Service Recovery Paradox

June 7, 2021

Service sector industry contributes around 53% to India’s Gross Value Added at current price in FY20.

Service recovery paradox (SRP) refers to a situation when a consumer feels confident and appreciates the company to solve faulty service or what company has corrected a problem with their service.

The main reason behind this is to create a positive mind set in consumers mind for a company and giving them an assurance of solving issues related to any service and chances of consumers becoming more loyal towards the company.

Understanding Service Recovery Paradox is an important goal for both managers and researchers, as service failure is one of the main factors of consumer’s behaviours of switching from one company to another. Companies try to solve consumer’s problems and come up with successful recovery from their failures for customer retention.

Recovery is especially important for service providers for whom ensuring an error free service is impossible.

Author:
Prof. Nupur Rawal, Assistant Professor, Unitedworld School of Business

Disclaimer: The opinions / views expressed in this article are solely of the author in his / her individual capacity. They do not purport to reflect the opinions and/or views of the College and/or University or its members.