The Service Recovery Paradox in a Call-Center context: Compensation and

Timeliness in Recovering Mobile Customers

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Index Introduction

Service Recovery Process

Conceptual Background

The paradoxical effect and the behavioraloutcomes

Call Center’s Role

Timeliness

Customer’s fairness Perception

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Introduction In the last decade, due to the increasing

competition among firms. Firms facing problems related to customer service and service failures and their recovery.

Since firms tend to invest more and more in retaining customers, because it is seen as an opportunity to achieve higher levels of customer satisfaction through effective service recoveryprocesses (i.e SRP).

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Introduction

The SRP is therefore a term that has been applied to paradoxical effect on customer.

The customer who experience service failure followed by strong recoveries may be more satisfied than those who did not experience any problem .

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Service Recovery ProcessDefination:-

Service recovery process is defined as it is a process to define failure in service and try to resolve it.

It’s basic aim is to solve the problem and change the negative attitude of dissatisfied customer.

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Typically service recovery strategies apply 3 type of action1) Reorganization of problem2) Problem resolution3) Compensation

How it works ?Service recovery it is the study of how customer react to service provider after occurrence of problem. It lead to the paradoxical situation.

example :-

A customer who experience failure become more satisfied than those who did not experience any problem

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Conceptual BackgroundHere we study the customer’s behavior about their service experience .

Satisfaction

Dissatisfaction

Poor service experience occur because of customer expectation is not often meet with actual service offered by firm. Here complaints plays key role they provide feed back of offered service and firm try to identify problems to retain dissatisfied customers .

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The paradoxical effect and the behavioraloutcomes

Effective service recovery process can produce paradoxical effect.

i.e:-

Customer post recovery behavior and it is rare event.

Every recovery strategy influence the customer’s post recovery behavior.

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Positive behavior

Mouth publicity

Post Purchase Intentions

Repurchase

Negative behavior

Complaint to third party (i.e Consumer forum).

Switching between firms.

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Call Center’s Role Here call centers are communication cannels between

firms and their customer for handling complaints and resolution of customer’s issues.

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TimelinessDefination:-

Timeliness is considered as the speed with which a firm responds to a complaint.

Timeliness will have a positive relationship with repurchase behavior.

The role of timeliness important especially because a negative relationship was found between delay and customer satisfaction.

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Customer’s fairness PerceptionCustomer wants to be treated fairly after service failure.

Apologies and compensation are most conmen actions used by firms as recovery strategy.

Compensation can be offered as two types

1) Tangible

2) Non-Tangible

Conclusion:-

The relationship between claims and repurchase behavior is higher among those who have received compensation.

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