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Module 1: Developing Customer Relationships

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Complaint Handling and Service Recovery - Part 1

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MODULE OVERVIEW

Recognize actions that customers may take in response to service failures.
Understand why customers complain.
Know what customers expect from firm when they complain.
Understand how customers respond to effective service recovery.

CUSTOMER COMPLAINING BEHAVIOR

Many “moments of truth” in service encounters are vulnerable to breakdowns.
Distinctive service characteristics such as real-time performance,customer involvement, and people as part of the product can greatly increase the chance of service failures occurring.
How well a firm handles complaints and resolves problems determines whether it builds customer loyalty or not.

Why Customers Complain?

Obtain restitution or compensation
Vent their anger
Help to improve the service
For altruistic reasons

Dimensions of Fairness

Procedural Justice: Refers to polices and rules that any customer has to go through to seek fairness
Interactional Justice: Involves the employees of the firm who provide the service recovery and their behaviour towards the customer.
Outcome Justice: Concerns the restitution or compensation that a customer receives as a result of the losses and inconveniences caused by the service failure.

CONCLUSION

In this module we recognized actions that customers may take in response to service failures.
Understood why customers complain.
Learnt what customers expect from firm when they complain.
Understood how customers respond to effective service recovery.