chapter 13 complaints and service recovery. chapter objectives discuss the four different categories...
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Chapter 13Complaints and Service
Recovery
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Chapter Objectives
• Discuss the four different categories of service failure types.
• Explain customer complaining behavior, including the reasons customers do and do not complain and the outcomes associated with customer complaints.
• Describe the issues involved in mastering the art of service recovery.
• Understand the value of tracking and monitoring service failures and employee recovery efforts.
©2011 Cengage Learning. All rights reserved.
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Opening Vignette: Business Week Article
• The customer has taken justice into their own hands and become a consumer activist.
• BusinessWeek devoted a recent cover story to Consumer Vigilantes and the tagline: “Memo to Corporate America: Hell now hath no fury like a customer scorned.”
©2011 Cengage Learning. All rights reserved.
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Types of Complaints
Instrumental• expressed for the purpose of altering an
undesirable state of affairsNoninstrumental
• expressed without the expectation that an undesirable state will be altered
Ostensive• outer-directed complaints
Reflexive• Inner-directed complaints
©2011 Cengage Learning. All rights reserved.
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Types of Complainers
1. The Meek Customer2. The Aggressive
Customer3. The High-Roller
Customer4. The Rip-Off Customer5. The Chronic
Complainer Customer
©2011 Cengage Learning. All rights reserved.
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Why Do Customers Complain?
• Correct the problem• Emotional release from frustration• Regain some measure of control by
spreading negative word-of-mouth• Solicit sympathy • Test for consensus• Create an impression of being more
intelligent and discerning
©2011 Cengage Learning. All rights reserved.
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Why Don’t Customers Complain?
• Don’t know who to complain to• Don’t think it will do any good• May doubt their own subjective
evaluation• May accept part of the blame• May want to avoid confrontation• May lack expertise
©2011 Cengage Learning. All rights reserved.
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Complaining Outcomes
Voice• High => store manager• Medium => sales clerk• Low => no one associated with the store
• Exit• High => never purchases again• Medium => only purchases if other
alternatives are not available• Low => continues to shop as usual
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Complaining Outcomes
Retaliation
• High => tells lots of people and attempts to physically damage the store
• Medium => tells a few people and created minor inconveniences
• Low => does not retaliate at all
©2011 Cengage Learning. All rights reserved.
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Figure 13.2: Developing a Service Recovery Management
Program
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Figure 13.3: Types of Service Failure
Primary Failure TypePrimary Failure Type
Service Delivery System Failures
Customer Needs and Requests
Unprompted/Unsolicited Employee Actions
Problematic Customers
Service Delivery System Failures
Customer Needs and Requests
Unprompted/Unsolicited Employee Actions
Problematic Customers
Failure SubgroupsFailure SubgroupsUnavailable ServiceUnreasonably Slow ServiceOther Core Service Failure
“Special Needs” CustomersCustomer PreferencesAdmitted Customer ErrorDisruptive Others
Level of AttentionUnusual ActionCultural NormsGestalt
DrunkennessVerbal and Physical AbuseBreaking Company PoliciesUncooperative Customers
Unavailable ServiceUnreasonably Slow ServiceOther Core Service Failure
“Special Needs” CustomersCustomer PreferencesAdmitted Customer ErrorDisruptive Others
Level of AttentionUnusual ActionCultural NormsGestalt
DrunkennessVerbal and Physical AbuseBreaking Company PoliciesUncooperative Customers
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Service Failure Attribution: Indentifying the Root Cause
• Locus: the possible source of the failure including the service provider, the firm, the customer, or external forces
• Stability: the likelihood the service failure will recur
• Controllability: whether or not the firm had control over the cause of the failure
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Recovery Strategy Selection
What Should the Customer Receive to Offset the Failure?– Compensatory Strategies– Restoration Strategies– Apologetic Strategies– Reimbursement Strategies– Unresponsive Strategies
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Recovery Strategy Implementation
How Should the Recovery Strategy Be Presented to the Customer?
Perceived Justice • Distributive justice
• Outcomes (compensation)• Procedural justice
• Process (time)• Interactional justice
• Human content (empathy, friendliness)
©2011 Cengage Learning. All rights reserved.
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Art of Service Recovery
Service recovery paradox• Situation in which the customer rates
performance higher if a failure occurs and the contact personnel successfully recover from it than if the service had been delivered correctly in the first place
©2011 Cengage Learning. All rights reserved.
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Improve Service Recovery efforts
• Measure the costs
• Actively encourage complaints
• Anticipate needs for recovery
• Respond quickly
• Train employees
• Empower the front-line
• Close the loop
©2011 Cengage Learning. All rights reserved.
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All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic,
mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.
Copyright © 2011 Cengage Learning.
©2011 Cengage Learning. All rights reserved.