The Art of Profitable Service Recovery: A Strategic Model

Authors

Aaron R. Brough, Brigham Young University
Dr. Kristen DeTienne, Brigham Young University

Keywords

service recovery, service failure, customer satisfaction

College

Marriott School of Management

Department

Management

Abstract

Disappointed customers are less likely to continue doing business with a firm and more likely to drive other customers away. Obviously, such actions can be costly for companies. Service recovery may be defined as any actions a company undertakes in order to mitigate the damaging effects of service failure. Successful service recovery restores, and occasiona lly elevates, prefailure levels of customer satisfaction and loyalty. The following two pages summarize an honors thesis that shows how companies can strategically design a profitable service recovery system. Although service recovery has been shown to increase profits in many instances, other research argues that it may not be worth the investment. This paper proposes two propositions that may help to explain the conflicting results.

Recommended Citation

Brough, Aaron R. and DeTienne, Dr. Kristen (2013) "The Art of Profitable Service Recovery: A Strategic Model," Journal of Undergraduate Research: Vol. 2013: Iss. 1, Article 2476.
Available at: https://scholarsarchive.byu.edu/jur/vol2013/iss1/2476