DETERMINING THE IMPORTANCE OF COMPLAINT RESOLUTION PROCESS IN INFLUENCING CUSTOMER LOYALTY

Abstract

Complaints are generally made by customers who are dissatisfied by the offer. However it is important to note that only fraction out of the dissatisfied customers who actually complain while other will spread negative word of mouth. While service failures are inevitable successful recovery after service failure has been identified as an important aspect of customer repurchase. Some even suggest that better recovery is even better than delivering the service right in the first place. The current study using a sample of 371 respondents comprising 16-25 year olds to look at the importance of complaint handing process on customer repurchase behaviour. Due to the nature of variables structural equation modelling was used to analyse the data, where PLS regression was used as the statistical tool. The study found out that ease of complaining; both physical and cognitive ease is important for customer complaint satisfaction and brand image. Further complaint satisfaction and brand image positively impact customer loyalty as mediators.