THE EFFECTS OF SERVICE RECOVERY ON CUSTOMER SATISFACTION IN RESTAURANT INDUSTRY

Rahayu, Siti (2012) THE EFFECTS OF SERVICE RECOVERY ON CUSTOMER SATISFACTION IN RESTAURANT INDUSTRY. In: Proceeding the 9th. International Anual Symposium on Management. Department of Management Faculty of Business and Economics University of Surabaya, Surabaya, pp. 349-365. ISBN 978-979-99365-6-1

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Abstract

The primary objective of this study is to investigate the effects of service recovery on customer satisfaction in restaurant industry. Specifically, it examines the perception of “justice” in service recovery and how it affects the level of satisfaction and behavioral outcomes. Data in this research were collected through a survey using a structured questionnaire. The 316 respondents were analyzed according to whether they did or did not make a complaint to the restaurants. The findings of this research showed that the complainants’ level of satisfaction with service recovery was significantly affected by perceived justice. The behavioral outcomes of the complainants in terms of trust, word-of-mouth (WOM) and loyalty were also found to be affected by their satisfaction with the service recovery. T-tests confirmed that the levels of trust, WOM and loyalty were significantly higher for those respondents who were satisfied with the service recovery compared with those who were dissatisfied. Further t-tests also indicated that respondents who were initially satisfied with the service expressed greater trust and positive WOM compared with the satisfied complainants. Finally, the study showed that dissatisfied complainants would exhibit a lower level of trust and were more likely to engage in negative word-of-mouth behavior compared with those who were dissatisfied initially but chose not to complain.

Item Type: Book Section
Uncontrolled Keywords: Customer satisfaction, Complaints
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Divisions: Faculty of Business and Economic > Department of Management
Depositing User: Eko Setiawan 194014
Date Deposited: 20 Aug 2014 02:33
Last Modified: 22 Sep 2014 01:53
URI: http://repository.ubaya.ac.id/id/eprint/20276

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