MKT 723 Chapter Notes - Chapter 8: Better Business Bureau, Service Recovery
14 May 2015
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Document Summary
Service recovery refers to the actions taken by an organization in response to a service failure. Customer who experience service failures but who are ultimately satisfied based on recovery efforts will be more loyal than those whose problems are not resolved. Some customers are more satisfied after they experience a service failure than if they had not because of the recovery. If customers do not complain, the company cannot improve: complaints have been referred to as gifts. Customers who complain: believe positive consequences may occur as a result, social benefits to complaining, personal norms support complaining behaviour help others avoid similar situation, believe they will be compensated. Customer who do not complain: waste of time, do not know how to complain, self blame failure was my fault. Consumers are also more likely to complain about services that are expensive, high-risk, and ego-involving than about less expensive, frequently purchased services.
