Service recovery and customer delight : examination of differences between customers in different spending categories

Abstract: Customer delight is known to exert positive significant influence on levels of customer loyalty even in service recovery situations. This study aimed at examining differences between lower and higher spending customers of cell-phone network service providers in their response to service recovery efforts. Data used in the analysis was collected from 540 customers from Gauteng, South Africa using a structured questionnaire. The findings show significant differences between lower and higher spending customers in their levels of customer delight following service recovery efforts. Lower spending customers were specifically found to show higher level of delight compared to higher spending customers. The findings point to the need for managers to take cognisance of the fact that service recovery efforts may have different effects on different customer segments. Managers need to identify recovery strategies that are appropriate for different customer segments and monitor their effectiveness in ensuring customer delight following service recovery efforts