A study of the effect of service recovery on customer loyalty based on marketing word of mouth in tourism industry

Abstract

In the highly competitive business environment, the provision of high-quality service has become the competitive advantage for business managers striving for the market share. The output value and the employed population in tourism industry are the indicators of the modernization of economic development in a country. Nonetheless, when tourism industry is booming, effective recovery measures for service failure would affect all customers’ emotion and feeling. Taking consumers of tourism industry in Fujian Province as the research samples, the questionnaire is distributed and collected on site. Total 315 valid copies are retrieved, with the retrieval rate 75%. The research results conclude significantly positive correlations between 1.service recovery and word of mouth, 2.word of mouth and customer loyalty, and 3.service recovery and customer loyalty. According to the conclusion, suggestions are proposed, expecting to help tourism industry start from customers’ words of mouth to strive for more customers and enhance revenues through customer loyalty.