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All Journal JURNAL MANAJEMEN BISNIS Jurnal Ekonomi Manajemen Sistem Informasi Budapest International Research and Critics Institute-Journal (BIRCI-Journal): Humanities and Social Sciences Proceeding National Conference Business, Management, and Accounting (NCBMA) International Transactions on Education Technology (ITEE) Proceeding of International Conference on Entrepreneurship (IConEnt) Blockchain Frontier Technology (BFRONT)
Oscar Jayanagara
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Religion Arts Humanities Computer Science & IT Control & Systems Engineering Economics, Econometrics & Finance Education Library & Information Science Social Sciences

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Service Failure and Recovery: The Best Defense Is a Good Attack Dewi Wuisan; Hendra Achmadi; Oscar Jayanagara; Sylvia Samuel; Gracia Shinta S. Ugut
Proceedings of the International Conference on Entrepreneurship (IConEnt) Vol. 5 (2025): Proceedings of the 5th International Conference on Entrepreneurship (IConEnt)
Publisher : Universitas Pelita Harapan

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Abstract

Service failure is an inevitable aspect of any service-oriented business. When failures occur, the organization’s response is critical in shaping customer perceptions, satisfaction, and loyalty. This paper explores the notion that "the best defense is a good attack" in the context of service failure and recovery strategies. Proactive recovery initiatives, such as clear communication, swift actions, and personalized solutions, often outperform reactive or passive approaches in mitigating the negative effects of service failures. By employing a strategic recovery process, businesses not only address the immediate dissatisfaction but also create opportunities to strengthen customer relationships and even enhance brand reputation. The study examines key components of successful service recovery, including the role of empathy, transparency, and empowerment of frontline employees. It highlights the importance of preemptive measures such as employee training and the establishment of service recovery protocols. Furthermore, this paper discusses the psychological impact of recovery efforts on customers, emphasizing the significance of perceived justice—distributive, procedural, and interactional. Drawing from real-world examples and empirical studies, this research provides actionable insights for managers aiming to transform service failures into opportunities for improvement and differentiation. By adopting a mindset of proactive engagement, businesses can turn potentially negative experiences into moments that foster customer trust and loyalty. Ultimately, the findings suggest that an offensive approach in service recovery is not merely damage control but a strategic advantage in the competitive service landscape.
Co-Authors Albert Dermawan Yusup Alice Angelina Bitsy Andita Rizky Cinanthia Chandra Lukita Darmanto Darmanto Gracia S Ugut Hendra Achmadi, Hendra Kelly Azaryas Chen Meita Istianda Michael Aaron Tianda Natalie Septiani Qorina Putri Srisantoso Sylvia Samuel Wuisan, Dewi