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The internet has changed the way services are delivered and has created new forms of customer-firm interactions. Whilst online service failures remain inevitable, the internet offers opportunities for delivering efficient service recovery through the online channel. Notwithstanding, research evidence on how firms can deliver online service recovery remains scarce. The purpose of this paper is to investigate the impact of two online service recovery strategies – online information and technology-mediated communication – on customer satisfaction, switching and word of mouth intentions.

A scenario-based experiment is employed. Data are analysed using partial least squares structural equation modelling.

Online information and technology-mediated interactions can be used as online service recovery strategies. When fair, online service recovery can restore customer satisfaction, lower switching and enhance positive word of mouth. Interactional justice delivered through technology-mediated communication is a strong predictor of satisfaction with online service recovery. Yet, customers in subscription services show greater expectations of online service recovery than those in non-subscription services.

Further research could examine the impact of online service recovery on relational constructs, such as trust. Since customers participate in the online recovery process, future research could investigate the role of customers as co-creators of online service recovery.

Service managers should design online recovery strategies that meet customer need for interactional justice, for example, bespoke e-mails, and virtual chat communications with genuine customer care.

Online information and technology-mediated communication function as online service recovery strategies. Customer perceptions of justice towards online service recovery restore satisfaction, and encourage loyal behaviour.

When a service fails, the guarantee policy of the firm can be employed as a recovery strategy. The terms of the guarantee determine the amount of payout and the ease of invoking the policy. The guarantee terms can, therefore, influence customer perceptions of recovery fairness and inferences about the firm’s intentions to provide fair recovery. The purpose of this paper is to examine the impact of guarantee terms on customer perceptions of justice, motive inferences, and repatronage intentions.

A between-subjects experiment was conducted in parcel delivery services.

Customer perceptions of justice vary across guarantee payout levels. Payout in the form of a discount does not restore justice perceptions, and leads to inferences that the firm offered the guarantee to maximize its profits. Conversely, full refund restores justice. Full refund plus discount is perceived as undeserved, and does not enhance justice perceptions. A moderately easy-to-invoke guarantee is perceived as fair, when it includes full refund. Inferences of negative firm’s motives, however, diminish perceived fairness of easy-to-invoke guarantees.

Future research could examine the interaction of guarantee scope with payout and ease of invocation, and how types of motives differentially impact justice perceptions.

Full refund can enhance justice perceptions, whereas discount is perceived as unfair. Firms should offer full refund as guarantee payout, but refrain from offering a discount. Flexibility should be embedded in guarantee invocation procedures.

This study demonstrates that service guarantees employed as recovery strategies signal justice and the firm’s motives.