2. RESEARCH MOTIVATION
Even zero defects is the desired objective for most firms, it is unlikely organizations will
achieve this goal. This is particularly true of service industries where the multi-dimensional
nature of the service encounter creates an environment where service failure is almost
inevitable [Mueller et al., 2003: 395-418). A Service failure occurs when customers’
expectations are not met [Mueller et al., 2003: 395-418; Weber and Sparks, 2004: 361-67]. A
service business must understand what customers really need and then delivered its service
accordingly [Chiu and Lin, 2004: 187-204]. Similar to service quality and satisfaction, it is
customers’ perception that determines whether a service failure occurred even if the