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The present study examines existence of service recovery paradox in Indian banking industry. Thestudy is taken up in the tri-city of Chandigarh, Panchkula and Mohali. The respondents are categorizedinto failure and no-failure groups on the basis of their service experience. Failure group constitutesthose respondents who have experienced service recovery, and has been further divided intofive sub-groups ranging from service recovery++ (service recovery better than expected) to servicerecovery- - (service recovery worse than expected). Service recovery paradox is examined by comparingservice recovery++ group with no-failure group. The study shows evidence for existence ofservice recovery paradox in relation to satisfaction. It has been concluded that for service recoveryparadox to exist, recovery effort has to be exceptionally good and much better than expectationlevel of the customer. The study suggests that service managers should take service failure as anopportunity to appease customers by providing a much better than expected recovery experience.However, organizations should not plan to create service failure situations because if they falter onimparting the recovery, customer satisfaction may be influenced negatively. |
