Influence of Service Recovery Strategy on Customer Loyalty

Charles Udo and Agu Agu Godswill
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Charles Udo: Department of Marketing, Abia State University, Uturu Nigeria.
Agu Agu Godswill: Department of Marketing, Abia State University, Uturu Nigeria.

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Abstract: This study adapted a four-factor model from previous studies to examine the influence of service recovery strategies on customer loyalty in three fast food firms in Umuahia metropolis, Abia State. Being a cross-sectional survey based on likert structured questionnaire, the structural model was tested with the Smart-PLS structural equation modeling (SEM) 3.2.6. Results from 91 valid responses indicate that apology, explanation, refund and replacement are positive but non-significant predictors of customer loyalty, with the model explaining 10.7% variance in customer loyalty. The study recommends that service failure should be recovered immediately, timely, speedily and appropriately using mainly compensation strategies, as these can drive customer and loyalty. It recommends the adoption of a proposed framework on the link between service recovery and customer loyalty.

Date: 2022-03-22
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Published in Asian Journal of Economics, Finance and Management , 2022, 4 (1), pp.222-232

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05148393

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