An Empirical Investigation of Customer Satisfaction after Service Failure and Recovery

Abstract

Relatively little research has addressed the nature and determinants of customer satisfaction following service failure and recovery. Two studies using scenario-based experiments reveal the impact of failure expectations, recovery expectations, recovery performance, and justice on customers’ postrecovery satisfaction. Customer satisfaction was found to be lower after service failure and recovery (even given high-recovery performance) than in the case of error-free service. The research shows that, in general, companies fare better in the eyes of consumers by avoiding service failure than by responding to failure with superior recovery.