| Abstract: | The present research aims to investigate the effects of service failure and complaint handling on customer satisfaction with complaint handling which consequently impacts overall satisfaction and brand credibility. To examine the objectives of the present research, the authors deployed a sample of 384 respondents in Persian banks within Iran. Structural equation modeling has been used to analyze the data. The findings suggest that the magnitude of service failure negatively effects customer satisfaction with complaint handling. Complaint handling positively affects customer satisfaction with complaint handling. In addition, the results suggest that customer satisfaction with complaint handling positively influences brand credibility and overall satisfaction. Finally, overall satisfaction positively impacts brand credibility. The results revealed that if the complaint handling occurs instantly at the right time, it would have been a positive influence on customer satisfaction and ultimately develop brand credibility. Therefore, banks can adopt customer relationship management systems and processes which enable quick responses to customer complaints. Bank managers could find the results of the present study useful and beneficial in developing complaint handling efforts and expanding appropriate service recovery and brand credibility strategies. |
