The right to be heard and to be understood: a conceptual framework for consumer protection in emerging economies

In many emerging economies and developing countries, comprising consumers from different cultures and with varying degrees of sophistication (knowledge and skill) concerning consumer protection, the promotion of consumers' rights to develop a consumer‐oriented culture remains a very big challenge. One way of protecting the consumer, especially the consumer that has not been fully socialized to execute informed decisions when purchasing expensive durables, is by establishing a redress environment that would ensure fair redress as well as an understanding and appreciation of the consumer. Manufacturers and retailers are often not aware of the performance failures that consumers experience concerning their products because many people do not communicate their dissatisfactions to them. However, unless and until manufacturers and retailers fully comprehend their customers' complaint behaviour, their reasons for engaging in specific complaint behaviour and the reasoning (cognitive processes) and emotional processes behind their behaviour, they will not recognize the link between complaint handling and customer loyalty and profits. The purpose of this paper was to develop a theoretical conceptual framework that would enable consumer scientists, consumer consultants, consumer behaviour researchers and those with the responsibility of handling consumer complaints to explore and understand consumer complaint behaviour in its entirety. We argue that, to be able to establish and manage a redress environment that is characterized by an understanding of the specific consumer as well as by effective complaint behaviour handling, it is of the utmost importance that the manufacturer, retailer, consumer consultant and all those that work with consumers' complaints understand the entire complaint process, including the underlying cognitive and emotional processes as well as the consumer's post‐complaint perception of justice and his/her satisfaction with the complaint handling. It is also important to understand the role that consumer‐, product‐ and redress environment‐related variables play in consumer complaint behaviour. The consumer who blames the retailer for the problem and who probably feels angry about the situation and decides to complain will expect redress. From a consumer's viewpoint, complaint‐related justice is, however, not only a matter of economic calculus but also a matter of procedure and interaction. We therefore argue for a holistic approach where consumer complaint behaviour is addressed in its entirety. Practical suggestions that could enhance customer satisfaction are given for manufacturers, retailers and those who deal with consumers' complaints.     

Consumer vulnerability and complaint handling: Challenges,opportunities and dispute system design

Effectively designed complaint handling systems play a key role in enabling vulnerable consumers to complain and obtain redress. This article examines current research into consumer vulnerability, highlighting its multidimensional and expansive nature. Contemporary understandings of consumer vulnerability recognize that the interaction between a wide range of market and consumer characteristics can combine to place any individual at risk of vulnerability. While this broad definition of consumer vulnerability reflects the complex reality of consumers’ experiences, it poses a key challenge for designers of complaint handling systems: how can they identify and respond to an issue which can potentially affect everyone? Drawing on current research and practice in the United Kingdom and Australia, the article analyses the impact of consumer vulnerability on third party dispute resolution schemes and considers the role these complaint handling organizations can play in supporting their complainants. Third party complaint handling organizations, including a range of Alternative Dispute Resolution services such as ombudsman organizations, can play a key role in increasing access to justice for vulnerable consumer groups and provide specific assistance for individual complainants during the process. It is an opportune time to review whether the needs of consumers at risk of vulnerability are being met within complaint processes and the extent to which third party complaint handlers support those who are most vulnerable to seek redress. Empowering vulnerable consumers to complain presents specific challenges. The article discusses the application of a new model of consumer dispute system design to show how complaint handling organizations can meet the needs of the most vulnerable consumers throughout the process.     

Profiling Consumers Who Register Complaints Against Auto Repair Services

Surveys of consumer problems and reactions to those problems indicate considerable failure on the part of consumers to seek redress when faced with unsatisfactory purchases. The present study extends this research by using a longitudinal field survey of automobile repair services to investigate some consumer and purchase-related variables hypothesized to influence consumer actions following unsatisfactory purchase experiences. The results are consistent with conclusions emerging in other consumer satisfaction research that complaining behavior is influenced by both comparisons of purchase expectations with outcomes and individual consumer characteristics and dispositions.     

Online shoppers in Australia: dealing with problems

Although the Internet is a convenient platform to conduct commercial transactions, consumers are disadvantaged in the online marketplace due to insufficient information about goods and services as well as business and transaction process, lack of access to redress and several other problems. The number of complaints regarding online transactions increased in Australia from 2001 to 2005, and the number of Internet‐fraud related complaints reported to Consumer Sentinel (USA ) also increased from 2003 to 2006. This, in turn, has undermined consumer trust and impeded the growth of e‐retailing as well as added to the fear among e‐consumers of falling prey to online fraud. In spite of this, the nature and effectiveness of e‐consumer protection has not been adequately studied, notwithstanding extensive research into other aspects of e‐retailing. This article examines (i) the level of awareness of the respondents in the survey in Australia of the current policy framework for addressing consumer protection about online shopping in terms of redress; and (ii) the behaviour of the two groups of respondents in this survey who have and have not encountered problems with online purchases. The findings suggest that most respondents are not aware of the following issues, namely (i) which organizations are involved in e‐consumer protection; (ii) government regulations and guidelines; (iii) industry codes of conduct; (iv) self‐regulatory approaches adopted by business; and (v) the activities of consumer associations to protect consumers in the online marketplace. The findings also show that most respondents would seek redress if they were unhappy with their online purchases and if they knew how to proceed, and that most of them would settle disputes directly with e‐retailers. Also, online shoppers who had encountered problems were more likely to continue purchasing via the Internet than online shoppers who had not encountered any problems. This suggests that respondents find that the benefits offered by e‐retailing outweigh the risks associated with it.     

Opinions about advertising in Australia: a study of complainants

Advertising expenditure has risen globally and in Australia there has been a 2.7-fold rise in the last 10 years. It is suggested that some advertisements may be ‘unacceptable’, that is unfair, misleading, deceptive, offensive, false or socially irresponsible. Industry and regulatory responses to consumer complaints about these problems must be addressed. This research is concerned with consumer behaviour and consumer complaint behaviour specifically in the area of advertising in Australia. The general findings from the reviewed literature indicated that complainants tend to be older, have attained higher levels of educational qualifications, earn a higher gross weekly income, possess greater degrees of wealth, have higher participant levels of local community involvement and, in general terms, have more resources to avail themselves of in order to allow them to take action when dissatisfied. The results from this research engender a better understanding of the complaining public. Empirical analyses were used for determining the characteristics of people who complain to the Advertising Standards Board and inferred that their opinions regarding advertising differ from members of the general population in four key areas. This research will afford regulatory bodies a better understanding of the complaining public as well as educating marketing communications strategists in effectively reaching their target markets.     

Consumer complaints and redress: an important mechanism for protecting and empowering consumers1

This paper explores a consumer complaint programme as a tool for empowering consumers, using the consumer complaint programme of a United States federal agency as a case study. After describing the structure and role of the Federal Reserve System (the central bank of the United States) in handling complaints, the paper follows a complaint through the System, looks at trends in complaints and provides a profile of consumers who complain. The paper concludes with information on the economic impact of complaint resolution and consumer satisfaction with third‐party complaint investigation.     

Ethical consumption behaviours in supermarket shoppers: determinants and marketing implications

Understanding how consumers make ethical purchases has numerous benefits for firms and other stakeholders. Although several ethical decision-making frameworks seek to explain such purchasing behaviour, they typically focus on the content of such decisions, rather than considering how such decisions unfold in a given context. Yet, the complexities of consumer choice suggest that greater insight into how consumers make ethical purchases in store can enhance understanding. We report our findings from a survey of a geographically disperse sample of 688 UK shoppers and argue that a naturalistic theory of decision making, image theory, enhances our ability to explain consumer behaviour in this setting. As well as contributing to theoretical understanding of consumer choice, this has implications for the merchandising of ethical products, such as Fair Trade and ‘green’ goods.     

Consumers’ subjective and objective consumerism knowledge and subsequent complaint behaviour concerning consumer electronics: a South African perspective

Although there is immense international support for consumer protection, the notion exists that consumer protection can only exist in developed countries with ample fiscal resources and expertise to properly act in the interest of consumers. This conception leaves consumers in emerging and transitional economies in a difficult position as these economies indeed generally lack sufficient funding and the required capacity to educate consumers on their rights. With the South African Consumer Protection Act that came into effect in 2011, South African consumers can now claim to be among the best protected consumers in the world. However, many consumers are still not aware of their consumer rights, and do not have the necessary knowledge to pursue redress when they are dissatisfied. The objective of this research was therefore to explore and describe the relationship between consumers’ knowledge of consumerism (consumer protection) and their consumer complaint behaviour (CCB) concerning their dissatisfaction with a technologically advanced product, in this case, a consumer electronic product. This study attempts to differentiate between subjective consumerism knowledge and objective consumerism knowledge and by extension the measures used. In addition, we explored and described the relationship between demographic variables and levels of subjective and objective consumerism knowledge as well as the combined effect of the two types of knowledge on CCB. The findings revealed that the respondents had a reasonable level of subjective consumerism knowledge relative to a low level of objective consumerism knowledge. No significant relationship was found between subjective consumerism knowledge and demographic variables. However, the factors of race, gender and level of income were related to objective knowledge. A higher level of subjective knowledge could be associated with public action. Respondents with reasonable levels of objective knowledge were also better equipped to take private and public action. CHAID (Chi‐Square Automatic Interaction Detection) analysis highlighted that a combination of subjective and objective knowledge was the best predictor of taking public action only and of taking both private and public complaint action. The study has implications for policy makers, consumer protection organisations, retailers and the individual consumer. Our approach to measuring knowledge of consumerism could possibly be applied in other emerging contexts where consumers generally lack awareness of consumer protection.     

Usage of,and satisfaction with,a governmental consumer protection agency

State consumer protection agencies provide alternatives for consumer inquiries and for redress when consumers are unable to obtain satisfaction. In this study, the major objectives were to determine whether consumers used the services of the Kentucky Consumer Protection Division, the frequency of contact, the method of contact, the satisfaction/dissatisfaction with handling of inquiries or complaints and characteristics of inquirers/complainers. Four different surveys were used to obtain the data. The data analysis indicated that a large percentage of those who made inquiries or complained were satisfied. However, only a small percentage of the consumers had contacted the CPD, and very few used the hotline in making requests or complaints. Those who had contacted the CPD were younger, better educated and had higher incomes. Among the recommendations are that increased efforts be made to publicize the hotline and other CPD services.     

消费失败后顾客情绪反应及其对投诉渠道选择的影响

顾客投诉作为企业与顾客的一种沟通,得到了很多学者和实践者的重视,但顾客在投诉过程中的心理及行为研究较少。文章将情绪引入顾客投诉行为中,把投诉看作一种特殊的沟通,以媒介丰度理论为基础,探索投诉者的情绪反应及其对投诉渠道选择的影响。旨在充实顾客投诉研究,为企业的投诉管理和渠道建设提供一定的指导和建议。     

The impact of service failure on brand credibility

Recent studies have examined the consequences of brand credibility, with the majority of works embedded in physical goods. Despite the growing attention service branding receives, little is known about how service failure and recovery efforts impact on brand credibility in service organisations. The purpose of this study is to examine how brand credibility is affected by service failure and an organisations recovery efforts. An online self-completion survey of airline consumers (n=875) was employed to test the relationships between the focal constructs. The results show that a service firm’s effective complaint handling positively impacts satisfaction with complaining, overall satisfaction and service brand credibility. The study also finds that the higher the perceived magnitude of failure, the more difficult it is to satisfy a customer. These results demonstrate that it is possible to maintain service brand credibility during a service failure, provided brand managers develop and implement effective complain handling procedures.     

Differences between Black and White South Africans in product failure attributions,anger and complaint behaviour

The purpose of this research is to extend an understanding of how Black and White South African consumers’ causal attributions for major household appliance performance failures impact on their anger and subsequent complaint behaviour. A survey was administered to Black and White South African consumers who were dissatisfied with the performance of a major household appliance item. Respondents resided in a major metropolitan area. The findings showed that, compared to Whites, the Black South Africans felt a low but significantly higher external locus of causality and lower control, and experienced a higher level of anger regarding product failure. The level of anger determined the decision to take complaint action, but racial group determined the type of action taken. Blacks complained more actively to retailers and engaged more in private complaint action than Whites. These findings may show that Black South Africans are developing a more individualistic orientation as consumers. Therefore, researchers should consider the effect of cultural swapping when researching consumer behaviour in multicultural countries. Implications for retailers in terms of complaint handling are indicated.     

Personality traits and complaining behaviors: A focus on Japanese consumers

Despite the fact that personality is thought to be one of the main factors that may explain unhappy consumers’ behavior, very little is known about how it affects their attitudes and complaining strategies. This is particularly true in the case of Japanese consumers where scant research has been conducted on their complaining behaviors. Hence, the main objective of this study is to investigate the roles of three personality traits (i.e., self‐confidence, aggressiveness, and altruism) of Japanese consumers in explaining their attitudes toward complaining, perceived likelihood of successful complaints (PLSCs), and complaining behaviors. On a sample of 263 respondents, a univariate general linear model (GLM) analysis is performed to assess the moderating roles of personality traits on complaint‐related variables. The results show that, on the one hand, in contrast to self‐confidence, the levels (i.e., high vs. low) of aggressiveness and altruism have significant impacts on attitudes toward complaining and PLSCs. However, the level of self‐confidence appears to have the most significant impacts on public complaining behaviors. On the other hand, altruism is found to be the only personality trait that may explain consumers’ private complaining behaviors. Additional analyses reveal interactive effects of the personality traits on complaining attitude and behaviors.     

South African Complaint Forums in the Retail Industry: a Survey of Literature and Some Lessons from the EU

South African consumers receiving poor service in the retail industry want to complain, but have limited or no knowledge of the available consumer complaint forums. The consumer complaint forums in the retail industry can generally be divided into those established in terms of the Consumer Protection Act 68 of 2008 and other complaint forums. Before consumers can decide which forum they want to lodge their complaint with, they first need to identify possible complaint forums and then measure each forum according to certain factors. This study made a unique contribution by identifying possible factors which a consumer can refer to in this regard. In developing these factors, guidance was taken from the EU Consumer ADR Directive and the ODR Regulation. The factors suggested in this study included the following: the cost of and time spent on lodging a complaint, the effective functioning of the complaint forum, transparency in the operation of the complaint forum, the relief that a consumer may obtain from the complaint forum, and the user-friendliness of the complaint process. The National Consumer Tribunal, the National Consumer Commission, the Consumer Goods and Services Ombud, and ordinary civil courts were assessed using the above factors. A limitation of this study was that not all complaint forums could be assessed in terms of these factors, due to the lack of publicly available information. This study found that even though South Africans now have more complaint forums at their disposal, this does not translate into positive outcomes for aggrieved consumers. The strength of these forums lies in the buy-in received from both consumers and retailers. True consumer power arises through collective action after careful investigation, and resolving individual complaints may not result in the change of consumer policy which is actually what is required in the long run.     

The Role of Public and Private Complaining in Satisfaction with Problem Resolution

The results of a two-phase panel study were used to investigate the relationships among satisfaction with complaint resolution, reports of public and private complaining, and hypothesized antecedents of complaint behavior. Path analysis of a theoretical model of complaint behavior suggested that the degree of public complaining was positively related to satisfaction with the eventual outcome of the problem while the extent of private complaining had a significant negative relationship. Analysis of the antecedents showed that only monetary cost associated with the problem was positively related to both public and private complaints, underscoring the difficulty of predicting complaining from personal characteristics.     

Chinese consumer types

Abstract: Based on data from a survey carried out in Beijing and a correspondence analysis, Chinese consumers are categorized into four types. Among them, 50.8% are the ‘pragmatic’ type, who seek practical aspects of consumer goods and ignore commercial information, 33.9% are the ‘commer cialized’ type, pursuing commercial information and brand name products, 11.7% are the ‘sociable’ type, getting information mainly from friends, and only 3.6% are the ‘conservative’ type, resenting commercial information and disliking social changes. According to the trend of demographic and economic factors, more Chinese will become the ‘commercialized’ type in the future.     

Consumer complaint channel choice in online and offline purchases

This research explored the influence of the purchase environment on the choice of complaint channel. The study was based on responses from 480 undergraduate students who participated in a 2 (purchase environment: offline vs. online) × 2 (the degree of dissatisfaction: weak vs. strong) online experiment. Consumers who purchased online were more likely to complain online than those who made their purchase offline. Online complaining among online purchasers increased with the degree of dissatisfaction. The research suggests that future researchers should include consumer complaint channel choices when examining consumer complaining behaviour.     

The role of human interaction in complaint handling

While it is widely accepted that managing customer complaints is crucial for companies, the question of how best to manage these complaints is still a matter of debate. A growing number of studies highlight the effectiveness of digital complaint channels on customer behaviour and satisfaction, suggesting that direct human interaction is no longer necessary in the recovery process. Building on this observation, our research questions the interest of maintaining or not direct human interactions in the management of customer complaints. We carry a quantitative study on 427 respondents, which shows that when the recovery process involves human interaction, customers have a better perception of justice and of the company's relational efforts and are more satisfied with the resolution process. Customers are responsive to human interaction in the service recovery process. Thus, from a managerial point of view, complaint management should be part of a consumer centric approach that includes verbal exchanges (face to face or by phone). As tempting as it may seem to companies to completely digitize complaint management, we believe that maintaining direct human interactions is beneficial to customer relationships.     

Consumer education between ‘consumership’ and citizenship: experiences from studies of young people

The aim of consumer education has been mainly to teach and educate students to act as informed, rational and prudent consumers. This perception of consumption as reasoned behaviour or action is inadequate in the late modern society, where consumerism is first and foremost characterized by globalization, cultural change and the liberation of the individual. The results of a research study involving Danish pupils aged 12–19 years present a picture of consumption connected both to material and non‐material aspects of life. Consumption as such has a significant impact on and meaning for the individual: it becomes a means by which human beings communicate and interact. Consumption is part of children's and young people's education and socialization, and plays a role in the development of identity and self‐image. Institutional consumer enlightenment and the education of students in school stand in contrast to informal consumer socialization and the education of individuals. The aim of formal consumer education may be described as ‘educating for critical consumer awareness and action competence’. However consumer education finds itself in the dilemma between ‘consumership’ and ‘citizenship’. This pilot study is aimed at understanding consumer socialization in order to improve formal consumer education and to reflect on how empowerment becomes part of consumer education.     

Consumer Reactions to Unethical Service Recovery

Ethical business practices have been widely prescribed, but why? Consumer’s views on unethical business practices have been studied, but possibly more important to marketers and researchers are consumer actions and reactions to unethical business practices and the businesses themselves. Do consumers react negatively, or in such a way as to "punish" the unethical business? If so, what is the nature and extent of the punishment? This research seeks answers to these questions by examining consumer reactions, such as complaining and switching, to instances of unethical business practices. Using equity theory, this research proposes that consumers should be willing to tolerate some unethical behavior as long as they feel their investments and outcomes remain proportionately equal. Consumers who perceive that their outcome/investment ratio is proportionately unequal to their comparison other will respond by switching or complaining. In this research consumers were exposed to two types of service failures with different levels of service recovery in vignettes. Costs incurred by the consumer during the service transaction were also manipulated in the vignettes. Significant differences were found for complaint behavior in the failure recovery vignettes tested. Specifically, voice complaint was higher in the high cost service encounters in both types of services tested. The recovery attempt used (ethical, unethical, or none) led to significance differences in the variables of complaint, voice complaint, satisfaction, and quality. Higher satisfaction and quality ratings were found for the ethical recovery attempt and higher intentions to use complaint and voice complaint in the unethical recovery attempts. One significant interaction between cost and recovery attempt was found. Intentions to use voice complaint were higher in the high cost situations of ethical and unethical recovery, while approaching equality at the no recovery attempt.