Service Recovery in Consumer Banking - Dissertation Example

Service recovery is defined simply as the actions that providers take in response to a service failure (Michel, Bowen and Johnston 2006). This failure usually occurs when the perceptions of the customers with respect to the service they received do not match their expectations. Thus, based on this, service recovery is not limited to industries confined in the service industry (Michel, Bowen and Johnston 2006). Andreassen (2000) provides a definition similar to what has been provided by Michel, Bowel and Johnston (2006), stating that service recovery pertains to those actions undertaken by a supplier in order to seek out dissatisfaction.

In the same manner, service recovery is also the manner by which suppliers respond to service quality such as service failure (Andreassen 2000). Moreover, Fitzsimmons and Fitzsimmons (2004) also define it as a process of conversion wherein a previously dissatisfied customer is transformed into a loyal customer. Tschohl (2005) adds to the pool of definitions given to service recovery, defining it as a series of actions that include apologizing, taking responsibility and giving customers something valuable to retain the latter as well as to ensure their loyalty to the company.

On the other hand, according to Zemke and Bell (2000), service recovery refers to the focused efforts by a service provider by which they return aggrieved customers in order to a state of satisfaction with the institution after a service or product breakdown. The authors reiterate the phrase “to a state of satisfaction with the institution” as service recovery is deemed of paramount importance in order to ensure the satisfaction of their customers with their company and services (Zemke and Bell 2000).

Taking these elements into consideration, Lan (2008) thus considers service recovery as one of the most important elements that companies and suppliers must consider in providing services to their customers. Service recovery pertains to the efforts wherein the company brings back the customers to their businesses (Lan 2008).