Research on the Impact of Service Recovery Strategies on Consumer and Firm Performance

Abstract: This paper systematically studies the impact of service recovery on consumer and firm performance. By combing the concept, theoretical basis and related literature of service recovery, this paper discusses the positive impact of service recovery on customer satisfaction, loyalty and positive word-of-mouth communication. At the same time, it analyzes the important role of service recovery in quality cost control, customer relationship management and corporate reputation improvement, and analyzes the key elements of successful service recovery through classic cases, such as rapid response, transparent communication, actual compensation and personalized service. The research shows that scientific and reasonable service recovery strategies can not only effectively alleviate the negative impact caused by service errors, but also promote the continuous improvement of enterprise performance. Future research should further explore the application effects of service recovery in different cultural backgrounds and industries.

  Keywords: Service Recovery, Customer Satisfaction, Enterprise Performance, Quality Cost Control