Consumer Reactions to Service Recovery Strategies
Keywords of Existing Reading
Complaint/ Recovery Paradox/ Satisfaction/ Customer Retention
Introduction: 800~1000 words
Literature Review: 1000~1500 words
Methodology: 900~1000 words
Notes from Reading:
(Mostafa, 2014) ‘Successful service recovery relies on individual strategies like facilitating complaint process and fast response time’.
(Mostafa, 2004, p.301) ‘Most implementation of service recovery are apology and compensation, yet other implementations such as explaining the source of service failure should be considered as a way to differentiate one company’.
(Spreng et al, 1995, p.16) ‘One of the most key consequences of maintaining customers’ satisfaction is to increase repurchase intentions’.
(Spreng et al, 1995, p.18) ‘Service recovery dominates satisfaction formations and positive intentions’.
(Spreng et al, 1995, p.20) ‘In many cases customers choose not to complain, instead they bring business to another competitor. Therefore facilitating/encouraging complaint is important’.
(Fan & Niu, 2016, p.1032) ‘Recovery speed does not directly contribute to customer satisfaction when operating service recovery on social media, because customers deem immediate response as a key factor of the recovery process’.
About Internet Provider:
(Dwivedi, 2010, p.214) ‘If broadband providers aim to increase and maintain existing customer base, they should provide customers technical support whenever needed’.
Structure of the Introduction:
A lot of industry especially service-based companies aim to provide successful service, yet even those with world class system inevitable encounter service fail. As such, service recovery is established to solve fail service and preserve customers. Existing papers suggest that effective service recovery contributes to customer retention, and identify that ‘enhancing loyalty’ and ‘creating positive WOM’ are the key objectives for service recovery strategy .Some scholar suggests that one of the key issues of service recovery is about dealing with complaint, yet others disagree with such discourse.
Existing researches in this area are mainly about how to measure effectiveness of service recovery, what tools are more effective for service recovery process (email, telephone, social media, etc).
Internet providers in UK face strong competitive, therefore providing effective service recovery strategies will help them to maintain/increase market share. In the article written by Mostafa (2014), successful recovery strategies include nine actions: apology, problem solving, courtesy, explanation, promptness, compensation, facilitation, effort, follow-up; facilitating the report of issue contributes to customer satisfaction. This research paper proposal aims to identify 4 variables that may influence consumers satisfaction in the complaint process, and explore its relationship.
- Using phone call is more effective for service recovery.
- Using email is more effective for service recovery.
- Using online chat is more effective for service recovery.
- Using social media (e.g. facebook, twitter) is more effective for service recovery.
Problem situation for internet users:
- Wifi drop-off suddenly;
- Bill is wrongly charged;
- Set up problem;
- Router doesn’t work;
- Delivery of the router is slow;
- Any other technical support.
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