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DISCUSSION QUESTIONS
1. Why is it important for a service firm to have a strong recovery strategy? Think of a time when you
received less-than-desirable service from a particular service organization. Was any effort made to
recover? What should/could have been done differently? Do you still buy services from the
organization? Why or why not? Did you tell others about your experience?
In a services course, students need a strong understanding of the importance of service recovery.
Because service failures are inevitable in even the best of firms, recovery is essential for customer
retention and for preventing harmful negative word-of-mouth. As noted in Chapter 3, when a
A strong recovery strategy can positively influence customer satisfaction and loyalty and also
improve bottom-line performance. Research has shown that dissatisfied customers whose problems
The downsides of an ineffective recovery strategy further support its importance. Failures,
A discussion of personal service recovery experiences can provide a lively way to effectively learn
2. Discuss the benefits to a company of having an effective service recovery strategy. Describe an
instance where you experienced (or delivered as an employee) an effective service recovery. In what
ways did the company benefit in this particular situation?
The benefits to the company of an effective service recovery strategy are: (1) increased customer
As in Question 1, a lively discussion can be facilitated by having students focus on their personal
3. Explain the recovery paradox, and discuss its implications for a service firm manager.
Some have suggested that customers who are dissatisfied, but experience a high level of excellent
service recovery, may ultimately be even more satisfied and more likely to repurchase than are those
4. Discuss the types of actions customers can take in response to a service failure. What type of
complainer are you? Why? As a manager, would you want to encourage your customers to be
voicers? If so, how?
The types of actions customers can take in response to a service failure are captured in Figure 7.3 and
discussed in the text. Those experiencing a failure can either take action or do nothing. Those who
Four different types of complainers are described: passives, voicers, irates, and activists. The type of
Customers can be encouraged to be “voicers” by letting them know the firm welcomes their
5. Explain the logic behind these two quotes: “a complaint is a gift” and “the customer who complains
is your friend.”
This question gets students to focus on the positive outcomes of encouraging complaints and the
negative outcomes of doing the opposite. Traditionally firms have tried to avoid complaints and have
6. Choose a firm you are familiar with. Describe how you would design an ideal service recovery
strategy for that organization.
This question allows students to focus on recovery strategies in a real context. It forces them to
7. What are the benefits to the company of an effective service guarantee? Should every service
organization have one?
This question allows students to fully understand, in their own words, the benefits of service
guarantees as discussed in the text in the section “Benefits of Service Guarantees”. Benefits to
A guarantee may not always be a good idea. Questions that should be answered or considered prior to
offering a guarantee are shown in Exhibit 7.5. The following conditions, discussed in the text,
suggest situations when a guarantee may not be appropriate:
existing service quality in the company is poor
a guarantee doesn’t fit the company’s image
8. Describe three service guarantees that are currently offered by companies or organizations in
addition to the ones already described in the chapter. (Examples are readily available on the
Internet.) Are your examples good guarantees or poor guarantees based on the criteria presented in
this chapter?
Students should be encouraged to bring to class examples of service guarantees. Alternatively, the
An interesting application of a service guarantee in an academic context was published in the Journal
of Marketing Education (August 1999, Vol. 21, No. 2, 118-130) in an article by Mike McCollough
