Keywords

service recovery, customer retention, service quality, customer loyalty

Abstract

This article proposes and empirically tests an original model of service recovery. Customer loyalty significantly impacts a company’s profitability. Customer satisfaction influences customer loyalty, and perceived recovery quality affects satisfaction. Surveys were mailed to 1,476 customers of a large financial services firm. This study examined how customers’ perceptions of the quality of service recovery efforts differs among customer groups. Customer groups were formed according to differing levels of post-recovery customer loyalty in order to study the impact of perceived service recovery quality on customer loyalty. The results of the study indicate that high- and low-loyalty customer groups differ in their perceptions of two components of service recovery quality: psychological and tangible. Therefore, managers should focus on these components when making decisions regarding service recovery designs. The study also analyzes the implications of the findings on service recovery design.

Original Publication Citation

"An empirical study of service recovery quality and customer retention", Journal of Management Research, Edition No. 4, Volume Volume 19, Pages 235-249, 2019

Document Type

Peer-Reviewed Article

Publication Date

2019

Publisher

Journal of Management Research

Language

English

College

Marriott School of Business

Department

Marketing

University Standing at Time of Publication

Full Professor

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Included in

Marketing Commons

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