Customer satisfaction and loyalty after service failure and recovery : A study in restaurant industry in Ho Chi Minh city of Vietnam

Abstract

This research was conducted to examine the evaluation of customers towards result of service recovery of organizations. In this paper the three justice dimensions was employed to explain the customer satisfaction after service failure and recovery in restaurant setting in Ho Chi Minh City fo Vietnam. Convenient sampling method was used to collect data by means of a survey. SPSS software version 20 was used to analyse collected data set. The measurement scales were adopted and adjusted from previous research. Exploratory Factor Analysis was applied to refine measurement scale and reduce factors. Research model and hypotheses were tested using regression analysis. The result of data analysis provided empirical evidence that justice evaluation has positive effect on customer satisfaction after service failure and recovery. The result also confirmed that customer satisfaction and their loyalty had strong correlation. Implications for the organizations in restaurant industry is that in order to better satisfy customers and retain their loyalty besides improving product qualtity, service quality and price service providers should understand the perception of justice evaluation and have effective strategy to recover service failure when it occurs. Keywords: service failure, service recovery, customer satisfaction, loyalty.