The Service Recovery Paradox in a Call-Center Context: Compensation and Timeliness in Recovering Mobile Customers

After a service failure, customers want to be treated with fairness. They expect the firm to perform quickly without having to wait for the failure resolution. The primary goal of this study is to investigate whether the service recovery paradox (SRP) exists. In addition, the study also explores whether timeliness and compensation can influence it and whether gender differences occur. SRP appears as an important phenomenon to both academics and practitioners because it is seen as an opportunity to achieve higher levels of customer satisfaction through effective service recovery processes. An empirical study of mobile telecommunications customers´ complaints, in a call center setting, validated the influence of timeliness and compensation on SPR. It was also found that no differences between men and women were noted on the above relations. Managers must understand that quick failures resolution and compensation will not only enhance customer satisfaction but also prevent potential switching behavior.