MARK 4500 Chapter 13: CHAPTER 13
10 Jun 2018
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CHAPTER 13: Complaint Handling and Service Recovery
Why do customers complain?
− Obtain compensation
− Vent their anger
− Help to improve the service
− Altruistic reasons
− ONLY 5-10% of unhappy customers actually complain
Why do’t uhappy ustoers complain?
− Do’t at to take the tie
− Payoff is uncertain – not concerned or no resolution
− Do’t ko here to oplai
− Unpleasant, avoid confrontation
Who is most likely to complain?
− Higher socioeconomic levels (better education and social involvement)
− Knowledgeable about product
Where do they complain?
− Where the service was received – 99% face to face or call
− Emails, letters or website – >1%
− Non interactive to vent anger
− Interactive when they want it fixed
Service Recovery
− Efforts y a fir to orret a prole folloig a serie failure ad to retai a ustoer’s
goodwill (tests firms commitment to satisfaction and service quality)
− Seerity ad reoeraility ay liit a fir’s aility to reoer
− Service Recovery Paradox:
o Customers who experience a service failure that is satisfactorily resolved may be
more likely to make future purchases (2nd failure = no paradox)
− Methods:
o Be proactive – on the spot before customers complain
o Plan recovery procedures
o Teach recovery skills to relevant personnel
o Empower personnel to use judgment and skills to develop recovery solutions
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