THE EFFECTS OF SERVICE RECOVERY STRATEGIES ON CREDIT CARDHOLDER’S LOYALTY
Keywords:
Service Recovery Strategies, Loyalty, CreditCardAbstract
This research aims to study service recovery strategies effecting on cardholder’s loyalty. It is exploratory research. The questionnaires were used for data collection taken from the sample 407 of cardholders which happened service failures of transaction and they informed all feedback to issuer. The data analysis included Percentage, Mean, Standard Deviation and Multiple Regression Analysis at the statistical significance level of .05. The result of hypothesis testing demonstrated that compensation strategy in the customer did not participate transaction event, merchandises/ services not received event, duplicate transaction and merchandises/services not as described event had a significant effect on repurchasing with standardized regression coefficient 0.33, 0.32, 0.31 and 0.22, respectively. Moreover, compensation strategy in the event of duplicate transaction had a significant effect on word of mouth and repurchasing with standardized regression coefficient 0.31. Apology strategy in merchandises/ services not received event had a significant effect on word of mouth with standardized regression coefficient 0.35.
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