Complainers versus non-complainers: a multi-national investigation of individual and situational influences on customer complaint behaviour

Abstract

One of the least understood areas in customer complaint behaviour (CCB) research is why some customers complain and others do not in similar dissatisfaction situations. Prior research has explored differences in customer characteristics between complainers and non-complainers, but not in association with relevant situational factors. This gap is addressed with a new conceptual framework incorporating two situational variables – customer dissatisfaction and involvement – and two consumer traits – impulsivity and self-monitoring. Several hypotheses about their main and interaction effects are tested in two different contexts, using a survey-based study in three countries (Singapore, South Korea, and the United States). Specifically, it is shown that CCB is positively associated with involvement and impulsivity, and negatively with self-monitoring. Involvement and impulsivity are shown to moderate the association between dissatisfaction and CCB positively, and self-monitoring moderates it negatively. Some implications and directions for future research are also discussed.     

Service Failure and Complaint Behavior in the Public Hospital Industry: The Indonesian Experience

The main objective of the study is to examine dimensions of service failures in the hospital industry. It is also the intention of the study to see if there is a specific pattern of complaint behavior in Indonesian context. The primary study was conducted in four cities in Bengkulu province, Southwest Sumatra, Indonesia. The number of questionnaires distributed in the survey was 350 and 300 questionnaires were returned and analyzed. Factor analysis and cluster analysis were employed to the dataset. The result of the analysis reveals that service failure constructs can be categorized into six underlying dimensions: medical reliability errors, physical evidences errors, poor information, medical treatment errors, costly service, and complaint handling failures. The study also indicates that hospital patients can be clustered into three segments, namely core service patients, complainers, and salient patients. Service failure dimensions and the clusters found can be used by hospitals in Indonesia to improve their service process and delivery. The study found a specific pattern of complaint behavior in the hospital industry.     

What drives customer engagement after a service failure? The moderating role of customer trust

This study investigated the relationships between complaint handling, customer experience, and customer engagement, as well as the moderating effect of customer trust prior to a service failure. The results were obtained from 320 Indonesian consumers of courier, express, and parcel services. Favourable employee behaviour was found to be the most effective complaint handling effort that influenced customer experience, followed by organizational procedures and then compensation, indicating that positive customer experience led to customer engagement. Additionally, this study revealed that higher levels of customer trust prior to a service failure reduced the positive effects of complaint handling efforts on customer experience. This finding suggests that customers with higher levels of trust in a firm are less sensitive to that firm's complaint handling and recovery efforts. This article contributes to the literature on customer engagement in the service failure and recovery contexts, especially in developing countries. It examines the most influential complaint handling dimensions for predicting customer engagement following service failures. Furthermore, this study is one of the first to explore the moderating role of customer trust in service failure and recovery literature.     

Demographic Characteristics of Canadian Consumer Complainers

A survey of over 17,000 Canadian consumers who had written a letter of complaint to one of several government or consumer service agencies in 1972 found that the average consumer complainer is a middle aged, well educated, affluent, managerial-professional man or woman. The study also found that 49 percent of complaint letters are written by only 24 percent consumer of complainers and that consumers who write several letters of complaint are also well educated, affluent, and have managerial/professional occupations. These findings suggest that care must be taken in using consumer complaint data to identify the nature and severity of consumer problems in the marketplace or as a foundation for government policy and programs.     

Managing Complaints to Improve Customer Profitability

In this study, the authors aim to understand whether, to what extent, and under what circumstances, organizational responses to customer complaints improve customer profitability. To do so, they build upon the congruence approach and propose a contingency framework in which the effectiveness of three organizational responses to customer complaints (timeliness, compensation and communications) in improving customer profitability is contingent upon the strength of the relationship and the type of failure. The framework is tested empirically in the financial services industry applying latent class techniques to longitudinal data for a sample of complaining customers. The results reveal that: (1) different complaint-handling initiatives affect customer profitability differently for each of the four segments of complaining customers that are obtained; (2) these heterogeneous responses to complaint handling are explained by differences in the orientation of the relationship and in the failure context; and (3) complaint-handling initiatives are more (less) effective at improving customer profitability when the benefits they offer strongly (poorly) match the benefits sought by customers in each segment to recover from the failure. These results contribute to a better theoretical understanding of customers’ heterogeneous responses to complaint handling and offer managerial recommendations to allocate marketing resources across alternative complaint-handling strategies to improve profitability.     

Can complaint-handling efforts promote customer engagement?

This study aims to fill an important research gap in customer management, namely, the extent to which customer engagement arises as a consequence of an effective complaint-handling strategy. In tackling this question, we offer new insights into service research that may help researchers and managers better understand customer non-transactional behaviors to complaint-handling actions. To test the conceptual framework, we employ self-reported information from a sample of customers who have experienced a service failure in the financial services industry. Findings show that complaint handling will increase not only customer satisfaction with the complaint-handling process but also customer engagement. Satisfaction also plays a mediating effect. Therefore, in the event of a service failure, a proper management of the problem will lead to more engaged customers.     

Student Complaint Behavior Based on Power Perception

Abstract

This study investigated students' complaint behavior in a higher education service sector. Based on their complaining styles, students were clustered into three groups as passive recipients, private complainers, and voicers. Passive recipients exhibited the highest perceptions of educators' punishment power and legitimate power. They were more likely to be international and undergraduate students. Private complainers possessed high perception of educators' punishment power but moderate perception of educators' legitimate power. Similar to passive recipients, they were more likely to be international and undergraduate students. Distinctively, voicers had the lowest perceptions of both educators' punishment power and their legitimate power. These students were more likely to be domestic and MBA Students.     

Complaints and Disenrollment at a Health Maintenance Organization

Two options for dissatisfied customers are to voice their grievances or to stop doing business with the offending organization. The choice may be influenced by buyer loyalty. Data for a major Health Maintenance Organization are used to explore the empirical relationship among complaint (voice), disenrollment (exit), and time-in-plan (loyalty). Voice and exit are often used together. Compared to non-complainers, those who register medical complaints are four and one-half times more likely to leave the plan voluntarily. Time-in-plan reduces the likelihood of both voluntary and involuntary disenrollment.     

Gender differences in the intentions to voice complaints across different service failure modes

The present study investigates the joint impact of the service failure mode (interpersonal service versus self-service technology) and gender on consumers’ intention to voice their complaints. Results from a quasi-experiment suggest that female consumers are more likely to voice their dissatisfaction following a self-service technology failure rather than an interpersonal failure. However, the service failure mode fails to influence male consumers’ complaint intentions. Moreover, our findings indicate that motivation to help is the mechanism behind female consumers’ complaint behaviors, thus mediating the effect of service failure mode on complaint intention. Therefore, hospitality practitioners might want to pay attention to the differences in each gender’s complaint behaviors across different service failure modes and provide effective service recovery solutions across the two genders.     

Perceived controllability and service expectations: Influences on customer reactions following service failure

Endeavors to address issues surrounding service failure have centered mainly on the topic of service recovery. In particular, perceived fairness and organizational responses to service failures are highly popular topics in the literature. Yet the vast majority of customers fail to voice their dissatisfaction to the firm. Consequently, it is important to understand how consumers process service failures regardless of the recovery outcome. This study examines the impact of perceived controllability over service failures and service quality expectations on customer reactions to those failures. Findings indicate that customers react quite negatively when they believe the service firm could have easily prevented the failure. Conversely, when customers feel partly responsible for the failure or are ambiguous about its cause, the negative effects of poor performance are somewhat mitigated. Finally, high service quality expectations also buffer the firm from the negativity effect. Managerial implications of these findings are briefly discussed.     

Complaint Management

Proper complaint handling can lead to increased customer satisfaction. This study dealt with explanations and compensation regarding a complaint situation in a restaurant. The results showed that customers really do not care who explains the reason for the unsatisfactory service or who offers compensation, as long as they receive both.     

To err is human: Tolerate humans instead of machines in service failure

Full automation and self-service technologies have become popular in service marketing. However, customers often face multiple issues when dealing with self-service technologies. This paper examines the effect of service-failure type (employee failure vs. self-service technology failure) on customers' negative responses (dissatisfaction, forgiveness, willingness to switch between employee and self-service technology, and negative word of mouth). Through four experiments with Amazon Mechanical Turk workers and undergraduate students, this research finds that customers have more negative responses for a self-service technology failure than for an employee failure. This is because they get angrier with machines' mistakes than with those of humans. Moreover, empathy alleviates anger and customers’ negative responses in employee failure, but not in self-service technology failure. This research offers service providers new insights by scrutinizing the flip side of complete automation in service marketing.     

Dynamics of Complaint Management in the Service Organization

While the consumer affairs and services marketing literatures recognize the importance of input from customers, little is known about how customer feedback systems might operate, particularly in dealing with customer complaints. This paper offers an information processing model of the complaint information flow within the organization and poses hypotheses based on the suggested model. A new field study technique using a type of network analysis is used to empirically test hypotheses and discover barriers and facilitators to the flow of communications. The study provides insight concerning how complaint information flows through the organization after it has been received by a customer contact employee. The results provide support for the thesis that the role of complaint handler and manager in providing the service is at least as important as the role of the customer contact employee.     

The Roles of Justice and Customer Satisfaction in Customer Retention: A Lesson from Service Recovery

Customers complain because they want to be treated fairly by the company when a service failure occurs. The role of perceived complaint justice and its relation to customer satisfaction has been discussed and researched. However, a static view is mostly adopted in previous literature. We argue that satisfaction is cumulative and both prior satisfaction and post-recovery satisfaction should be looked at in relation to complaint justice in the context of service recovery. This study attempts to fill the gap by investigating the mediating role of justice in the relationship between prior satisfaction and post-recovery satisfaction (both with the recovery and with the organization) and examining the mediating role of post-recovery satisfaction in the relationship between the dimensions of justice and customer retention. Hypotheses were tested using a sample of 200 customers that had service failure experience at Chinese restaurants in Hong Kong. Justice dimensions (distributive justice, procedural justice, and interactional justice) were found to fully mediate the relationship between prior satisfaction and satisfaction with recovery. All dimensions, except the interactional justice, were also found to be partial mediators in the relationship between prior satisfaction and post-recovery satisfaction with organization. Findings also revealed the mediating roles of two post-recovery satisfaction variables in transferring the justice dimensions into behavioral intention, with the two variables playing almost opposite roles. Discussion and recommendations are provided for future development and improvement in building long-term relationship with customers.     

The relative impact of advertising and referral reward programs on the post-consumption evaluations in the context of service failure

This study investigates the differences in the post-consumption evaluations of customers acquired through advertising and RRPs in the context of service failure. The three laboratory experiments demonstrated that when a service failure happens, customers acquired through RRPs will have more positive post-consumption evaluations than those acquired through advertising. This effect is mediated by customers’ attribution the failure as a one-time event. In addition, this study revealed that the buffering effect of RRPs relative to advertising only exists when the tie strength between the referrer and the referred is strong or the failure severity is low. This research not only extends the literature on the service failure and the comparative effects of different marketing methods, but also provides feasible suggestions for the enterprises to design marketing activities and do more effective failure recovery.     

Spillover Effects of Service Failures in Coalition Loyalty Programs: The Buffering Effect of Special Treatment Benefits

Coalition loyalty programs are on the rise, yet few studies investigate the impact of service failures in such programs. Using data from a retail context, the authors show that a program partner deemed responsible for a service failure suffers negative customer responses. However, customers’ perceptions of the benefits of the coalition loyalty program buffer these consequences. Perhaps most importantly, when customers perceive the program's special treatment benefits as low, direct and indirect spillover effects occur, such that a service failure by one program partner has a negative effect on customer loyalty toward the program itself.     

The relationship between Internet addiction and negative eWOM

Customers prevalently use social media (SM) to post their experiences and to review others’ experiences. This study investigated how Internet addiction (IA) influenced customers’ word-of-mouth behaviors on SM after a service failure, focusing on both young and older customers. Two experiments were conducted. The first study was conducted with young customers and second experiment with older customers. Results suggest that the group of young customers had significantly higher levels of IA, compared to older customers. The analysis identified that IA and functional/technical service failure partially influenced four negative types of electronic word-of-mouth (eWOM) (i.e. Badmouthing, Tattling, Spite, and Feeding the Vultures). Both young and older customers tended to show more negative eWOM types for technical service failures. For the functional service failures, IA was the main predictor of negative eWOM for both young and older customers.     

Service Recovery,Justice Perception,and Forgiveness: The “Other Customers” Perspectives

ABSTRACT

While extant research has examined the effects of service recovery on customer attitude and behavior, little is known about whether customers react differently to the same recovery depending on whether they are victims or observers of a service failure. Adopting the “other customers” perspectives, this study used a quasiexperimental design using scenarios in a professional services context with 267 U.S. respondents recruited from Qualtrics national online panel. We found that when compensation is offered, victims will perceive a higher level of distributive justice than observers. However, the effects of service recovery on forgiveness intention is stronger among observers than victims.     

The effects of harm directions and service recovery strategies on customer forgiveness and negative word-of-mouth intentions

This study aims to investigate the direction of harm and the role of service recovery strategies on customer positive (i.e., forgiveness) and negative (i.e., word-of-mouth) intentions. We found that customer intentions are stronger among those who are directly affected by the service failure than indirectly affected customers. Further, we assess the role of service recovery in customer intentions after the service failure. The study findings contribute to the development of theory on the “other customers” effect by comparing the consequences of service failure directed at the focal customer and other customers and provide solutions to practitioners to reduce this damaging effect.     

Physical and social atmospheric effects in hedonic service consumption: customers' roles at sporting events

This study examines the comparative effects of physical and social atmospherics in a hedonic service context. This article focuses on other customers as the social factors in the service environment and distinguishes three dimensions: density, appearance, and behaviour. The main purpose of this article is to highlight the relevance of other customers as the atmospheric factors of the servicescape. The findings of our empirical study suggest that in addition to the perceived physical properties, favourable perceptions of other customers – particularly, their behavioural patterns – exert a strong positive influence on favourable overall affective responses. These responses, in turn, have a positive impact on customers' on-site spending and positive word-of-mouth behaviours.