The Relationships among Involvement Level, Service Failure, Service Recovery Disconfirmation and Customer Lifetime Value

Abstract

Because service failure can't be fully avoided in the process transmission, understanding the service failure severity and their impact on customer responses and designing effective recovery strategies have been recognized as important problems by both service researchers and practitioners. There is still a lack of research on the link between service disconfirmation and the value of a customer to the firm. Also the previous research on service recovery has not incorporated important contextual factors, such as the involvement level of individual differences and the perceived severity of service failure across customers, into analytical models or empirical testing. To address the aforementioned knowledge gaps. The research we would like to focus on building a disconfirmation theory, we would like to find out the affect from the gap between of disconfirmation and expectations of service recovery and perceived performance of service recovery to customer lifetime value in children English learning material/service. The empirical result demonstrates that service failure severity can enhance service recovery expectation in customers' mind. Analysis also indicates that both service recovery expectation and service recovery performance significantly affect service recovery disconfirmation. Last, service recovery disconfirmation also influences customer lifetime value significantly.