International Journal of Business and Society, Vol.9 No.2, 2008, 33-42
SERVICE RECOVERY STRATEGIES IN WESTERN BASED FAST FOOD RESTAURANTS: A STRUCTURAL EQUATION MODEL TEST
Ernest Cyril de Run♣ and Heriyadi Kusyarnadi
Faculty of Economics and Business, Universiti Malaysia Sarawak, 94300 Kota Samarahan, Sarawak, Malaysia
ABSTRACT This paper sets out to confirm a model that depicts the probability that service recovery activities will be carried out by front liners in Western based fast food restaurants. The study used a Juster scale based questionnaire survey format the restaurants customers. Data was then analyzed using exploratory and confirmatory factor analysis utilizing Structural Equation Model. Factor analysis indicated three views of customers termed as Spoken, Minor Action, and Major Action service recovery strategies. The confirmatory factor analysis indicated that the model was of a good fit (.749). The study was limited to respondents in Kuching. Nevertheless the finding has important implications to management and academia. For academics, the findings provide insight into service recovery modeling. A practical application from this study would be the use of Minor or Major Action service recovery strategies to improve customer’s perception of a company after service failure.
Keywords: Service recovery, Fast food restaurant, Structural Equation Model
The fast food industry is a high growth industry that is mainly a service and people oriented business (Lam and Zhang, 2003). Nevertheless, mistakes are an unavoidable feature of all human endeavors (Boshoff, 1997). The unique characteristic of the service industry, especially in the restaurant industry, makes mistakes more distinct and zero defects not attainable (Hart, et al., 1990; Hoffman, et al., 1995; Wirtz and Mattila, 2004). In the restaurant sector, a majority of service failure relates to slow service (long wait for seating, food and bill), staff error (orders...