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J4  2014, Vol. 11 Issue (6): 876-    DOI:
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Customer Perceived Service Failure and Compensation Expectation: Taking Chinese Catering Industry as the Background
YUE Ying,WAN Yinghong,CAO Xiaopeng
Xi’an Jiaotong University, Xi’an, China

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Abstract  Based on customer value theory and customer satisfaction, this paper reveals customer perceived dimensions on “explicit and implicit” service failure from the customer’s perspective. According to “means-ends” theory, and under the principle of “reciprocity transactions”, customer perceived service compensation expectation model is constructed. Taking catering service as the background, the paper analyzes the dimensions on service failure and three models on service compensation expectation. Empirical findings provides service recovery improvement for service providers to retain customer satisfaction and trust by reducing service failure and compensation cognitive biases between customer and companies.
Key wordsservice failure      service compensation      customer cognition      service contract      psychological contract     
Received: 04 March 2013     
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