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Fatal Service Failures Across Cultures

Abstract This study tests the existence of service failure and recovery categories, previously defined in the United States within the Chinese cultural setting of Taiwan. The CIT method was applied and found a high similarity between U.S. and Taiwan restaurant failure types and recovery strategies, while some unique differences were discovered, suggesting a uniform approach to service may benefit international restaurant chains. Extending previous research findings, this study describes specific failure type and recovery strategies that stand out as fatal in leading to a level of dissatisfaction that cannot be recovered from and that increase in severity if ignored. These fatal failures are also shown to be more malleable to recovery strategies than non-fatal failures. This leads to increased opportunity for moderation, or amplification, of the negative impression the customer takes away from the service incident. Catastrophe theory is applied in explaining this differential reaction to failure types. Restaurant managers are encouraged to empower service employees so that non-fatal incidents can be prevented or quickly dealt with through low-cost and effective recovery strategies while establishing policies to identify and then reduce the negative consequences of fatal incidents that require more costly recovery efforts.