The effects of service recovery on customer satisfaction and customer loyalty in banks

2020 ◽  
Vol 14 (4) ◽  
pp. 403
Author(s):  
Bassem E. Maamari ◽  
Hummam S.A. Wasfi
2014 ◽  
Vol 4 (1) ◽  
pp. 49-58 ◽  
Author(s):  
Efrem Sisay Assefa

The principal objective of this study is to investigate the effects of justice oriented service recovery on customer satisfaction in retail banks in Ethiopia. It also attempts to assess how recovery satisfaction in turn affects customer loyalty.  In order to realize the research objectives, data were collected through survey questionnaire from a total of 400 customers who have experienced service failures and recovered by the banks during the past one year.  The study utilizes the instrument developed by Tax et al. (1998). Findings reveal that, perceived justice namely procedural justice, interactional justice and distributive justice were found to be positively related to recovery satisfaction.  Recovery satisfaction is also positively related with customer loyalty.


2017 ◽  
Vol 2 (2) ◽  
pp. 136
Author(s):  
Mia Antika

 The objectives of this research is to examine the impact of service recovery toward trust, and customer loyalty. To look at the connection between service recovery and customer loyalty this research used justice perspective that included procedural justice, interactional justice and distributive justice. The setting of this research was information technology business. The research was conducted in area of Surakarta regency with the customer phone operator as research respondent. This research used convinience sampling and employed 150 respondent that grouped by complaint and non-complaint customer. Regression analysis  was used in this research to analyse the data. Research indicated that procedural justice have significant impact toward customer satisfaction. In contrast, distributive and interactional justive did not significant impact toward customer satisfaction. This research also found that trust and customer satisfaction significantly impact toward trust and customer loyalty. In addition, this result found that non-complaint respondent were more trust and  loyalty than  customer who complaint to service which provided by phone operator. This indicated that service recovery did not enable to recover service failure.


Author(s):  
Anh Chi Phan ◽  
Ha Thu Nguyen ◽  
Thoa Xuan Thi Pham

This paper presents the results of an empirical study on the relationship between service recovery quality, customer satisfaction and loyalty in Vietnam’s e-retailing. Structural Equation Modelling (SEM) is applied to analyze the data collected from experienced customers in online shopping in Vietnam from November 2018 to March 2019. The results of statistical analysis indicate that interactive fairness, outcome fairness, procedural fairness significantly impact on customer satisfaction which then increases customer loyalty. This study suggests that customer’s ability to locate and interact with technical support on a website and how a company treats the customer would significantly decide satisfaction and loyalty from customer. E-retailers in developing economies should consider service recovery process as the opportunity to gain customers’ purchase intentions.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
George Oppong Appiagyei Ampong ◽  
Aidatu Abubakari ◽  
Majeed Mohammed ◽  
Esther Theresa Appaw-Agbola ◽  
John Agyekum Addae ◽  
...  

PurposeThe study sought to assess the nexus between components of perceived justice and satisfaction, trust and loyalty with service recovery.Design/methodology/approachSurvey data were gathered from a sample of 300 clients from 8 midscale hotels in Ghana. Partial least squares structural equation modeling was used to test the hypothesized relationships.FindingsPerceived distributive justice has no effect on customer satisfaction with service recovery. Interactional justice had the greatest effect on customer satisfaction with service recovery. No significant relationship was found between procedural justice and trust. Also, trust had a significant effect on loyalty post-service recovery.Research limitations/implicationsEmpirical data were taken from one service industry; thus, it is reflective of only that service industry, generalizations should be mindful of our context bounded results.Practical implicationsThe study offers suggestions for managers to leverage the dimensions of perceived justice in order to build trust and loyalty post-service failure. Hotels should treat customers with fairness and respect at every point of contact during the service recovery process. Reward based compensation should be offered to customers to build trust.Originality/valueThe study is among a few to assess service recovery and its link with loyalty from a developing economy context. The study revealed that perceptions of justice with service recovery influences customer loyalty and satisfaction post-service recovery and extend the understanding of service recovery in the Ghanaian hotel sector.


Author(s):  
Adi Yudi ◽  
Endang Ruswanti

This study will examine the relationship between the impact of service failure and service recovery on customer satisfaction and loyalty. The research objective was to determine the effect of service failure can be up to customer loyalty. The object of this research is customers who use expedition services located in Jakarta. This research method uses quantitative methods using a questionnaire measuring instrument. The sampling technique used is simple random sampling. To analyze the data using SEM (Structural Equation Modeling) analysis tools with Lisrel. The results of this study conclude that, first, service failure affects service recovery. Secondly, service recovery affects customer loyalty. Third, service recovery affects customer satisfaction, and the last fourth of customer satisfaction also affects customer loyalty.


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