The Service Failure and Recovery in the Information Technology Services

Authors: Jun Luo, Weiguo Zhang., Dabin Qin

Abstract:

It is important to retain customer satisfaction in information technology services. When a service failure occurs, companies need to take service recovery action to recover their customer satisfaction. Although companies cannot avoid all problems and complaints, they should try to make up. Therefore, service failure and service recovery have become an important and challenging issue for companies. In this paper, the literature and the problems in the information technology services were reviewed. An integrated model of profit driven for the service failure and service recovery was established in view of the benefit of customer and enterprise. Moreover, the interaction between service failure and service recovery strategy was studied, the result of which verified the matching principles of the service recovery strategy and the type of service failure. In addition, the relationship between the cost of service recovery and customer-s cumulative value of service after recovery was analyzed with the model. The result attributes to managers in deciding on appropriate resource allocations for recovery strategies.

Keywords: service failure, service recovery, informationtechnology services

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.1079756

References:

[1] Mitchell, V. W. 1993. Handling Consumer Complaint Information: How and Why?. Management Decision 31(3): 21-28.
[2] Moorman, Christine. 1995. Organizational Market Information Processes: Cultural Antecedents and New Product Outcomes. Journal of Marketing Research 32(3): 318-336.
[3] Kohli, A. K. and Bernard J. Jaworski. 1990. Market Orientation: The Construct, Research Propositions. Journal of Marketing 54(2): 1-18.
[4] Johnston, Robert and Sandy Mehra. 2002. Best practice complaint management. Academy of Management Executive 16(4): 145-154.
[5] Campbell, A. J. 2003. Creating customer knowledge competence: managing customer relationship management programs strategically. Industrial Marketing Management 32: 375-383.
[6] Smith, Amy K. and Ruth N. Bolton. 2002. The Effect of Customers- Emotional Responses to Service Failures on Their Recovery Effort Evaluations and Satisfaction Judgments. Academy of Marketing Science 30(1): 5-23.
[7] Homburg, Christian and Andreas F├╝rst. 2005. How Organizational Complaint Handling Drives Customer Loyalty: An Analysis of the Mechanistic and the Organic Approach. Journal of Marketing 69(3): 95-114.
[8] Berry, L. L., A. Parasuraman and V. A. Zeithaml. 1990. Achieving Service Quality: Balancing Perceptions and Expectations. New York: The Free Press.
[9] Bitner, Mary Jo. 1990. Evaluating Service Encounter: The Effects of Physical Surroundings and Employee Responses. Journal of Marketing 54(April): 69-82.
[10] Keaveney, Susan M. 1995. Customer Switching Behavior in Service Industries: An Exploratory Study. Journal of Marketing 59(April): 71-82.
[11] Smith, A., R. Bolton and J. Wagner. 1999. A Model of Customer Satisfaction with Service Encounters Involving Failure and Recovery. Journal of Marketing Research 36(3): 356-372.
[12] LI Xin, YU Bo. 2004. The Characteristics of Service Quality Evaluation and Tactics of Service Recovery. Management Sciences in China 17(3): 73-76.
[13] Kau, Ah-Keng and Elizabeth W.-Y. Loh. 2006. The effects of service recovery on consumer satisfaction: a comparison between complainants and non-complainants. Journal of Services Marketing 20(2): 101-111.
[14] Brady, Michael K. and J. Joseph Cronin Jr. 2001. Some New Thoughts on Conceptualizing Perceived Service Quality: A Hierarchical Approach. Journal of Marketing 65(July): 34-49.
[15] Gronröos, C. 1990. Relationship approach to marketing in service contexts: the marketing and organizational behavior interface. Journal of Business Research 20(1): 3-11.
[16] Novak, T. P., D. L. Hoffman and Y. F. Yung. 2000. Measuring the Customer Experience in Online Environments: A Structural Modeling Approach. Management Science 19(1): 22-42.