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The impact of service recovery on customer satisfaction, loyalty and word-of-mouth - Literature review Example

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The impact of service recovery on customer satisfaction, loyalty and word-of-mouth

This essay discusses that service quality in the hospitality industry and hotels specifically has been an area of great research interest. Research has shown importance of service quality. Parsuraman et al. indicated that service quality of hotels is both a significant differentiator and the most aggressive weapon possessed by them. Leading organizations in the hotel industry ensure to put up a high level of service quality over their competitors for over large durations of time. The relationship between service quality and customer loyalty has been of great interest. Researchers have also investigated the relationship between customer loyalty and the complaints received from the customer. Heskett et al. define customer loyalty as repeated purchasing by the same customer and their willingness to recommend the product/service to other customers without any outright benefits. High customer loyalty is beneficial to the organization as it reduces the firms’ marketing costs and increases its market share. There can be various reasons of a customer being loyal to a hotel. While some might be loyal because of lack of options, others might face the problem of high cost of switching. Wong and Sohal in their research found that there is a positive relationship between service quality and customer loyalty in the retail trade. Researchers have concluded that service quality is positively related to behavioural outcomes including word-of-mouth, complaints, recommendations and loyalty. ...Show more

Summary

The researcher will be seeking out answers to the following questions: Does improved service quality lead to high customer satisfaction? Does improved service quality lead to high customer loyalty? Does improved service quality lead to positive word-of-mouth?…
Author : rhauck
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