A Study on the Relationship between Recovery Fairness and Customer Loyalty in the Beauty Service Industry in Case of Service Failure

In order to find out the effect of recovery fairness due to service failure experience on customer loyalty, a self-written online survey was conducted for consumers who have experienced service failure when using beauty services in Seoul and the metropolitan area. The data collection period is from 1st of August to 30th of August, 2022, and 351 copies of data were finally analyzed. The components of recovery fairness were derived from three factors: interaction fairness, procedure fairness, and distribution fairness, and customer loyalty was classified into attitude loyalty and behavioral impulsiveness. As a result of the analysis, the difference in recovery fairness according to service failure dissatisfaction was found to be unfair as the dissatisfaction level was higher. In the relationship between the effect of recovery fairness on customer loyalty, it was confirmed that the higher all sub-factors, the higher the customer loyalty. The group with high complaints about service failure showed a higher relative influence of recovery fairness on customer loyalty than the group with moderate and satisfactory responses. Through this study, it can be said that rapid and appropriate recovery process procedures and compensation in response to service failure can prevent customer departure. In addition, proper recovery fairness can be an important factor in forming loyalty higher than before service failure. It is expected that the results of this study will be used to identify the failure of beauty services and to establish and respond to discriminatory sales strategies for consumers.