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COMPLAINT HANDLING AND SERVICE RECOVERY

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COMPLAINT HANDLING AND SERVICE RECOVERY
COMPLAINT HANDLING AND SERVICE RECOVERY

RELIABILITY IS CRITICAL IN SERVICE BUT…
In all service contexts, service failure is inevitable.
Service failure occurs when service performance falls below a customer’s expectations in such a way that leads to customer dissatisfaction.
Service recovery refers to the actions taken by a firm in response to service failure.

KEY QUESTIONS FOR MANAGERS TO ASK ABOUT CUSTOMER COMPLAINING BEHAVIOR
Why do customers complain?
What proportion of unhappy customers complain?
Why don’t unhappy customers complain?
Who is most likely to complain?
Where do customers complain?
What do customers expect once they have made a complaint?

Why do customers complain?
In general, studies of consumer complaining behavior have identified four main purposes for complaining.
1. Obtain restitution or compensation. Often, consumers complain to recover some economic loss by seeking a refund, compensation, and/or have the service performed again.
2. Vent their anger. Some customers complain to rebuild self-esteem and/or to vent their anger and frustration. When service processes are bureaucratic and unreasonable, or when employees are rude, deliberately intimidating, or apparently uncaring, customers' self-esteem, self-worth, or sense of fairness can be negatively affected. They may become angry and emotional.
3. Help to improve the service. When customers are highly involved with a service , they give feedback to try and contribute toward service improvements.
4. For altruistic reasons. Finally, some customers are motivated by altruism. They want to spare other customers from experiencing the same shortcomings, and they may feel bad if they fail to draw attention to a problem that will cause difficulties for others if it remains uncorrected.

Why don’t unhappy customers complain?
In some situations, people simply don't know where to go or what to do. Also, many people feel that complaining is unpleasant .
Customers may not

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