Organizations are facing more intense customer service pressures than ever before. When a service failure occurs, the organization’s response has the potential either to restore customer satisfaction and reinforce loyalty or to exacerbate the situation and drive the customer to a competing firm. Service recovery refers to the actions an organization takes in response to a service failure (Gronroos 1988). Recovery management is considered to have a significant impact on customer evaluations, because customers are usually more emotionally involved in and observant of recovery service than in routine or first-time service and are often more dissatisfied by an organization’s failure to recover than by the service failure itself (Berry and Parasuraman 1991; Bitner, Booms, and Tetreault 1990). Keaveney (1995) finds thatservice failures and failed recoveries are a leading cause of customer switching behavior in service organizations. Therefore, well-executed service recoveries are important for enhancing customer satisfaction, building customer relationships, and preventing customer defections (Fornell and Wernerfelt 1987).