It is quite impossible for a service firm to deliver service without failure. The main reason is that service is intangible, perishable and heterogeneous in nature. Every service firm tries its best to recover service failure with understanding that service failure affects customers' evaluation and attitude for the firm. The research finds that customers' satisfaction after recovery affects customers' intentions both service encounter satisfaction and overall firm satisfaction strongly affects positive word-of-month and purchase intentions. The results have implications to researchers and service marketing managers. For researchers, the result will be helpful for them to further develop service failure and recovery framework. For service marketing managers, the result will suggest specific guidelines for establishing service recovery strategies.