It is vital for every service provider to get feedback from its customers. This is especially important when a customer has perceived an unfavourable service experience. One way to receive feedback from these customers is to encourage and make it easy for them to complain. Scholarly knowledge about complaint behaviour gives the service provider valuable insight about service problems and how to improve e.g. service offerings, service processes and interactions, to increase customer satisfaction, loyalty and profit. For that reason it is argued that customers who have an unfavourable service experience should be encouraged to complain, because if not, the provider risks losing the customer and thus future revenue. Previous research within complaint behaviour has mainly focused on the static description of motivation, antecedents, or the outcome response of complaint behaviour. The research has mainly explored different features linked to the market, the provider, the service and/or individual customer’s issues. To learn more about the customer’s complaint behaviour there is a need to take a dynamic and processual approach. This may help providers to serve customers more correctly and prevent unfavourable service experiences. The main aim of this dissertation is to enhance the knowledge of the dynamic behavioural processes in customer complaint behaviour. The dissertation will contribute to conceptualise different aspects of customer complaint behaviour. In addition, the dissertation will give an empirical grounded understanding of contextual and emotional aspects that may help to recognize the complexity of the complaint behaviour process. The contribution is a portrayal of different models describing the dynamic process of complaint behaviour including a new customer complaint behaviour model. Customer complaint behaviour is viewed as action and reaction - as a dynamic adjustment process that occurs during and/or after the service interaction, rather as a post-purchase activity. In order to capture these adjustments, a new conceptual complaint model is suggested which holds three thresholds for complaint behaviour and emphasis three different behavioural categories in the complaint process. Further, the dissertation gives an explanation of contextual and emotional issues that influence the complaint behaviour. The dissertation also includes an epistemological framework to anchor the paradigmatic belongings of service research as a basis for the design of studies in the area of customer complaint behaviour.

<p>It is vital for every service provider to get feedback from its customers.</p><p>This is especially important when a customer has perceived an unfavourable service experience. One way to receive feedback from these customers is to encourage and make it easy for them to complain.</p><p>Scholarly knowledge about complaint behaviour gives the service provider valuable insight about service problems and how to improve e.g. service offerings, service processes and interactions, to increase customer satisfaction, loyalty and profit. For that reason it is argued that customers who have an unfavourable service experience should be encouraged to complain, because if not, the provider risks losing the customer and thus future revenue.</p><p>Previous research within complaint behaviour has mainly focused on the static description of motivation, antecedents, or the outcome response of complaint behaviour. The research has mainly explored different features linked to the market, the provider, the service and/or individual customer’s issues. To learn more about the customer’s complaint behaviour there is a need to take a dynamic and processual approach. This may help providers to serve customers more correctly and prevent unfavourable service experiences.</p><p>The main aim of this dissertation is to enhance the knowledge of the dynamic behavioural processes in customer complaint behaviour. The dissertation will contribute to conceptualise different aspects of customer complaint behaviour. In addition, the dissertation will give an empirical grounded understanding of contextual and emotional aspects that may help to recognize the complexity of the complaint behaviour process.</p><p>The contribution is a portrayal of different models describing the dynamic process of complaint behaviour including a new customer complaint behaviour model. Customer complaint behaviour is viewed as action and reaction - as a dynamic adjustment process that occurs during and/or after the service interaction, rather as a post-purchase activity. In order to capture these adjustments, a new conceptual complaint model is suggested which holds three thresholds for complaint behaviour and emphasis three different behavioural categories in the complaint process. Further, the dissertation gives an explanation of contextual and emotional issues that influence the complaint behaviour. The dissertation also includes an epistemological framework to anchor the paradigmatic belongings of service research as a basis for the design of studies in the area of customer complaint behaviour.</p>

Organisations are facing increasing pressures in terms of customer service since customers tend to become more demanding as competition within industries increases. In order to succeed in this changing marketplace, organisations should focus on forming and maintaining long-term relationships with their customers. Developing long-term relationships, in turn, depends on the organisation?s ability to exceed customers? expectations and to continuously ensure customer satisfaction. Service organisations in particular find it difficult to provide constant customer satisfaction due to the high level of human involvement in service delivery, which often leads to inevitable service failures. Service failures, as a result, cause the disconfirmation of service expectations. This disconfirmation gives rise to customer dissatisfaction, which is generally considered as the initiator of customer complaint behaviour. Culture is regarded as one of the most influential factors affecting customers? behaviour in response to dissatisfaction with a purchase experience. Customers? culture could have an impact on the manner in which customers engage in complaint behaviour, and could also have a bearing on how service failures and organisations? service recovery efforts are perceived. Organisations functioning in a multicultural country such as South Africa could therefore benefit from gaining a more profound understanding of cultural influences on customer behaviour and specifically complaint behaviour. The primary objective of this study was to determine the influence of culture on customers? complaint behaviour pertaining to service failures within the context of the South African banking industry. A structured, interviewer-administered questionnaire was used to collect data from banking customers residing in Gauteng, who were sampled by means of a non-probability sampling method. In total, 600 respondents participated in this study, comprising 150 each from the black, coloured, Indian/Asian and white cultural groups. Results from the study indicate that although the majority of respondents have a propensity to complain, no practically significant differences were found between respondents from different cultures with regard to their propensity to complain. Results furthermore showed no differences between the different cultural groups in terms of their complaint behaviour following a hypothetical service failure. Although it was established that respondents expect the bank to do something about the service failure ? in particular correcting the problem and providing an explanation for the problem ? respondents? expectations regarding service recovery and perceptions of the bank?s service recovery efforts were found not to have been influenced by their respective cultures. The results, in addition, showed that a higher service recovery effort had a more positive effect on respondents? post-recovery satisfaction, likelihood of maintaining their relationship with the bank and loyalty, than that of a lower service recovery effort. It is recommended that banks should not view their customers differently in terms of their cultural backgrounds, but that they should rather focus continuously on providing all customers with the same level of quality service, even after a service failure has occurred. Banks should also encourage all customers to voice complaints directly to them in order to minimise the harmful effects of negative word-of-mouth and to improve recoveries from failures. Since respondents in this study indicated that they expect banks to offer an apology in the case of a service failure, to provide an explanation of the cause of the problem and to correct the problem, banks should ensure that a high level of quality interaction takes place between the dissatisfied customer and employees following a service failure. Such an approach requires banks to ensure that their employees are motivated and competent to solve customers? problems. It is therefore also recommended that banks should invest resources in employee selection, training, development, empowerment, discretionary decision-making power and support in order to ensure that customer-facing employees are able to provide a satisfactory service recovery, and are able to efficiently manage the complaint process. Recommendations for future research include extending this study to other service settings in order to determine whether there are similarities or differences in the influence of culture on customers? complaint behaviour pertaining to service failures. Future research can be conducted in collaboration with a specific bank in order to discover more specific information with regards to service failures and complaint situations within the bank, as well as customers? perceptions of the bank?s existing service recovery systems. Finally, since no differences between cultural groups were found, this study can be replicated in order to compare South African customers with those in other countries in order to determine differences in national cultures. / Thesis (M.Com (Marketing Management))--North-West University, Potchefstroom Campus, 2011.

Organisations are facing increasing pressures in terms of customer service since customers tend to become more demanding as competition within industries increases. In order to succeed in this changing marketplace, organisations should focus on forming and maintaining long-term relationships with their customers. Developing long-term relationships, in turn, depends on the organisation?s ability to exceed customers? expectations and to continuously ensure customer satisfaction. Service organisations in particular find it difficult to provide constant customer satisfaction due to the high level of human involvement in service delivery, which often leads to inevitable service failures. Service failures, as a result, cause the disconfirmation of service expectations. This disconfirmation gives rise to customer dissatisfaction, which is generally considered as the initiator of customer complaint behaviour. Culture is regarded as one of the most influential factors affecting customers? behaviour in response to dissatisfaction with a purchase experience. Customers? culture could have an impact on the manner in which customers engage in complaint behaviour, and could also have a bearing on how service failures and organisations? service recovery efforts are perceived. Organisations functioning in a multicultural country such as South Africa could therefore benefit from gaining a more profound understanding of cultural influences on customer behaviour and specifically complaint behaviour. The primary objective of this study was to determine the influence of culture on customers? complaint behaviour pertaining to service failures within the context of the South African banking industry. A structured, interviewer-administered questionnaire was used to collect data from banking customers residing in Gauteng, who were sampled by means of a non-probability sampling method. In total, 600 respondents participated in this study, comprising 150 each from the black, coloured, Indian/Asian and white cultural groups. Results from the study indicate that although the majority of respondents have a propensity to complain, no practically significant differences were found between respondents from different cultures with regard to their propensity to complain. Results furthermore showed no differences between the different cultural groups in terms of their complaint behaviour following a hypothetical service failure. Although it was established that respondents expect the bank to do something about the service failure ? in particular correcting the problem and providing an explanation for the problem ? respondents? expectations regarding service recovery and perceptions of the bank?s service recovery efforts were found not to have been influenced by their respective cultures. The results, in addition, showed that a higher service recovery effort had a more positive effect on respondents? post-recovery satisfaction, likelihood of maintaining their relationship with the bank and loyalty, than that of a lower service recovery effort. It is recommended that banks should not view their customers differently in terms of their cultural backgrounds, but that they should rather focus continuously on providing all customers with the same level of quality service, even after a service failure has occurred. Banks should also encourage all customers to voice complaints directly to them in order to minimise the harmful effects of negative word-of-mouth and to improve recoveries from failures. Since respondents in this study indicated that they expect banks to offer an apology in the case of a service failure, to provide an explanation of the cause of the problem and to correct the problem, banks should ensure that a high level of quality interaction takes place between the dissatisfied customer and employees following a service failure. Such an approach requires banks to ensure that their employees are motivated and competent to solve customers? problems. It is therefore also recommended that banks should invest resources in employee selection, training, development, empowerment, discretionary decision-making power and support in order to ensure that customer-facing employees are able to provide a satisfactory service recovery, and are able to efficiently manage the complaint process. Recommendations for future research include extending this study to other service settings in order to determine whether there are similarities or differences in the influence of culture on customers? complaint behaviour pertaining to service failures. Future research can be conducted in collaboration with a specific bank in order to discover more specific information with regards to service failures and complaint situations within the bank, as well as customers? perceptions of the bank?s existing service recovery systems. Finally, since no differences between cultural groups were found, this study can be replicated in order to compare South African customers with those in other countries in order to determine differences in national cultures. / Thesis (M.Com (Marketing Management))--North-West University, Potchefstroom Campus, 2011.

It is common practice for service providers, such as cell phone network providers, to utilise relationship marketing strategies in an effort to retain their customers and thereby to increase profitability. Customers with relationship intentions are willing to respond to such efforts while other customers will refrain. Service failures negatively impact relationship marketing efforts and thus complicate service providers’ relationship-building efforts. Therefore, service providers endeavour to restore customers’ post-recovery satisfaction and loyalty through service recovery efforts to retain their customers. However, the influence that customers’ relationship intentions have on this process has not been considered. Previous research on relationship intention in South Africa focussed only on developing a valid and reliable relationship intention measurement scale. For this reason, the primary objective of this study was to determine the influence of relationship intention on customer satisfaction, loyalty and retention following service recovery within the cellular industry. Supporting the primary objective, a model depicting the influence of respondents’ relationships intentions on satisfaction, loyalty and retention following service recovery was developed. Furthermore, a model depicting the interrelationships of the relationship constructive dimensions of the service recovery process uncovered during this study was also developed. Through non-probability convenience sampling of adults 18 years and older (residing in Johannesburg and the surrounding residential suburbs) who have used a cell phone network provider for three years or longer, 605 respondents completed interviewer-administered questionnaires. Demographic and patronage information, together with respondents’ relationship intentions, attitudes towards complaining, customers’ complaint behaviour, expectations of service recovery, perceived service recovery as well as satisfaction, loyalty and retention following service recovery, were obtained. Results indicated that no associations exist between respondents’ levels of relationship intention and their relationship lengths, as well as whether they had contractual agreements with their cell phone network providers. It is therefore recommended that instead of using relationship length or contractual agreements, cell phone network providers should use customers’ relationship intentions to identify customers for relationship marketing purposes. Findings from this study furthermore include that respondents’ relationship intentions influence their propensities to complain, as well as the likelihood that they will voice a complaint regarding dissatisfactory service delivery. It is therefore recommended that cell phone network providers use the opportunity to identify customers with relationship intentions through customers’ complaint behaviour. This study found that respondents’ relationship intentions influence both their expectations of cell phone network providers to take service recovery action, as well as their perceptions of service recovery. Respondents’ relationship intentions also positively influence their satisfaction, loyalty and retention following service recovery. Based on these findings, it is recommended that cell phone network providers should always take corrective action following service failures (such as billing errors in this study), preferably by including at least an acknowledgement, apology, explanation and rectification of the problem as part of the service recovery efforts. Such a combination of service recovery efforts will increase the satisfaction, loyalty and retention of customers with higher relationship intentions. From the results it can be concluded that customers’ relationship intentions influence their behaviour with regard to propensity to complain, voicing, expectations of service recovery action, perceptions of service recovery, as well as satisfaction, loyalty and retention following service recovery, when service failures occur. The proposed model developed from these findings results in the recommendation that cell phone network providers should view the service recovery process as an interrelated process influenced by customers’ relationship intentions. Cell phone network providers should note that customers with higher relationship intentions will attempt to salvage the relationship when service failures occur, which contributes to their satisfaction, loyalty and retention following service recovery. This study contributes to establishing relationship intention theory by confirming the positive influence of customers’ relationship intentions on constructive behaviour when service failures occur. Moreover, practical recommendations concerning cell phone network providers’ response to billing errors are proposed. Future research should address the methodological limitations of this study by using probability sampling, and data should be collected from all South African provinces. Real-time service failures should be considered as opposed to the scenario-based approach used in this study. Important influences on customer behaviour when service failures occur, such as the perceived severity of service failure, service failure type, perceived justice and attributions, should also be considered with regard to their influence on the constructs of this study. Lastly, the antecedents of or differences with regard to customers’ relationship intentions based on personality, generational cohort or population group deserve further attention to establish relationship intention as study field within the domain of relationship marketing. / PhD (Marketing Management), North-West University, Potchefstroom Campus, 2014.

The press is filled with stories about termination of customer relationships in banking, telecom and other service industries. Yet, there is limited research on firm-initiated service termination and in particular, customers’ reactions to different termination strategies is under-researched. This study employs a 2 (termination strategies: firm-oriented and customer-oriented) * 5 (compensation types: explanation, apology, moderate monetary compensation, high monetary compensation and no compensation) experimental design with US adult consumers in retail banking. In phase 1, the study examines the direct and indirect effects of termination severity on customers’ reactions and the perceived justice theory is used to explain the post termination conceptual framework. The results show that a firm-oriented approach is perceived as more severe and less fair compared with a customer-oriented approach. In addition, termination severity negatively influences perceived justice and positively influences anger, direct complaint, negative WoM and revenge behaviours. The results also demonstrate that anger and perceived justice mediate the relationships between termination severity and behavioural responses and attitude towards complaining moderates the effects of anger on revenge, direct and third party complaint. The study contributes to the service termination literature by enhancing the understanding of the consequences of service termination and also providing a theoretical model of customers’ attitudinal, emotional and behavioural reactions to firm-initiated service termination. Furthermore, little is known about the role that compensation plays in influencing customers’ responses to intentional failures such as service termination. Therefore, in phase 2, this research examines the effects of different types of compensation and different level of monetary compensation on customers’ anger, satisfaction, image and negative WoM following the two termination approaches. Expectancy violation theory is used to explain the post compensation conceptual model. Contrary to the accepted wisdom, the findings reveal that explanation is the salient compensation type for both termination approaches. In addition, high level of monetary compensation is only effective following a firm-oriented, but not a customer-oriented approach. Moreover, apology and moderate monetary compensation are not effective in improving customers’ satisfaction and reducing their anger following either approach. The research contributes to the service recovery literature by examining the effectiveness of psychological and monetary compensation in service termination, which is an intentional failure. The findings provide managers with critical insights about the effectiveness of different compensation strategies based on specific termination strategies (i.e. psychological compensation following customer-oriented and both psychological and high monetary compensation following firm-oriented approaches).

Service providers must understand that they have to provide customer-perceived value, if they want to stay in business. One of the best ways to determine customer-perceived value is to encourage customer complaint. This will make it easier to identify areas of the service process which the consumer believes must be improved. The ultimate goal of our thesis is to identify and establish the patterns of customer complaint behaviour in public transportation which is a part of the service sector. If patterns are identified, it will be much easier to encourage and predict customers‘ abilities and willingness to complain during a service process. Hence, service providers will be able to create an environment that can encourage and facilitate customer complaint processes. In this regard, service providers will obtain more information that will enable them to improve the quality of their services in order provide customer-perceived value. In addition, due to the fact that services are offered at the same time when the customer is there, this increases chances of customers seeing failures. Therefore, it is vital to make it easier for customers to be able to complain as soon as they perceive these failures so that they leave the service environment satisfied. Thus, understanding the pattern of customer complaint behaviour will make this process easier. By pattern, we mean sequence and therefore, there must be factors that influence this sequence. Our thesis shall focus on three main factors; cost, contextual resources and customer‘s competence, that influence the ability, willingness and the extent to which customers will engage in a complain process. Therefore, this thesis focuses on the following: What is the pattern of customer complaint behaviour in public transportation and how do cost, contextual resources and customer‘s competence impact this pattern?However, we shall also mention other external factors that may influence the pattern of customer complaint behaviour like market structure and service characteristics. It is imperative to understand customer complaint behaviour in service because through customer complaint, customers‘ quality expectations can be determined and met. Studies reveal that, although complaint channels may exist, some customers still do not complaint. In our survey, only 21.6% of respondents who encountered a service failure actually complained implying that 78.4% of the respondents who encountered an unfavourable service experience did not complain. What could be the reasons that customers who encounter problems do not complaint, although they would want to complain?2Above all, if there is something to be learnt from customer complaint behaviour, we think that it should be the patterns of customer complaint behaviour. This is because if patterns can be identified, then the right channels can be put in place by service providers in order to encourage and facilitate the complaint process. This will enable much information to be obtained from the customers and then used to make improvements in the service offerings and processes. In this regard service quality and customer satisfaction can be increased. This will lead to customer retention and higher profits for the company as well as prevent negative word-of-mouth.In this thesis, we identified patterns of customer complaint behaviour in service with a focus in public transportation by using data from the passengers of the public bus companies of Karlstad city and the intercity bus company (SWEBUS) as bases of our research. In our questionnaire we asked customers to indicate the strength of preference for a complaint channel they would use in order to make a complaint to the bus company in the event of a negative service experience. The results were ranked in order to determine the pattern of customer complaint behaviour in public transportation. We approached this topic by revealing the importance of understanding customer complaint behaviour and using this knowledge to improve service development. We proceeded by emphasising on the importance of viewing customer complaint behaviour from the perspective of service dominant logic. / The Service and Market Oriented Transport Research Group

It is common practice for service providers, such as cell phone network providers, to utilise relationship marketing strategies in an effort to retain their customers and thereby to increase profitability. Customers with relationship intentions are willing to respond to such efforts while other customers will refrain. Service failures negatively impact relationship marketing efforts and thus complicate service providers’ relationship-building efforts. Therefore, service providers endeavour to restore customers’ post-recovery satisfaction and loyalty through service recovery efforts to retain their customers. However, the influence that customers’ relationship intentions have on this process has not been considered. Previous research on relationship intention in South Africa focussed only on developing a valid and reliable relationship intention measurement scale. For this reason, the primary objective of this study was to determine the influence of relationship intention on customer satisfaction, loyalty and retention following service recovery within the cellular industry. Supporting the primary objective, a model depicting the influence of respondents’ relationships intentions on satisfaction, loyalty and retention following service recovery was developed. Furthermore, a model depicting the interrelationships of the relationship constructive dimensions of the service recovery process uncovered during this study was also developed. Through non-probability convenience sampling of adults 18 years and older (residing in Johannesburg and the surrounding residential suburbs) who have used a cell phone network provider for three years or longer, 605 respondents completed interviewer-administered questionnaires. Demographic and patronage information, together with respondents’ relationship intentions, attitudes towards complaining, customers’ complaint behaviour, expectations of service recovery, perceived service recovery as well as satisfaction, loyalty and retention following service recovery, were obtained. Results indicated that no associations exist between respondents’ levels of relationship intention and their relationship lengths, as well as whether they had contractual agreements with their cell phone network providers. It is therefore recommended that instead of using relationship length or contractual agreements, cell phone network providers should use customers’ relationship intentions to identify customers for relationship marketing purposes. Findings from this study furthermore include that respondents’ relationship intentions influence their propensities to complain, as well as the likelihood that they will voice a complaint regarding dissatisfactory service delivery. It is therefore recommended that cell phone network providers use the opportunity to identify customers with relationship intentions through customers’ complaint behaviour. This study found that respondents’ relationship intentions influence both their expectations of cell phone network providers to take service recovery action, as well as their perceptions of service recovery. Respondents’ relationship intentions also positively influence their satisfaction, loyalty and retention following service recovery. Based on these findings, it is recommended that cell phone network providers should always take corrective action following service failures (such as billing errors in this study), preferably by including at least an acknowledgement, apology, explanation and rectification of the problem as part of the service recovery efforts. Such a combination of service recovery efforts will increase the satisfaction, loyalty and retention of customers with higher relationship intentions. From the results it can be concluded that customers’ relationship intentions influence their behaviour with regard to propensity to complain, voicing, expectations of service recovery action, perceptions of service recovery, as well as satisfaction, loyalty and retention following service recovery, when service failures occur. The proposed model developed from these findings results in the recommendation that cell phone network providers should view the service recovery process as an interrelated process influenced by customers’ relationship intentions. Cell phone network providers should note that customers with higher relationship intentions will attempt to salvage the relationship when service failures occur, which contributes to their satisfaction, loyalty and retention following service recovery. This study contributes to establishing relationship intention theory by confirming the positive influence of customers’ relationship intentions on constructive behaviour when service failures occur. Moreover, practical recommendations concerning cell phone network providers’ response to billing errors are proposed. Future research should address the methodological limitations of this study by using probability sampling, and data should be collected from all South African provinces. Real-time service failures should be considered as opposed to the scenario-based approach used in this study. Important influences on customer behaviour when service failures occur, such as the perceived severity of service failure, service failure type, perceived justice and attributions, should also be considered with regard to their influence on the constructs of this study. Lastly, the antecedents of or differences with regard to customers’ relationship intentions based on personality, generational cohort or population group deserve further attention to establish relationship intention as study field within the domain of relationship marketing. / PhD (Marketing Management), North-West University, Potchefstroom Campus, 2014.