Service Recovery Paradigm for Innovative Banking

Purpose- This paper aim to look at the relationship between service quality and customer satisfaction, and the impact of CSR on customer satisfaction, the impact of customer satisfaction on word-of-mouth, the impact of customer satisfaction on loyalty intention. This paper also compares the effect of service quality across different types of commercial banks, including state-owned commercial banks and city commercial banks, using SERVQUAL model. Design/methodology/approach- The sample is made up 368 bank customers, 196 from stated-owned commercial banks and 172 from city commercial banks from different cities of Guangxi, China. The data have been collected using the structured questionnaire. T-test, F-test, Crosstab analysis and multiple regression be used for analyzing data. Findings- The result shows that perceived service quality is positively related to customer satisfaction, the results reveal that the responsiveness, assurance and empathy have highest impact on customer satisfaction. There is a significantly different perception of service quality between state-owned commercial banks and city commercial banks. Customers of city commercial banks has higher perceived service quality. On the other hand, this paper finds that older people of respondents are more satisfaction and more loyalty then younger respondents. This study also finds that CSR is positively related to customer satisfaction, customer satisfaction is positively related to word-of-mouth, customer satisfaction is positively is positively related to loyalty intention. Originality/value- First, this paper conducts a survey of commercial banks in China banking industry, and analyses the difference in perceived service quality between state-owned commercial banking and city commercial banking. It could be very useful from the managing marketing perspective in increase bank competitiveness. Second, this paper examines Chinese commercial banking service quality and the effects of every factors on customer satisfaction by quantitative analysis method. The result is helpful for improving customer satisfaction and preventing customer defections. Final, this paper the investigates level of CSR activity, customer satisfaction, word-of-mouth and loyalty intention, by studying customers’ behavior. The results could provide a suitable direction in order to meet customers’ demand trend.

As technology advances, the pace of globalization accelerated in 2002, Taiwan formally joined the WTO, the restrictions have been removed, the industry becoming more and more intense competition, resulting in the era of low-profit businesses, the customer transaction process between short the relationship between customer loyalty culture is not easy, how to enhance customer loyalty and gain market leadership position to create a stable and more excess profits, the industry has become a key factor in successful. In recent years, as Taiwan's financial industry has transformed the financial services sector, who also face many competitors, financial product homogeneity is high and decress many restrictions, with the trend of international capital, but also experienced the Asian financial crisis in a century financial tsunami, in another transformation into a risk-free fee income of the bank wealth management business be greatly affected. So how to enhance corporation image and restore the trust of customers is the urgent issue. Banking and wealth management businesses in particular rely on the maintenance of customer relations, to develop customized marketing and services to enhance customer loyalty, increase profitability of banks. In this study, the subjects for the Taipei area of wealth management customers to sample survey conducted to explore the banks corporate image, relationship marketing, commitment to customer loyalty relevance, by the analysis results of the industry as a bank of wealth management marketing. The results of empirical analysis, this study found that：(1) wealth management business in the Taipei area between customer main emphasis on the domestic banks and investment are more average proportions, and amounts, showing most of the customers business or finance emphasis on domestic banks, in major banks and investment ratio between the amount of customers also large the space to work on. The customer’s trust the bank the higher proportion of investment and higher. (2) Customers better perceived image of banks and bank-customer relationship marketing more closely, it will increase the long-term relations will, when the customer contacts the bank the better the overall experience, the banks meet the individual needs of relationship marketing, in the transaction process will be reduced the uncertainty of each other, would effectively increase the bank's trust and commitment with customers, thus increasing long-term relations will. (3) When customers have long-term contacts and firm commitments with the bank, that will incrence the long-term customer loyalty. Finally, this study suggests: to enhance customer loyalty must be to maintain and improve good corporate image, in the course of dealing with customers, developing marketing strategies in different segments, and use customer relationship management information system to establish the integration of sales and service strategy, the integration of business information used as reference to further expand the business to develop and maintain long-term customer relationships will enhance the long-term customer loyalty.

The study aims to determine the effectiveness of the service of bank employees in one of the leading private banking institutions in Cagayan de Oro City which is Metropolitan Bank and Trust Company CDO Main Branch located at Corrales Sts, Cagayan de Oro City. Likewise, to determine if the service quality rendered to clients are effective in terms of client satisfaction, specifically in their satisfaction and loyalty towards the bank. This study has the following objectives: 1. To identify the profile of the respondents in terms of their age, gender, civil status, frequency of bank visit and type of account; 2. To determine the effectiveness of service quality of bank employees in terms of time management and problems or concerns accommodation; 3. To determine the client relationship in terms of satisfaction; and 4. determine the client relationship in terms of loyalty and satisfaction. Keywords: Service quality, client relationship, banking institutions

The aspect of customer loyalty is considered to be one of the important factors driving an organization’s longevity in today’s marketplace, as loyal customers show the desire to buy more the willingness to pay higher prices and engage in spreading the favourable word of mouth. Customer loyalty, along with customer satisfaction, is a consequence of three factors, especially service and product quality. Compared to existing customers, it is a commonly recognised notion that firms pay higher costs for marketing to new customers as the acquisition of new customers is perceived to be ten times more expensive than maintaining existing customers. It can be seen, despite understanding this, which many companies are still struggling to effectively maintain their customers. In view of this scenario, the current research upholds the objective of investigating the connections that take place in the context of the retail industry in Malaysia in the midst of the factors indicated above and consumer loyalty. Many hypotheses were built from a theoretical model for this reason, and the process that was applied to test them was also highlighted. Later on by means of questionnaires, the suggested hypotheses were checked. The findings of the empirical study revealed that service quality, product quality, and consumer satisfaction are three distinct constructs that are combined to measure customer loyalty, indicating that service and product quality have a comparatively greater effect on variable customer loyalty. It is suggested that future initiatives should be aimed at evaluating the effect on consumer loyalty of customer relationships, customer preferences and engagement, as well as extending research to other sectors in order to gain greater insights.

This research approach is a case study supported by a survey that collects information on factors related to the research variables, namely the variable service quality, customer satisfaction and loyalty. The data sources used are primary data and secondary data. Based on the above calculations, the number of samples taken at the BRI Bank Office Katamso Unit. With a population (N) of 229 people with an error rate (e) = 10%, the sample size (n) is 59 people. Test the requirements of the analysis, before performing statistical calculations on the dependent variable and the independent variable, the data normality, data linearity and homogeneity of the questionnaire results were first tested. Conducting a series of hypothesis testing used predetermined statistical analysis techniques, namely: multiple regression analysis to see the effect of the service quality variable (X1), the satisfaction variable (X2), on the customer loyalty (Y) of BRI. The F test is used to test the effect of variables X1, X2, simultaneously on variable Y. Based on the research results, the results obtained are 1) Service quality has a significant effect on customer satisfaction, this is indicated by looking at the coefficient value of P < 0.05 or P = 0.016; 2) service quality indirectly contributes significantly and positively to customer loyalty; 3) Customer satisfaction, which is the intervening variable, also shows significant and positive results, this is evidenced by looking at the value of the significance coefficient of P <0.05 or P = 0.032. While the results of the R2 value of 31.89% explained that there were still about 60% of the unexplained variables in this study that formed customer loyalty. Improving the company's image is also an important note that needs to be improved to provide added value to customer loyalty at the BRI Bank customers.

KTMB has been operating in Malaysia for decades, but the public transportation environment is changing, putting pressure on the industry to improve its services and facilities in order to satisfy customers. As a service-oriented corporation, it is critical for KTMB to preserve its reputation as the preferred high-speed rail service provider. Accordingly, this study intends to examine the impact of variables pertaining to service quality associated with KTMB service on customer satisfaction. Furthermore, this study examines the relationship between customer satisfaction and customer loyalty. Using the survey method, this study collected data from 406 KTM users, and subsequently, the data was analysed using SPSS. The finding of the analysis reveals that service recovery is the most influential factor towards customer satisfaction. Also, customer satisfaction significantly influences customer loyalty. In conclusion, the findings of this research assist the management of KTMB in enhancing customer satisfaction and loyalty.

Banking business organizations in today’s dynamic marketplace are shifting from original marketing philosophies and strategies to the adoption of customer centric initiatives that seek to understand, attract, retain and build long term strong relationship with profitable customers. Besides, the Technology adoption by the banks has enabled the use of different technology tools in banking, which together may be categorized under a broad umbrella of electronic banking. E-banking can be defined as the deployment of banking services and products over electronic and communication networks directly to customers.The research results showed that there were 300 customers of Vietcombank (VCB) that interviewed and answered about 18 questions. The researcher had analyzed KMO test, the result of KMO analysis used for multiple regression analysis. There are three components following: Assurance; Information Provision and Web design affecting the customer satisfaction with the internet banking service quality of VCB with significance level of five percent. The research results were processed from SPSS 20.0 software. The parameters of the model estimated by Least - Squares Method tested for the model assumption with 5% significance level.

This study explores the dimensionality of customer satisfaction with complaint handling in the service failure and recovery context. It provides evidence of construct validity for a new multi-item measure of e-commerce customer satisfaction. Items for this measure were developed by reviewing the complaint handling and service recovery literature. Confirmatory factor analyses supported a 5-factor structure to this measure: 1) recovery and return; 2) employee dealing and timely response; 3) complaint solution; 4) payment and security; and 5) website-related information. The structural equation also demonstrated predicted validity for the e-commerce customer satisfaction dimensions to complaint handling and service recovery as each of these five factors was verified to have a positive relationship with overall complainant satisfaction. The study concluded that online businesses should develop service recovery strategies that encompass monetary rewards in the context of a solution to the complaint.

PurposeThe study sought to assess the nexus between components of perceived justice and satisfaction, trust and loyalty with service recovery.Design/methodology/approachSurvey data were gathered from a sample of 300 clients from 8 midscale hotels in Ghana. Partial least squares structural equation modeling was used to test the hypothesized relationships.FindingsPerceived distributive justice has no effect on customer satisfaction with service recovery. Interactional justice had the greatest effect on customer satisfaction with service recovery. No significant relationship was found between procedural justice and trust. Also, trust had a significant effect on loyalty post-service recovery.Research limitations/implicationsEmpirical data were taken from one service industry; thus, it is reflective of only that service industry, generalizations should be mindful of our context bounded results.Practical implicationsThe study offers suggestions for managers to leverage the dimensions of perceived justice in order to build trust and loyalty post-service failure. Hotels should treat customers with fairness and respect at every point of contact during the service recovery process. Reward based compensation should be offered to customers to build trust.Originality/valueThe study is among a few to assess service recovery and its link with loyalty from a developing economy context. The study revealed that perceptions of justice with service recovery influences customer loyalty and satisfaction post-service recovery and extend the understanding of service recovery in the Ghanaian hotel sector.

The purpose of this paper is to measure the relationship between the functional service recovery and technical service recovery towards customer satisfaction in banking industry. Both functional and technical is equally important in service quality especially in service recovery. The competition among the banking industry especially in major cities in Malaysia is very crucial. The study was conducted in Kuala Lumpur based on the top 10 banks based on the market share. 250 questionnaire distributed but only 212 were usable for the data analysis. The results indicated that both functional and technical service recovery plays important role towards customer satisfaction. Banking services or any financial institution should have focused on both elements in order to provide excellent services that may contribute to customer satisfaction and in the long term lead to customer loyalty

Based on the fairness theory, this paper takes perceived fairness as an intermediary variable to study the impact of online service recovery on customer satisfaction and repurchase intention. In the research process, the service recovery is divided into three dimensions of material recovery, spiritual recovery and positive responsiveness, and the perceived fairness is divided into three dimensions of distributive fairness, procedure fairness and interaction fairness. The corresponding scales are designed for questionnaire survey and data analysis, it can explore the impact of perceived fairness as a mediating variable on service recovery and customer satisfaction; the impact of perceived fairness as a mediating variable on service recovery and repurchase intention; and the impact of customer satisfaction on repurchase intention. Finally, the following findings and conclusions are drawn: material recovery and spiritual recovery positively affect distributive, procedural and interactive fairness, while positive responsiveness has no significant impact on distributive fairness, and only positively affects procedural fairness and interactive fairness; distributive, procedural and interactive fairness are equally positively affects customer satisfaction, but has no significant effect on repurchase intention ; customer satisfaction positively affects repurchase intention. Based on the above conclusions, enterprises can increase their emphasis on service recovery, and at the same time pay attention to the fairness of service recovery, treat all consumers fairly, formulate a recovery plan that satisfies consumers for them to choose, increase customer satisfaction, and increase repurchases ratio, thereby improving corporate performance.

The purpose of this research are: (1) To know the quality of service, (2) To know the handling of complaints, (3) To know the satisfaction of customers' business credit, (4) To know the influence of service quality to customer satisfaction, 5) To know the effect of the handling of complaints on the satisfaction of business credit customers, (6) To determine the effect of service quality and handling complaints together on the satisfaction of customers' business credit. The subject of this research is customer loan business people in PT Bank Rakyat Indonesia Unit Rejoso Selatan in Nganjuk with 90 customer respondents. The method used in this research is quantitative approach. Research data obtained by questionnaire, observation, and documentation. The analysis technique used is multiple linear regression with F test and t test to test the research hypothesis. The results showed that, with the fulfillment of validity, reliability and classical assumption test, hypothesis t test proved the quality of service and handling complaints have a positive and significant impact on customer satisfaction of people's business credit. F test hypothesis proves that together, multiple regression model strengthen correlational correlation of service quality and handling of complaint to customer satisfaction of people's business credit.

: Design of Customer Relationship Management Web-Base Application for PT Bank Internasional Indonesia, Tbk. branch of Pontianak. This study aims to to develop an CRM application to provide the best services to their customers, and than to ccommodate some complaints from the customers, and manage relationships with customers in order that the customer loyalty is remains awake and does not switch to another bank. Designing CRM begins with identifying the needs of the system, and than created the system design with UML diagrams. The result is an web-based application of CRM that has the facility to manage customer data, banking product display, and display the frequently ask questions FAQ). It also includes complete customers personal data which includes date of birth, hobbies and habits of the customer must be clearly understood by the CSO or relationship officer to support services exclusively to customers who have given a major contribution to the BII branch of Pontianak. Keywords : customer relationship management, web-based application, customer services

Service is very important factor in the service industry. Improving service quality can retain consumers and increase satisfaction. This study aims to examine and explain the magnitude of the effect of service recovery on customer satisfaction levels. The object of this research is Panin Bank KCU Pematangsiantar. This research is a quantitative study with a sample size of 97 customers using a purposive side. The collecting data method is using a questionnaire. The analysis technique uses a simple linear regression analysis model. Data are testing for validity test, reliability test, normality test, and coefficient of determination test. The results of the SPSS test showed that there was an effect of service recovery of 58.8% on satisfaction, and the remaining 41.7% influenced by other factors not examined in this study. The t-test shows that there is a signifikant positive effect on customer satisfaction. The results of this study are to provide information to management in making service improvement policies. For subsequent research, the research variables can be developed like service quality and customer relationship management.Keywords: Service Recovery, Customer Satisfaction.

The impact of service disruptions to critical utility services due to natural disasters is evident during delays in emergency responses and humanitarian relief, especially for urban populations with highly interdependent infrastructures. Aside from health and social impacts, failing to address these disruptions would inevitably lead to customer dissatisfaction and switching loyalty, adversely affecting service providers’ profitability. Thus, providers must effectively respond to this service failure resulting from disruptions to retain the loyalty of their existing customers. To this end, a theoretical model to explain customer loyalty to internet service providers amidst a disaster-induced disruption through integrating customer loyalty, customer satisfaction, service quality, service innovation, service recovery, perceived value, and brand image is proposed in this work. This study uses the case of a massive disruption caused by Typhoon Odette (Rai) in central Philippine urban districts to empirically test the efficacy of the proposed structural model. A total of 584 responses were utilized in the partial least squares structural equation modeling (PLS-SEM) to derive significant relationships between the constructs. The findings suggest that customer satisfaction strongly predicts customer loyalty during a disaster. Furthermore, efforts towards service recovery do not translate to customer loyalty, but negatively influence customer satisfaction. Moreover, service innovation significantly affects customer satisfaction but negatively influences customer loyalty. Additionally, perceived value does not support customer loyalty but positively affects customer satisfaction. Lastly, brand image and service quality influence both customer satisfaction and loyalty. These findings offer managerial insights for informing the design of a reliable service recovery system, efficient project management planning, practical service innovation, and comprehensive service design. The future research directions are discussed.