Introduction
In the face of the COVID challenge, many service businesses have undergone rapid digital transformation, especially in the online food services and meal delivery sectors. These businesses understand that loyal customers are crucial for maintaining growth and profitability. As a result, business owners and executives are continuously working to develop and maintain positive customer relationships (Reichheld, 1996).
However, in the service industry, receiving perfect reviews is nearly impossible. When encountering service failure, customers may express dissatisfaction, which can lead to negative reviews and a decreased intention to return or engage in future consumption (Alexandrov et al., 2013; Aguilar-Rojas, 2015). It is important to note that a majority of consumers place a high level of trust in online reviews (Nissen, 2012). Negative reviews, in particular, have a significant impact on their decision-making process (Zhang et al., 2018).
In the online service context, service problems and failures occur more frequently compared to traditional service settings (Harris et al., 2006). This is because customers are more likely to share their experiences and opinions on review platforms, making them public references for others. Responding to these reviews and comments is crucial for businesses in order to maintain positive customer relationships and manage their online reputation. This process, known as service recovery, plays a vital role in turning unhappy customers into loyal fans (Sparks et al., 2016). However, existing research primarily focuses on the consequences of service failure and overlooks the importance of understanding how to respond to online service failure by considering recovery stages and attributes (Di Pietro, 2012).
To address the challenges faced by business owners in the online service context, this study proposes a revised service recovery cycle model that takes into account three stages and their corresponding attributes. The aim is to examine how these service recovery attributes influence relationship marketing strategies such as relationship quality and customer loyalty after service failure. By expanding the service recovery literature, this study aims to provide valuable insights into how businesses can effectively recover from service failures and build strong customer relationships.
FAQs
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What is service recovery?
Service recovery refers to the process of resolving customer complaints or issues after a service failure. It involves addressing the problem, apologizing to the customer, and taking appropriate actions to rectify the situation. -
Why is service recovery important?
Service recovery is important because it allows businesses to address customer dissatisfaction and turn negative experiences into positive ones. By effectively recovering from service failures, businesses can improve customer satisfaction, loyalty, and long-term profitability. -
What are the stages of service recovery?
The stages of service recovery include acknowledgment, resolution, and compensation. In the acknowledgment stage, the business acknowledges the customer’s complaint and expresses empathy. In the resolution stage, the business takes actions to resolve the issue and prevent it from happening again. In the compensation stage, the business may offer compensation or incentives to the customer as a gesture of goodwill.
Conclusion
In conclusion, service recovery is a critical aspect of relationship marketing strategies in the online service context. Businesses must be proactive in addressing customer complaints and resolving service failures to maintain positive customer relationships and loyalty. By understanding the different stages and attributes of service recovery, businesses can effectively recover from service failures and build stronger customer relationships. By implementing these strategies, businesses can turn unhappy customers into loyal fans and ensure long-term success.
Reference:
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- Di Pietro, L. (2012). Service recovery and customer satisfaction in the Italian hotel industry. International Journal of Hospitality Management, 31(1), 196–203.
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