Service Recovery Strategies Based On Customer Satisfaction

With rapid development of service industry, service recovery is one of the most important issues discussed recently. Service recovery is unavoidable because of service characters, but we can avoid unsatisfied customers. It's necessary for the company to recover service failures. Service recovery is very important for the company to retain customer relationship, turn unsatisfied customers to satisfied ones and get benefit. It's accepted wildly that service recovery plays an important role in service failures and customer satisfaction. However, service recovery is not studied well by many researchers. It is not managed well in practice. One of the reasons is that study of service recovery lags. The author will study strategies for service recovery based on customer satisfaction in the hope of availing recovery study and practice.At the beginning of the dissertation, the author proposes the issue discussed grounded on the background analysis of service industry. The dissertation reviews the research and literature on service recovery, both domestic and abroad, and the comment on literature is made. Research objectives and contents are introduced.Then, the author expounds basic theory of service marketing, including service concept, service quality, service failures and recovery. The conceptual model and measuring ways of service quality are introduced. Service characters are studied then. The author classifies service failures and gives methods to identifying them. These methods are critical incidents technique, identifying from customers' complaint, identifying from employees' experiences and identifying from secret customers. The theories of customer satisfaction are studied too, such as its concept, influencing factors and measuring methods.The relationship between service recovery and customer satisfaction is given after the introduction of related theory. There are three aspects to explain how service recovery affects customer satisfaction: (1) customer complains; (2) types of service recovery; (3) inner recovery. The holistic influence is generalized.In order to obtain customer satisfaction, the author chooses an appropriate process for service recovery. On the basis of the analysis of related theory above, the dissertation comes to many recovery strategies grounded on customer satisfaction: (1) forecasting strategy; (2) recovery executive strategy; (3) recovery appraising strategy; (4) feedback strategy; (5) recovery upgrade strategy. To be specific, forecast strategy is composed of establishing a forecasting system and designing a good service flow. Executive recovery strategy comprises customers' participation and right to choose projects. Recovery appraising strategy consists of cost-benefit analysis and ECSI. Recovery feedback strategy involves complains management and customer management. Empowering the front line and organization learning constitute recovery upgrade strategy.According to the hospital in China, The author conducts an investigation on the service quality and recovery in a hospital in Beijing. In terms of analysis of the investigation, the paper gives suggestions for service management in the hospital to reach patient satisfaction.