Service Recovery Paradox In Indian Banking Industry: An Empirical Investigation

Garg, Arunesh

doi:10.21002/seam.v7i2.2049

Cited by 5 publications

(14 citation statements)

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“…Namun layanan yang tidak sesuai dengan harapan akan mengakibatkan kegagalan. Pemulihan layanan akibat dari perusahaan memberikan layanan yang tidak sesuai dengan harapan nasabah akan mengeluarkan dana yang lebih besar untuk mengembalikan tingkat kepercayaan nasabah (Garg, 2013;Chou, Hsu, & Goo, 2009;Smith et al, 2012). (Grönroos, 2008) menjelaskan bahwa layanan dapat dilihat dari tiga aspek yang berbeda yaitu layanan sebagai suatu kegiatan, sebagai sudut pandang penciptaan nilai dan sebagai penyedia kegiatan.…”

Section: Tinjauan Pustakaunclassified

Kualitas Layanan Internal Yang Memengaruhi Kepuasan Nasabah Dengan Menggunakan Kualitas Layanan Eksternal Sebagai Variabel Mediasi

Susanti

2018

manaj. pemasar. jasa.

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Section: Tinjauan Pustakaunclassified

Kualitas Layanan Internal Yang Memengaruhi Kepuasan Nasabah Dengan Menggunakan Kualitas Layanan Eksternal Sebagai Variabel Mediasi

Susanti

2018

manaj. pemasar. jasa.

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“…The magnitude of the compensation offered during service recovery also plays an important role. That is, the compensation must be quite substantial for the paradox to emerge (Garg, 2013;Ok et al, 2007), since SRP is only likely to occur at the very highest recovery-satisfaction levels (Smith et al, 1999).…”

Section: Note(s)mentioning

confidence: 99%

“…Error bars represent the standard error of the means overcompensation. Past research has been unable to inform this discussion as it has generally not described failures and recovery efforts quantitatively, if at all (Cheng et al, 2015;Fayos-Gard o et al, 2017;Garg, 2013;Magnini et al, 2007;Norvell et al, 2018;Ok et al, 2007).…”

Section: Note(s)mentioning

confidence: 99%

Where service recovery meets its paradox: implications for avoiding overcompensation

Edström

Nylander

Molin

et al. 2022

JSTP

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PurposeThe service recovery paradox (SRP) is the phenomenon that happens when customer satisfaction level post-service failure and recovery surpasses the customer satisfaction level achieved at error-free service. The aim of this study was to identify how large the size of compensation has to be at recovery for customer satisfaction to surpass that of error-free service (i.e. to identify a threshold value for SRP). The purpose of this is to inform managers how to restore customer satisfaction yet avoid overcompensation.Design/methodology/approachThe paper covers two studies. Study 1 used the novel approach of asking participants who had experienced a service failure in the hotel industry what amount of money (recovery) would make them more satisfied than in the case of error-free service. Study 2 then tested the compensation levels expressed by Study 1 participants to be sufficient for the service recovery paradox to occur.FindingsStudy 1 indicated that the threshold for the SRP was (on average) around 1,204 SEK, or just over 80% of the original room reservation price of 1,500 SEK (approx. $180). Study 2 found that (on average) the customer satisfaction of participants who received 1,204 SEK in compensation for service failure marked the point where it surpassed that of error-free service. Participants who received 633 SEK were less satisfied; participants who received 1,774 SEK were more satisfied.Research limitations/implicationsThe findings are context-specific. Future research should test the findings' generalizability.Practical implicationsThe approach used in this paper could provide managers with a tool to guide their service recovery efforts. The findings could help hotel managers to make strategic decisions to restore customer satisfaction yet avoid overcompensation, given a legitimate service failure in which the organization is at fault.Originality/valueNumerous previous studies have investigated the occurrence or absence of the SRP at predetermined compensation levels. This paper used a novel approach to find a quantitative threshold at which the magnitude of the recovery effort makes customer satisfaction surpass that of error-free service.

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“…A service offering that is free from errors enhances the organisation reliability and customers have confidence and trust in the employees and the organisation’s efficiency (Garg, 2013). However, service failures are inevitable and efforts by institutions and customers to prevent their occurrence may be an exercise in futility (Waqas et al , 2014).…”

Section: Literature Reviewmentioning

confidence: 99%

Service failure in higher education institutions

Msosa

Govender

2020

IJEM

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Purpose Providing quality service is the goal of many service providers and higher education institutions are not exceptional. However, service failure may occur from time to time which may eventually lead to customer dissatisfaction with the service rendered. The purpose of this paper is to examine service failure incidents in higher education. Design/methodology/approach In this study, three categories of service failure, namely, employee response to service delivery system failure, employee response to customer needs and requests, and unprompted and unsolicited employee actions were used to categorise 45 critical incidents obtained from 30 students at a university of technology. Findings The results showed that service delivery system failures account for the biggest number (51 per cent) of service failure incidents captured in this study. Research limitations/implications The critical incident technique which relies on the respondents’ memory to recall service failure incidents was used to collect information. The drawback is that memory can be fallible and students may end up exaggerating service failure incidents. Practical implications This study can assist higher education institutional managers to understand the nature of service failure incidents that lead to student dissatisfaction. Originality/value This study is unique as it presents service failure incidents from the developing world and further provides the basis for creation of service recovery strategies.

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Service Recovery Paradox In Indian Banking Industry: An Empirical Investigation

Cited by 5 publications

References 0 publications

Kualitas Layanan Internal Yang Memengaruhi Kepuasan Nasabah Dengan Menggunakan Kualitas Layanan Eksternal Sebagai Variabel Mediasi

Kualitas Layanan Internal Yang Memengaruhi Kepuasan Nasabah Dengan Menggunakan Kualitas Layanan Eksternal Sebagai Variabel Mediasi

Where service recovery meets its paradox: implications for avoiding overcompensation

Service failure in higher education institutions

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