The Service Recovery Strategies, Customer Satisfaction, Customer Loyalty

Abstract

The aim of this research is to ind out the inluence of service quality, ticket price, and customer satisfaction to the customer loyalty. It is a quantitative research using the data analysis method of Path Analysis. The results indicate that both variables of Service Quality (X1) and Ticket Price (X2) have a signiicant direct inluence to the variable of Customer Satisfaction (Y1), whereas the variable of customer satisfaction has a signiicant indirect inluence to the variable of Customer Loyalty (Y2) [through intervening the variable of customer satisfaction]. It is found in a sequence that the variables most inluential to the increase of Customer Loyalty are: Service Quality, Customer Satisfaction, and the Ticket Price in the last rank. The results of path analysis indicate that service quality can directly inluence the customer loyalty. It can be optimistically improved as maximal as possible through 5 factors having positive inluences in enhancing customer loyalty. Meanwhile, Ticket Price still indirectly inluences the customer loyalty and it can pesimistically still be enhanced through the policy on tariff and it is dificult to implement, only can be driven if the ticket price provided by the transport service provider is more competitive and more various as well as affordable for the consumer purchase power of that transport sevice.

The Relationship between Service Recovery and Patronage Intentions: The Mediating Role of Relationship Quality

“…SR strategies are an effective way to increase customer satisfaction, which in turns increase trust in the provider and create customer commitment toward it. These results are on the same page with other results we have found in the existing literature (Tax et al, 1998;Wirtz and Mattila, 2004;Duffy et al, 2006;Kim, 2007;DeWitt et al, 2008;Komunda and Osarenkhoe, 2012;Yaya et al, 2013;Kandulapati and Bellamkonda, 2014;Stratemeyer et al, 2014) that SR strategies will enhance relationship quality.…”

“…In addition, problem solving acts as a direct antecedent to retail patronage intentions (Lee et al, 2009). More recent research shows that SR strategies directly affect service recovery satisfaction (Wirtz and Mattila, 2004;Kim, 2007;Duffy et al, 2006;Komunda and Osarenkhoe, 2012;Yaya et al, 2013;Kandulapati and Bellamkonda, 2014;Stratemeyer et al, 2014;Mostafa et al (2014) and customer trust (DeWitt et al, 2008 ) as a sub-components of relationship quality. In addition, some aspects of relationship quality influence patronage intentions (Sadachar, 2014;Park et al, 2015;Sharma, 2015).…”

“…To measure service recovery strategies, we have combined several different measures defined and validated in the literature (Boshoff, 1999;Boshoff et al, 2005, Kau andLoh, 2006;Kim, 2007;Liao, 2007; Del Rio -Lanza, Vá zquez-Casielles, and Dí az-Martí n; 2009). To measure relationship quality we depend on the measure developed by Kim et al (2012).…”

“…Previous studies found that some service recovery dimensions had a direct effect on service recovery satisfaction as a dimension of relationship quality (Tax et al, 1998;Wirtz and Mattila, 2004;Duffy, Miller and Bexley, 2006;Kim, 2007;Komunda and Osarenkhoe, 2012;Yaya, Marimon and Casadesus, 2013;Kandulapati and Bellamkonda, 2014;Stratemeyer, Geringer and Canton, 2014;Mostafa, Lages, and Sä ä ksjä rvi, 2014). In addition, SR justice further leads to customers trust (DeWitt, Nhuyen and Marshall, 2008).…”

Mediating Service Recovery Satisfaction in the Relationship between Internet Service Recovery and Customer Loyalty

“…Therefore, the leading companies in business today have become aware of the importance of customer loyalty as it considered one of the best intangible assets for any service firm and it represents a necessity to remain in the competitive market (Cossío-Silva, Revilla-Camacho, Vega-Vázquez, & Palacios-Florencio, 2016;Yang & Chao, 2017 ). As well as, it is considered a strategic element for a long-term viability in the B2C context (Chen & Wang, 2016;Hsiao & Chen, 2016) and it plays an essential role in achieving more profits and firms' success (Kim, 2007) especially in the e-commerce context (Hsiao and Tang, 2016). In addition to this, a loyal customer represents a great marketing force for companies through their positive word of mouth (Johnston and Michel, 2008;Jung and Seock, 2017).…”