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THE EFFECT OF CUSTOMER COMPLAINTS RESOLUTION STRATEGIES ON CUSTOMER SATISFACTION ELDORET BASED BANKS, KENYA
Abstract
The study explores the effects of customer complaint resolution strategies on customer satisfaction with particular emphasis on the specific objectives namely; a distributive complaint resolution strategy, interactive complaint resolution strategies and procedural complaint resolution strategies. The banking industry is one of the world's biggest and oldest industries in the world. Its stability and growth is therefore paramount to economic performance of individual countries including Kenya. However, with the increasing competition banks have had to refocus on various strategies aimed at maintaining a stable and profitable customer base. Maintaining a loyal customer base has seen banks invest in various marketing strategies among them complaint resolution strategies so as to have an ever satisfied clientele. The study used an explanatory survey that targeted all the 20 banks based in Eldoret operating and licensed by Central Bank of Kenya as at June 2018. Additionally, 2300 customers were targeted for the study. A sample size of 372 customers was selected using systematic sampling techniques but out of this, 341 customer questionnaires were filled and returned. A self-administered questionnaire was used to collect primary data. With the aid of Statistical Package for Social Sciences (SPSS),reliability tests was carried out using Cronbach alpha coefficient (). Exploratory factor analysis was used to validate and test the indicators of the preconceived complaints resolution variables. Pearson correlation analysis was performed to test the relationship between the study variables. The study utilized multiple regression analysis to test the hypothesis, the study indicated that distributive complaint resolution strategies were significant (p<0.05) and accounted for 17.7% of customer satisfaction, procedural justice factors were significant (p<0.05) and accounted for 43.5% of customer satisfaction. Further interactive complaint resolution strategies were also found to be significant (p<0.05) and explained 36.35 % of customer satisfaction. The study established a significant (p<0.05) thus supported distributive complaint resolution strategies, interactive complaint resolution strategies and procedural justice factors to be significant associated to customer satisfaction. The study concluded that customer complaints resolution strategies are important mechanism in establishing customer satisfaction levels and therefore banks are advised to invest in customer complaints resolution strategies. Finally studies should be carried out to establish the relevance of accessibility related strategies on customer satisfaction in other industries and study areas.
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The service quality literature has evolved around two schools of thought: the North American and the Nordic European. Although the North American School of thought has received much attention from the practitioners with a five factorial model, it has also generated a great deal of criticism. The Nordic European School of thought, on the conceptualisation of service quality, has remained for the most part at the conceptual level with few attempts at applications. Attempts to test an instrument developed by the North American School. It did not produce the nominated dimensions. In fact the result favours the Nordic European School in that it produced a two factor model.
Proposes to develop a service quality model, based on test of a sample of business executives, which describes how the quality of services is perceived by customers. Looks at its marketing implications, in which functional quality is seen to be a very important dimension of a perceived service. Concludes that quality dimensions are interrelated and that the importance of image should be recognised.
p>This study investigates the relationship between service quality and customer satisfaction in the telecommunication industry with a focus on Mobile Telecommunication Network (MTN) Nigeria. A total of 230 respondents participated in the study. Research questions and objectives were set, alongside the hypotheses that were formulated and tested. Descriptive statistics comprising the simple percentage and tables were used for data presentation and analysis. Regression analysis and Pearson product moment correlation coefficient were employed in testing our hypotheses. The study reveals that service quality has effect on customer satisfaction and that there is a positive relationship between service quality and customer satisfaction. The researcher concluded by recommending that organisations should focus more attention on service quality, because of its effects on customer satisfaction. To ensure that customer satisfaction level is high, organisation must first of all know the expectations of the customers and how they can meet such expectations. Customer satisfaction helps in customer loyalty and retention. It has been discovered that it costs to attract new customer than to retain existing ones. It is also recommended that organisations should welcome suggestions from customers and more programmes should be designed to measure service quality and customer satisfaction.
Keywords: Customer, Service, Customer Satisfaction, Service Quality, Customer Loyalty.</p
The effects of five determinants of satisfaction are tested as well as individual differences in satisfaction formation. Manipulations of attribution, expectancy, performance, disconfirmation, and equity are written into stock market trading scenarios in a full factorial design. Results show that all main effects and four ordinal two-way interactions are significant. Then, an individual-level analysis is performed on the repeated measures data. Three clusters of subjects sharing similar response tendencies (disconfirmation, performance, and equity) are identified and related to investment attitudes, outcome attitudes, and demographics. No consistent relationships are discovered, suggesting that the response differences reflect deeper behavioral tendencies. Implications of this approach for satisfaction paradigms, satisfaction theory, and individual satisfaction response orientations are presented.
The authors extend consumer satisfaction literature by theoretically and empirically (1) examining the effect of perceived performance using a model first proposed by Churchill and Surprenant, (2) investigating how alternative conceptualizations of comparison standards and disconfirmation capture the satisfaction formation process, and (3) exploring possible multiple comparison processes in satisfaction formation. Results of a laboratory experiment suggest that perceived performance exerts direct significant influence on satisfaction in addition to those influences from expected performance and subjective disconfirmation. Expectation and subjective disconfirmation seem to be the best conceptualizations in capturing satisfaction formation. The results suggest multiple comparison processes in satisfaction formation.
Relationship marketing—establishing, developing, and maintaining successful relational exchanges—constitutes a major shift in marketing theory and practice. After conceptualizing relationship marketing and discussing its ten forms, the authors (1) theorize that successful relationship marketing requires relationship commitment and trust, (2) model relationship commitment and trust as key mediating variables, (3) test this key mediating variable model using data from automobile tire retailers, and (4) compare their model with a rival that does not allow relationship commitment and trust to function as mediating variables. Given the favorable test results for the key mediating variable model, suggestions for further explicating and testing it are offered.
Researchers and practitioners recently have given increasing attention to the antecedents and consequences of postpurchase consumer complaint intentions and behaviors. Issues pertaining to the nature and structure of the consumer complaint behavior (CCB) concept, however, have not received such attention. The author assesses the validity of the three current operationalizations and taxonomies of CCB using intentions data from four different and independent CCB situations. None is an adequate representation of the empirical observations. Consequently a taxonomy is proposed that is based on exploratory analysis of one of the CCB situations. Confirmatory analysis of the other three CCB situations supports the proposed taxonomy. A validity analysis using complaint behavior data for the four CCB situations also supports the proposed CCB taxonomy.
This is a cross sectional field study in which we examined the relationship between perceived service quality and customer satisfaction with the moderating role of word-of-mouth. The sample size of the data is 350 that are collected from the fast food restaurants located in the one of the largest city of Pakistan, Lahore. After implementing some statistical tools we conclude that the service quality and customer satisfaction have a positive direct relation with each other and the word-of-mouth does not play any moderating role between service quality and customer satisfaction.
Key words: Word of mouth, purchase, brand image.
An operational complaint management system is a practical expression of a customer-oriented business strategy, and includes the planning, implementation and control of all measures available to an enterprise for dealing with customer complaints. It has proved an indispensable part of the contemporary marketing approach required for the maintenance and intensification of customer relationships. The following chapter centers on a particular aspect of complaint management that has until now received only minimal coverage in the literature: the customer complaint as a special kind of relationship between the enterprise and its customer. The authors suggests that a relationship-oriented approach which emphasizes the profound psychological aspects of the conflict situation allows us to better understand complaints. The authors then use this perspective to discuss the role of internal marketing in structuring the psychological framework for an effective complaint management process.
In this article, we investigate how to construct a customer satisfaction (CS) scale which yields optimally valid measurements of the construct of interest. For this purpose we compare three alternative methodologies for scale development and construct validation. Furthermore, we discuss a satisfaction measurement application which is consistent with Messick’s (in: Linn (ed.) Educational measurement, 1989) construct validity theory. Following the deductive design for test development and construct validation, a multi-item measure for CS with a retail bank was developed. The measure was applied in survey research ( \(N\) = 1,689) within a Dutch retail bank. The items constituted a unidimensional scale, allowing the computation of scale scores. The tests of 11 hypotheses about scale-score characteristics demonstrated that the scale score represented the construct of CS well. Furthermore, the one-factor theory (e.g. Yi, in: Zeithaml (ed.) Review of marketing, 1990) of satisfaction/dissatisfaction was confirmed. An implication of this result is that satisfaction/dissatisfaction can be measured on one scale instead of two scales, one for satisfaction and one for dissatisfaction. The results demonstrate that the deductive design is an appropriate methodology for measure development and construct validation in applied psychological research. The article concludes that the multi-item measure is well-suited for CS measurement in retail banking and that customized satisfaction scales have advantages but also disadvantages compared to standardized scales.
Self-service technologies (SSTs) are increasingly changing the way customers interact with firms to create service outcomes. Given that the emphasis in the academic literature has focused almost exclusively on the interpersonal dynamics of service encounters, there is much to be learned about customer interactions with technology-based self-service delivery options. In this research, the authors describe the results of a critical incident study based on more than 800 incidents involving SSTs solicited from customers through a Web-based survey. The authors categorize these incidents to discern the sources of satisfaction and dissatisfaction with SSTs, The authors present a discussion of the resulting critical incident categories and their relationship to customer attributions, complaining behavior, word of mouth, and repeat purchase intentions, which is followed by implications for managers and researchers.
A hotel's customer-satisfaction strategy is critical to its being competitive. Here's a simple tool that uses guest information to support strategic decision making
A model is proposed which expresses consumer satisfaction as a function of expectation and expectancy disconfirmation. Satisfaction, in turn, is believed to influence attitude change and purchase intention. Results from a two-stage field study support the scheme for consumers and nonconsumers of a flu inoculation.
Purpose
To present a simple yet comprehensive customer complaint management system (CCMS) which includes tools and concepts from total quality management (TQM) and quality function deployment (QFD) proposed by the authors.
Design/methodology/approach
A comprehensive CCMS model based on the Deming cycle that integrates practice‐tested methodologies such as QFD, problem solving and failure mode effect analysis (FMEA) was developed. In order to provide an example of the application, possibilities and limitations of our proposed CCMS model, a project developed for a major Latin American transportation company is presented.
Findings
Excellent service can only be achieved with a profound knowledge of evolving customer needs. Functional CCMS should be implemented in every company, regardless of its size, structure or products. QFD, FMEA and problem‐solving tools are very useful but, rather than the tools themselves, the fundamental element to develop a successful CCMS is the spirit of improvement towards total customer satisfaction energized by top management's leadership and commitment. A successfully implemented CCMS can change the perspective of complaint management and transform the process of answering complaints from a trivial activity to a more exciting process‐design and learning experience, renovating the spirit of continuous improvement towards service excellence.
Research limitations/implications
The model may not be useful to some major companies that already have their own database systems for storing and analyzing customer complaints in real time. The results were only validated in a single project with its particular characteristics.
Practical implications
In a service economy, comprehensive systems for capturing, analyzing and translating customer complaints into adequate actions for focused improvement are required for competitiveness. Simple CCMS can be implemented without significant investment, in order to exploit customer complaints.
Originality/value
This paper presents a simple, yet comprehensive CCMS based on practice‐tested methodologies successfully implemented in an improvement project. Companies that do not have formal CCMS can find efficiency in the model because of its simplicity.
Examines the factors that might have stimulated consumer complaint and redress seeking in regard to the Firestone 500 steel belted radial tire. Topics surveyed include (1) the focus of consumer complaints, (2) factors underlying consumer complaint behavior, (3) complaints from dissatisfied users, (4) marketing channel factors, (5) complaints by satisfied users, (6) complaints by nonusing purchasers and nonpurchasers, and (7) situational and consumer variables. It is concluded that unverified consumer complaints provide an ambiguous basis for inferring either that a product defect actually exists or, given a defect, that the defect is due to inferior manufacturing rather than to consumer neglect or other factors independent of both manufacturer and consumer. (30 ref) (PsycINFO Database Record (c) 2012 APA, all rights reserved)
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