Service recovery strategies in the brewery industry: some evidence from Kumasi customers.

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Date
November, 2015
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Abstract
Service failures have become inevitable due to various operational and production challenges encountered by businesses, in this case the brewery industry in Ghana. The question therefore is ‘how can businesses ensure that a disappointed customer leaves their premise feeling satisfied and happier than ever, after a service failure has been reported?’ This then leads us to the concept of Service Recovery. This research evaluated the concept of service recovery strategy adopted by both Accra Brewery Limited and Guinness Ghana Brewery Limited and its impact on customer loyalty. The survey method was adopted for data collection where questionnaires were administered to a total number of 120 customer/consumer respondents and 60 employee respondents. Using the one sample t-test, the study identified increasing customer complaints, declining profits, customer defection, and erosion of net working capital as the main indicators of service failure and industrial sickness. The study used the partial least square method to construct the latent variables and examine the hypothesize relationships among them. The study found, customer service and customer relationship management to positively and significantly influence service recovery strategy. The study also found that, service quality, customer relationship management and service recovery strategy all positively and significantly impacted on customer loyalty. It was therefore recommended to GGBL and ABL to organize educational programs that will train frontline employees and equip them with the necessary skill to handle problems when they occur. The study also recommended that, further studies consider examining the indirect relationships between customer service, customer relationship management and customer loyalty through service recovery strategy.
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A thesis submitted to the Department of Marketing and Corporate Strategy of the Kwame Nkrumah University of Science and Technology in partial fulfillment of the award of the degree of Master of Business Administration (Strategic Management and Management Consulting),.
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