In the 21st century, the business world today require a high level of service quality to ensure that customer 's loyalty are retained and bringing more customer into their business. A service that is either good or bad has given a big influence in customer 's satisfaction and at the same time giving different result in the competitive market place. However, certain services that relate to the employees action and customers need and want will are sometimes outside the control of manager. If a mistake is done by an employee unintentionally towards the customer, this will lead to service failure and therefore service recovery action must be taken to fix the situation and to ensure that customer will be happy again.
In general, service failures mostly occur at critical incidents in the service encounter between the service employees and the customers. Customer 's satisfaction level depends on the positive and negative critical incidents. At the same time, critical incidents allow organization to do changes and improvement in the service delivery process. Doing correction on every failure point that will affect customers satisfaction in a service encounter is compulsory. Besides that, managers should sustain the positive values in employees that customers adore from the service. However, a service encounter model needs to be develop to examines customer satisfaction through critical incidents that can be used to manage service delivery process, dissatisfaction response and customer loyalty.
Customer’s satisfactions are normally gained by the service quality given by a service organization. The higher the quality given to customer, the higher the chances that the customer will come back for the service and this will lead to customer’s loyalty to wards the service organization. Vice versa, if the
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