| Article ID: | iaor2009282 |
| Country: | United States |
| Volume: | 35 |
| Issue: | 3 |
| Start Page Number: | 493 |
| End Page Number: | 525 |
| Publication Date: | Jul 2005 |
| Journal: | Decision Sciences |
| Authors: | Sivakumar K., Zhu Zhen, Parasuraman A. |
| Keywords: | decision theory, performance, allocation: resources |
Understanding the nature of service failures and their impact on customer responses and designing cost-effective recovery strategies have been recognized as important issues by both service researchers and practitioners. We first propose a conceptual framework of service failure and recovery strategies. We then transform it into a mathematical model to assist managers in deciding on appropriate resource allocations for outcome and process recovery strategies based on customer risk profiles and the firm's cost structures.