Service Guarantee: A Strategy for Service Recovery

Abstract

The study suggests that service guarantees are a valuable means of recovery from service breakdowns. The methodology employed is a review of the literature with a focus on hospitality organizations. A review of attribution theory provides a framework for the causal dimensions of perceived service quality and failure. Definitions and functions of service guarantees are explored together with their characteristics. Types of service guarantees are examined with examples of their application in hospitality. The article concludes that not all service failures are attributed to the organization, and service guarantees may be an inappropriate response to these failures. Although service guarantees are gaining in popularity, they do not present a benefit for organizations with historically poor service standards. Attention should be paid to the quality of the service provided before considering a guarantee of that service. Effective recovery from a service breakdown can further enhance the reputation of the organization.