Service Recovery and Competitive Positioning: The Moderation Effect of Technical Efficiency

This recipe attempts to provide further insight into service recovery by proposing an extended framework that captures the main effects between recovery alternatives and indicators of competitive positioning as well as the moderation effects introduced by technical efficiency. Two sets of questionnaires with almost similar questions were administered amongst teachers of Federal Government Colleges (FGCs) and senior officers of telecommunications firms in the south-eastern Nigeria, where Global Systems for Mobile Communications (GSM) and at least one Code Data Multiple Access (CDMA) have network coverage. Analyzing the data using multiple regressions, Pearson’s product moment correlation coefficient, and structural equation modeling; the interactions between the quintiles of the four recovery alternatives and the indicators of competitive positioning were direct (though some were inverse) and statistically significant and moderated by technical efficiency. Thus, the dimensions of service recovery explained varying relationships with competitive positioning. The paper proposes proactive and relational recovery and specifically simple and hassle-free recovery, timely and value-creating redress, and realistic user interface.

Key Words: Service recovery; competitive positioning; mobile telephony.

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