Abstract—Because service failure can’t be fully avoided in
the process transmission, understanding the service failure
severity and their impact on customer responses and designing
effective recovery strategies have been recognized as important
problems by both service researchers and practitioners. There
is still a lack of research on the link between service
disconfirmation and the value of a customer to the firm. Also
the previous research on service recovery has not incorporated
important contextual factors, such as the involvement level of
individual differences and the perceived severity of service
failure across customers, into analytical models or empirical
testing. To address the aforementioned knowledge gaps. The
research we would like to focus on building a disconfirmation
theory, we would like to find out the affect from the gap
between of disconfirmation and expectations of service recovery
and perceived performance of service recovery to customer
lifetime value in children English learning material/service. The
empirical result demonstrates that service failure severity can
enhance service recovery expectation in customers’ mind.
Analysis also indicates that both service recovery expectation
and service recovery performance significantly affect service
recovery disconfirmation. Last, service recovery
disconfirmation also influences customer lifetime value
significantly.
Index Terms—Involvement, service failure, children english
learning material, service recovery disconfirmation, customer
lifetime value.
M. C. Lai is with the Graduate Institute of Business Administration
National Taipei College of Business, Taiwan (e-mail:
laimc@mail.ntcb.edu.tw).
F. S. Chou was with the Department of Business Administration,
National Taipei University, Taiwan (e-mail: choufengsha@gmail.com).
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Cite: M. C. Lai and F. S. Chou, "The Relationships among Involvement Level, Service
Failure, Service Recovery Disconfirmation and Customer
Lifetime Value," Journal of Economics, Business and Management vol. 3, no. 4, pp. 452-457, 2015.