MARKETING Service Recovery and customer satisfaction Your name ……………………………………. College / University ……………………………. Date ……………………………………………. Introduction ‘Service’ in the marketing landscape has become one of the most significant component of today’s global economy…
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316) believe that today’s business contexts are on the verge of a new economic era driven by the experience economy. This piece of research paper explains the relevance of service recovery followed by the service failure and describes different ways to achieve service recovery. The paper also explains how customer satisfaction and financial performance are interrelated and details whether they are always positively related. Service Recovery Strategic service breeds success to many marketers whereas many others fail since their service is inferior to that of others or is less attractive to the customers. Service failure thus provides many dissatisfied customers. As Botha, Strydom and Brink (2005, p. 301), service recovery is a remedial action designed with planned process or strategy of returning an aggrieved or dissatisfied client to a state of satisfaction with the company. Customer satisfaction is perhaps the most critical milestone that almost all marketers target and it is the base for better customer relationship, customer loyalty and even for achieving sustainable competitive advantage. Latest technologies and innovation help marketers differentiate products, and therefore they concentrate on making difference in the service being offered to the customer along with the product. When service fails, service failure is critical to survive in the market. A good service recovery system would be able to increase customer satisfaction, positive word-of-mouth for the company, improve product quality through customer feedback and elimination of costs in marketing and other processes. Service Recovery effort and strategic ways for it Fisk, Grove and John (2007, p. 176- 178) detailed a five-step strategic effort for service recovery. It comprises of apology, urgent reinstatement, empathy, symbolic atonement and follow-up. Almost same process was explained in the work of Botha, Strydom and Brink (2005, p. 301), but with a seven-step strategic cycle, they are 1) welcome complaints, 2) give immediate response, 3) treat clients fairly, 4) learn from recovery experience, 5) learn from lost clients and 6) doing it right. Apology with an attitude of welcoming complaints The process of service recovery should begin with an attitude of apology, which is an approach to becoming aware organization’s current situation in regard to dissatisfied customers. Apology is, as denoted by Fisk, Grove and John (2007, p. 176) admitting the failure and this can happen only when the organization has an attitude to accept complaints from customers and others too. Service can be identified and admitted only when the marketer accepts complaints from clients. If client’s complaints aren’t welcome to the firm, it will be fully unaware of how dissatisfied the customers are and why they are so etc. Urgent Reinstatement with immediate response Naturally, a dissatisfied customer would expect immediate response from the marketer and they want to know that some thing will be done by the marketer to remove the source of their disappointment. When the marketer accepts complaints from their customers, he must act as quickly as possible. Botha, Strydom and Brink (2005, p. 301) emphasized that a client will become more dissatisfied when he sees his complaints not listened and responded by
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The research uses data collected from 100 respondents through email survey and analyses it using SPSS. The findings indicate that service recovery does impact on customer satisfaction and retention in the hotel industry; moreover, it is also found that type of service failure too impacts on post recovery customer satisfaction and retention.
The objective of this paper is to analyse the impact of service recovery on customer satisfaction, loyalty and word-of-mouth. One of the most important criteria for the success of a hotel is the service quality it offers. Although, the reasons for the first visit by a customer are out of control of the hotel management, the hotel management has the ability to make that stay a comfortable and satisfactory one.
From the following research it can be comprehended that a look into literature proves that while service quality is something measurable and comparable, customer satisfaction is a more complex one which is influenced by perceptions of satisfaction and customer expectations along with quality.
Service recovery is especially pertinent in institutions and industries that involve immense contact with customers, either external or internal customers (Maxham and Netemeyer 63). While the merits of service recovery on satisfaction, recommendation and loyalty, are vastly documented empirically, there is abundant evidence to prove that the practices of service recovery have not necessarily improved.
The author states that to regulate service delivery, supervisors tend to enforce procedures and rules on the staff to restrict their discretion and autonomy. These similar procedures and rules are envisioned to restrict the magnitude of service delivered for the client and the subsequent absence of customization.
While performing service recovery, the issue must be addressed properly. If the breakdown or the failure that occurred was due to the mistake of the personnel, then the service recovery is psychological in nature; while, if it was due to the failure of structural infrastructure, then the customer should be given compensation so that his satisfaction is guaranteed.
The result of data analysis showed that service recovery has an impact on customer satisfaction. It was found out that customers appreciated effective service recovery and they were likely to become loyal clients. Further, the research results showed that their was a correlation between service recovery and customer loyalty.
Among other issues, the paper will discuss the theoretical aspects of measuring service quality in healthcare; intergenerational service preferences in health service management and delivery; current issues in service delivery from a service quality perspective and finally a look at methods and systems for service recovery and resolution.
Cook (2008) guides the reader through the customer service system and tries to establish an understandable focus on the customer service companies. Cook (2008) develops a sustainable customer service management emphasizing controversial strategic and practical aspects of the customer care area.
Flaming Waters Company is happy to join the league of leading wine-making firms in the UK and beyond. The company is starting a new and exhilarating phase for its small wine and whisky brands that will bring new opportunities and possibilities. The
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