Role of Cumulative Satisfaction as Mediator Variable in Relationships between Severity of Service Failure, Service Recovery, and Customer Equity: An Applied Study on ADSL Internet Users of Internet Providers in Greater Cairo

Abstract

The customer is becoming the focus of primary concern for companies in the light of intense competition, and achieved satisfaction has become a strategic objective. Internet companies in Egypt are one of the most important service companies and, in light of competition in the market, they are working on maximizing the value of customers. Due to the nature and characteristics of the services that expose their customers to severe failure in service, including catch up with them financially and morally damaging practices, customer satisfaction is seriously affected, depending on the type and severity of the failure which may lead to the loss of customers who would switch to another competitor and spread negative WOM among friends and acquaintances.
The study employs a virtual scenarios method to test the hypothesis. The findings reveal that cumulative satisfaction of the customer changes with the service recovery provided by the company, that is, when the company provides average or high level service recovery, this will lead to a high level of satisfaction. Also, customer satisfaction for the service recovery increases with the level and method of service recovery, as the successful and effective level and method would represent an opportunity for the company to improve its relationship with customers and upgrade their satisfaction.