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ABSTRACT:

The purpose of this study is to (1) determine the effect of service recovery on consumer forgiveness, (2) determine the effect of situational factors on consumer forgiveness. The respondents of this research were 100 consumers of the Tirta Dharma Regional Drinking Water Company, Bengkulu City. The collected data was analyzed using multiple linear regression analysis. The results showed that service recovery has a positive effect on consumer forgiveness. That is, the better service recovery, the higher consumer forgiveness will be. Situational factors have a positive effect on consumer forgiveness. That is, the higher the situational factor of consumers the higher the consumer forgiveness. Implementing service recovery management is considered to have a significant impact on customer evaluation because customers tend to be more emotional when involved in service restoration than during the interactional time of service. When this is done well, a dissatisfied customer can become one of the most loyal customers who acts as public relations for the organization through word of mouth. Improve service quality so that the possibility of service failure can be avoided. With good service quality there will be a positive social environment talk of company services.

KEYWORDS:

Service Recovery, Situational Factor, Consumer Forgiveness

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