(Relation Between Service Failure Recovery Strategies, Perceived Service Quality and Perception of Corporate Image: Accommodation Establishments Example)

Abstract

Purpose – Businesses need to be able to meet changing customer demands in order to be able to sustain their assets in the face of intense competition. To this end, businesses need to make a difference by paying greater attention to issues such as service quality and corporate image that are important to customers, as well as to compensate for service failures, which have become important in recent years. In the literature, it is emphasized that compensation strategies applied by businesses after customer complaints affect customer service quality and corporate image perceptions. In this study, it is aimed to determine the effect of each service failure compensation strategy applied in the tourism sector on customer perceptions of service quality and corporate image perceptions. Design/methodology/approach – The research was designed as a quantitative research, and the questionnaire method was chosen to learn the opinions of the participants on the subject. Percentage, frequency, reliability, factor analysis and structural equation modeling were used in the analysis of the data obtained. Findings – According to the results of the study, it was determined that the apology strategy affected customers' perceptions of service quality and institutional image perceptions positively. Also service quality perceptions have positively affects on corporate image perception. Discussion – It is known that tourists report their experiences to the business about service failure in accommodation businesses through complaints. In addition that service failure negatively affects the service quality and corporate image perceptions of businesses. Therefore, it is considered important to take into account tourist complaints and to compensate for service failure. When the findings are evaluated, it is seen that the apology strategy, especially one of the service failure compensation strategies, is important. It is important for accommodation businesses to effectively manage the complaint process and use all compensation strategies, especially the apology strategy, in order to compensate for service failure which negatively affects their quality and image perceptions.