Int. J. Technology Marketing, Vol. 14, No. 4, 2020 403 Copyright © 2020 Inderscience Enterprises Ltd. The effects of service recovery on customer satisfaction and customer loyalty in banks Bassem E. Maamari* College of Business Administration, Office S-073, P.O.Box 1664, Al Khobar, 31952, KSA Email: bmaamari@pmu.edu.sa *Corresponding author Hummam S.A. Wasfi MBA Program, School of Business, University of Gävle, 801 76 Gävle, Sweden Email: hummamwasfi@rocketmail.com Abstract: With the advent of health risks related to gathering of people, banks among other institutions are relying on e-services to reach out to their customers. These services are directly affected by service failure and recovery. This study examines the relationship between effective service recovery, well-established communication structure, customer satisfaction and customer loyalty, in order to provide a better quality service for the millennial customers. Collected data was analysed using the SPSS software. The results show that there is a significant positive relationship between the following attributes: service recovery and customer loyalty, customer satisfaction and positive word-of-mouth, communication and conflict handling on loyalty. Keywords: conflict handling; service failure; service recovery; communication; banks; customer loyalty; customer satisfaction. Reference to this paper should be made as follows: Maamari, B.E. and Wasfi, H.S.A. (2020) ‘The effects of service recovery on customer satisfaction and customer loyalty in banks’, Int. J. Technology Marketing, Vol. 14, No. 4, pp.403–424. Biographical notes: Bassem E. Maamari, after a long executive career, joined the academic world as a full-time faculty at the Lebanese American University’s School of Business. He brings a wealth of practical experience in the areas of sales management, finance, MIS and human resources management. He has a number of studies and his research interests include job satisfaction of employees, emotional intelligence and the impact of technology on people. Hummam S.A. Wasfi, with a high zeal for learning and knowledge joined the University of Gävle Masters’ program to pursue postgraduate education. Coming with a practical field experience, being an active member of the society among the youth in Lebanon, Iraq and Sweden, he is interested in the changing trends among the ‘generation next’ and in finding ways for firms to adapt and benefit from the increase reliance on technology in the services industry.