A Survey and Evaluation of Service Recovery Strategies on Complainant-Client Satisfaction, Word-of-Mouth Communication (WOM) and Client Loyalty in 5 Star Hotels in Moshhad

Abstract

Service recovery (SR) is a process which is used to recover from a service failure. In this paper, service recovery consists of four dimensions, i.e., apology, redress, explanation and promptness. This study aims to measure the effects of SR on complainant satisfaction, customer loyalty and word of mouth communication (WOM). The study samples consisted of guests staying at 5-star hotels in Mashhad. The research was carried out over six mounts from November 2009 to April 2010, on complainant clients residing in each of the 5- star hotels in Mashhad city, such as, Homa, Pars and Pardisan. Data collection was done using a standard questionnaire, the content validity and reliability of which had been confirmed in many researches. The instrument utilised was a questionnaire having four sections which had been reviewed by Ekiz and Arasli based upon previous research evidence. The data was analysed using structural equation modelling that combines the measurement model and the structural equation model (Regression or path analysis) using one simultaneous statistical test. Results of the main assumption and its related suppositions show mere is a significant correlation between SR and complainant satisfaction, customer loyalty and WOM communication. Moreover, a significant relationship was also found to exist between the dimensions constituting SR.