failure dissatisfaction. At the same time, this study shows that having an understanding of how customers form their perceptions about a service failure can help companies mitigate unfavorable customer perceptions.