Applying Fuzzy Multiple Criteria Decision-Making Method and Service Failure Index to Evaluate Restaurants¡¯ Performance

Hsi-Tien Chen

Journal of Management and Strategy, 2014, vol. 5, issue 4, 14-25

Abstract: When a severe service failure occurs, loss to the firm is generally inevitable, but little research has been conducted on how to control the frequency of severe service failure. The purpose of this study is to propose a service failure control process and model by assessing whether the failure frequency in various service failure categories meets minimum tolerance levels. An initial restaurant-related service failure classification model was constructed based on literature review and expert suggestions. The present study applies the fuzzy Delphi Method to screen these initial restaurant-related service failure categories to produce a formal restaurant-related service failure classification model. Next, a questionnaire survey is used to collect data of the frequency and severity of service failure categories. The tolerable upper limits for the frequency of service failures are determined according to the severity of each category. Service failure indices are defined, and a statistical method is used to test whether failure indices values of various categories meet the required level for the business. An illustrative example of a restaurant chain is used to demonstrate the process of implementing the service failure control model. The results show that the restaurant had seven unqualified failure categories and corresponding priorities for improvement, which can help to establish a service quality improvement strategy and resource allocation plan. This study offers a new and progressive way of thinking about service failure control for industry and academic.

Keywords: service failure; service recovery; fuzzy Delphi method; multiple criteria decision making; failure severity; service failure control model (search for similar items in EconPapers)
Date: 2014
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