EFFECT OF SERVICE RECOVERY (SR) ON CUSTOMER RELATIONSHIP MANAGEMENT, CUSTOMER SATISFACTION AND LOYALTY.

Abstract

The main aim of this emperical study paper is to investigate the effect of  the service recovery (SR) on important aspects on customer satisfaction (CS), customer relationship management (CRM)  and loyalty (CL). This paper  also draws  its attention to service recovery concepts through the customer satisfaction and customer relationship management (CRM) influence the loyalty in manufacturing firms/users.  The study is expected that SR strategy of critical equipment will improve marketing activities of organization in order to keep existing customers and growth the business.  Many suppliers have lost their existing customers, which based on customer satisfaction survey shows that they are satisfied but disloyal, so they easily switch to other companies.These insights are helpful for suppliers service managers faced with system failure and academicians interested in how service providers response to product and service failures. We utilized 88 users to understand perceptions and expectations of several phenomenon by key respondents in different users of Industrial Control System (ICS) in Indonesia. The results of statistical analysis indicated that SR and CRM of supplier played a role and were found to be positively related to customer satisfaction and loyalty.