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Improving a service process, such as the merchandise return and repair process, is crucial for manufacturers that desire to improve overall satisfaction and be competitive in the marketplace. In most service-based organizations, customers' perceptions of quality and satisfaction are key performance metrics. Historically, however, manufacturers have not developed services systematically even though the financial benefits of effective service processes are significant. While much research exists on service quality, no researcher has focused on how a power tool manufacturer might best increase customer satisfaction through improved return/repair processes. This study first provides a brief review of the extensive literature on service quality and customer satisfaction. Then, literature on the return and repair processes of manufacturers is reviewed. The results of a survey of customers for a major manufacturer of power hand tools is described. Using the expectancy disconfirmation and SERVQUAL models, a gap analysis is conducted and hypotheses are tested that address the five dimensions of service quality and expectations and perceptions of performance. Results identify the most important service quality dimension and customer expectations and performance on that dimension relative to others. Results also indicate that customer satisfaction is related to perceptions of service quality and that customers' expectations of service quality exceed their perceptions even though they are generally satisfied. The practical and theoretical contributions to the literature on service quality and satisfaction are important. Practically, this study gives recommendations to manufacturers desiring to improve their service processes by identifying relevant service quality attributes and assessing the relationship between perceived service quality and customer satisfaction. Theoretically, the merits and concerns of the use of the SERVQUAL instrument are discussed, and suggestions for academic researchers wanting to improve service quality and customer satisfaction measures are offered.