The Effect of Service Recovery Strategies on Customer Satisfaction: Empirical Evidence from Capital Hotel Front Office Department
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Date
2024-10
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Addis Ababa University
Abstract
This study’s aim was to examine the effect of service recovery strategies on customer satisfaction at Capital Hotel. As a design both descriptive and explanatory research design were utilized. Using convincing sampling 371 customers of the hotel were participated in the questionnaire. The descriptive result shown that, service Recovery scored a mean of 3.81, Empathy received a mean score of 3.84, Employee Empowerment achieved a mean score of 3.86, continuous Feedback Loopy attained a mean score of 3.78, Fair Compensation received a mean score of 3.84 and Satisfaction, which reflects all were laid in the agree cut off. The inferential result prevailed that, the predictors i.e. proactive Service Recovery valued (Beta) of 0.089, with a t-value of 3.411 and a p-value of 0.001. Empathy accounted a coefficient of 0.335, with a t-value of 7.259 and a p-value of 0.000. Employee Empowerment computed a Beta coefficient of 0.519, with a t-value of 9.002 and a p-value of 0.000. Continuous Feedback Loop’s scored a Beta coefficient is 0.127, with a t-value of 2.866 and a p-value of 0.004. And, fair Compensation has Beta coefficient of 0.181, with a t-value of 4.358 and a p-value of 0.000. It was concluded that the five predictors significantly contribute to customer satisfaction, with Employee Empowerment having the strongest impact, followed by Empathy, Fair Compensation, Continuous Feedback Loop, and Proactive Service Recovery. These findings suggest that strategies aimed at empowering employees, demonstrating empathy, providing fair compensation, maintaining continuous feedback loops, and proactively addressing issues can significantly enhance overall customer satisfaction.
Key words: Empathy, Fair Compensation, Continuous Feedback Loop, and Proactive Service Recovery