THE IMPACT OF SERVICE RECOVERY ON CONSUMER LOYALTY WITH A MEDIATING ROLE OF CONSUMER SATISFACTION: AN EMPIRICAL STUDY ON THE FAST FOOD INDUSTRY OF PAKISTAN

Abstract

The current study’s purpose is to recognise the links between the approaches of service recovery, consumer loyalty dimensions (behavioural and attitudinal loyalty), and consumer satisfaction concerning the fastfood restaurant sector in Lahore, Pakistan. The researcher has utilised the PLS-SEM (Partial Least Square) method and considered 450 consumers of fast-food restaurants, of which only 430 consumers are in the inclusion criteria. The current study has provided in-depth insights into how effective service recovery 
approaches influence consumer loyalty, covering both behavioural and attitudinal loyalty directly. Furthermore, this study examines how service recovery indirectly impacts consumer satisfaction. The influence of service recovery makes it more efficient for fast-food restaurant managers. Service managers, professionals, and academicians are highly interested in how the fast-food restaurant sector counters the challenges of service failure and consumer discontent in the business. The results show that some approaches to service recovery positively impact customer satisfaction from service recovery and customer loyalty in the fast-food outlet.