Service recovery paradox

The service recovery paradox (SRP) is a situation in which a <a href="/facts/Customer/oGqcqmhf">customer</a> thinks more highly of a company after the company has <a href="/facts/Service_recovery/ouUtq6AP">corrected a problem with their service</a>, compared to how they would regard the company if non-faulty service had been provided. The main reason behind this thinking is that successful recovery of a faulty service increases the assurance and confidence from the customer.
For example, a traveller's flight is cancelled. When she calls the airline, they apologise and offer her another flight of her choice on the same day, and a discount voucher against future travel. Under the service recovery paradox, the traveller is now happier with the airline, and more <a href="/facts/Customer_loyalty/deMQ8RSK">loyal</a> to it, than she would have been had no problem occurred.
Understanding SRP has been an important goal for both researchers and managers, as service failure is one of the main determinants of <a href="/facts/Customer_switching/VvKmfSeW">customer switching</a> behavior and successful recovery from these failures is seen by some as critical for <a href="/facts/Customer_retention/49IDI8vM">customer retention</a>. Recovery is especially important for service providers for whom ensuring an error-free service is impossible.

Service recovery paradox open-in-new

Service recovery paradox