BU412 Chapter Notes - Chapter 13: Service Recovery, Interactional Justice, Data Warehouse
Document Summary
How well a firm handles complaints and resolves problems will decide whether it builds customer loyalty or watches its customers take their business elsewhere. Customer response options to service failure: take some form of public action ex. complaining to the firm, take some form of private action ex. Customers can take any one or a combination of actions. Angry customers often tell many other people about their problems. Why do customers complain: obtain restitution of compensation, release their anger, help to improve their service, out of concern for others. Research shows that on average, only 5-10% of customers who have been unhappy with a service actually complain. Although usually only a small number of dissatisfied customers complain, there"s evidence that consumers across the world are becoming better informed, more self-confident, and more firm about seeking satisfactory outcomes for their complaints. Customers may not want to take the time to complain.
