The main reason behind this thinking is that successful recovery of a faulty service increases the assurance and confidence from the customer.
When she calls the airline, they apologise and offer her another flight of her choice on the same day, and a discount voucher against future travel.
[4] Since the concept was introduced in the early 1990s, a number of empirical studies have sought to establish when and under what circumstances the paradox operates in practice.
[10] Service failures can be categorised according to the following typology:[11] When consumers who have suffered as a result of service failures, seek redress, they are seeking some type of perceived justice defined as the process in which "consumers weigh their inputs against their outputs when forming recovery evaluations."
One study concludes that although Service Recovery Paradox exists, and its effects are significant, it is a very rare occurrence and it should not have any managerial relevance.
Another conclusion was that the effect was most likely to occur when a number of conditions were met, such as the customer considering the failure not to be serious and to be out of the firm’s control.