Effect of advance explanations on customer-perceived justice, satisfaction and loyalty improvement

Providing explanation in mitigating employee response to negative events has been widely discussed and used as an economic tool in organizational behavior (e.g., Gilliland, 1994). This concept was applied examining the advance/postexplanation effect with 300 samples in a service industry. The result, based on ANOVA analysis, indicates that the advance explanation effect on enhancing customer-perceived justice, satisfaction and loyalty is powerful and significant (Table 1).