Effect of Service Recovery towards Customer Satisfaction in Banking Industry

Document Type : Research Paper


1 Senior Lecturer, Business School, University Kuala Lumpur, 1016, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia.

2 Senior Lecturer, Faculty of Business and Management, University Teknologi MARA, Puncak Alam, Selangor, Malaysia.

3 Senior Lecturer, Business School, Universiti Kuala Lumpur, 1016, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia.

4 Lecturer, Department of Management Studies, UCSI University, Kuala Lumpur, Malaysia.

5 Senior Lecturer, Universiti Kuala Lumpur, 1016, Jalan Sultan Ismail, 50250 Kuala Lumpur, Malaysia.


The purpose of this paper is to measure the relationship between the functional service recovery and technical service recovery towards customer satisfaction in banking industry. Both functional and technical is equally important in service quality especially in service recovery. The competition among the banking industry especially in major cities in Malaysia is very crucial. The study was conducted in Kuala Lumpur based on the top 10 banks based on the market share. 250 questionnaire distributed but only 212 were usable for the data analysis. The results indicated that both functional and technical service recovery plays important role towards customer satisfaction. Banking services or any financial institution should have focused on both elements in order to provide excellent services that may contribute to customer satisfaction and in the long term lead to customer loyalty


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