consumer satisfaction model – failure, recovery,justice

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    CONSUMER SATISFACTION MODEL CONSUMER SATISFACTION MODEL

    SERVICESERVICE

    FAILURE,RECOVERY,JUSTICEFAILURE,RECOVERY,JUSTICE

    WITH CHANGING TIMEWITH CHANGING TIME

    Presented By : Dr. Om PrakashPresented By : Dr. Om Prakash

    Deputy Secretary to the Govt.Deputy Secretary to the Govt.of India.of India.

    Ministry of Consumer Affairs,Ministry of Consumer Affairs,Food and PublicFood and Public

    Distribution, Krishi Bhawan,Distribution, Krishi Bhawan,

    New Delhi.New Delhi.

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    CUSTOMER SERVICE RECOVERYCUSTOMER SERVICE RECOVERY

    ENCOUNTERSENCOUNTERS

    The recovery exercise involves various set ofThe recovery exercise involves various set of

    feelings and emotions like anger, dissatisfaction,feelings and emotions like anger, dissatisfaction,

    aggression, arguments, lack of patience etc.aggression, arguments, lack of patience etc. The overall firm satisfaction can be by provided toThe overall firm satisfaction can be by provided to

    the customer by the parties involved in the recoverythe customer by the parties involved in the recovery

    process by focussing on interactional andprocess by focussing on interactional and

    procedural justice by reacting with great sensitivityprocedural justice by reacting with great sensitivity

    and with equity in each consumer complaint case.and with equity in each consumer complaint case.

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    Failure ContextFailure Context

    Type of FailureType of Failure

    Magnitude of FailureMagnitude of Failure

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    Recovery AttributesRecovery Attributes

    CompensationCompensation

    Response SpeedResponse Speed

    ApologyApology

    InitiationInitiation

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    Satisfaction MediumSatisfaction Medium

    Distributive JusticeDistributive Justice

    Procedural JusticeProcedural Justice

    Interactional JusticeInteractional Justice

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    Customer Recovery Satisfaction ConfirmationCustomer Recovery Satisfaction Confirmation

    Agencies must take the customerAgencies must take the customer

    feedback , post service failure, post servicefeedback , post service failure, post service

    recovery, and finally two weeks postrecovery, and finally two weeks postrecovery.recovery.

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    Procedural JusticeProcedural Justice

    Refers to the percieved fairness of policiesRefers to the percieved fairness of policies

    and procedures involving the recoveryand procedures involving the recovery

    effort, and there is anecdotal evidenceeffort, and there is anecdotal evidencesuggesting that procedural justice affectssuggesting that procedural justice affects

    service recovery outcomes.service recovery outcomes.

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    Interactional JusticeInteractional Justice

    It refers to the extent to which customersIt refers to the extent to which customersfeel they have treated fairly regardingfeel they have treated fairly regarding

    their personal interaction with servicetheir personal interaction with serviceagents throughout the recovery process.agents throughout the recovery process.

    It include elements of COURTESY,It include elements of COURTESY,HONESTY, INTEREST IN FAIRNESSHONESTY, INTEREST IN FAIRNESSand EFFORT perceived by the complainant.and EFFORT perceived by the complainant.

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    Customer Satisfaction ModelCustomer Satisfaction Model

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    Service vs. Product RecoveryService vs. Product Recovery

    SERVICE PRODUCT

    Intangible Tangible

    Experience Failure Loss of product

    Procedural & Interactional Justicehave a greater influence on overallfirm satisfaction than distributive

    justice.

    Here customers value distributivejustice as well as procedural andinteractional justice when derivingoverall firm satisfaction.

    Ex. Banking Service Failureexperienced by the customer in thefirst interaction with the service

    provider seeking apology,compensation and initiation.

    Ex. Couple faced a faulty homeappliance in the newly constructedhome and were seeking of immediatereplacement.

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    OutcomeOutcome

    Word of Mouth Intent The customer after beingWord of Mouth Intent The customer after beingattended in a 360 degree approach will be motivatedattended in a 360 degree approach will be motivatedto share a positive word of mouth regarding the partiesto share a positive word of mouth regarding the parties

    involved including the service or product used.involved including the service or product used. Purchase Intent Chances will be higher ofPurchase Intent Chances will be higher of

    purchasing the same product or availing the samepurchasing the same product or availing the sameservice after going through a smooth and customerservice after going through a smooth and customersensitive recovery procedure.sensitive recovery procedure.

    Satisfaction with Recovery.Satisfaction with Recovery. Overall Firm Satisfaction.Overall Firm Satisfaction.

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