The Analysis between Service Recover and Customer Loyalty Motahari Ali Mosammama, Iranban Seyed Javadb, Seyedi Seyed Masoudc aMaster Student of Management, Shiraz Branch, Islamic Azad University, Shiraz, Iran bDepartment of Management, Shiraz Branch, Islamic Azad University, Shiraz, Iran cDepartment of Management, Shiraz Branch, Islamic Azad University, Shiraz, Iran Online published on 16 December, 2014. Abstract The errors are more common in service operations due to the complexity and heterogeneity of the consumer's needs… Customer may avoid the service failure, in the minor cases, but in the financial institutions like banks there are no minor service failure as it is the dealing of money. Lévesque and McDougall (1996) have mentioned that a customer has higher switching cost in banking sector; therefore service recovery is important in a financial institution. The main purpose of this study was to determine the relationship between service recovery and customer loyalty in Shiraz branches of Refah bank. Data were collected by an unstructured questionnaire. Validity of the questionnaire was confirmed by content validity, face validity and criterion validity techniques. And its reliability was confirmed by Cronbach's alpha technique. Shapiro–Wilk test was used to verify the normality of the variable data distributions. Conclusion shows that service recovery measure can impact customer loyalty. It is also concluded that prompt response, material compensation and politeness of employees play important role in service recovery measures and influence customer loyalty. Top Keywords Customer loyalty, service recovery, Justice Theory. Top |