Post-recovery satisfaction and customer loyalty: a study on service recovery at Shwapno, Bangladesh's leading retail chain

Abstract

This study examines post-recovery customer happiness among customers of Shwapno, one of the largest retail chains in Bangladesh. It focuses on how justice and courteous treatment influence customer loyalty following service failures. The study assesses distributive justice, interactional justice, customer satisfaction, likeability, reconciliation, repurchase intention, and word-of-mouth within the frameworks of justice theory and relationship marketing. Using structured questionnaires, a quantitative cross-sectional survey was conducted among 100 customers in Dhaka. Although reliability was relatively weaker for satisfaction and behavioral intentions, it was adequate for distributive justice, interactional justice, and reconciliation. Correlation analysis supported all the proposed hypotheses, demonstrating that distributive and interactional justice positively influence reconciliation and satisfaction, while customer satisfaction significantly predicts repurchase intention and reduces negative word-of-mouth. The findings suggest that service recovery should focus not only on transactional solutions but also on equitable outcomes, respectful communication, and the development of emotional trust. Despite limitations related to the study's scope and sample size, the research provides valuable insights for improving service recovery strategies in Bangladesh's growing retail sector.