The impact of the recovery strategy, recovery time and organizational level of recoverer in employee-related failures on post-purchase behaviour of the customer

Customer retention is formed by focusing on existing customers to build long-term relationships with them. In the end, this relationship will result in the promotion of businesses. One of the influencing factors in improving customer satisfaction and establishing long-term relationships with them is service recovery. This study aims to evaluate the effect of the recovery strategy, recovery time, and recovery status of employees in employee-related failures on customer’s after-purchase behaviour.

 The statistical population of this study consisted of the customers of the agriculture bank (Keshavarzi) in Tehran. First, a semi-structured interview was conducted with 50 customers from different branches of the agriculture bank to identify the most frequent type of failure. Then a sample of 392 people was selected using a stratified sampling method. The research data was gathered by taking the questionnaire after its validity and stability were confirmed by some experts and professors. Data analysis was performed in the first part using content analysis; the second part was conducted using general linear modelling (GLM).

Findings indicated that the type of recovery strategy does not affect the satisfaction level and word of mouth. Also, customer loyalty has a direct effect due to the type of failure. Recovery time based on the type of failure is directly related to the satisfaction level, customer loyalty, and word of mouth. For the failure type, the recoverer's personality has a direct impact on the satisfaction level. It also does not affect customer loyalty and word of mouth. Also, recovery strategy along with recovery time significantly affect customer loyalty due to the type of failure.

The main limitations of this research was the lack of segregation of recovery based on the type of service used by the customer. This non-segregation can range from simple services such as a password change in the cash cards to advanced and sensitive service such as issuing a warranty. Lack of control over the customer's previous relevant experience of recovering similar breaches by the bank or similar competitors is also an ignored issue in this study. Finally, ignorance of different protest methods is another research limitation. A protest can have various forms (verbal expression of objections to complaints to legal authorities), which can be another limitation of this research. Investigating the post-recovery implication of failure (the degree of importance to the customer) in customer satisfaction is suggested as a future study subject. The customer's previous experience in failure recovery in the same organization or competing organizations is another suggestion.

 Given that the position of the recoverer, both directly and interactively with time, affects customer satisfaction and loyalty, service providers must select the most appropriate person to implement recovery strategies in the case of failure. Organizations need to train their employees with job-related and behavioural skills. It empowers them in responding appropriately to different customer needs, different personalities, and different situations. Unlike customers who complain to higher authorities, others are less likely to request compensation from the organization. In this way, executives can devote more time to the organization's strategic plans. According to the effect of time, both directly and in combination with position and strategy on customer satisfaction and loyalty, the service provider should carefully select the recovery time. Recovery strategies, such as apologizing, should be done rapidly. Other types of recovery strategies are employed after the service completes. Accordingly, in the general policies of banks and especially the target bank of this research and considering specific customers, separate units should be considered for the position of the recovering person. Based on the type of service failure, this person should choose the best option (apology or justification) at the best time (immediate or after service).

According to the results of this study, apologies or justifications are not always appropriate. Bank managers should consider adaptation to different situations and holding highly critical power in defining the position of recovering people. As a result, this action can create positive associations in the customers' minds, and to some extent, can cover the service failure by an optimal strategy at the right time. Accordingly, the position of individuals and their requests are recognized.

Service recovery seems more important than delivering customer service. So this study has tried to cover customer dissatisfaction by examining the position of the recoverer, recovery strategy, and recovery time. In other words, customers are the most significant capitalists of any business, and their satisfaction and efforts to create maximum satisfaction should be a priority of any business.