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Figure 14.1 Types of Service Failures
Yes
Group 1
Nature of failure?
Unavailable
Slow
Other failures
Group 1A
Group 1B
Group 1C
Total sample
Is there a service delivery system failure?
Yes
Group 2
Nature of requests/ need?
No
Is there an implicit/ explicit request for accomodation
No
Is there an
Unpromoted
/ unsolicited action by employee?
Yes Group 3
No
Nature of employee action?
“Special needs”
Customer preference
Group 2B
Customer error
Group 2A
Group 2C
Disruptive others
Group 2D
Level of attention
Group 3A
Unusual action
Group 3B
Cultural norms
Group 3C
Gestalt
Group 3D
Adverse conditions
Group 3E
Source: Mary Jo Bitner, Bernard H. Booms, and Mary Stanfield Tetreault, “The Service Encounter:
Diagnosing Favorable and Unfavorable Incidents,” Journal of Marketing (January 1990, pp. 71-84.
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TYPES OF SERVICE FAILURES
 Group 1 Failures
 Core service failures
 slow service
 unavailable service
 other core service failures
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TYPES OF SERVICE FAILURES
 Group 2 Failures
 Responses to implicit/explicit requests
 special needs
 customer preferences
 customer error
 disruptive others
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TYPES OF SERVICE FAILURES
 Group 3 Failures
 Unprompted/Unsolicited employee actions
 level of attention
 unusual action
 cultural norms
 gestalt
 adverse conditions
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TYPES OF SERVICE FAILURES
(new category)
 Group 4 Failures (Employee-reported incidents)
 Problematic customer behavior
 drunkenness
 verbal and physical abuse
 breaking company policies or laws
 uncooperative customers
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TYPES OF COMPLAINTS
 Instrumental
 expressed for the purpose of altering an undesirable state of affairs
 Noninstrumental
 expressed without the expectation that an undesirable state will be altered
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TYPES OF COMPLAINTS
 Ostensive
 outer-directed complaints
 Reflexive
 Inner-directed complaints
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WHY DO CUSTOMERS COMPLAIN?
 Correct the problem
 Emotional release from frustration
 Regain some measure of control by spreading negative w-o-m
 Solicit sympathy
 Test for consensus
 Create an impression of being more intelligent and discerning
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WHY DON’T CUSTOMERS COMPLAIN?

Don’t know who to complain to

Don’t think it will do any good
 May doubt their own subjective evaluation
 May accept part of the blame
 May want to avoid confrontation
 May lack expertise
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 Voice
COMPLAINING OUTCOMES
 High => store manager
 Medium => sales clerk
 Low => no one associated with the store
 Exit
 High => never purchases again
 Medium => only purchases if other alternatives are not available
 Low => continues to shop as usual
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COMPLAINING OUTCOMES
 Retaliation
 High => tells lots of people and attempts to physically damage the store
 Medium => tells a few people and created minor inconveniences
 Low => does not retaliate at all
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TRENDS IN COMPLAINT RESOLUTION
 Complaints are more likely to be acted upon when:
 complaints are made to managers
 formally designated complaint handlers are involved
 someone with a personal tie to the company is involved
 the complaint is about the quality of service as opposed to an employee’s personality
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SERVICE RECOVERY
 Service recovery paradox
 customers are likely to evaluate a firm higher if a mistake is made and corrected than had the service been delivered correctly the first time.
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DEVELOPING A SERVICE RECOVERY
PROGRAM
 Measure the costs
 calculate the lifetime value of a customer
 Actively encourage complaints
 Anticipate needs for recovery
 Respond quickly
 Train employees
 Empower the front-line
 Close the loop
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SERVICE RECOVERY EVALUATION
 Perceived justice needs--based on equity theory which weighs outcomes versus inputs
 distributive justice
 outcomes
 procedural justice
 process
 interactional justice
 the human content of the recovery process
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TYPICAL RECOVERY STRATEGIES
(distributive justice outcomes)
 Compensatory strategies
 gratis
 discounts
 upgrades
 free ancillary service
 Refunds
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TYPICAL RECOVERY STRATEGIES
(distributive justice outcomes)
 Corrections
 Replacement strategies
 Apology
 Disregard
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RECOVERY TACTICS
 Poor responses
 Fail to recognize the seriousness of the problem
 Fail to adequately accommodate the customer
 Act as though nothing is wrong
 Fail to explain why the problem occurred
 Leave the customer to solve the problem on his or her own

Promise to do something and don’t follow through
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SERVICE FAILURES
& RECOVERY STRATEGIES:
THE RESTAURANT INDUSTRY
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SERVICE FAILURES:
THE RESTAURANT INDUSTRY
 Group 1 failure categories (44.4%)
 Product defects (20.9%)
 food was described as cold, soggy, raw, burnt, spoiled, or containing inanimate objects such as hair, glass, bandages, bag ties, and cardboard.
 Slow/unavailable service (17.9%)
 waiting excessively, not being able to find assistance
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SERVICE FAILURES:
THE RESTAURANT INDUSTRY
 Facility problems (3.2%)
 cleanliness issues such as bad smells, dirty utensils, and animate objects (e.g., insects) found on the table or in the food
 Unclear policies (1.6%)
 policies that were perceived as unfair by the customer, such as coupon redemption, or forms of payment
 Out-of-stock conditions (.8%)
 inadequate supply of menu items
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SERVICE FAILURES:
THE RESTAURANT INDUSTRY
 Group 2 failure categories (18.4%)
 food not cooked to order (15.0%)
 requested food be prepared in a particular manner and restaurant failed to meet request
 seating problems (3.4%)
 seating nonsmokers in smoking section and vice versa
 lost or disregarded reservations
 requests for special tables that were denied
 seating among unruly and disruptive customers
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SERVICE FAILURES:
THE RESTAURANT INDUSTRY

 inappropriate employee behavior (15.2%)
 rudeness, inappropriate verbal exchanges, and poor attitudes
 wrong Orders (12.6%)
 delivery of the incorrect food item, either to the table, or in the case of fast food, in packaging so that the mistake was not discovered until the customer had left the premises
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SERVICE FAILURES:
THE RESTAURANT INDUSTRY

 lost orders (7.5%)
 situations in which the customer’s order was lost and never fulfilled
 mischarged (1.9%)
 being charged for items that were never sent, being charged incorrect prices for items that were ordered, and providing incorrect change
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SERVICE FAILURES:

THE RESTAURANT INDUSTRY
Recovery Strategies (frequency, retention)
 Replacement (33.4%, 80.2%)
 Free Food (23.5%, 89.0%)
 Nothing (21.3%, 51.3%)
 Apology (7.8%, 71.4%)
 Correction (5.7%, 80.0%)
 Discount (4.3%, 87.5%)
 Manager Intervention (2.7%, 88.8%)
 Coupon (1.3%, 80.0)%
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ALL RIGHTS RESERVED.