MKT 346: Marketing of Services Dr. Houston. Chapter 13: Complaint Handling and Service Recovery . Why Do Customers Complain?. To obtain compensation To release their anger To help to improve the service Because of concern for others.
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MKT 346: Marketing of ServicesDr. Houston
and Service Recovery
Customer did not
Problem cost > $100
Problem cost $1 - 5
% of Unhappy
Source: Claes Fornell, Birger Wernerfelt, “A Model for Customer Complaint Management,” Marketing Science, Vol. 7, No. 3 (Summer, 1988), pp. 287-298
Force firms to focus on what customers want
Set clear standards
Require systems to get & act on customer feedback
Force organizations to understand why they fail and to overcome potential fail points
Reduce risks of purchase and build loyalty