Developing a comprehensive picture of service failure

Citation

(2003), "Developing a comprehensive picture of service failure", Measuring Business Excellence, Vol. 7 No. 2. https://doi.org/10.1108/mbe.2003.26707bae.006

Developing a comprehensive picture of service failure

Developing a comprehensive picture of service failure

Colgate, M. and Norris, M., International Journal of Service Industry Management,2001,Vol. 12 No. 3.

Develops a model to illustrate service failure outcomes based on an investigation into what drives customers to either remain in or exit a service relationship following service failure. Introduces the concept of service failure and reviews literature relating to all aspects of the service failure/recovery process. Describes the research methodology; bases results on the analysis of data derived from interviews with 20 small business banking customers who had experienced service failure, half of whom had left their service provider as a result. Analyses the driving forces which characterize the two groups of respondents – i.e. the exit and remain groups. Establishes that there are three key factors that influence a customer's decision to remain or exit following service failure – satisfaction with the service recovery, loyalty and perceptions of barriers to exit. Generates a model to illustrate the driving forces behind service failure outcomes. Considers the implications of the study for both service managers and academics.