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As large numbers of service firms continue to seek opportunities in foreign markets, more effort needs to be directed at assessing cross-national similarities and differences so that appropriate strategies can be developed. The major purpose of this study was using critical incident technique to describe and analyze service failures from the customers’ point of view in the hotel sector of two countries: Korea and China. Thus suggest strategic implications for service researchers and managers. The results indicate that cleanness, facilities, and subsidiary facilities are most serious problem in both of countries. The CIT(Critical Incident Technique) data also showed the tangible recovery was more effective than intangible one in both of countries. Furthermore, there are some interesting differences for recovery strategies between Korea and China. Managerial implications and future research agenda was also discussed.


As large numbers of service firms continue to seek opportunities in foreign markets, more effort needs to be directed at assessing cross-national similarities and differences so that appropriate strategies can be developed. The major purpose of this study was using critical incident technique to describe and analyze service failures from the customers’ point of view in the hotel sector of two countries: Korea and China. Thus suggest strategic implications for service researchers and managers. The results indicate that cleanness, facilities, and subsidiary facilities are most serious problem in both of countries. The CIT(Critical Incident Technique) data also showed the tangible recovery was more effective than intangible one in both of countries. Furthermore, there are some interesting differences for recovery strategies between Korea and China. Managerial implications and future research agenda was also discussed.