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.     

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.     

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 Religiosity: Consequences for Consumer Activism in the United States

In recent times, organizations have experienced consumer backlash as a result of decisions to support controversial causes. To date, little research has attempted to explain consumers’ negative response as a function of religion. This study addresses that gap in the literature and examines consumer religious commitment and Christian consumers’ conservative beliefs in the United States as motivating factors for consumer activist behavior and boycott participation. Findings from a national sample of 531 consumers suggest that consumers evaluate seller’s actions and form ethical judgments. These judgments are a major explanatory variable in consumers’ voice complaints, third-party complaint intentions, and boycott intentions.     

Lemon laws in the United States: More hype than help?

Lemon laws are a recent phenomenon in the United States. Over thirty states have passed such laws since 1982 to give purchasers a refund/replacement remedy for a defective new motor vehicle. Prior to the passage of lemon laws, existing law provided little hope of consumer redress in this situation. This article reviews the various characteristics found in United States lemon laws and offers criticism in the areas of third-party dispute resolution mechanisms, objective quantification of what constitutes a lemon, and the refund/replacement remedy.     

Investigating gender differences in consumers’ experience of guilt: A comparative study

The literature of guilt in the context of consumer behavior is notably limited. It is particularly limited with respect to examining gender differences across nations. Existing studies have only evaluated gender differences, in terms of consumer guilt, in the United States. In addition, those studies evaluated gender differences in specific consumption situations such as consumer boycotting and food consumption. Thus, they do not give a comprehensive understanding of gender variations in consumer guilt. Notably, gender differences with regard to consumer guilt were shown to be limited in countries other than the United States. These studies provided contradictory results to established findings in social psychology. In view of this, by using quantitative techniques, numerous consumption settings, and samples from two distinct countries, this study provides a holistic assessment of gender differences in consumer guilt across nations. The findings indicate that gender differences, with respect to consumer guilt, are predominately present in individualistic countries and notably absent in collectivist countries. Hence, marketers should consider gender as an influential variable when devising guilt related strategies in individualistic countries. In contrast, marketers may reconsider allocating resources, with respect to gender related marketing strategies, in collectivist countries.     

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.     

International Consumer Attitudes Toward Cloud Computing: A Social Cognitive Theory and Technology Acceptance Model Perspective

The purpose of this article is to examine the factors affecting consumer attitudes toward cloud computing in the United States and Australia. The technology acceptance model and social cognitive theory are utilized to test relationships between technology acceptance model constructs (perceived ease of use and perceived usefulness) with individual characteristics that are shaped by environmental factors as part of social cognitive theory (consumer innovativeness, security concerns, performance expectations, and social networks) on consumer attitudes toward adopting cloud computing services. Consumers in the youth segment are used to test the hypotheses in two different countries (the United States and Australia). The results of the analysis indicate similarities and differences related to behavioral intentions and adoption behavior toward cloud computing services. © 2015 Wiley Periodicals, Inc.     

Antecedents of consumer attitudes toward mobile marketing: A comparative study of youth markets in the United States and China

The purpose of this study is to examine factors influencing consumers' attitudes toward mobile marketing across two major markets—the United States and China. Drawing upon the technology acceptance model (TAM), the theory of reasoned action (TRA), and the perceived characteristics of innovations theory (PCI), we develop and test a conceptual model examining the joint influences of TAM constructs (perceived ease of use and perceived usefulness) and individual characteristics (personal attachment, innovativeness, risk avoidance, and privacy concern) and on consumer attitudes toward mobile marketing practices. Focusing on youth consumers, we empirically test the model using data collected in an established (United States) and an emerging market (China). Findings across these two markets reflect cross‐market similarities and differences related to consumers' attitudes toward mobile marketing. © 2012 Wiley Periodicals, Inc.     

Consumer Bankruptcy in the United States: A Study of Alleged Abuse and of Local Legal Culture

This paper describes certain central aspects of the operation of the consumer bankruptcy system in the United States. It combines government data with the investigators' empirical data from two large studies done over a decade to explore two types of questions. The first area of investigation relates specifically to bankruptcy policy. The object is to identify the categories of persons principally served by the consumer bankruptcy system and to determine if suggestions of widespread abuse of that system by debtors are well-founded. The paper reports that the system is used primarily by the middle-class. It also reports that there is no evidence of widespread abuse. The second area of investigation is explanation of differences in the operation of the system in different regions of the country, differences that have persisted over twenty years despite major changes in legal rules and economic conditions. The paper argues that these differences are not explicable in terms of formal legal rules or a simple economic model and that a better explanation of the data is that the differences are the product of a "local legal culture" in each region.     

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.     

A cross‐cultural exploration of attitudes toward product expiration dates

This is an exploratory study examining consumer attitudes toward product expiration dates in three different countries, the United States, Canada, and Turkey. In addition, the study investigates the differences in the importance of product expiration dates for three products, yogurt, over‐the‐counter medicine, and camera film, in the three cultures. A total of 687 surveys were gathered in the three countries. The results show that there are, indeed, differences among the consumers in three countries. American and Canadian consumers check product expiration dates before purchasing and before using products more often than Turkish consumers. Although most of the differences observed are between the respondents in Turkey versus the respondents in the United States and Canada, some differences between the U.S. and Canadian respondents are also found, indicating that culture plays an important role in consumer uncertainty avoidance. © 2005 Wiley Periodicals, Inc.     

The Baltic Model for the Settlement of Individual Consumer Disputes

The aim of this study is to assess the possibilities consumers in the Baltic countries have to fulfil their rights in individual consumer disputes by using different forms of alternative dispute resolution. Special attention will be paid to the relation between the existing alternative dispute resolution (ADR) systems and the European Commission's Recommendation 1998 on ADR. The main finding is that in all three countries individual disputes are settled by the same consumer authorities which are also protecting consumers' collective interests. The system resembles in many respects the Nordic model but there are some significant differences. These differences give good reason to speak about the "Baltic model," which differs from all systems existing in the EC Member States. The most remarkable difference is the right to impose administrative sanctions if a trader refuses to comply with a decision which a consumer authority has made with respect to an individual consumer dispute. The basic structure of the Baltic model does not clash with the principles of the EC Recommendation on ADR adopted in 1998. On the contrary, in practice the Baltic model gives better guarantees for consumer access to justice in individual disputes than many systems used in the Member States.     

The Perceived Impact of Information Technology on Salespeople's Relational Competencies

Abstract

Cross-cultural service research is an important topic with a rich array of empirical evidence for differences in customer perceptions, attitudes and behaviours. However, the extant literature is almost exclusively focused on differences between cultures at each end of the diversity spectrum (most commonly East vs. West). Contemporary researchers have observed that existing studies fail to acknowledge the substantially greater levels of intra-cluster variation that exist. A cultural cluster is a group of countries that reflect values, attitudes and beliefs stemming from a common cultural ancestry. This seems surprising given the anecdotal evidence and stereotypes that are portrayed in popular culture, media and art. One area where intra-cluster variation may be evident is consumer complaint behaviour and in particular within the Anglo-cultural cluster in countries. A cultural cluster is a group of countries that reflect values, attitudes and beliefs stemming from a common cultural ancestry. The aim of this study is therefore to explore and elucidate the nature of differences in consumer complaint behaviour between cultures traditionally conceived and operationalised as identical. This study presents a qualitative study of 60 in-depth interviews with consumers in the United Kingdom and Australia and identifies differences in complaining styles, parental influence and the conceptualisation of complaining.     

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.     

Does a Consumer’s Religion Really Matter in the Buyer–Seller Dyad? An Empirical Study Examining the Relationship Between Consumer Religious Commitment,Christian Conservatism and the Ethical Judgment of a Seller’s Controversial Business Decision

Religion is an important cultural and individual difference variable. Yet, despite its obvious importance in consumers’ lives, religion in the United States has been under-researched. This study addresses that gap in the literature and investigates the influence of consumer religion in the buyer–seller dyad. Specifically, this study examines the influence of consumer religious commitment and a Christian consumer’s conservative beliefs in the United States on store loyalty when retailers make business decisions which are potentially reli- gious objectionable. This study uses structural equation modeling and applies Anderson and Gerbing’s (Psychol Bull 103(3):411–423, 1988) two-step approach to exam- ine data obtained from a national sample of 531 consumers. The results from this study suggest that consumers evaluate seller’s actions and form ethical judgments. These judgments are a major explanatory variable in consumer store loyalty intentions.     

Seeking a Single Policy for Contractual Fairness to Consumers: A Comparison of U.S. and E.U. and E.U. Efforts

The United States and the European Union both have made substantial progress toward harmonizing contractual unfairness law for consumers within their borders. To a large degree, the policies of these two largest consumer markets in the world are similar, but consumers should beware that some significant differences remain. Furthermore, differences in interpretation among member states could lead to differences within the E.U.     

Consumer Boycotts in the United States, 1970–1980: Contemporary Events in Historical Perspective

Despite the theoretical and practical interest in consumer boycotts, little in the way of an empirical literature has accumulated on this form of marketplace action. The present study surveyed news sources and participants in an effort to understand consumer boycotts which occurred in the United States in the 1970–1980 period. A total of 90 boycotts was identified and described. The findings indicate that boycotts have involved an unusually wide variety of protest groups, target organizations, and social concerns in cities and states in every region of the United States. They also appear to be on the increase. Some factors which may influence the success of boycotts are identified and discussed. Also discussed are ways in which consumer boycotts in the United States have changed and ways in which they have remained the same since the turn of the century. Of special interest here is the growing use of “surrogate boycotts” to deal with issues with origins outside of the marketplace.