Abstract

The objectives of the study are to: (a) identify and rate critical incidents of service failures; (b) determine what kind of service recovery efforts will significantly affect the resolution of a service failure; and (c) determine the significant effects of resolution levels on consumer repeat patronage. The service recovery efforts were related to non-monetary dimensions of employee service behavior and proactive service staff, and monetary incentives. Employee service behavior was found to have the most significant effect on the complete resolution, followed by monetary incentives, and proactive service staff. The manager should provide mentoring, training, communication role-playing scenarios, and empowerment opportunities, which allows the employee to be effective in providing an equitable service failure resolution. Lastly, only complete resolution results in repeat patronage, while partial resolution and unresolved service failures served as a deterrent to the guest's return patronage. Therefore, management and staff should do their best to achieve a complete resolution to maximize guest repeat patronage.

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