Critical Analysis of the Impacts of Online Service Failure and its Recovery Solution on the Buying Behavior of Customers in Restaurant Industry: A Case Study of Domino’s Pizza

Harvard, 12000 Words


Online service failure has become a major problem for Domino’s Pizza. For this problem customers don’t have any scope to give online orders for pizza when online service failure occurs. It has become a threat for Domino’s Pizza and it result in switching of the customers to another company that can reduce the total turnover of the company to a great extent. The company has set IT experts and to remove difficulties of online service and also provided technical supporting team. Thus it has increased online service failure recovery actions that means the difficulties have been removed successfully. Customers’ level of satisfaction has been increased because of the accountability of the organization to the customers about online service failure. The present opinions of customers about the performance on online service failure of Domino’s Pizza have been analyzed by questionnaire data. Marketing managers and IT experts provide in-depth view of customers’ conditions and present business performance to tackle short recovery time of online service failure. Online service performance and switching of customers have been reduced due to quick recovery of online service failure and it has given competitive advantage over its competitors.











Table of Contents


Student’s Declaration


1        Introduction

1.1       Background of the study

1.2       Rationale of the Study

1.3       Research Aim and Objectives

1.4       Research Questions

1.5       Conclusion

2        Literature Review

2.1       Online Service in Food Industry

2.2       Online Ordering Service

2.3       Service Recovery

2.4       Marketing Channel

2.5       Customer Value

2.6       Conceptual Framework

2.7       Conclusion

3        Research Methodology

3.1       Introduction

3.2       Research Philosophy

3.2.1        Justification of Research Philosophy

3.3       Research Approach

3.3.1        Justification of Research Approach

3.4       Research Method

3.4.1        Justification of Research Method

3.5       Research Design

3.5.1        Justification of Research Design

3.6       Research Strategy

3.6.1        Justification of Research Strategy

3.7       Data Collection Techniques

3.7.1        Secondary Data Collection Techniques

3.7.2        Justification of Questionnaire Survey

3.7.3        Justification of PRA Survey

3.8       Sampling Technique

3.9       Data Analysing Technique

3.10         Ethical Considerations

3.11         Limitations of Methodology

3.12         Conclusion

4        Findings and Analysis

4.1       Introduction

4.2       Findings of Questionnaire Survey

4.3       Online Service

Table 4.4: I get Online Ordered Products Quickly

Table 4.5: Online Service has influence on My Satisfaction and Retention on Domino’s Pizza

4.4       Online Service Failure

Table 4.6: Online Service Problem is High at Domino’s Pizza

4.5       Recovery of Online Service Failure

4.6       Outcome of Online Service Failure Recovery of Domino’s Pizza

Quick Online Service Failure Recovery Increase Online Sales Growth of Domino’s Pizza

4.7       Regression analysis:

4.8       Analysis of PRA Findings

4.9       Conclusion

5        Conclusion and Recommendation

5.1       Concluding Remark

5.2       Summary of Objective based Findings

5.3       Recommendations

6        References

7        Appendix – A: Blank Questionnaire

8        Appendix – B: Blank PRA Questions












List of Figures

Figure 1: Porter’s five forces model 16

Figure 2: Conceptual framework for online service. 18

Figure 3: Age of Respondents. 31

Figure 4: Gender of the Respondents. 32

Figure 5: Online Service of Domino’s Pizza has strong Customer Satisfaction. 34

Figure 6: I get Online Ordered Products Quickly. 35

Figure 7 : Online Service has influence on My Satisfaction and Retention on Domino’s Pizza. 36

Figure 8: Online Service Problem is High at Domino’s Pizza. 37

Figure 9: Online Service Problem occur due to Lack of IT Experts proper Monitoring instead of Virus, Bug and System Error 38

Figure 10: Online Service Failure is Dissatisfying the Customers of Domino’s Pizza. 39

Figure 11: Online Service Failure Increase Customers Switching to other Company. 40

Figure 12: Technical Supporting Teams are Active to Recover Online Service Failure. 41

Figure 13: Data Analysis and Operating System Monitoring of IT Experts are quickly Recovering Online Service Failure. 42

Figure 14: The Recovery Actions of Online Service Failure Increase Online Sales Performance of Domino’s Pizza. 43

Figure 15: Present Recovery System Decrease Online Service Failure Occurrence. 44

Figure 16: Present Recovery System Indicates Feasible Online Order Entry. 45

Figure 17: Quick Recovery of Online Service Failure Increase Customer Satisfaction. 46

Figure 18: Adequate Explanation of Service Problems and Recovery Solution helps to Gain Customers Trust 48

Figure 19: Quick Online Service Failure Recovery do not Decrease your Online Purchasing of Domino’s Pizza. 49

Figure 20: online service affect the buying behaviour of the customers. 50