Identifying causes of service failure will help managers to understand the routes through which service quality can be affected. The problem of service failure is further compounded by the fact that there is an increased competition in most service industries. Therefore exploring the customers and the service providers encounters leading to service failures becomes very important issues to reduce the dissonance in customers. As service failure is inevitable in the service industry, service recovery is an important way to prevent customers from switching to another competitor and negative word of mouth and also decrease associated costs.