In pace with the coming of post-industrial society, the social economy is undergoing a transformation from product economy to service economy, in which the service industry becomes the most promising industry with the highest growing speed. Generally, comparing with manufacture firms, service firms have a characteristic of intangibility, hence service management is essentially difficult. Operation mistakes and beyond standard expectations as well as hardware failures, all of above leads to service failures. Once the service failure happened, it not only affected the client loyalty, but also made the negative word of mouth increase as well as the willing of the potential repurchase decrease. So it’s important and meaningful to study tactics s of service failures and service recovery for service firms.
Above all,given an introduction of global research development and comparison between traditional firms and services firms, then introduce the foregoing principles and methods,principles include:attribution theory,equity theory,expectancy theory;methods includes: a conceptual model of service quality, critical incidents technique. After that, the dissertation analysis the elements of cause service mistakes and clients sorting as well as service recovery strategies. Finally,compare to the case study of an electronic commerce company- “Cheng Du Tong” company, the dissertation not only provided suggestions and recommends on the improvements of the service firms, but also confirmed the practicability as well as the validity of the service recovery.
Key Words:Service Firm,Service Failure,Service Recovery