Service recovery: a method for assessing performance

Abstract

Purpose -The aim of this study is to propose a method for assessing the service recovery performance of a manufacturing company with value-added services. Service recovery performance is assessed by an index with value ranges from 0 to 100 percent. Design/methodology/approach -A tree-like structure was built to represent service recovery. This structure was weighted according to the degrees of each dimension's relative importance using the analytic hierarchy process (AHP) method. After construction, the dimensions were evaluated by considering how much they were applied during the process; the service recovery index and the gaps between importance and application were determined. The method was tested in a multinational manufacturing company and in two buyer companies. Findings -It was possible to identify the most important service recovery dimensions from the perspective of a manufacturing company ("speed of recovery", followed by "empowerment") and the respective degree of application according to the buyers; the gaps between importance and application were determined, and a set of suggestions for the service recovery process was made. Practical implications -The proposed method can be adapted for other companies, including those in other industries. Analysis of the degree of the application of the dimensions of recovery can be extended to other customers, which allows for the measurement of service recovery performance. Originality/value -The recovery service is an organisational process relevant to manufacturing enterprises with value-added services, which require measurement of their performance. The authors found no other references to a method that allows organisations to assess their performance in relation to recovery dimensions.

The Relationship between Service Recovery and Patronage Intentions: The Mediating Role of Relationship Quality

“…The speed of recovery can be seen as a way to lessen the customer's difficulties (Battaglia, et al, 2012). Johnston and Clark (2005) hold that finding, and fixing, failures was one of the roots of SR. A delay in response increases the customer resentment and it negatively affects service quality perception (Boshoff, 1999).…”

“…The speed of Recovery is a way to reduce the customer's difficulties related to a given service failure (Battaglia, et al, 2012). A fast response can help in creating a more positive customer's service perception (Boshoff, 1999).…”

“…Apologies help in creating an empathic link between company and its customers (Liao, 2007). Some authors (Battaglia, Borchardt, Afonso Sellitto and Medeiros Pereira, 2012;Levesque and McDougall, 2000) suggested that its effectiveness depends on the severity of the failure, and on the willingness to provide some form of compensation.…”

“…An emphatic answer shows that the company cares for the specific interest of each single customer (Zeithaml, Parasuraman, and Berry, 1990, p. 26) and that it tries to reduce his/hers inconvenience (Boshoff, 1999). According to Liao (2007), SR itself asks for an empathizing employee's behavior in dealing with affected customers; employees should understand the customer perspective (Krishna, Dangayach, and Jain, 2011;Battaglia et al, 2012).…”

“…It restores the service in its normal state. It also shows the provider's skills in dealing with the failure causes, and in planning and implementing corrective actions (Battaglia et al, 2012). Problem solving should be fast (Parasuraman, Berry and Zeithaml, 1991) and effective (Levesque and McDougall, 2000) as if it fails, it will damage the relationship with the customer.…”