The Impact of Service Recovery on Customer Satisfaction: Case of Iran

Background: Customer satisfaction is one of the key success factors to the survival of any business<br>organization. The aim of this study is to determine the effects of service recovery on customer satisfaction.<br>Method: A cross sectional study was carried out among students and the general public in Tehran city,<br>Iran, data was collected using validated questionnaire adopted for this study. A total of 384 students and<br>general public that they have bought a cell phone before was selected.<br>Result: Among respondents 193(50.3%) were male, 212 were university degree (55.2%) and 263(68.5%)<br>were single. The results showed that distributive justice significantly affected on the complainants’ level of<br>satisfaction with service recovery. Trust and loyalty were affected by their satisfaction with the service<br>recovery. Based on the T-test the levels of trust, WOM and loyalty were sharply higher for respondents<br>who were satisfied with the service recovery compared with those who were dissatisfied. Also, respondents<br>who were satisfied with the service said lower trust, WOM and consumer loyalty compared with the<br>satisfied complainants. Finally, the study indicates that dissatisfied non-complainants would exhibit a lower<br><div>level of trust behavior compared with those who were dissatisfied initially but chose to complain.<br>Conclusion: The findings in this paper confirmed the importance of perceived justice in service recovery.<br>Also, this paper is useful in designing policies and procedures to gain higher satisfaction, trust and loyalty<br>from customer. <br>