Effective service recovery strategies are essential for maintaining customer satisfaction post-service failures. Companies that excel in service recovery often adopt a dynamic and closed-loop approach, ensuring that they address both emotional and cognitive aspects of customer grievances.
Quantifying the Dynamic Effects of
Service Recovery
Measures
Communications
Apology
improvement
satisfaction
Buildup intensity and peak timing
According to the social exchange theory, a service recovery
encounter can be viewed as an exchange in which the customer
experiences a loss due to the failure and the organization’s
ic
The survey also found that the offer
of free goods or services following poor service was deemed
important by less than 5% of the customers
Many scholars have
identified the dominant importance of quality improvementbased service recovery efforts for recouping customer satisfaction, thus suggesting the relative stronger buildup effects of
quality improvement than those of compensation or apology
Besides decay heterogeneity, service recovery strategies may vary in terms of buildup
intensity and timing of the peak impact.
Hypotheses on the Dynamic Effects
Hypothesis
After service failures, the time-varying impact
of service recovery strategies such as quality improvement, compensation, and marketing commutations on customer satisfaction has a long decay, while that of apology
on customer satisfaction has a short decay
As such, affective factors evoke
short-lived responses, thus leading to a short decay.
the impact of
cognitive factors on customer satisfaction increases
That is, affective responses are evoked
much quicker than cognitive responses
Do the effects of service recovery strategies on customer satisfaction
Controls to Rule Out Alternative Explanations to
the Results
In addition, major economic events such as financial crisis may affect
customer spending and, thus, may impact customer satisfaction
affected by other factors, for which we need to control.
During the recovery process, customer satisfaction may be
Data Setting
Subtopic
Top management of the company engaged in a dynamic,
closed-loop strategy of service recovery.
Because service recovery strategies are implemented after the service failures, it is challenging to conduct systematic empirical
research with real-world data on service failures recovery
Service Recovery Strategies
Companies known for excellent service go the extra
mile to cover all the costs a failure incurs. If the inconvenience
is so severe to customers
customers are usually more emotionally
involved in recovery than in routine or first-time service
Recovery management has a significant impact on customer
evaluations
Dynamic Effects
Evaluating the time-varying effects and contribution of marketing variables in the long run.
