Retaining Customer Loyalty Through Implementation of Recovery Strategies in Food and Beverage Industry – Case Study of Fine Dining Operation in Jakarta

Prasetyo, Adhiatma Jodie and Are, Robert La (2019) Retaining Customer Loyalty Through Implementation of Recovery Strategies in Food and Beverage Industry – Case Study of Fine Dining Operation in Jakarta. Bachelor thesis, Swiss German University.

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Abstract

Excellence is the absolute prerequisite in fine dining because the prices charged are necessarily high. Therefore, service error/service failure occurrence in fine dining operation is highly tend to be avoided. However, as a report stated that 60% of restaurants fails within the first three years of their operation, and it was identified that service failure within the operation were among the roots. Therefore, in order to avoid customer dissatisfaction within an establishment, a service recovery action is very crucial to be implemented in order to alter the customer dissatisfaction to satisfaction. Thus, the purpose of this research is to explore the correlation between service and customer loyalty as well as to explore ways or strategies in service recoveries implementation that would effectively influence customer loyalty. Based on the research findings, it reveals that slow/unavailable service, wrong order, and product quality were identified as the most happening issue in service failure, while apology, item replacement, and management intercession were the most popular recovery strategies leading to customer loyalty intention. Hence, the result of this study indicated that recovery strategy has an impact of 42% towards customer loyalty intention.

Item Type: Thesis (Bachelor)
Uncontrolled Keywords: Service Failure ; Recovery Strategies ; Customer Loyalty ; Food and Beverages Industry
Subjects: H Social Sciences > HF Commerce > HF5415 Consumer Behavior
T Technology > TX Home economics > TX901 Hospitality industry
Divisions: Faculty of Business Administration and Communication > Department of Hotel and Tourism Management
Depositing User: Adityatama Ratangga
Date Deposited: 19 May 2020 03:02
Last Modified: 19 May 2020 03:02
URI: http://repository.sgu.ac.id/id/eprint/433

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