Service recovery in consumer banking in China Dissertation - 1

Service recovery in consumer banking in China - Dissertation ExampleMoreover, the study also showed that the effectiveness of the uniform positively influenced the function of the customers to stay with the banks (CUSTOMER LOYALTY). The grandeur of service recovery is usually taken into consideration when something in a service delivery goes wrong, Segelstrom and Howard (n.d.) discusses. Basically, the concept of service recovery is establish on the fact that a company must take action to ensure that their customers or clients get the desired outcome notwithstanding the fact that the anterior delivery has already failed. In addition thereto, it is through service recovery that the company in question rectifies their own processes in order to avoid the same mistake (Segelstrom and Howard n.d.). The importance of service recovery is usually the focus of researches within service management and service marketing (Bell and Zemke 1987 Bitner, Booms and Mohr 1994 Bitner, Booms and Tetr eault 1990 Hart, Hesskett and Sasser younger 2000). According to the studies conducted with respect to the utter matter, service recovery is of paramount importance to the companies as the cost of attracting a new customer is significantly larger than retaining a new one (Bell and Zemke 1987 Hart, Heskett and Sasser Jr. 2000 Segelstorm and Howard n.d.). In addition thereto, researches conducted also pointed out that service failure and subsequent recovery positively affects the loyalty of the customers toward a certain company providing them with different kinds of services. The importance of service recovery was also discovered to be of paramount importance in financial institutions such as banks. In view of the same, this paper focuses on the analysis of service recovery and how it influences customer loyalty in banks.