Purpose: This study explores the impact of customer-perceived justice on customer affection in the Indian banking sector’s service recovery context.
Method: Using confirmatory factor analysis and structural equation modeling, data from banking customers reveals that three justice dimensions—distributive, procedural, and interactional—significantly influence customer affection.
Findings: Distributive justice, involving timely compensation and apologies, has the most substantial effect, enhancing emotional connections with customers. Results show that customer affection positively predicts behavioural loyalty, both directly and indirectly through attitudinal loyalty. The study also identifies gender as a moderating factor, with stronger effects observed among female customers. These findings emphasize the need for fair and timely responses during service recovery to strengthen customer loyalty.
Practical Implications: For practitioners, prioritizing distributive justice can enhance customer relationships, especially by addressing gender-specific expectations. This study offers fresh insights into the role of justice dimensions in fostering customer loyalty through emotional engagement in the Indian banking sector.
Originality: This study contributes to the banking sector by highlighting how justice perceptions impact affection, attitudinal, and behavioral loyalty. It offers actionable insights for enhancing service recovery strategies to improve customer affection and loyalty..
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