MKT 723 Chapter Notes - Chapter 8: Service Recovery
13 May 2013
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Document Summary
Service recovery is actions taken by an organization in response to a service failure. Failures occur because of unreliability, late delivery, incorrect outcome, rude employees, and more. Unfixed failures can result in customers leaving, negative word-of-mouth, and legal issues. Customers who never complain are least likely to repurchase. 50% of customers who experience problems received no response from the firm. Extremely dissatisfied customers can become terrorists and seek ways to publically criticize. Resolving customer problems has a strong impact on customer satisfaction, loyalty, word-of- Customers who experience failures can respond in numerous ways. Negative emotions follow failure and impact how customers evaluate the service recovery and their decision to return. Customers who complain believe positive consequences may occur and that they would be compensated for the failure. Services that were seen a more expensive would warrant time for a complaint (air line travel), than those who were cheaper (cab ride).
