Further, the research results showed that their was a correlation between service recovery and customer loyalty. 1. Introduction The concept of service recovery is both a business function and a critical focus point from the marketing perspective. The hotel industry is majorly based on offering intangible services and this makes service recovery an important business strategy. Essentially, service recovery entails the measures that an organization puts in place to respond to failures in service delivery. The hotel industry is prone to several variables that make it necessary to put in place service recovery strategies. Therefore, the effect of service recovery on customer satisfaction and loyalty becomes an important topic of research. To gain insight into this topic, the researcher used questionnaires to collect data which was used to analyze the impact of service delivery on customer loyalty and satisfaction in the hotel industry. 1.1 Research Aim This report aims to examine the impacts of service recovery on customer satisfaction and loyalty in the hotel industry. ... 2. Literature Review 2.1 Service Recovery According to Keith (2008), service recovery is the well thought out process solving the issues of aggrieved customer and returning the customer to a state of satisfaction with the product or company. Service delivery can also be thought of as the set of actions a firm takes as a response to poor service quality (Andreasson, 2000). Therefore, service recovery can be considered as the response of a firm to its clients after a product or service failure with the intention of appeasing the aggrieved client and maintain their business value. The ultimate goal of service recovery is to ensure that clients maintain their business relationships with the firm that caused them the initial problem. In every organization, things occur that may have undesired effect on the customer. Hence, a company needs to have systems in place to implement corrective measures when things go wrong. The ultimate test of a company’s commitment to quality service is how it handles issues concerning instances of provision of below per services (Craig. 1999). He further argues that organizations need to put in place effective recovery strategies to win back a customers trust after instances problems in service delivery. Service recovery strategies are necessary to ensure that the service failures do not fit into a pattern of failure which might have devastating effects on the business enterprise (Berry 1995). Some studies indicate that excellent initial service is much better than relying on service recovery. However, other studies point out that service recovery has a greater impact on the customer than even the initial service.
The research “Service Recovery Effects on Customer Satisfaction” focuses on the impact of service recovery in the hotel industry. Specifically, the research investigates the impact of service recovery on customer satisfaction and loyalty…
From the following research it can be comprehended that a look into literature proves that while service quality is something measurable and comparable, customer satisfaction is a more complex one which is influenced by perceptions of satisfaction and customer expectations along with quality.
The objective of this paper is to analyse the impact of service recovery on customer satisfaction, loyalty and word-of-mouth. One of the most important criteria for the success of a hotel is the service quality it offers. Although, the reasons for the first visit by a customer are out of control of the hotel management, the hotel management has the ability to make that stay a comfortable and satisfactory one.
The magic key in today’s market became Service Quality; this concept is widely spreading and became highly weighted customer priority. Maintaining high service quality is a competitive edge for any firm; companies now are very much concerned with that concept investing and focusing on the service quality to maintain the differentiation and survive in the new global world.
Most hospitality products are intangible and can only be experienced. However, there are other tangible products such as food and physical comfort. Customer satisfaction is essential to the success of any business firm. This is because it is responsible for repeated purchases.
Rationale and context The main objective of this project is to identify what services Audi provide after sale service, and which areas of the services could be improved in the opinion of the customers. Audi is a premium car brand from the stable of Volkswagen.
Services provided or facilitated by a marketer are intangible activities or benefits such as financial advice, entertainment etc in exchange for money or some thing else valuable. Technology, innovation, facilities and entertainment are some of the common elements in the market that deliver some specific experiences to the customers and this explains why some experts (Kerin, Hartley and Berkowitz, 2005, p.
The author states that to regulate service delivery, supervisors tend to enforce procedures and rules on the staff to restrict their discretion and autonomy. These similar procedures and rules are envisioned to restrict the magnitude of service delivered for the client and the subsequent absence of customization.
In this case, companies focus on creating value actualization more than they do to commodities. Moreover, they have realized that creation of value is more significant than production of distinct goods and services since it depends on customer expectations.
Since then, companies have began to appreciate the importance of catering to the needs of consumers; particularly those who appear to be satisfied with the services they receive as first time customers. Customer satisfaction is particularly important for service producing firms as the service becomes the actual products that is being marketed to the client(s).