his service recovery far more easily. In contrast,

his model can be seen as encouraging for hotels, to
use the service recovery paradox. It provides a purpose for service providers
to encourage induce a service failure so that hotels can encourage customers to
complain hence, they can deliver a response that will satisfy their customers.  (Stevenson, 1991) stated that customers who
complain are more likely to use the service in contrast to those customers who
are less likely to complain. For this reason, companies view complaints as a prospect
to satisfy unhappy customers, avoid defections and negative word-of-mouth
communications and lastly retain existing customers which is more cost
effective than attracting new customers (Hess at al, 2003).  

 

However, Oliver (1997) states that the service recovery paradox theory
has been proven unpractical as service failure affects all customers therefore,
it would be impossible to provide a service recovery for every customer and
therefore can holds financial constraints – resulting to failure. According to
Stone (2011) The paradox is rare, therefore can be difficult to
analyse, as the experimental sample size is quite often too small to generate
accountable results.

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Premier Inn,
place their emphasis on convenience as opposed to luxury (Mintel, 2016). This
reduces the level of expectations customers have off Premier Inn thus, enables
Premier Inn to exceed their service recovery far more easily.  In contrast, Hilton are considered a premium,
hotel chain who concentrate on luxury (Mintel, 2016). Customers who pay more
money for a service and in return receive a lower level of service increases
the probability of customer loyalty reducing. Therefore, an effective service
recovery does depend on whether the company accepts their service flaws and the
level of compensation they deliver.

 

Therefore,
Vincent (2007) state that service recovery paradox is only advantageous to
customers who expect an average level of service. This
suggests, that Hilton should not ignore the importance of service recovery in
enhancing customer loyalty by motivating themselves to go beyond their efforts
in service recovery strategies to ensure they retain and enhance their customer
loyalty (Smith & Bolton, 1998). 

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