DOI: 10.36347/sjebm.2014.v01i03.004

Pages: 98-104

Abstract: When customers do not feel satisfaction because the service was not delivered well as the customer’s expectation, the service failures occur. And the same time, the customer’s complains will be happened along with the service failure. How to effectively rectify a service delivery failure via a service recovery will be an important consideration during the competitive and dynamic environment. And, if customers are satisfied with the complaints handling, consumers’ repurchase intention and WOM effect may be kept or enhanced, especial for positive WOM (PWOM) and Negative WOM (NWOM). Besides, how to address the possible non-linear correlation among service failure, service recovery, repurchase intention and PWOM/NWOM effect will be an important consideration to managers’ decision-making. In this study, a modeling approach by using back propagation neural networks (BPNN) technique is proposed to achieve such non-linear modeling. Besides, an illustrative example owing to LOHAS restaurant industry at Taiwan is applied to demonstrate the rationality and feasibility of the proposed approach.