The Role Of Service Recovery Strategy On Customer Satisfaction And Loyalty In Restaurant Businesses In Addis Ababa
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Date
2019-06
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Addis Ababa University
Abstract
Service recovery is the actions taken by an organization in response to a service failure.
Failures occur for all kinds of reasons. The service may be unavailable when promised, the
service may be delivered late or too slowly, the outcome may be incorrect or poorly
executed, or employees may be rude or uncaring. This paper investigates the relationship
between independent variables which are procedural justice, interactional justice, and
distributive justice with dependent variable, customer satisfaction, and customer’s loyalty,
by tapping the responses of 384 respondents from restaurant consumers in four sub cities
of Addis Ababa, Ethiopia. To achieve the objectives of this study descriptive survey and
explanatory research design was used. Data was collected through questionnaire from a
sample of 384 consumers that were selected using simple random sampling method. The
data collected from the questionnaire were analyzed using statistical tools such as mean,
standard deviation, correlation, and multiple regression analysis. The results of this study
indicate that, service recovery dimensions such as (procedural justice, interactional
justice, and distributive justice) have positive and significant relationship with customers’
satisfaction, and loyalty. The finding of the study indicates also that distributive justice
dimension has highest impact on customers’ satisfaction, and loyalty. Furthermore, the
aforementioned service recovery dimensions have positive correlation with customers’
satisfaction, and loyalty. Based on the findings of the study, the researcher forwards
recommendations. Finally, restaurants found in Addis Ababa have to work harder in order
to satisfy their customers specially by focusing on the perceived justice service recovery
strategy.
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Keywords
Service recovery, Procedural justice, Interactional justice