Cost-Effective Service Recovery: Knowing Which Customers to Keep

Authors

Aaron R. Brough, Brigham Young University
Dr. Kristie Seawright, Brigham Young University

Keywords

service recovery, service failures, customer satisfaction, long-term profitability

College

Marriott School of Management

Department

Management

Abstract

Service failures are inevitable. When firms fail to deliver a service as promised, customers will generally be dissatisfied. Such customers will not likely do business with the company in the future. Some companies may shrug their shoulders and look for new customers. However, research shows that in many cases it is considerably more profitable for a company to keep customers who have experienced failures than to try to find new customers. Service recovery is anything companies do to recover the satisfaction and loyalty of customers who have experienced a service failure.

Recommended Citation

Brough, Aaron R. and Seawright, Dr. Kristie (2014) "Cost-Effective Service Recovery: Knowing Which Customers to Keep," Journal of Undergraduate Research: Vol. 2014: Iss. 1, Article 1013.
Available at: https://scholarsarchive.byu.edu/jur/vol2014/iss1/1013