PowerPoint Presentation

SERVICEIRNA SILVIANAIVAN STENLEYJATI PERDANAMAHLIGAI MECCARECOVERY

SERVICE FAILURESERVICE RECOVERYbelow expectation service performance, dissatisfactionactions taken by a firm in response to service failure

1%-5% complain to management or company HQ45% complain to a frontline employee50% encounter a problem but do not complainTHE TIP OF THE ICEBERG

SERVICE RECOVERY EFFECTS

SERVICE RECOVERY PARADOXCustomer feels more satisfied and loyal after service recovery occurredShould we do on-purpose failure?Problems:Small percentage of complainersService recovery must be superlativeService recovery is expensiveDoesnt increase repurchase intention/perception

HOW CUSTOMER RESPOND TO SERVICE FAILUREService failureDissatisfactionNo complaint actionComplaint actionExit/switchStayExit/switchStay3rd party actionNegative WOMComplain to provider

TYPES OF COMPLAINERPASSIVEVOICERSIRATESACTIVISTS

PASSIVESLeast likely to take any action

VOICERSActively complain to the provider

IRATESspread negative word of mouth

ACTIVISTComplain on all dimension

PROVIDERSPREADING NEGATIVE WOM3rd PARTYPASSIVESlowlowlowVOICERShighlowlowIRATESmedhighlowACTIVISTShighhighhigh

QUESTION

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