SERVICE RECOVERY STRATEGIES AND CUSTOMER SATISFACTION IN PUBLIC PARASTATALS IN UGANDA

 

SERVICE RECOVERY STRATEGIES AND CUSTOMER SATISFACTION IN PUBLIC PARASTATALS IN UGANDA

 

Service failure have been the focus of many researches even though they been focusing on the companies’ reputation without considering customer satisfaction especially in public parastatals. Service failures occur for many reasons like service unavailability when promised, late delivery, slow delivery, poor execution or rude employees and cause negative feelings to customers. This study examined service recovery strategies and how they influence customer satisfaction in public parastatals in Uganda.

This study adopted a correlational research design with a targeted study population of 5000 respondents from which a sample of 357 respondents were randomly selected. The semi-structured self-administered questionnaires were used. Results revealed that all the three aspects had associative positive significant relationships: distributive justice and customer satisfaction (r=0.936***; p=0.000; Adjusted R-square= 0.877); procedural justice and customer satisfaction (r=0.923***; p=0.000; Adjusted R-square=0.853); interactional justice and customer satisfaction (r=0.815***; P= 0.000; Adjusted R- Square=0.663). Respondents agreed on all the statements of the three aspects that; distributive justice, procedural justice and interactional justice are being practiced (Mean= 3.29; SD= 1.448; Mean= 3.26; SD= 1.424 and Mean =3.28; SD= 1.512 respectively). In conclusion, service recovery strategies significantly affect customer satisfaction. All the three aspects are predictors of customer satisfaction. Therefore, there is need to emphasis interactional justice strategy in dealing with customers.

There is need to develop effective service recovery systems that can recognize the inconveniences that service failures creates to customer, hence conforming to notions of procedural justice strategy and “outcome fairness” which is sometimes referred to as distributive justice strategy.

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