Analysis Of The Effect Of Service Recovery On Customer Satisfaction The Case Of Hilton Addis Ababa

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Addis Ababa University


In the hospitality industry it is important to maintain customer satisfaction. If a service failure happens, companies need to take steps to restore their customer loyalty from service recovery. While businesses can't stop all problems and grievances, they should strive to make up. System loss and service recovery have now become a major and daunting problem for businesses. The researcher analyzed the literature in this paper and summarized the issue of failure in services. In addition, the researcher analyzed the relationship between service failure and service recovery strategy, which culminated in the verification of the corresponding concepts of the service recovery strategy and the type of service failure. Furthermore, this thesis studied the interaction between service failure and service recovery strategy, which resulted in a verification of the matching principles of the service recovery strategy and service failure type. The main objective of this research was to examine the effect of service recovery on customer satisfaction: Hilton Addis Ababa's case. The study mainly employed quantitative technique which included 260 Addis Ababa respondents. By first using Convenience Sampling, the response was selected where the respondents are selected, as they happen to be at the right place and at the right time. The questionnaire data collected was analyzed using statistical methods including mean, standard deviation, correlation, and multiple regressions. The study findings indicate that all of the three variables (distributive justice, procedural justice, and interactional justice) have a substantial positive effect on consumer satisfaction. Interactional justice refers to the highest effect on consumer satisfaction.



Hospitality, Service Failure Service Recovery, Customer Satisfaction