Considering Customer Loyalty In Developing Service Recovery Strategies

Abstract

Customer loyalty has been an often suggested and supported consequenceof effective service recovery management. We predicted that customer loyaltywould also play an antecedent role in the recovery process by interacting withperceived unfairness in influencing subsequent reactions. We found that perceptionsof both distributive and procedural fairness in recovery management hadmore significant influences on reactions by loyal customers. Furthermore, theeflectiveness of service recovery had the strongest influence on loyal customers.Implications for service recovery strategies are discussed.