Difficulties in the prevential and recovery of failures in service operations have been credited to poor knowledge on their nature. Based on research with customers of goods retail operations in Brazil, the paper identifies perceived service failures, the recovery strategies employed by retailers to remedy them, and the impact of these strategies on resulting customer behavior. Using the critical incident technique, it was possible to identify 13 categories of failures and 11 recovery strategies used by operations. Results suggest that a good evaluation by customers of the recovery strategies adopted by retailers has a positive effect on customer retention.
service failures; recovery strategies; customer retention; retail failures
