Study on the Service Failure and Service Recovery in the Communication Service Enterprises

Abstract

It is important to retain customer satisfaction in communication services. When a service failure occurs, companies need to take service recovery action to recover their customer satisfaction. Although companies cannot avoid all problems and complaints, they should try to make up. Therefore, service failure and service recovery have become an important and challenging issue for companies. In this paper, we reviewed the literature and summarized the problem in the communication services. An integrated model of profit driven for the service failure and service recovery was established in view of the benefit of customer and enterprise. Moreover, we studied the interaction between service failure and service recovery strategy, the result of which verified the matching principles of the service recovery strategy and the type of service failure. In addition, we analyzed the relationship between the cost of service recovery and customer's cumulative value of service after recovery with the model. This result attributes to managers in deciding on appropriate resource allocations for recovery strategies.