The effect of service recovery on customers' satisfaction in e-banking: an empirical investigation

The purpose of this paper is to analyse the service recovery strategies associated with customers' satisfaction level of an Iranian private bank. Therefore, by providing an appropriate framework, the relationship between the service failure, service recovery, customers' satisfaction and their subsequent behaviour is examined. In this paper after a survey on different frameworks in a service failure recovery domain from reviewing of literature, the most appropriate framework based on an Iranian private bank situation has been chosen. Then, the conceptual framework is adapted to the mentioned bank by qualitative case study. Since the main motivation of this paper is to provide empirical knowledge about the service failure and recovery in e-banking, therefore, they are determined and listed based on the frequency rate and the effect on the customers respectively by literature review and field studies in an Iranian private bank. Moreover, by combining two suitable frameworks of service recovery literature and adapted to this bank, a conceptual framework is proposed. Due to the short duration of surveying customers' satisfaction in Iranian e-bank, this paper provides an appropriate framework in order to compensate e-bank errors based on the service recovery literature and field studies on an Iranian private bank.