The academic circles have not formed a standard definition for service failure, but scholars have put forward their own understanding from different angles: Hays and Hill defined service failure ascontact situation that make customers unsatisfied(Julie Hays& Arthur, 2001). Keaveneypointed out that if the customers feel unsatisfied about the service system, then service failure occur (Crittendenet al. 1995).Keaveney has divided service failure into two types: the core service failure andcontact service failure.The core service failure is about technical problems, such as error charge,and contact service failurerefers to the interactive process of the problems between customers and service personnel such as carelessness, impoliteness andslow response(Keaveney& Susan,1995).Although enterprises try to prevent service failure from happening, it happens from time to time(Christo Boshoff,1997). Most of the hotels have superior location, clean and comfortable bed mattress, delicious food, and the price is relatively uniform .Sothe essence of the difference is the service quality. That is why we will talk aboutservice recovery to provide customers with high quality of service.
As for service recovery, different scholars have different opinions. Gronroos first put forward its concept formally in 1988, he defined service recovery as follows: the action taken by the service provider for customer complaints when service failure happens (Gronroos,1988). It aims to rebuilt the customers’ satisfaction and loyalty through a series ofrecovery action(Johnston R,1995).Other scholars explain service recovery as a management process which based on service failure analysis and service failure evaluation(Stephen.S&Tax,1998).It is also regarded as a series of equivalent exchange process with customers and enterprises in order to make up for the loss of customers (Amy K.&Smith,1999).Maxham explains service recovery as a service to provider real and prompt action, which aims to convertunsatisfied customers to satisfied ones , and this will the customers keep a loyal attitude to the enterprise(Maxhamet al., 2002). Bolton has proved that compensation, swift reaction and apologies are the three attributes of service recovery and they are of vital importance for an enterprise to corporate well(Smith,Amy K.&Bolton, 1998).Boshoff regard service recovery as the behaviors to rebuilt customer satisfaction, it organization provides a chance to service provider to meet customer expectation(Boshoff,2005). In the case of the Wagama restaurant, it is obviously that there are problems with its service .These problems are caused by management problems as follows: 1. Management disorder:
When costumers come in, the wait service did not come up to seat them initiatively, and the customers have to ask for seats themselves. What is worse ,the food didn’t serve to them promptly. These actions will certainly cause customers’ dissatisfaction, a study shows that the cost to attract a new customer is five times higher than to maintain a regular customer, but effective complaint handling can make originally unsatisfied customers into supporters of the enterprise and their loyalty is higher than those who had not encounter with service failure(Brown ,Tom,1999,).So it is importantto provide good service to maintain the regular customers,but the service recovery should deserve more attention. Back to the case, we can notice many other details that may cause service failure,for example, the hostess stand was not manned and new guests were waiting during busy period. Such actions all can lead to service failure, which can make the company in a dangerous situation. 2. Lack of division of labor(duty confusion):
From the case we can see,when customers come in,no one come up to great them;the check wasposted at the sushi bar so that the cook did not see it , as a result,the customer were served wrong. If there is clear...