Service Recovery in the Consumer Goods Industry: the Moderating Role of Online Versus Offline Environment

Abstract

Service recovery is an important function for companies to maintain satisfied customers. In order to have successful service recovery, customers’ expectations should be recognized and met. This paper examines customers’ expectations towards service recovery in online versus offline environment. Due to the growth of Internet, online service recovery has become more popular than ever before. Thus, it is important to recognize the differences between online and offline customers’ expectations. This thesis includes an empirical study which reveals several following key findings. Complaining online is highly preferred over complaining offline and at the same time those who complain online have higher expectations towards service recovery. The biggest difference between online and offline customers is the expectations towards the quickness of the company’s response, since online customers are expecting quick response (1-2 days) significantly more than offline customers. Apology is the most expected factor in service recovery among both online and offline customers. Last finding is that a new product or a voucher that offers a new product are the most expected compensations in both online and offline customers. By these findings, this thesis fills the research gap of examining customer’s expectations towards service recovery in online and offline environment