Restoring Service Failures : The Single and Joint Effects of Apology and Compensation on Repurchase Intentions in Service Recovery

Performance failures are a part of everyday business in the service sector, they are unavoidable despite firms' attempts to banish them. As service failures leave customers unsatisfied and unwilling to revisit the service provider, knowing how to restore them is invaluable. Service recovery copes with just that; the actions needed to overcome service transgressions. Two main components of service recovery, apology and compensation, are examined in this book. Mainly, it is studied: how do these components affect customers' willingness to come back to the firm? In order to answer this question, two different types are specified for apology as well as compensation. In addition, their joint effects are analyzed, which reveals customers' preference concerning a specific combination of the two elements. Finally, a third variable is introduced: trust. This variable, acknowledged for its influence in relationship marketing, is tested on its mediator function. The research is aimed at clarifying blurry areas in service recovery and adding to existing knowledge in this field. As such, service firms can benefit from the outcomes and are able to translate findings into real recovery actions.