An Analytical Approach for Allocating Service Recovery Efforts to Reduce Internal Failures

Simons, Jacob V.; Kraus, Mark E.

doi:10.1177/1094670504271153

Cited by 12 publications

(10 citation statements)

References 24 publications

(45 reference statements)

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“…To prevent further damage, service companies attempt to recover the situation by offering the customer some form of compensation for the loss incurred (Patterson, Cowley, and Prasongsukarn 2006). Complaint recovery refers to the steps companies take to neutralize the potentially drastic effects of the failure and restore the customer to a state of satisfaction (Patterson, Cowley, and Prasongsukarn 2006; Simons and Kraus 2005). A recent comprehensive review of journal articles on complaint recovery suggests nearly 97% of the published articles tested the effectiveness of recovery responses while revealing a total of 21 different potential recovery measures (Van Vaerenbergh et al 2019).…”

Section: Conceptual Framework and Theoretical Backgroundmentioning

confidence: 99%

“…While even the most customer-oriented companies experience service failures, how they react to customer complaints and service failures are somewhat under their control. Previous studies suggest that 9 of the 10 customers who experience a failure would return if their issue was properly resolved; this ratio plunges to 22% if the situation is not handled appropriately (Simons and Kraus 2005). Hence, it is vital that when companies face a failure situation, they identify appropriate recovery strategies that can deliver the desired outcome.…”

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confidence: 99%

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Mix&Match: A Resource-Based Complaint Recovery Framework for Tangible Compensation

Stakhovych¹,

Tamaddoni

2020

Journal of Service Research

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Resource exchange theory suggests service recovery compensation is optimal when it is commensurate with what was lost (e.g., refund for overcharging). However, in practice, companies cannot always follow the theory-driven prescriptions, and the complaint recovery literature remains silent on how to best recover in such suboptimal situations. This study takes a resource-based theory stance to propose Mix&Match, a complaint recovery framework for tangible compensation offers (refunds, redeliveries, or credits) to optimize customer retention and lifetime value in both optimal and suboptimal complaint recovery scenarios. We find that matching tangible compensation with the complaint cause (e.g., redelivery for expired products) is the most effective recovery response for improving customer retention and lifetime value. However, in suboptimal nonmatching scenarios, monetary compensation in the form of store credit proves to be the most effective response.

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Section: Conceptual Framework and Theoretical Backgroundmentioning

confidence: 99%

mentioning

confidence: 99%

Mix&Match: A Resource-Based Complaint Recovery Framework for Tangible Compensation

Stakhovych¹,

Tamaddoni

2020

Journal of Service Research

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“…Positive correlations between customer satisfactions and repurchase intentions that led to future profitability were verified (Simon and Kraus, 2005). Proper responses to failures enhance customer loyalty (Hart et al, 1990).…”

Section: Service Recoverymentioning

confidence: 92%

Complaints and perceptions of failure recovery in buffet restaurants

Hsu

Chiu

2008

Chinese Management Studies

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If you would like to write for this, or any other Emerald publication, then please use our Emerald for Authors service information about how to choose which publication to write for and submission guidelines are available for all. Please visit www.emeraldinsight.com/authors for more information. About Emerald www.emeraldinsight.comEmerald is a global publisher linking research and practice to the benefit of society. The company manages a portfolio of more than 290 journals and over 2,350 books and book series volumes, as well as providing an extensive range of online products and additional customer resources and services.Emerald is both COUNTER 4 and TRANSFER compliant. The organization is a partner of the Committee on Publication Ethics (COPE) and also works with Portico and the LOCKSS initiative for digital archive preservation. AbstractPurpose -Complaint handling has the great influence on customer retention and provides a chance for businesses to improve service quality. This study intended to reveal the complaint actions of adolescent customers and perceptions of failure recovery in buffet restaurants with a linkage of family communication patterns. Design/methodology/approach -A consumer survey was administered in the metropolitan area of Taipei. Quota sampling procedure was applied following the age and gender distribution of the population between the ages of 13 and 19. Consent from parents was obtained prior to the survey. Findings -Based on the results of the study, adolescent customers with high concept-and high socio-orientation were prone to complain for dissatisfaction. Private actions were preferred by adolescent customers to express dissatisfaction, followed by using the internet or through actions of parents. For service recovery, adolescents preferred to have discounts, followed by free desserts. The results indicated that adolescents were more straightforward and they wanted to have compensations immediately. Furthermore, service recovery satisfaction showed a positive relationship with repeat purchases. Adolescent customers who were satisfied with service or food compensations would be likely to have repeat purchases. Nevertheless, adolescents who were unsatisfied with the service or food recovery did not totally cease purchasing.Practical implications -Buffet managers should give inducements to encourage adolescents to complain spontaneously. Buffet managers may offer discounts for the current consumption rather than coupons for next patronage. Adolescent customers with concept-and socio-orientation will provide useful information for buffet managers to improve their service quality. Originality/value -This study provides new insights into the area that has not been studied exclusively, complaint behavior of adolescent customers in buffet restaurants.

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“…Simons (2004) [45] questioned the focus of service recovery on dealing with customers who have been the recipient of poor service and suggested that it should focus more on dealing with the mechanisms that generate errors and improve correction capabilities. Learning from failures moves service recovery away from a transactional activity, interested only in recovering and satisfying an individual customer, toward management activity that improves systems and processes to ensure future customers are satisfied and costs are reduced.…”

Section: Thefinancial Aspect Of Service Recoverymentioning

confidence: 98%

An Integrated Framework for Understanding the Allocating of Service Recovery Resource

Zhao¹,

Zhao²,

Sha³

2009

2009 International Conference on Management and Service Science

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in this paper, an integrated framework is proposed by summarizing current service recovery concepts. The framework, which introduces the service recovery from the perspectives of both the customers and the firms, is also an analysis tool for allocating service recovery resource. Also we try to model and quantify this framework, converting the framework into an optimization problem, which is subjected to the interactions between organic components of service recovery and the limitation of the investment on service recovery. We argued that service recovery should act as a system instead of focusing on customer recovery. This paper would contribute to researchers and practitioner by reminding the cooperation of customer, employee, process recovery when encountering service recovery.

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An Analytical Approach for Allocating Service Recovery Efforts to Reduce Internal Failures

Cited by 12 publications

References 24 publications

Mix&Match: A Resource-Based Complaint Recovery Framework for Tangible Compensation

Mix&Match: A Resource-Based Complaint Recovery Framework for Tangible Compensation

Complaints and perceptions of failure recovery in buffet restaurants

An Integrated Framework for Understanding the Allocating of Service Recovery Resource

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