Ch 15: Service Recovery Flashcards
Service failure (def)
Service performance that falls below a customer’s expectations
Service recovery (def)
The actions taken by an organisation in response to a service failure
Service recovery has a strong impact on customer’s .. (4)
… satisfaction
… loyalty
… word of mouth communication
… bottomline performance
Service recovery paradox (def)
An initially disappointed customer who has experienced good service recovery might be even more satisfied by and loyal as a result of good service recovery
Negatives of the Service Recovery Paradox (5)
- Firm will only be aware of the failure if the customer notifies them
- It is expensive to fix mistakes
- You lose reliability
- Repurchase intentions and image perceptions do not increase
- No guarantee that the customer will be satisfied
Customer complaint actions (def)
When customers initiate responses following service failure,
these customer complaint actions can be of various types.
Web-based consumer opinion platforms (def)
Online platforms facilitated for customer feedback e.g. TripAdvisor
Types of complainers (4)
Passives
Voicers
Irates
Activists
Complainers: passives (def)
Not likely to take action, doubt the effectiveness of complaining
Complainers: voicers (def)
Actively complain to service prodiver but are less likely to spread negative Word of Mouth
Complainers: irates (def)
Relatively angry. Likely to complain to friends and relatives, and to switch
Complainers: Activists (def)
Above average likelihood of complaining to all parties. Believe complaining helps
Recovery expectations (def)
What customers expect to happen when something goes wrong
types of justice (3)
Outcome justice
Procedural justice
Interactional justice
Outcome justice (def)
Concerns the results that customers receive from their complaints.
