The “service recovery paradox” is a remarkable concept and phenomenon in the vital domain of customer service, whereby customer satisfaction loyalty towards the service provider increases after an incidence of a problem faced by the customer. With this phenomenon in the backdrop, this research paper pertains to a threefold purpose- to analyze situations and prevailing contexts which may cause formation and further strengthening of a service recovery paradox, secondly to identify factors which are required for the formation of the not-so-apparent service recovery paradox, and thirdly to propose a theoretical model of factors and their inter relationship. The study draws considerably from relevant available pieces of literature and from case-based experiences. Independent variables have been identified through a qualitative analysis of the literature. The service recovery paradox is the dependent variable. From a practical perspective, the service recovery paradox is an under rated phenomena which may be taken up by industry for strategic advantage. The study provides a starting point from where academicians may provide a theoretical understanding of the concept.

Keywords : Service Recovery, Recovery Paradox, Recovery Scenarios, Service Recovery Strategy.