The service recovery paradox shows that when there is a service failure with effective recovery, loyalty can increase.
What is service recovery paradox?
The service recovery paradox (SRP) occurs when a customer has a higher positive opinion of a business after the business has fixed an issue with their service than they would have if non-faulty service had been supplied. The key justification for this way of thinking is that a customer's assurance and confidence are increased when a defective service is successfully recovered.
Since service failure is one of the key factors in customers' switching behavior and effective recovery from these failures is viewed by some as essential for customer retention, understanding SRP has been a priority for both researchers and management. For service providers who cannot guarantee an error-free service, recovery is extremely crucial.
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