ve ry

e co
e R
r v ic MKT 3207
: S e
05
Service Marketing
Faculty:
S.M. Monirul Islam
Department of Marketing
JUST
© S M Monirul Islam, Dept. of Marketing, J 1
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 05: Service Recovery
Chapter Content: (Chapter 08 of text 01 and Chapter 13 of Text 02)
 Service failure and recovery
 Customer complaint actions following service failure
 Why customers do and don’t complain
 Types of Complainers
 Service recovery strategies
 Service Recovery Management Program
 Customers switching behaviour following recovery
© S M Monirul Islam, Dept. of Marketing, J 2
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Service Failure and Recovery
 A service failure is generally described as service
performance that falls below a customer’s
expectations in such a way that leads to customer
dissatisfaction.
 Service recovery refers to the actions taken by an
organization in response to a service failure to
improve the situation for the customer.
 Failures occur for all kinds of reasons—the service may
be unavailable when promised, it may be delivered late
or too slowly, the outcome may be incorrect or poorly
executed, or employees may be rude or uncaring.
© S M Monirul Islam, Dept. of Marketing, J 3
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 How Customers
Respond to Service Failures…

Customers who experience service failures can respond in a variety of

ways. In fact, research suggests that a variety of negative emotions can
occur following a service failure, including such feelings as anger,
discontent, disappointment, self-pity, anxiety, and regret.
Many customers are very passive about their dissatisfaction, simply
saying or doing nothing. Whether they take action or not, at some
point the customers will decide whether to stay with that provider or
switch to a competitor.
© S M Monirul Islam, Dept. of Marketing, J 4
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Customer Complaint Actions Following
Service Failure

FIGURE 7.1
Complaining Customers: The Tip of the Iceberg
© S M Monirul Islam, Dept. of Marketing, J 5
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Customer Complaint Actions Following
Service Failure….

FIGURE 7.3
Customer Complaint Actions Following Service Failure
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 Why Customers
Do and Don’t Complain

FIG-13.1 (Text 02) Why Customers “Do” and “Don’t”

Complain
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Types of Complainers
Research suggests that people can be grouped into
four categories based on how they respond to
failures:
– Passives,
– Voicers,
– Irates, and
– Activists.

© S M Monirul Islam, Dept. of Marketing, J 8

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 Types of Complainers…

Passives
This group of customers is least likely to take any action. They are
unlikely to say anything to the provider, less likely than others to
spread negative word of mouth, and unlikely to complain to a third
party. They often doubt the effectiveness of complaining, thinking that
the consequences will not merit the time and effort they will expend.

© S M Monirul Islam, Dept. of Marketing, J 9

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Types of Complainers….
Voicer
These customers actively complain to the service
provider, but Irate customers are likely to share their
frustrations with others.
plain to the service provider, but they are less likely to
spread negative word of mouth, switch patronage, or
go to third parties with their complaints.
These customers should be viewed as the service
provider’s best friends. They actively complain and, by
doing so, give the company a second chance.
© S M Monirul Islam, Dept. of Marketing, J 10
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 Types of Complainers…

Irates
These customers are more likely than others to engage in negative
word-of-mouth communication with friends and relatives and to
switch providers. They are about average in their propensity to
complain to the provider and are unlikely to complain to third parties.
They are less likely to give the service provider a second chance and
instead will switch to a competitor, spreading the word to friends and
relatives along the way.
© S M Monirul Islam, Dept. of Marketing, J 11
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Types of Complainers….
Activists
These customers are characterized by above-average
propensity to complain on all dimensions: they will
complain to the provider, they will tell others, and they
are more likely than any other group to complain to
third parties or express their opinions via social media
(such as Twitter).

© S M Monirul Islam, Dept. of Marketing, J 12

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Types of Complainers….

https://www.bbc.com/bengali/news-62275723
© S M Monirul Islam, Dept. of Marketing, J 13
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 Service
Recovery Strategies

• Fixing the customer

• Fixing the problem

FIGURE 7.4: Service Recovery Strategies

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Fixing the Customers

 Respond Quickly
 Provide Appropriate Communication
– Display Understanding and Accountability
– Supply Adequate Explanations
 Treat Customers Fairly
– Outcome fairness, Procedural fairness, and Interactional
fairness
 Cultivate Relationships with Customers

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 Fixing
the Problem

 Encourage and Track Complaints

 Learn from Recovery Experiences
 Learn from Lost Customers
 Make the Service Fail-Safe—Do It Right the First Time!

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 Service Recovery Management Program

FIG-13.2 Developing a Service Recovery Management Program

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 Developing a Positive
Internal Recovery Culture

The first step in developing an effective service recovery management

program is instil- ling a service recovery culture throughout the firm.
– Beliefs
– Behaviors
– Practices

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Service Failure Identification
 Core service failures
 Failures relating to customer needs and
requests
– special needs, customer preferences, customer
errors, and disruptive others
 Failures relating to un- prompted and
unsolicited employee actions
 Failures relating to problematic customers

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 Service
Failure Attribution

Attributions for failure situations are typically broken down into;

 Locus—Who is responsible for the failure?

 Stability—Is the cause of the failure likely to recur?
 Controllability—Did the responsible party have control over the
cause of the failure?

© S M Monirul Islam, Dept. of Marketing, J 20

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 Recovery Strategy Selection
Recovery tactics generally fall within five broad recovery
strategy categories—
 Apologetic - Front-line, Upper-management apology
https://www.ittefaq.com.bd/605207/ক্ষমা-চাইলো-রেল- কর্তৃ পক্ষ
 Compensatory
– Gratis, Discount, Coupon, Upgrade, Ancillary
 Restoration
– Total replacement, Correction, Substitution
 Replacement- Refund, Credit
 Unresponsive- No Response
https://www.banglatribune.com/foreign/706139/আবারও- ফেসবুক- ইনস্টাগ্রাম- ডাউন- ক্ষমা-
© S M Monirul Islam, Dept. of Marketing, চাইলো 21
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 Recovery
Strategy Implementation

When recovery strategy is implemented customers should get the

perceived justice.
 Perceived justice consists of three components:
– Distributive justice
– Procedural justice
– Interactional justice

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Tracking, Monitoring, & Evaluating Effectiveness

 Tracking Failures and Attributions

 Monitoring Recovery Efforts
 Evaluate Recovery Effectiveness
– Organizational benefits, Customer benefits Employee
benefits

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 Switching vs. Staying
Following Service Recovery

Ultimately, how a service failure is handled and the customer’s reaction

to the recovery effort can influence future decisions to remain loyal to
the service provider or to switch to another provider.
The nature of the customer’s relationship with the firm may also
influence whether the customer stays or switches providers.
Customer’s attitude toward switching strongly influences whether he
or she ultimately stays with the provider or switch to other alternative

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Switching vs. Staying Following Service Recovery

FIGURE 7.7 Causes of Service Switching

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 End of Topic 05

Next Topic:
06 Service Development and Design

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