| With the severity of competition and the development of the service industry, service companies should provide good service if they want to win the customers. Because of the characteristics of service industry, that is immateriality, elapse ease and unification of products and consumption of service, service failures happen inevitably. Service failure can destroy the satisfaction and loyalty of the customers. Thus, the companies should try their best to remedy their failure to regain the customers'satisfaction. Besides, it can be discovered a good method of improving service systems and reduce the service failure in order to increase loyal customers for the company.For a long time, scholars have been studying the relationship between customer satisfaction and customer loyalty under regular condition without product or service failure. Few scholars have made the demonstration research on the relationship between them in the context of service failure. The most researches concentrated service failure and customer satisfaction with service recovery; moreover, they are based on equity theory. But expectation theory is also an aspect to research the relationship between service failure and customer satisfaction. This research introduced overall satisfaction based on expectation theory to study the relationship between service remediation, customer satisfaction and customer loyalty.For the research, it took the example of food and beverage industry because this industry is typical in service industries and develops quickly recently. On the other side, there are many problems about service quality and management, also there exists a high impeach rate. The paper put recovery expectation, perceived quality of service recovery, secondary satisfaction after recovery, overall satisfaction and customer loyalty into the research model. It used structural equation analysis method to research their relationships. Eight hypothesizes were put forward and we will analyze the data and verify the hypothesis with the software of SPSS 15.0 and AMOS 7.0.The results show recovery expectation has a negative effect on customer disconfirmation and secondary satisfaction after recovery. Perceived quality of service recovery has a positive effect on customer disconfirmation and secondary satisfaction after recovery. Customer disconfirmation has a positive effect on secondary satisfaction after recovery. Secondary satisfaction after recovery has a positive effect on overall satisfaction. Secondary satisfaction after recovery has a positive and direct effect on customer loyalty. There exists this influence, but it is minor. It influences customer loyalty via overall satisfactory indirectly, it is greater than the direct one. Because loyalty is a rational action and customer will be loyal when he is satisfied in a long time.Based on the findings of the study, before the actions which the company takes after their service failure, the consumers will have some expectation based on their consumption experiences and some information. The higher the expectation, the less satisfaction he has. Therefore, the company can try his best to manage the expectation of the customer in order to reduce it. The better quality the company provides the more satisfaction the customer has. Once there happens service failure, the company should take some actions to remedy as soon as possible and improve the quality of service recovery, explain the failure reasons to eliminate the customer's dissatisfaction Also they should train their employees to be a good service team and then they can communicate with the customers clearly and help them to solve the problems.The finding of the research shows the good service recovery action can enhance the customers'favor to the company, repurchase intention and positive word of mouth. Secondary satisfaction after recovery has a direct effect on customer loyalty, but less effect compared to overall satisfaction. It influences customer loyalty via overall satisfaction indirectly. The indirect effect is greater than the direct one. As a specific satisfaction, secondary satisfaction after recovery will improve the overall satisfaction. Thus, good service recovery actions will improve customer loyalty though overall satisfaction and customer loyalty will bring much profit for the company. Therefore, the company should manage expectation of service recovery and improve perceived quality of service recovery to improve customer satisfaction and enhance customer loyalty. |
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