Demystifying the Impact of Service Recovery Strategies: Evidence From Healthcare and Telecom Sectors

This study investigates the association of emotional (courtesy) and functional (explanation) service recovery strategies with customer responses in the healthcare and telecom sectors. The study also examines the mediation effect of the valence of customer forgiveness (resentment and exoneration) on the association of explanation and courtesy with repeat patronage and negative word-of-mouth (NWOM). In addition, we investigate the moderation effect of the level of dissatisfaction and relationship length on the hypothesized associations. To test the proposed associations, we used the critical incident technique with retrospective experience sampling, collecting data through a large-scale online survey ( n = 478). Results suggest that resentment mediates the association of explanation and courtesy with repeat patronage. Finally, in the telecom industry, dissatisfaction with recent service failure positively and relationship length negatively moderate the association between repeat patronage and NWOM. Our findings enrich the service recovery literature and provide insights for service managers to design suitable strategies to reduce the repercussions of failure events.