Factors Affecting Service Recovery Strategies of Marketing Firms

Executive Summary
The importance of service recovery efforts has become acknowledged within an increasing
number of studies. Successfully recovering from a service failure favorably impact on
subsequent satisfaction. Recovery prospects are likelier to be enhanced if the company takes
actions, such as, offering an apology or compensating the consumer. Compensation comes in
tangible and/or intangible forms reflected by, such as, money or vouchers in the first instance
and demonstrating concerns for the individual customer’s needs in the latter.
Our research is based on the factors effecting service recovery of Asiatic Ltd and how to
accomplish a service failure using service recovery strategies. We have found three types of
variables in our research; 1) Dependent Variable 2) Independent Variable and 3) Moderating
Variable. Our dependent variable is Service Recovery and independent variables are
Empowerment, Corporate Culture Types and Customer Relationship Involvement. The
moderating variable is Service Recovery Performance.
Basically, our research is a quantitative research and its sample size is 50. We did our research
based on private marketing firm of Bangladesh and its sample contains 49 questionnaires.
Mainly we did some analysis such as reliability analysis, descriptive analysis, frequencies, Mean
and Linear Regression in order to verify our research. Again, we did Durbin-Watson and
Spearman’s Correlation in order to see the relationships.
Our study focuses on exactly how private marketing firm (Asiatic Ltd), of our country is
recovering from service failures.
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Cover Letter
November 22, 2016
Dear Respondent,
Subject: Exploration of lead factors affecting service recovery
This survey is a part of research initiated by the School of Business, Independent University,
Bangladesh. We would like to invite you to participate in this academic exercise that examines
the exploration of lead factors affecting service recovery.
Your expertise and experience of your organization are extremely valuable towards the success
of this research. We do hope that you will be able to give a little time for this research. Please
accept our sincere thanks for your time and kind co-operation in this matter. Please do not
hesitate to write us if you have any query. You are assured of complete confidentiality, as we are
interested in statistical summaries only, and thus no interferences will be made in any way that
can link individual or company names to the result.
Thank you for your kind cooperation.
Sincerely,
Contents
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Introduction.................................................................................................................................................4
Statement of the Problem............................................................................................................................5
Purpose of the Study....................................................................................................................................6
Literature Review........................................................................................................................................7
Dependent Variable...................................................................................................................................10
Independent Variable.................................................................................................................................11
Moderating Variable..................................................................................................................................14
Conceptual Framework..............................................................................................................................15
Questions and Hypothesis.........................................................................................................................16
Data Analysis............................................................................................................................................16
Correlations and Hypothesis......................................................................................................................53
Research Design, Methods and Procedures...............................................................................................60
Data Sampling (Non Probability data).......................................................................................................61
Instruments................................................................................................................................................61
Data Collection..........................................................................................................................................61
Limitations................................................................................................................................................62
Significance of the Study...........................................................................................................................62
References.................................................................................................................................................64
Appendix-1 (Questionnaires).....................................................................................................................69
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Introduction
In a time with a high degree of industry work division and micro-profit, aggressively developing
new customers is one of the ways for firms to expand new markets. In addition, in order to
maintain old customers’ loyalty, reducing the probability of service failure is the feasible
direction. However, when there is any service failure, the kinds of service recovery tend to affect
customers’ after-sale satisfaction and loyalty (Cranage &Sujan, 2004; Spreng, Harrell,
&Mackoy, 1995). Cranage and Mattila (2005) indicated that when there was service failure and
the front-line service personnel did not effectively deal with or compensate for the loss due to the
failure, the customers’ dissatisfaction would be increased. Besides, nowadays when the output
value of the service industry is increasing and becoming more important, the issues of service
quality will reflect before and in the service. The success or failure of service providers in the
service process has become more and more important in a time when consumer consciousness
has greatly increased. In other words, firms have relatively valued the recovery and response of
‘service failure’.
Service recovery refers to the actions companies take when they have failed to provide the
service customers expected, which makes it relevant for managers in any industry or
organization that provides some sort of service to external or internal customers. Although the
positive impact of service recovery on satisfaction, loyalty, and recommendation has been well
documented empirically, evidence suggests that service recovery practice has not improved.
Service companies must become gymnasts, able to regain their balance instantly after a slipup
and continue their routines. Such grace is earned by focusing on the goal of customer
satisfaction, adopting a customer-focused attitude, and cultivating the special skills necessary to
recovery.
Companies that want to build the capability of recovering from service problems should do these
things: measure the costs of effective service recovery, break customer silence and listen closely
for complaints, anticipate needs for recovery, act fast, train employees, empower the front line,
and close the customer feedback loop.
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Statement of the Problem
High degree of interaction between customers and service employees is the main factor that
contributes to service failure. This is because, the services rendered requires both parties to be
involved in ensuring that the requirements and needs of both can be satisfied. Furthermore,
marketing firms are in the services industry where the product delivered are intangible and the
level of quality expected based on the perceived level of expectations of the specific customers.
Service failure are inevitable in the marketing industry is due to the 'people factor' nature of
services and customers as well as high demand of today's demand of clients.
According to Michel (2010), nowadays, customers are aware on the importance of quality
product and services as well as their right as the customers. Service quality is a key factor for
success in any service industry. However, in pursuing for service growth and success much
depends on the service performance in the industry. As the core business of the Adcomm is to
provide satisfying service to the customers, therefore the customers is the most important
element in ensuring that the business would run.
Service failure occurs when the customer's requirement failed to be accomplished. Meaning that
service provider failed to render the services as according to the customer's expectation on what
they should have received from the service provider. Thus, it is important for the management to
be expert in fulfilling customer's demand and familiar on customer requirement. But somehow, it
requires both parties to cooperate in ensuring both desires can be satisfied. Lack of cooperation
and communication would leads to service failure as there are ambiguous instructions for both
customers and service provider in fulfilling the requirements. Hence, service provider and
customers should play their own role in ensuring that the services are success for them.
According to Vaerenbergh (2009), as the service failure is inevitable, it is important for the
management to come up with efficient and effective service recovery. Handling dissatisfied
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customer is somehow not an easy task as it involves the emotion of frustration in which it would
requires service provider to use effective approach in order to retain the customer. Moreover, it
also requires the service provider to response efficiently; where speed and accuracy is important
to ensure that the failure can be encountered immediately. This prompt action also would require
the skills and knowledge as to come up with excellent recovery in rectifying the failure.
Purpose of the Study
The main purpose of this research is to find out the relation between Service recovery,
Empowerment, Cultural Types and Customer Relationship Involvement along with impact in
private marketing firms. The primary objective of this research is to investigate the effects of
impact in Asiatic Ltd.
1. To understand customer’s preference and customer’s loyalty for Service recovery.
2. To know how the company, give service to their customers.
3. To know how they make their customers stick to them or to know how they attract their
new customers.
4. To find the relationship between brand advocacy, brand image and brand loyalty with
Service recovery of Asiatic Ltd.
5. To understand the impacts of brand advocacy, brand image and brand loyalty through
Service recovery.
6. To identify the control environment and processes of Service recovery in terms of Brand
advocacy, brand image and brand loyalty.
7. To understand the challenges in Service recovery sector of Adcomm Ltd.
Steps we have followed for our research work:

Our first step is “Introduction”. We have given some idea about service recovery.
Our second step is “statement of the problem” of service recovery.
And the next step is “Purpose of the study”.
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The fourth step we have done which is “Literature review”- here, we described all the variables
(Service Recovery, Empowerment, Types of Corporate Culture, Customer Relationship
Involvement, ) we have .
In our next step we have made the link between all the variables.
Then in the next step we have done the “Hypothesis and research questions”.
In this step here we made the “Research design”. We got some sample for this, we used
instrument and we have collected data for our research design.
For the step of “Analysis” we have prepared the descriptive analysis and reliability analysis and
worked on the hypothesis testing and the regression testing.
In the next step we got the Empirical result on framework of our research work.
In the step of “SIGNIFICANCE of the STUDY” here we have given the actual meaning of our
research work and how efficient our research work is.
For the step of “Limitations and directions for future research”, we’ve mentioned some
limitations and given some proper directions.
Literature Review
In order to truly ascertain on the issue of service failure, it is important for us to understand on
the factor that contributes to the management service failure. In analyzing service failure, it is
begin from the role of the management itself, where poor management would lead to the service
failure. Service failure occurs when a service provider fail to deliver service that meets the
customer's expectation (Alexander, 2002). Service failure can be identified through customers
and service providers by using these four causes: (a) an improper service provider response to a
service delivery system; (b) an ineffective response of the service provider to customer
requirements; (c) unprompted service provider actions (proposed by Bitner et al., 1994); and (d)
inappropriate customer behavior (proposed by Bitner et.al, 1994). Based on the finding in this
research, it shows that the failure is mainly caused by poor management of the service provider
to control and monitor the services rendered to the customers. It is important to ensure that
systematic and efficient management strategy is strictly enforced comprehensively by the service
provider in order to prevent service failure to be occurred.
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An improper service provider response to a service delivery system is where the employees fail
to perform their responsibilities accordingly to the standard set by the management. According to
Parasuraman et. al (1988), due to the unique characteristic of services, namely heterogeneity,
intangibility, perish ability and inseparability, service provider are prone to errors. Among
others, one of the most prevalent factors that caused service breakdown is heterogeneity, which
refers to the inability of service provider to provide consistent performance and quality. This
characteristic caused the services failure is inevitable to occur, but somehow it can be minimized
by ensuring that, the management is emphasis a comprehensive effort to deliver quality services
to the customers.
Based on the research done by Berry et.al (1994) one of the dimension that is used by customer
as criteria to judge service quality is reliability. Reliability here means the ability to perform the
promised service dependably and accurately. When there is service failure in which the service
provider failed to keep its promises, the customers lose confidence in the firm's ability to do what
it promises dependably and accurately. Friendliness from the staff and sincere apologies do not
compensate for unreliable service. Although most customers appreciate an apology, the apology
does not erase the memory of that service. If a pattern of service failure develops, customers
conclude the firm cannot be counted on, friendly and apologetic or not. Therefore service
provider has to focus on improving service reliability.
Bitner et.al (1994) categorised service failure according to employee behaviour when failure
occur, relating to the core services, request for the customer services and unexpected employee
action. Finding in the research done by Hoffman (1995) shows that unprompted employees
action involved in a situation in which the customer waited an excessive amount of time for
service or were not able to find assistance when they need it. This shows that inefficient
employees would contribute for service failure even though the employees were success
rendering the services to the customer. This is because, the customer has already disappointed by
waiting for the services.
Finding in the research done by Sadrul (2010) found that the employees implied that they are
unable to satisfy customer needs due to the constraint placed on them by laws or their own
organizational rules and procedure. This shows why employees reflects spontaneous negative
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behaviour (e.g. lack of attention, rudeness etc.). Feeling stress on being constraint would lead to
unprompted action. This is psychologically happen to the employees that less likely able to
control themselves to handle the situation professionally.
Service Recovery means converting a previous dissatisfied customer into a loyal customer
according to Fitzsimmons (2011 - p136).
"Edvardsson, Tronvoll, and Höykinpuro (2011) further claimed that communication,

competence, time, and service system are four factors that influence complex recovery processes
and outcomes in double deviation situations. Therefore a better understanding of the impact of
specific recovery strategies can enable recovery providers to more effectively implement
strategies which can result in more positive outcomes (Keeffe, Russell-Bennett, & Tombs, 2007;
Krishna, Dangayach, & Jain, 2011).’
Service recovery is describing a company’s effort to correct a problem following from a service
failure (Grönroos 2007). Performing service recovery is also a way to create and restore
customer satisfaction (Lovelock and Wirtz 2010). Service recovery does also emphasize the
value of satisfied customers rather than the cost of the recovery (Hart, Heskett and Sasser 1990).
Depending on how well a service recovery is performed, the online shoppers satisfaction may
become higher or lower (Buttle and Burton 2002). It is therefore important for an e-tailer to be
aware of that a service recovery may not be the same online as it is offline (Holloway and Beatty
2003). One difference is that the online shoppers’ interactions are through a computer screen and
not in real life, which makes it easier for misunderstandings (Holloway and Beatty 2003). This as
body gestures and other human factors cannot be seen (Kruger, et al. 2005). In previous studies it
has been confirmed that a service recovery is harder to perform in an online context due to the
lack of human interactions (Holloway and Beatty, 2003). Even though a service recovery is
harder to perform in an online context, to create satisfaction it is of high importance that e-tailers
survey about what their customers expects and wants if a failure happens (Harris, et al. 2006).
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Dependent Variable
Service Recovery
Researchers define service failure as the activities that occur when customer perceptions of
initial service delivery behavior fall below the customer’s expectations (Zeithaml et al., 1993;
Holloway and Beatty, 2003). Service recovery strategy refers to the activities which a company
engages in to deal with a customer complaint when a perceived service failure occurs (Gronoos,
1988). In previous studies, most researchers adopted an outcome-process classification for
service failures and recovery strategies. Outcome failure refers to a core service failure, and
process failure is the inconvenience or unpleasantness experienced during service delivery
(Gronoos, 1988; Parasuraman et al., 1991). The outcome-related strategy is a utilitarian strategy
which includes money, goods, and time; the process-related strategy is a symbolic strategy which
includes status, esteem, and empathy (Smith et al., 1999). The working assumption of these
approaches is that customers place greater value on an exchange of similar resources than
dissimilar resources, and they categorize economic loss (outcome failure) and social or
psychological loss (process failure) into different mental accounts (Brinberg and Castel, 1982;
Smith et al., 1999). The relationship between job satisfaction and overall job performance has
been subject to much empirical study. Although the most frequently cited meta-analyses
(Iaffaldano&Muchinsky, 1985) suggest there is only a weak correlation between the two at best,
more recent evidence suggests that there is a much stronger relationship (Judge, Thoresen, Bono,
& Patton, 2001; Yousef, 1998).
In the services literature, Hartline and Ferrell (1996) and Yoon et al. (2001) reported a significant
positive relationship between FLE job satisfaction and customer perceptions of service
performance. More recently Babakus et al. (2003) found a significant positive relationship
between job Journal of Strategic Marketing 443 satisfaction and service recovery performance
suggesting that when FLEs are satisfied in their jobs, they perform at a higher level in dealing
with service failure.
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Independent Variable
Empowerment
Empowerment is related to the norms, values and beliefs of a society; therefore empowerment
can be revealed differently in different societies. The term empowerment may have some general
agreed upon qualities and definitions in the academic community, but how the word is used in
organizations or among individuals may still vary.
Empowerment through the expansion of the civil, political and social rights of citizenship is a
laborious and unexciting process. Empowerment through the class struggle was a different story,
altogether'; but that story has now been played out t1andl it offers hardly any new prospect.
There is no doubt the prospect of empowerment through cast war; but that is something that will
appeal only to those who have put their minds to sleep. So in the end, the Indian way of securing
empowerment for the underpowered seems to be by the safe way providing, as extensively as
possible, quotas on the basis of community caste and gender. But can the belief that quotas, no
matter how extensive, can by themselves bring about a radical or even a perceptible
redistribution of power be anything more than wishful thinking? (Andre Beteile)
Empowerment is the second work environment factor identified in the conceptual model.
Empowerment means enhancing a person’s ability and motivation to develop and make the most
constructive use of their talents and experience (Chebat and Kollias, 2000). Forrester (2000,
p.67) defines empowerment as “the freedom and ability to make decisions and commitments”.
Kanter’s work and resulting ‘Theory of Organisational Empowerment’ (1993) is based on the
assumption that people react rationally to the situation they are in. In a situation where the
environment is structured so that they feel empowered, they react accordingly, with positive
attitudes that promote organizational effectiveness. By empowering employees, management
relinquish control over many aspects of the service delivery (Hartline and Ferrell,1996) to
frontline employees who, because of their boundary spanning roles, can provide quick and
appropriate responses to dissatisfied customers (Spreng et al., 1995; Boshoff and Allen, 2000).
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Types of Corporate Culture
Organizational culture is the set of shared values, beliefs, and norms that influence the way
Employees think, feel, and behave in the workplace (Schein, 2011). Organizational culture has
four functions: gives members a sense of identity, increases their commitment, reinforces
organizational values, and serves as a control mechanism for shaping behavior (Nelson & Quick,
2011).
Organizational culture facilitates the acceptable solution to know the problems, which members
learn, feel and set the principles, expectations, behavior, patterns, and norms that promote high
level of achievements (Marcoulides & Heck, 1993; Schein, 1992). Organizational culture has the
potential to enhance organizational performance, employee job satisfaction, and the sense of
certainty about problem solving (Kotter, 2012). If an organizational culture becomes incongruent
with the changing expectations of internal and/or external stakeholders, the organization’s
effectiveness can decline as has occurred with some organizations (Ernst, 2001). Organizational
culture and performance clearly are related (Kopelman, Brief, & Guzzo, 1990), although the
evidence regarding the exact nature of this relationship is mixed. Studies show that the
relationship between many cultural attributes and high performance has not been consistent over
time (Denison, 1990; Sorenson, 2002). We can summarize the effects of organizational culture
on employee behavior and performance based on four key ideas (Bulach, Lunenburg, & Potter,
2012; Hellriegel & Slocum, 2011). First, knowing the culture of an organization allows
employees to understand both the organization’s history and current methods of operation. This
insight provides guidance about expected future behaviors. Second, organizational culture can
foster commitment to the organization’s philosophy and values. This commitment generates
shared feelings of working toward common goals. That is, organizations can achieve
effectiveness only when employees share values. Third, organizational culture, through its
norms, serves as a control mechanism to channel behaviors toward desired behaviors and away
from undesired behaviors. This can also be accomplished by recruiting, selecting, and retaining
employees whose values best fit the values of the organization. Finally, certain types of
organizational cultures may be related directly to greater effectiveness and productivity than
others.
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Customer Relationship Involvement
Customer Relationship involvement occurs in different phases of the new product development
process. Some customers are only involved in the initial stages of the process; others in the final
stages and others interact continuously with the provider during the entire course of
development. Comparing different methods for involvement requires a framework to which the
methods can be related. Kaulio (1998) proposes a framework based on two dimensions:
(1) The longitudinal dimension, which includes the points of interaction between customers and
the design process.
(2) The lateral dimension, which captures the depth of customer involvement in the design
process. This dimension is divided into three different categories: design for, where the products
are designed based on customer research but the customer is not further involved; design with
denotes an approach which, in addition to the above, also includes displays of different concepts
for the customer to react upon; and design by signifies an approach where customers are actively
involved and partake in the product design. In an alternative framework Nijssen and Lieshout
(1995) categorise the most popular tools for new product development according to their purpose
in four groups as follows:
(1) Idea generation, including creative tools such as brainstorming, synectics and morphological
analysis and non-creative tools such as focus groups, surveys, observation, Delphi method,
scenario, expert opinion and product life cycle.
(2) Product optimisation, including conjoint analysis, quality function deployment, concept
testing, prototype testing and pilot plant/in-home use test.
(3) Marketing mix optimisation, including simulated test marketing, mini-market, limited
prediction, including computer prediction models, diffusion models, and economic models such
as ROI/BE- analysis and pay-back time.
(4) Prediction, including computer prediction models, diffusion models, and economic models,
such as ROI/BE – analysis and pay-back time.
Of the above tools, the customer is actively involved primarily in the product optimisation tools
although some customer influence is included in all tools. Particularly, the tool of quality
function deployment is designed to integrate customer views in the product development process
and has attracted immense interest (Bergquist and Abeysekera, 1996; Chan and Wu, 2002;
Christiano et al.,2000; Matzler and Hinterhuber, 1998). Although many formal tools for product
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development have been designed, the awareness and usage of them is generally surprisingly
infrequent (Hanna et al., 1995; Nijssen and Lieshout, 1995). Nonetheless, Nijssen and Lieshout
(1995) have found that use of formal tools is correlated with higher profitability.
Moderating Variable
Service recovery performance
SRP is defined as the behaviors in which customer service employees who directly handle
customer complaints engage to recover customer satisfaction and loyalty after service failures.
Three features of SRP should be noted. First, the SRP focused on here is the performance of
customer service employees. Frontline employees, placed at the organization–customer interface
and directly responsible for the production and delivery of service, act as boundary spanners for
the service company (Bettencourt & Brown, 2003). A burgeoning stream of “linkage research”
in customer service (Wiley, 1996) has demonstrated that the attributes, attitudes, and behaviors
of customer service employees play a pivotal role in translating the internal functioning of a
service organization into desirable external customer outcomes (e.g., Heskett, Sasser, &
Schlesinger, 1997; Liao & Chuang, 2004; Schneider, Ashworth, Higgs, & Carr, 1996; Schneider
et al., 1998, 2005). In service recovery, although employees who handle customer complaints
may not be directly responsible for committing the service failures and mistakes, many of the
recovery activities fall into the domain of these employees (Sparks & McColl-Kennedy, 2001).
Therefore, customers will view them as the agents or representatives of the service company and
tend to base their recovery evaluations largely on the performance of these employees. Second,
SRP refers to particular types of employee behaviors. This conceptualization of SRP is consistent
with the general approach of defining performance as employee behaviors that are relevant to
organizational goals (e.g., Campbell, McCloy, Oppler, & Sager, 1993; Motowidlo, 2003) and
with the view of customer service performance as “a performing specific behav-iors in particular
ways to increase customer perceptions of service”(Ryan & Ployhart, 2003, p. 380). SRP thus is
differentiated from its results; SRP focuses on what employees do and say in handling customer
complaints, whereas results of SRP refer to customer perceptual, affective, intentional, and
behavioral outcomes that may be influenced by SRP, such as customer satisfaction and
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repurchase intent. Defining SRP as behaviors has two conceptual and practical advantages
(Motowidlo, 2003). First, results may be influenced by factors that are beyond the employee’s
control; thus, equating performance to behaviors is less contaminated by situational constraints
and opportunities. Second, employee behaviors are more amenable to intervention than is the
outcome of the behaviors, thus allowing researchers to apply most fruitful psychological
principles to managing SRP behaviors. The third feature of SRP is that it is a multidimensional
construct. Prior studies have examined in isolation different types of recovery efforts following
service failures, including reimbursement refund, replacement, repair, extra compensation,
correction, apology, assuming responsibility, timing–speed, explanation–causal account,
politeness, empathy, and effort (e.g., Bitner et al., 1990; Clemmer & Schneider, 1993; Conlon &
Murray, 1996; Oliver & DeSarbo, 1988; Sparks & McColl-Kennedy, 2001; Tax et al., 1998). In
order to provide a unified framework of SRP, the current study integrates this literature to
examine these key recovery behaviors simultaneously and categorize them into five dimensions,
including making an apology, problem solving, being courteous, providing an explanation, and
prompt handling. Providing extra compensation to the customers has been identified as another
important service recovery strategy (e.g., Smith, Bolton, & Wagner, 1999; Tax et al., 1998).
However, whether an employee is able to offer extra compensation depends on the company’s
policy and thus may be beyond the direct control of the employee. Therefore, it is not considered
as a part of SRP.
Conceptual Framework
Empowerment
Types Of Corporate Culture Service Recovery Service Recovery

Performance Strategies
Customer Relationship
Involvement
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Questions and Hypothesis
Q1. Is there any relation between Customer Relationship & Service recovery performance?
Q2. Is there any relation between Empowerment & Service recovery performance?
Q3. Is there any relation between corporate culture types & Service recovery performance?
Ho1. There is no relationship between Customer Relationship & Service recovery

performance.
Ha1. There is a relationship between Customer Relationship & Service recovery performance.
Ho2. There is no relationship between Empowerment & Service recovery performance.
Ha2. There is a relationship between Empowerment & Service recovery performance.
Ho3. There is no relationship between corporate culture types & Service recovery
performance.
Ha3. There is a relationship between corporate culture types & Service recovery performance.
Data Analysis
Descriptive Analysis
Education: 6% in the office are Dr with PhD degree, 2% are with masters Degree.56% are with
Bachelor Degree, 26% are with Diploma and 10% are with Others degree.
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Education
Cumulative
Frequency Percent Valid Percent Percent
Valid PhD Degree 3 6.0 6.0 6.0
Master's Degree 1 2.0 2.0 8.0
Bachelor Degree 28 56.0 56.0 64.0
Diploma 13 26.0 26.0 90.0
Others 5 10.0 10.0 100.0
Total 50 100.0 100.0
Sex
Cumulative
Valid Male 30 60.0 60.0 60.0
Female 20 40.0 40.0 100.0
Total 50 100.0 100.0
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Age
Cumulative
Valid Less than 25 18 36.0 36.0 36.0
26-35 16 32.0 32.0 68.0
36-45 10 20.0 20.0 88.0
46-50 4 8.0 8.0 96.0
Above 50 2 4.0 4.0 100.0
Total 50 100.0 100.0
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Designation
Cumulative
Valid Middle Level 9 18.0 18.0 18.0
Manager
Lower Level 27 54.0 54.0 72.0
Manager
Others 14 28.0 28.0 100.0
Total 50 100.0 100.0
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No. of employees
Cumulative
Valid 31-50 50 100.0 100.0 100.0
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O.S
Cumulative
Valid Joint Venture 50 100.0 100.0 100.0
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C.E
Cumulative
Valid Above 25 50 100.0 100.0 100.0
years
E.E
Cumulative
Valid Less than 2 years 20 40.0 40.0 40.0
2-4 years 12 24.0 24.0 64.0
5-7 years 8 16.0 16.0 80.0
8-10 years 10 20.0 20.0 100.0
Total 50 100.0 100.0
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CROSSTABS
Gender to age: there are 14 males and 4 females less than 25 age group. 8 males and 8 female In
26-35 age group. 5 males, 5 females in 36-45 age groups. 1male and 3 female in 46-50 age group
and 2male, 0female are in above 50 age groups.
Case Processing Summary

Cases
Valid Missing Total
N Percent N Percent N Percent
Sex * Age 50 100.0% 0 .0% 50 100.0%
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Sex * Age Crosstabulation
Count
Age Total
Less than 25 26-35 36-45 46-50 Above 50
Sex Male 14 8 5 1 2 30
Female 4 8 5 3 0 20
Total 18 16 10 4 2 50
Symmetric Measures
Asymp. Std. Approx.
Value Errora Approx. Tb Sig.
Interval by Pearson's R .170 .139 1.193 .239c
Interval
Ordinal by Spearman .228 .135 1.623 .111c
Ordinal Correlation
N of Valid Cases 50
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.

Cases
Valid Missing Total
Sex * 50 100.0% 0 .0% 50 100.0%
Designation
Gender and Designation: in this table there are 5 middle level managers male, 4 middle level
managers female. 16 male in Lower Level Manager, 11 female in Lower Level Manager and 9
male in other position, 5 female are in other position.
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Sex * Designation Crosstabulation
Count
Designation
Middle Level Lower Level
Manager Manager Others Total
Sex Male 5 16 9 30
Female 4 11 5 20
Total 9 27 14 50
Symmetric Measures
Asymp. Std. Approx.
Value Errora Approx. Tb Sig.
Interval by Pearson's R -.061 .141 -.422 .675c
Interval
Ordinal by Spearman -.061 .141 -.424 .673c
Ordinal Correlation
N of Valid Cases 50
a. Not assuming the null hypothesis.
b. Using the asymptotic standard error assuming the null hypothesis.
c. Based on normal approximation.
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Gender and number of employee: in this table, there are 30 male of employee of
31-50 age group and 20 female of employee of 31-50 age group.
Cases
Valid Missing Total
Sex * No. of 50 100.0% 0 .0% 50 100.0%
employees
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Sex * No. of employees Crosstabulation
Count
No. of
employees
31-50 Total
Sex Male 30 30
Female 20 20
Total 50 50
Gender and O. s: in this table there are 30 male and 20 female are in Joint Venture Company.

Cases
Valid Missing Total
Sex * O.S 50 100.0% 0 .0% 50 100.0%
27 | P a g e
Sex * O.S Crosstabulation
Count
O.S
Joint Venture Total
Sex Male 30 30
Female 20 20
Total 50 50
gender and how have been working with your current organization (EE): in this table there are 11
male employees who are working since Less than 2 years, 9 female employees who are working
since Less than 2 years.8 male employees who are working since Less than 2-4 years, 4 female
employees who are working since Less than 2-4 years.5 male and 3female employees are
working since 5-7 years.6 male and 4 female employees are working since 8-10 years.
28 | P a g e
Cases
Valid Missing Total
Sex * E.E 50 100.0% 0 .0% 50 100.0%
Sex * E.E Crosstabulation

Count
E.E Total
Less than 2
years 2-4 years 5-7 years 8-10 years
Sex Male 11 8 5 6 30
Female 9 4 3 4 20
Total 20 12 8 10 50
Education and se: in this table, there are 3 male and 0 female who did PhD Degree.0 male and 1
female who did Master's Degree.18 male and 10 female who did Bachelor Degree.7 male and 6
female who did Diploma.2 male and 3 female who did Others.
29 | P a g e
Cases
Valid Missing Total
Education * 50 100.0% 0 .0% 50 100.0%
Sex
Education * Sex Crosstabulation

Count
Sex
Male Female Total
Education PhD Degree 3 0 3
Master's Degree 0 1 1
Bachelor 18 10 28
Degree
Diploma 7 6 13
Others 2 3 5
Total 30 20 50
Education and age: in this table there are 0 employee age Less than 25 years With PhD Degree.2
employee age 26-35 years With PhD Degree.0 employee age 36-45 years With PhD Degree.1
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employee age 46-50 years With PhD degree.0 employee in PhD degree.0 employee age Less
than 25 years With Master's Degree.0 employee age 26-35 years With Master's Degree .0
employee age 36-45 years With Master's Degree .1 employee age 46-50 years With Master's
Degree and no employee aged above 50 year.12 employee aged Less than 25 years are With
Bachelor Degree,12 employee aged 26-35 years are With Bachelor Degree.2 employee aged 36-
45 years are With Bachelor Degree. 1 employee aged 46-50 years is With Bachelor Degree. 1
employee aged above 50 years are With Bachelor Degree.6 employee aged Less than 25 years
With Diploma.0 employee aged 26-35 years With Diploma.6 employee aged 36-45 years With
Diploma.0 employee are aged 46-50 years With Diploma.1 employee aged above 50 years are
With Diploma.

Cases
Valid Missing Total
Education * 50 100.0% 0 .0% 50 100.0%
Age

Cases
Valid Missing Total
Education * 50 100.0% 0 .0% 50 100.0%
Age
31 | P a g e
Education * Age Crosstabulation
Count
Age Total
Less than 25 26-35 36-45 46-50 Above 50
Education PhD Degree 0 2 0 1 0 3
Master's Degree 0 0 0 1 0 1
Bachelor Degree 12 12 2 1 1 28
Diploma 6 0 6 0 1 13
Others 0 2 2 1 0 5
Total 18 16 10 4 2 50
Education and Designation: in this table there are 2 PhD Degree employee are in the Middle
Level Manager position.0 PhD Degree employee are in the Lower Level Manager position.1
PhD Degree employee are in the others. There is no Master's Degree employee are in the Middle
Level Manager nor Lower Level Manager position.1 employees of Master’s Degree are in the
other position. There are 5 Middle Level Manager, 18 Lower Level Manager and 5 are in other
position in the company who have Bachelor Degree. There are 2 Middle Level Manager, 7
Lower Level Manager and 4 are in other position in the company who have Diploma. There are 0
32 | P a g e
Middle Level Manager, 2 Lower Level Manager and 3 are in other position in the company who
have other degree.

Cases
Valid Missing Total
Education * 50 100.0% 0 .0% 50 100.0%
Designation
Education * Designation Crosstabulation

Count
Designation
Education PhD Degree 2 0 1 3
Master's Degree 0 0 1 1
Bachelor Degree 5 18 5 28
Diploma 2 7 4 13
Others 0 2 3 5
Total 9 27 14 50
Education and number of employee:

33 | P a g e
In this table there are 3 PhD Degree,1 Master's Degree,28 Bachelor Degree and 5 other degree of
employee are in this company.

Cases
Valid Missing Total
Education * No. of 50 100.0% 0 .0% 50 100.0%
employees
Education * No. of employees Crosstabulation

Count
No. of
employees
31-50 Total
Education PhD Degree 3 3
Master's Degree 1 1
Bachelor Degree 28 28
Diploma 13 13
Others 5 5
Total 50 50
34 | P a g e
Education and EE:
There are 2 PhD Degree employee has been working since 2-4 years.1 PhD Degree employee
has been working since 5-7 years.1 Master's Degree employee has been working since 8-10
years. 12 Bachelor Degree employees have been working since Less than 2 years. 6 Bachelor
Degree employees have been working since 2-4 years. 7 Bachelor Degree employees have been
working since 5-7 years. 3 Bachelor Degree employees have been working since 8-10 years. 6
Diploma Degree employees have been working since Less than 2 years. 4 Diploma Degree
employee has been working since 2-4 years. 3 Diploma Degree employees have been working
since 8-10 years.
2 other Degree employees have been working since Less than 2 years. . 3 other Degree
employees have been working since 8-10 years
Cases
Valid Missing Total
Education * 50 100.0% 0 .0% 50 100.0%
E.E
Education * E.E Crosstabulation

Count
E.E
Less than 2
years 2-4 years 5-7 years 8-10 years Total
Education PhD Degree 0 2 1 0 3
Master's Degree 0 0 0 1 1
Bachelor Degree 12 6 7 3 28
Diploma 6 4 0 3 13
Others 2 0 0 3 5
Total 20 12 8 10 50
35 | P a g e
Age and Designation:
There are 2 employee age less than 25 are Middle Level Manager. 6employee age 26-35 are
Middle Level Manager. 1employee age 36-45 are Middle Level Manager. 8 employee ages Less
than 25 are Lower Level Manager. 8 employees age 26-35 are Lower Level Manager. 8
employees age 36-45 are Lower Level Manager. 1 employees age 46-50 are Lower Level
Manager. 2 employees age above 50 are Lower Level Manager.8 employee age less than 25 are
in other position.2 employee age 26-35 are in other position. 1 employee age 36-45 are in other
position. 3 employee age 46-50 are in other position.

Cases
Valid Missing Total
Age * 50 100.0% 0 .0% 50 100.0%
Designation
36 | P a g e
Age * Designation Crosstabulation
Count
Designation
Age Less than 25 2 8 8 18
26-35 6 8 2 16
36-45 1 8 1 10
46-50 0 1 3 4
Above 50 0 2 0 2
Total 9 27 14 50
Age and number of employee: there are 18 number of employee age Less than 25. 16 number of
employee aged 26-35. 10 number of employee aged 36-45.4 number of employee aged 46-50. 2
number of employee aged 46-50 year.
37 | P a g e
Cases
Valid Missing Total
Age * No. of 50 100.0% 0 .0% 50 100.0%
employees
Age * No. of employees Crosstabulation

Count
No. of
employees
31-50 Total
Age Less than 25 18 18
26-35 16 16
36-45 10 10
46-50 4 4
Above 50 2 2
Total 50 50
Age and EE: there are 12 employees Age Less than 25 are working since Less than 2 years.
6employees Age Less than 25 are working since 2-4 years. 2 employees Age 26-35 are working
38 | P a g e
since Less than 2 years. 6 employees Age 26-35 are working since 2-4 years. 6 employees Age
26-35 are working since 5-7 years. 2 employees Age 26-35 are working since 8-10 years. 6
employees Age 36-45 are working since Less than 2 year. 1 employees Age 36-45 are working
since 5-7 year.

Cases
Valid Missing Total
Age * E.E 50 100.0% 0 .0% 50 100.0%
Age * E.E Crosstabulation

Count
E.E
Less than 2
Age Less than 25 12 6 0 0 18
26-35 2 6 6 2 16
36-45 6 0 1 3 10
46-50 0 0 1 3 4
Above 50 0 0 0 2 2
Total 20 12 8 10 50
39 | P a g e
Designation and number of employee: there are 9 employees in the Middle Level Manager
position.27 employees in the Lower Level Manager.14 employees in the other position.

Cases
Valid Missing Total
Designation * No. of 50 100.0% 0 .0% 50 100.0%
employees
40 | P a g e
Designation * No. of employees Crosstabulation
Count
No. of
employees
31-50 Total
Designation Middle Level 9 9
Manager
Lower Level 27 27
Manager
Others 14 14
Total 50 50
Designation and EE: there are 4 employees in Middle Level Manager position since 2-4 years.4
employees in Middle Level Manager position since 5-7 years.1 employees in Middle Level
Manager position since 8-10 years.14 employees in Lower Level Manager position since Less
than 2 years .6 employees in Lower Level Manager position since 2-4 years.2 employees in
Lower Level Manager position since 5-7 years.5 in Lower Level Manager position since 8-10
years.6 employees in Others position since Less than 2 years.2 in Others position since 2-4
years.2 in Others position since 5-7 years.4 in Others position since 8-10 years.
41 | P a g e
Cases
Valid Missing Total
Designation * 50 100.0% 0 .0% 50 100.0%
E.E
Designation * E.E Crosstabulation

Count
E.E
Less than 2
Designation Middle Level 0 4 4 1 9
Manager
Lower Level 14 6 2 5 27
Manager
Others 6 2 2 4 14
Total 20 12 8 10 50
Number of employee and EE: there are 20 employees since Less than 2 years.12 employees since
2-4 years.8 employees since 5-7 years.10 employees since 8-10 years.
42 | P a g e
Cases
Valid Missing Total
No. of employees * 50 100.0% 0 .0% 50 100.0%
E.E
No. of employees * E.E Crosstabulation

Count
E.E
Less than 2
No. of 31-50 20 12 8 10 50
employees
Total 20 12 8 10 50
Reliability Analysis
43 | P a g e
Scale: Dependent Variable
N %
Cases Valid 50 100.0
Excludeda 0 .0
Total 50 100.0
a. Listwise deletion based on all variables in the

procedure.
Reliability Statistics
Cronbach's Alpha N of Items
.572 7
Item Statistics
Mean Std. Deviation N
ServiceRecovery1 3.8000 .96890 50
ServiceRecovery6 3.9800 1.07836 50
44 | P a g e
Item-Total Statistics
Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha if

Deleted Item Deleted Total Correlation Item Deleted
ServiceRecovery1 23.3200 8.875 .235 .558
Scale Statistics
Mean Variance Std. Deviation N of Items
27.1200 11.169 3.34200 7
The Cronbach Alpha value for the dependent variable is 0.572, which is sufficient.
Empowerment
Scale: Independent Variable
N %
Excludeda 0 .0
Total 50 100.0

procedure.
45 | P a g e
Cronbach's
Alpha N of Items
.528 12
Item Statistics
Empowerment1 4.2200 .73651 50
Empowerment2 4.0400 .87970 50
Empowerment3 4.1800 .80026 50
Empowerment4 3.8200 .77433 50
Empowerment5 3.6800 .84370 50
Empowerment6 3.8600 .80837 50
Empowerment7 3.7600 .91607 50
Empowerment8 3.7400 .77749 50
Empowerment9 3.8000 .78246 50
Empowerment10 4.0200 .79514 50
Empowerment11 4.0400 .90260 50
Empowerment12 3.9800 .89191 50
Cronbach's
Scale Mean if Scale Variance if Corrected Item- Alpha if Item
Item Deleted Item Deleted Total Correlation Deleted
Empowerment1 42.9200 14.116 .228 .502
Empowerment2 43.1000 14.337 .121 .529
Empowerment3 42.9600 15.019 .042 .545
Empowerment4 43.3200 14.549 .130 .524
Empowerment5 43.4600 14.376 .130 .525
Empowerment6 43.2800 15.226 .006 .553
Empowerment7 43.3800 13.261 .273 .488
46 | P a g e
Empowerment8 43.4000 14.041 .219 .503
Empowerment9 43.3400 14.229 .183 .512
Empowerment10 43.1200 12.720 .453 .444
Empowerment11 43.1000 12.459 .415 .446
Empowerment12 43.1600 13.076 .317 .475
Scale Statistics
47.1400 15.919 3.98983 12
Since the Cronbach Alpha is 0.528, it is sufficient.
Types Of Corporate Culture
N %
Excludeda 0 .0
Total 50 100.0
a. List wise deletion based on all variables in the

procedure.
Cronbach's
Alpha N of Items
.657 15
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Item Statistics
TypesOfCorporateCulture1 3.8400 .73845 50
Cronbach's
TypesOfCorporateCulture1 54.2800 23.185 .214 .649
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TypesOfCorporateCulture12 54.4800 25.193 -.064 .682
Scale Statistics
58.1200 25.251 5.02500 15
Since here Cronbach Alpha is 0.657, it is sufficient.
N %
Excludeda 0 .0
Total 50 100.0

procedure.
49 | P a g e
Cronbach's
Alpha N of Items
.593 7
Item Statistics
CustomerRelationship1 4.0600 .76692 50
Cronbach's
CustomerRelationship1 23.3800 7.873 .482 .500
Scale Statistics
27.4400 10.537 3.24610 7
50 | P a g e
Here, Cronbach Alpha is 0.593, and it is sufficient.
Correlations and Hypothesis
Pearson’s Correlation
Correlations
empowerment service recovery
empowerment Pearson Correlation 1 .193
Sig. (2-tailed) .179
N 50 50
service recovery Pearson Correlation .193 1
N 50 50
Correlations
types of
service recovery corporate culture
service recovery Pearson Correlation 1 .150
N 50 50
types of corporate culture Pearson Correlation .150 1
N 50 50
51 | P a g e
Correlations
customer
relationship
service recovery involvement
service recovery Pearson Correlation 1 .213
N 50 50
customer relationship Pearson Correlation .213 1

involvement
N 50 50
Since the Cronbach Alpha is above 0.05, the correlation and strength is not strong.
Spearman’s Correlation
Correlations
service recovery empowerment
Spearman's rho service recovery Correlation Coefficient 1.000 .076
Sig. (2-tailed) . .601
N 50 50
empowerment Correlation Coefficient .076 1.000
Sig. (2-tailed) .601 .
N 50 50
52 | P a g e
Correlations
types of
service recovery corporate culture
N 50 50
types of corporate culture Correlation Coefficient .109 1.000
N 50 50
Correlations
customer
relationship
service recovery involvement
N 50 50
customer relationship Correlation Coefficient .204 1.000

involvement
N 50 50
In some cases, only one condition is met but the other is not. In Spearman’s correlation, both the
rho and cronbach alpha has o meet its criteria in order to show a relationship. So as they fail,
there is no logical explanation for this and the hypothesis are null.
Linear Regression
53 | P a g e
Variables Entered/Removed
Variables
Model Variables Entered Removed Method
1 customer . Enter
relationship
involvement,
empowerment,
types of corporate
culturea
a. All requested variables entered.
Model Summaryb
Std. Error of the

Model R R Square Adjusted R Square Estimate Durbin-Watson
1 .293a .086 .026 .47112 1.464
a. Predictors: (Constant), customer relationship involvement, empowerment, types of corporate

culture
b. Dependent Variable: service recovery
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression .959 3 .320 1.440 .243a
Residual 10.210 46 .222
Total 11.169 49
a. Predictors: (Constant), customer relationship involvement, empowerment, types of corporate culture
54 | P a g e
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) 1.720 1.082 1.590 .119
empowerment .197 .231 .137 .854 .397
types of corporate culture .136 .229 .096 .595 .555
customer relationship .217 .146 .211 1.491 .143

involvement
a. Dependent Variable: service recovery
Residuals Statisticsa
Minimum Maximum Mean Std. Deviation N
Predicted Value 3.3722 4.2623 3.8743 .13989 50
Residual -1.43422 1.01737 .00000 .45647 50
Std. Predicted Value -3.589 2.774 .000 1.000 50
Std. Residual -3.044 2.159 .000 .969 50
Descriptive Statistics
service recovery 3.8743 .47743 50
empowerment 3.9283 .33249 50
types of corporate culture 3.8747 .33500 50
customer relationship 3.9200 .46373 50

involvement
Correlations
55 | P a g e
customer
types of corporate relationship
service recovery empowerment culture involvement
Pearson Correlation service recovery 1.000 .193 .150 .213
empowerment .193 1.000 .473 .050
types of corporate culture .150 .473 1.000 -.051
customer relationship .213 .050 -.051 1.000

involvement
Sig. (1-tailed) service recovery . .090 .150 .069
empowerment .090 . .000 .364
types of corporate culture .150 .000 . .363
customer relationship .069 .364 .363 .

involvement
N service recovery 50 50 50 50
empowerment 50 50 50 50
types of corporate culture 50 50 50 50
customer relationship 50 50 50 50
involvement
Variables Entered/Removed
Variables
Model Variables Entered Removed Method
1 customer . Enter
relationship
involvement,
empowerment,
types of corporate
culturea
a. All requested variables entered.
56 | P a g e
Model Summaryb
Change Statistics
Adjusted R Std. Error of the R Square

Model R R Square Square Estimate Change F Change df1 df2 Sig.
1 .293a .086 .026 .47112 .086 1.440 3 46
ANOVAb
Model Sum of Squares df Mean Square F Sig.
1 Regression .959 3 .320 1.440 .243a
Residual 10.210 46 .222
Total 11.169 49
Coefficientsa
Standardized
Unstandardized Coefficients Coefficients Collinearity Statistics
Model B Std. Error Beta t Sig. Tolerance VIF
1 (Constant) 1.720 1.082 1.590 .119
empowerment .197 .231 .137 .854 .397 .770 1.298
types of corporate culture .136 .229 .096 .595 .555 .770 1.298
customer relationship .217 .146 .211 1.491 .143 .990 1.010

involvement
57 | P a g e
Collinearity Diagnosticsa
Variance Proportions
customer
Dimensi types of corporate relationship
Model on Eigenvalue Condition Index (Constant) empowerment culture involvement
1 1 3.981 1.000 .00 .00 .00 .00
2 .013 17.750 .00 .05 .08 .74
3 .004 32.758 .01 .84 .62 .01
4 .003 37.543 .99 .11 .30 .26
Residuals Statisticsa
Minimum Maximum Mean Std. Deviation N
Predicted Value 3.3722 4.2623 3.8743 .13989 50
Residual -1.43422 1.01737 .00000 .45647 50
Std. Predicted Value -3.589 2.774 .000 1.000 50
Std. Residual -3.044 2.159 .000 .969 50
Research Design, Methods and Procedures
1. Question crystallization:
Formal Study: Doing the research with or starting the research work under the good structure and
working with hypothesis.
2. Method of collecting data:
Communication: For our survey requirement we need to collect data from face to face interview
and for this communication is the best way.
3. The time dimension:
Cross-Sectional: It is less time consuming and single measurement can be done in this process.
58 | P a g e
1. The topical scope:
Statistical technique: Sample can be more. We would convert the sample result into numbers by
using computer software. So, statistical technique would be the easiest one.
2. Research environment:
Field Condition: To collect the relative data, we would go for a field work.
3. Purpose of the study:
Descriptive: We want to describe our research and make the outcome of the process and make it
reliable
4. Research Control variable:
Experiment: We want to do experiment and get knowledge how independent variable create a
dependent variable;
5. Participant’s perceptual awareness:
Modified routine: By doing the research design, we can change the perception.
Data Sampling (Non Probability data)
Units: Our sample units are officers of the private marketing firm, “Asiatic Ltd”.
Size: Our sample size is "50".
Procedure: We will use "snowball sampling" method for data sampling. Because we hardly
have 1/2 references in the company, so it would be easy for us to take interview if they select
other samples on behalf of us.
Instruments
Demographic Question: There are 8 demographic questions on our questionnaire.

Scale: We have used a five-point liker scale in our questionnaire.
There are five levels of measurement. (Strongly agree to strongly disagree). The detailed table
criteria are as follows:
1 2 3 4 5
59 | P a g e
Strongly Agree Agree Neither Agree nor Disagree Strongly Disagree
Disagree
Service Recovery: There are 7 questionnaires under this variable.
Empowerment: There are 12 questionnaires under this variable.
Types of Corporate Culture: There are 15 questionnaires under this variable.
Customer Relationship Involvement: There are 7 questions under this variable.
Data Collection
1. Primary Data: We have used a survey over employees of Asiatic Ltd to collect primary
data.
2. Secondary Data: We have collected secondary data from -
 Journals of service recovery performance ;
 Articles related to variables of journals &
 Internet.
Limitations
 This study clearly did not include all variables might be related to perceived work
environment. However, future research may also seek the understanding of the
antecedents and outcomes of service recovery.
 Other possible antecedents of frontline employee’s service recovery performance could

be considered, such as leadership style, emotional burnout, emotional dissonance, role
conflict, and etc. Furthermore, the impact of effective service recovery performance of
frontline employees on other possible outcomes such as perceived customer satisfaction,
perceived recovery value, service quality, loyalty, or profitability may be of interest as
well.
60 | P a g e
 The study was based on a small sample of a marketing firm and hence, there is a scope to
cover a more number of marketing firms in the future, giving proper representation to
service recovery performance in the marketing sector.
 Another important limitation could be that this study is done by a group of students, who
are not experts in research.
 Time limitation is another matter of concern.
Significance of the Study
Service recovery comes into play when something in a service delivery goes wrong. The service
delivery company ideally takes action to ensure that their customer gets their desired outcome
anyway, and later rectifies their own process so that the failure doesn’t reoccur.
Service recovery has received attention for over 20 years within service management and service
marketing. Since the cost of gaining a new customer usually greatly exceeds the cost of retaining
a customer (it is often stated that it costs five times as much to attract a new customer as
maintaining one), managers are increasingly concerned with minimizing customer defections.
The research has led to four major findings on how service failure and subsequent recovery
affect customers’ loyalty towards a service company:
1. Service failure has a negative effect on customer loyalty intentions.

2. Failure resolution has a positive effect on loyalty intentions.
3. Customer satisfaction with the recovery has a positive effect on loyalty intentions.
4. Outstanding recovery results in loyalty intentions which are more favorable than they
would be had no failure occurred.
The main focus of the workshop will be how to perform service recovery and we will introduce a
tool we have designed to help service designers approach and design service recovery. The
concepts from the service recovery literature which provide the basis for the tool are introduced
briefly below.
61 | P a g e
When it comes to immediate recovery after a service breaks down, the company representatives
need to consider why the service delivery broke down as the reason for the break down affects
the recovery expected by the company. If the breakdown occurs due to mistakes or errors by the
service personnel or external sources the recovery should be psychological – the employees need
to apologize for the inconvenience. If the error however is due to errors in the service
architecture the recovery effort needs to be tangible and the customer should be compensated.
Having dealt with the customer recovery, a company should ask itself how it might avoid the
failure reoccurring. By analyzing what happened and changing their routines the company can
perform operations recovery. If the failure is bound to happen due to company procedures (like
overbookings), the standard solution space for employees need to be defined. Another part of
getting the organization prepared for future failures is to train their employees to provide great
recovery in the future (employee recovery).
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Appendix-1 (Questionnaires)
Service Recovery:
Service recovery converting a previously dissatisfied customer into a loyal customer. It is

the action a service provider takes in response to service failure. By including also customer
satisfaction into the definition, service recovery is a thought-out, planned, process of
returning aggrieved/dissatisfied customers to a state of satisfaction with a company/service.
Service recovery differs from complaint management in its focus on service failures and the
company’s immediate reaction to it. Complaint management is based on customer
complaints, which, in turn, may be triggered by service failures. However, since most
dissatisfied customers are reluctant to complain, service recovery attempts to solve problems
at the service encounter before customers complain or before they leave the service
encounter dissatisfied.
Section 1
(Dependent variable)
Service Recovery
Active strategies
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1 Apologizing to the customers 1 2 3 4 5
2 Clearly explaining the causes of the 1 2 3 4 5
incidents and solutions

3 Actively discovering the errors and 1 2 3 4 5
dealing with them
Passive Strategies
1 Changing the products at the same 1 2 3 4 5
prices
2 Inviting the executives to solve 1 2 3 4 5
problems
3 Avoiding the same mistakes the next 1 2 3 4 5
time
4 Providing discounts as compensation 1 2 3 4 5
Section 2
(Independent variable)
Using the flowing scale, please circle the number that best describes your organization:
1 = Strongly Disagree
2 = Somewhat Disagree
3 = Neither Agree Nor Disagree
4 = Somewhat Agree
5 = Strongly Agree
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(Empowerment)
Ability
1 I am confident of my ability of work 1 2 3 4 5
2 I can guarantee that I am capable of 1 2 3 4 5
practicing the skills needed for work
3 I am considerably confident of how to 1 2 3 4 5
manage my job
Autonomy and influence

1 I can decide how to manage my job 1 2 3 4 5
2 I can have independence and freedom 1 2 3 4 5
to consider how to execute my job

3 As for me, I have a high degree of job 1 2 3 4 5
autonomy
4 I have highly free measurement right in 1 2 3 4 5
my job
5 I have many chances to work 1 2 3 4 5
independently
6 My decision is considerably influential 1 2 3 4 5
on other coworkers
Meaning
My work is meaningful to me 1 2 3 4 5
2 My work is very important to me 1 2 3 4 5
3 The activities in my work are 1 2 3 4 5
significant for me personally
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(Types of Corporate Culture)
Innovation and activeness
1 The firm has the system encouraging 1 2 3 4 5
innovation proposals
2 The firm regularly examines the 1 2 3 4 5
employees’ performance
3 The firm emphasizes an open and 1 2 3 4 5
learning environment
4 The firm values the practice of 1 2 3 4 5
employees’ performance reward and
punishment
5 The firm values the employees’ 1 2 3 4 5
opinions with regard to the job system
Group and result
orientation
1 The firm values the accomplishment of 1 2 3 4 5
group performance
2 The firm does not allow members to 1 2 3 4 5
have risky behavior
3 The firm emphasizes the importance of 1 2 3 4 5
target management of each unit
4 Technology that supports collaboration is rapidly placed in 1 2 3 4 5

the hands of employees
5 The firm values the members’ 1 2 3 4 5
participation
6 The firm values group spirit 1 2 3 4 5
Human orientation and organizational stability
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The firm values the employees’ 1 2 3 4 5
1
morality mechanism
2 The firm values the regulation of 1 2 3 4 5
employees’ work manners
3 The employees’ promotion follows the 1 2 3 4 5
regular system
4 The firm does not change employees’ 1 2 3 4 5
duties frequently
I often actively keep in touch with the 1 2 3 4 5
1 customers
2 I will actively greet my customers 1 2 3 4 5
3 I often inform the regulations of the 1 2 3 4 5
firm to the customers
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4 I will actively ask customers to leave 1 2 3 4 5
their contact information
5 Customers often ask for my service or 1 2 3 4 5
consulting
6 Customers also inquire about my 1 2 3 4 5
situations of work
7 My customers often ask me questions 1 2 3 4 5
related to products or services
Section 3
(Demographic part)
Please circle the section that represents the appropriate response the following items:
1. Your education level
A. PhD Degree
B. Master’s Degree
C. Bachelor Degree
D. Diploma
E. Others. Please Specify_______________________
2. Your sex
A. Male
B. Female
3. Your age
A. Less than 25
B. 25-35
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C. 36-45
D. 46-50
E. Above 50
4. Number of employees (full time equivalent) in your Branch
A. Less than 30
B. 31-50
C. 51-70
D. 71-90
E. Above 90
5. Your position in the organization
A. Top level manager (e.g., chief executive officer, general manger and managing director)
B. Middle level manager (e.g., senior manager, asst. general manager, department manger)
C. Lower level manager (section manager, section head, principal officer )
D. Others: Please specify __________________________
6. Status of your organization
A. Wholly local ownership

B. Wholly foreign firm
C. Joint venture
7. How long has your company operating
A. Less than 5 years

B. 5 years -10 years
C. 11 years -15 years
D. 16 years -20 years
E. 21 years -25 years
F. Above 25 years
8. How long you have been working with your current organization
A. Less than 2 years

B. 2 years - 4 years
C. 5 years -7 years
D. 8 years -10 years
E. >10 years
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74 | P a g e

Factors Affecting Service Recovery Strategies of Marketing Firms

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Factors Affecting Service Recovery Strategies of Marketing Firms

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Executive Summary

Subject: Exploration of lead factors affecting service recovery

Thank you for your kind cooperation.

Purpose of the Study

1. To understand customer’s preference and customer’s loyalty for Service recovery.

2. To know how the company, give service to their customers.

7. To understand the challenges in Service recovery sector of Adcomm Ltd.

Steps we have followed for our research work:

"Edvardsson, Tronvoll, and Höykinpuro (2011) further claimed that communication,

Types Of Corporate Culture Service Recovery Service Recovery

Ho1. There is no relationship between Customer Relationship & Service recovery

Ho2. There is no relationship between Empowerment & Service recovery performance.

Ha2. There is a relationship between Empowerment & Service recovery performance.

Case Processing Summary

Case Processing Summary

Case Processing Summary

Sex * E.E Crosstabulation

Education * Sex Crosstabulation

Case Processing Summary

Case Processing Summary

Case Processing Summary

Education * Designation Crosstabulation

Education and number of employee:

Case Processing Summary

Education * No. of employees Crosstabulation

Education * E.E Crosstabulation

Case Processing Summary

Age * No. of employees Crosstabulation

Case Processing Summary

Age * E.E Crosstabulation

Case Processing Summary

Designation * E.E Crosstabulation

No. of employees * E.E Crosstabulation

Case Processing Summary

Cases Valid 50 100.0

a. Listwise deletion based on all variables in the

Cronbach's Alpha N of Items

Mean Std. Deviation N

ServiceRecovery1 3.8000 .96890 50

ServiceRecovery5 3.6800 .84370 50

ServiceRecovery2 4.0000 .85714 50

ServiceRecovery3 4.0000 .90351 50

ServiceRecovery4 3.9400 .76692 50

ServiceRecovery6 3.9800 1.07836 50

ServiceRecovery7 3.7200 .85809 50

Scale Mean if Item Scale Variance if Corrected Item- Cronbach's Alpha if

ServiceRecovery1 23.3200 8.875 .235 .558

ServiceRecovery5 23.4400 10.456 .000 .629

ServiceRecovery2 23.1200 7.863 .535 .444

ServiceRecovery3 23.1200 8.108 .436 .479

ServiceRecovery4 23.1800 9.089 .323 .527

ServiceRecovery6 23.1400 8.409 .255 .554

ServiceRecovery7 23.4000 8.735 .335 .520

Mean Variance Std. Deviation N of Items

27.1200 11.169 3.34200 7

Case Processing Summary

Cases Valid 50 100.0

a. Listwise deletion based on all variables in the

Mean Std. Deviation N

Empowerment1 4.2200 .73651 50

Empowerment2 4.0400 .87970 50

Empowerment3 4.1800 .80026 50

Empowerment4 3.8200 .77433 50