Research On The Formation Mechanism Of Service Recovery Paradox

As an intangibility product, service has the nature of heterogeneity, perishability, inseparability of production and consumption, and so on. Although more and more enterprises have increasingly recognized the importance of staff training and the introduction of advanced equipment, even if they stipulate high standards of service delivery, service failures are inevitable as their natures. These objective mistakes will lead to customers'subjective dissatisfaction. So, how to provide effective remedial measures becomes the focus and puzzles of businesses and academics. Practice and research shows that a good recovery can turn angry, frustrated customers into loyal ones, it can, in fact, create more goodwill than if things had gone smoothly in the first place, it was known as service recovery paradox.For enterprises, some remedies really created a service recovery paradox, but some cannot play the role of restoring customer satisfaction, or even lower it once again. So, exploring the formation mechanism of service recovery paradox has effective role for enterprises to control failures and adopt recovery measures.Based on the existing research of service failure, service recovery and others, after in-deep interviews and brainstorm meetings, the paper finding out the influencing factors that lead to the change of customer satisfaction in the processes of service failure and recovery, and then, establish the formation mechanism model of service recovery paradox. To provide more detailed guidance recommendations, this paper introduced relationship strength as the moderator variable, revealed its moderate role in the service failure and service recovery processes.Using SPSS13.0, this research take an empirical study by analyzing the data, which are collected by questionnaires, to reveal the veracity of the proposed model. The result shows: the frequency, severity and controllability can cut customer satisfaction down remarkably, among which the severity is the most influencing factor; both the level of physical compensation and non-physical compensation can increase customer satisfaction, and their effects are basically equal; relationship strength will moderate the change of satisfaction for these two processes, customers with low relationship strength are more sensitive to the frequency and severity and pay more attention to physical compensation. Finally, based on the research conclusions, the paper discussed the implications and areas for future research .