Service Recovery and its Importance

Paper Summary:

This paper talks about the mitigation of losses from customer defections through service recovery strategies. Recognizing that no enterprise could possibly alleviate service failures completely, the author discusses the importance of service recovery in customer retention and how this can directly impact any organization's profitability and long-term viability. The paper also analyzes the nature and characteristics of expectations particularly in the service industry and looks at how these expectations can be managed through the service recovery process. This paper includes figures.

Outline:
Abstract
Introduction
Analyzing the Importance of Service Recovery in Successful Relationships
Attribution Theory
Equity Theory and Social Exchange Theory
Confirmation/Disconfirmation Paradigm
Nature and Characteristics of Expectations
Mitigating Service Recovery by Measuring Customer's Expectations
Summary
References

From the Paper:

"From these theoretical foundations, the developments of strategic responses to service recovery are possible to design, implement and monitor over time. Service recovery has progressed as an academic discipline and business practice due to the increasingly commoditized product strategies that rely increasingly on price and service, less on product or services features. In conjunction with the commoditization of products is the increasingly sophisticated use of analytics and lifetime customer metrics."

Sample of Sources Used:

• Levent Altinay 2007. The internationalization of hospitality firms: factors influencing a franchise decision-making process. The Journal of Services Marketing 21, no. 6 (September 20): 398-409. (Accessed October 1, 2008 ).
• Chad W Autry, Donna J Hill, Matthew O'Brien. 2007. Attitude toward the Customer: A Study of Product Returns Episodes. Journal of Managerial Issues 19, no. 3 (October 1): 315-339,311. (Accessed October 4, 2008).
• Mahesh S. Bhandari, Yelena Tsarenko, Michael Jay Polonsky. 2007. A proposed multi-dimensional approach to evaluating service recovery. The Journal of Services Marketing 21, no. 3 (April 15): 174. (Accessed October 3, 2008).
• C Boshoff 2007. Understanding service recovery satisfaction from a service encounter perspective: A pilot study. South African Journal of Business Management 38, no. 2 (June 1): 41-51. (Accessed October 2, 2008).
• Boshoff, Christo 1997. An experimental study of service recovery options. International Journal of Service Industry Management 8, no. 2 (January 1): 110-130. (Accessed October 2, 2008).

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