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  1. Service Recovery
  2. Customer Response Categories to Service Failures
  3. Effective Service Recovery System Conduct Customer Research Identify Service Problem Resolve Problems Effectively Modify Service Processing Monitoring Learn From Recovery Experience Nurture People Factor Conduct Root Cause Analysis  Monitor Customer Complaints Make Amends to Hassle Factor Setup Problem Tracking System  Monitor Service Process
  4. Importance of Service Recovery  Plays a crucial role in achieving customer satisfaction  Tests a firm’s commitment to satisfaction and service quality  Employee training and motivation is highly important  Impacts customer loyalty and future profitability  Complaint handling should be seen as a profit center, not a cost center  Severity and “recoverability” of failure may limit firm’s ability to delight customer with recovery efforts  Customers who experience a service failure that is satisfactorily resolved may be more likely to make future purchases than customers without problems
  5. Impact of Effective Service Recovery on Customer Loyalty
  6. How to Enable Effective Service Recovery Welcome and Encourage Complaints Act Quickly Learn from Last Customer Learn from Recovery Experiences Treat Customer Fairly Fail-Safe the Service • Be proactive • On the spot, before customers complain • Plan recovery procedures • Identify most common service problems and have prepared scripts to guide employees in service recovery • Teach recovery skills to relevant personnel • Empower personnel to use judgment and skills to develop recovery solutions
  7. Literature Review Service Recovery  Service recovery is an important activity, as customer value is also created during service recovery process through perceived risk and perceived justice based on emotional value  Satisfaction through service recovery strategies can also affect negative emotions  People from different culture may react differently to negative service encounters  Research work identifies eight types of emotional episodes; classified in four groups;— positive emotions: happiness & delight;—situation-attributed negative emotions: anxiety & fear;—other attributed negative emotions: anger & frustration; and— self attributed negative emotions of: guilt & shame
  8. Research Paper Overview – A Study on Chain of 5 star hotels  Survey and Evaluation of Service Recovery Strategies on Complainant-Client Satisfaction, Word-of-Mouth Communication (WOM) and Client Loyalty  The research was carried out over six mounts from November 2009 to April 2010, on complainant clients residing in each of the 5- star hotels in Mashhad city
  9. Questionnaire Questions: Strongl agree (5) Somewhat agree(4) Agree nor disagree( ) Somewh t disagree( 2) Strongl disagre 1 sincere apology has a significant and positive effect on complainant (client) satisfaction promptness has a significant and positive effect on complainant (client) satisfaction explanation influences complainant (client) satisfaction significantly and positively redress has a significant and positive effect on complainant (client) satisfaction complainant (client) satisfaction
  10. Research Gap  Consumer’s expectation and perception gap  Customer perceived vs. received recovery gap  Employee delivery of service recovery vs. received service recovery  Employee performance gap  Customer vs. employee expected perception of expected service recovery.  Management vs. employee perception for expected recovery
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