1

Contents
CHAPTER 1: INTRODUCTION ............................................................................................................ 2
1.1 Background ............................................................................................................................ 2
1.2 Statement of the Problem ..................................................................................................... 7
1.3 Objectives .............................................................................................................................. 9
1.4 Significance of the study ...................................................................................................... 10
1.5 limitations of the study ........................................................................................................ 11
CHAPTER 2: LITERATURE REVIEW .................................................................................................. 12
2.1 Review of Literature............................................................................................................. 12
2.2 Theoretical framework ........................................................................................................ 17
2.3 Conceptual Framework ........................................................................................................ 23
2.4 Research Gap ....................................................................................................................... 24
CHAPTER 3: RESEARCH METHODOLOGY ....................................................................................... 25
3.1 Research Design ................................................................................................................... 25
3.2 Population and Samples ...................................................................................................... 26
3.3 Data collection/sources of data ........................................................................................... 27
3.4 Data processing techniques ................................................................................................. 27
CHAPTER 4: PRESENTATION AND ANALYSIS OF DATA ................................................................... 29
4.1 Introduction ......................................................................................................................... 29
4.2 Presentation of Data ............................................................................................................ 29
CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATION ................................................ 37
5.1 Summary of the report ........................................................................................................ 37
5.2 CONCLUSION ........................................................................................................................ 39
5.3 RECOMMENDATION ............................................................................................................ 39
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CHAPTER 1: INTRODUCTION
1.1 Background
In the present banking system, excellence in customer service is the most important tool for

sustained business growth. Customer complaints are part of the business life of any corporate

entity. This is more so for banks because they are service organizations. As a service

organization, customer service and satisfaction should be the prime concern of any bank. The

bank believes that providing prompt and efficient service is essential not only to attract new

customers, but also to retain existing ones. However, banks minimize instances of customer

complaints and grievances through proper service delivery and review mechanism and to ensure

prompt redress of customer complaints and grievances. The review mechanism should help in

identifying shortcomings in product features and service delivery. Customer dissatisfaction can

ruin the name and image of a bank. As such, bank policy on grievance redress is as follows:

1. Customers are to be treated fairly at all times.

2. Complaints should be raised by customers with courtesy and on time.

3. Customers should be fully informed of avenues to escalate their complaints/grievances

within the organization and their rights to alternative remedies, if they are not fully

satisfied with the response of the bank to their complaints.

4. Bank to treat all complaints efficiently and fairly as they can damage the bank’s

reputation and business if handled otherwise.

5. The bank employees must work in good faith and without prejudice to the interests of

the customer.

6. In order to make the bank’s mechanism more meaningful and effective, a structured

system needs to be built. Such system would ensure that the redress is just and fair. The

guidelines should be made available at all branches for the information of all employees,

to ensure better customer service and general awareness in the bank.

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Customer complaint arises due to:

1. The attitudinal aspects that deals with customers

2. Inadequacy of the functions/arrangement made available to customers or gap standards

of services expected and actual services rendered.

The customer has the right to register his complaints if he is not satisfied with the service

provided by the bank. He can give his complaints in writing, orally or by telephone. If the

customer’s complaint is not resolved within a given time or if he is not satisfied with the

solution provided by the bank, he can approach ‘banking Ombudsman’ with his complaints

or other legal avenues for grievances redress.

Mandatory display requirements

It is mandatory for the bank to provide:

1. Appropriate arrangement for receiving complaints and suggestions

2. The name, address and contact number of nodal officer.

3. Contact details of ‘banking Ombudsman’ of the area.

4. Code of the bank’s commitment to customers/fair practice code.

Things to be considered while handling complaints

The branch manager is responsible for the resolution of complaints/grievances. He is responsible

for ensuring the closure of all complaints received at the branches. It is his foremost duty to see

that the complaints are resolved completely to the customer’s satisfaction and if the customer is
 4

not satisfied, then he should be provided with alternate avenues to escalate the issues. If the

branch manager feels that it is not possible at his level to solve the problem, he can refer the case

to the ‘divisional office’ for guidance. Similarly, if the ‘divisional office’ finds it difficult to solve

the problem, such cases may be referred to the nodal officer.

Time frame

Complaints reveal a weak spot in the working of the bank; therefore, complaints received should

be analyzed from all possible angles. The complaint received has to be acknowledged within a

week. After examination of the matter, the bank finally respond or explain why they need more

time to respond and shall endeavor to do so within six weeks of receipt of the complaints. The

branch manager should try to resolve the complaints within specified time frames, decided by the

bank. Communication of the bank’s stand on any issue, as regards to the customer, is a vital

requirement. Complaints received which would require some time for examination of issues

involved, should invariably be acknowledged promptly. The divisional office must send an

action that is taken with regards to complaints received by the head office at the end of every

quarter.

Interaction with customers

The bank recognizes that customers’ expectation/ requirement/grievances can be better

appreciated through personal interaction with customers by bank staff. Structured customer

meetings (say once in a quarter) will give a message to the customers that the bank cares for them

and values their suggestions for improvement in the customer service. Many of the complaints

arise on account of lack of awareness among customers about bank services and such interaction

will help the customers appreciate banking services better. As for the bank, the suggestion from

customers would be a valuable input for revising its product and services to meet customer

requirements.
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Sensitizing operating staff on handling complaints

Staff should be properly trained on handling complaints. Since we are dealing with people,

different opinion and areas of friction may arise. With an open mind and a smile on the face, we

should be able to win the customer’s confidence. It should be the responsibility of the ‘nodal

officer’ to ensure that internal machinery for handling complaints/grievances is operated

smoothly and efficiently at all levels. He should give necessity of training to the staff at various

levels to the HR department.

STARTEGIES TO MITIGATE COMPLAINTS

1. All the banks should constitute customer service committee.

2. Appoint ‘nodal officers’ and other designated officials to handle complaints and

grievances.

3. Nodal officers should conduct meetings with the customers

4. There should be trained, honest, polite, sensitive operating staff to handle the complaints.

5. Understanding customer experience and its implication: Our experience shows that there

are multiple layers of customer experience with a bank. The banks deliver customers through
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management of lower order satisfaction as well as higher order loyalty. The failure to do so

usually results in sub optimal customers.

6. Appreciating the fact that internal or external process audits are not substitutes for active

motion studies in gauging the accuracy and reliability of service delivery: Some banks also use

the external mystery customer technique. It is critical to understand that these initiative simply

benchmark delivery against intentions. Even if the delivery is as per intention, there could be a

problem with delivering customers. So banks should use judicious mix of process audits and

voice of customer (VOC) studies such as customer satisfaction/loyalty studies.

7. Establishing the link between superior customer experience and a tangible business

outcome such as customer retention or customers share of wallet: As earlier discussed (about

different customer experiences, customer satisfaction and loyalty), they are widely accepted now

that there is weaker link between customer satisfaction and business outcomes. At the same time,

customer loyalty is highly correlated with business outcome. Our experience shows that loyal

customers tend to stay with the bank and use more of its products and services. Also, customer

satisfaction is one of the many factors influencing customer loyalty, but only a healthy mix of all

components of customer loyalty goes towards changing business outcomes.

8. Bridging the gap between top management and actual implementation: Banks should

invest in adequate training and resources incentives for key staff and follow a goal- action plan in

their quest to realize the vision banks.

9. Providing different strokes for different folks within the bank: Banks should set up a

system of interlocking and relevant goals, and as such, train employees and deliver incentives to

customers in their domains.

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10. Making effective uses of internal customer profile/ history data: Banks should make use

of extensive customer information not just for selling and fraud detection, but also to gather

customer insights.

11. Keeping front line staff engaged and motivated, since service delivery has high

correlation with the motivational levels of banks’ front line staff: Banks should look at managing

employee equity as the key component towards service delivery.

1.2 Statement of the Problem

The consumer complaint behavior and area of research which deals with the

identification and analysis of all the aspects involved in the consumer reaction to a

product or a service failure and the consequent perceived dissatisfaction.

A growing interest for CCB starts appearing towards the middle of the 60s as a particular

aspect of a general attention for consumer behaviors and attitudes. Consumer satisfaction,

dissatisfaction and consumer complaint behavior, in particular, are three distinct, but

highly correlated subjects investigated by marketing and consumer studies.

Real marketing problems can be considered at the origin of these studies. The growing

competition in the market, the developing consumerism, the importance given to quality,

performance and satisfaction, the emphasis given to customers, considered at the center

of a product or of a service, bring researches to inquiry about the complex mechanism

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which determine customer satisfaction of dissatisfaction and what are the consequent

consumer behavior.

At the same time, as the research is deeply rooted in real life, the findings of the studies

are aimed at identifying and suggesting managerial and practical solutions directly

applicable to markets and services.

As far as Consumer complaint behavior is concerned, the main aspects investigated can

be summarized according to the some questions. The proposed list is anything but

exhaustive:

 Why do people complain?

 Why do people not complain?

 To whom do people complain?

 Facing an unsatisfactory product or services, what are the possible reactions

available for a customer?

 Are there any differences in Consumer Complaint Behavior according to the

product or the service investigated?

 What does a consumer expect from complaints?

 How frequently do consumer complaints receive satisfaction?

 Is it possible to group consumers according to their complaint behavior?

 How do personal characteristics of consumers affect CCB?

 After complaining, what are the possible reactions available for a customer (post

complaining behavior)?

 Which factors have effect on complaining handling?

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 What is the value of complaints for a company?

 What is the cost of not receiving complaints or of not handling complaints

properly?

 What should be the managerial reaction to complaints?

1.3 Objectives
The main objective of this research is to study the customers complaints behavior of

Global Ime Bank. Customers are the king of business, so addressing their needs, wants

and desires is very important. The study focuses on how customers complaints behavior

could be evaluated and minimized. The major objectives are as below:-

1. To analyse the number of complaints made by bank customers.

2. To suggest some measures to reduce the complaints.

3. To find out the major complaints made by customer.

4. To suggest on how to address the complaints made by customers and maintain

effective complaint management.

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5. To find relationship of employee complaints on performance.

1.4 Significance of the study

The organization would run effectively when it addresses the needs of its customers and

handle the conflicting behavior in the organization. The analysis of the complaining

behavior of the organization helps in developing new ways and techniques of managing

the complaints and develops new policies. the study of job satisfaction, feedback system,

problem situations and suggesting habit would help to determine the internal weaknesses

of the organization and finish the ideas for improvement. the major significance of the

study are as follows:

 It analyses the cause and effect of complaining behavior of customers.

 It analyses the job satisfaction, feedback system, problematic methods and suggestive

behavior of the Global IME Bank, Indrachowk Branch.

 It examine the existing situation of complaint management of Global IME Bank,

Indrachowk Branch.

 It provides the literature to the researcher who wants to carry on future research in this

field.
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1.5 limitations of the study

The present study is not a comprehensive study. This study is conducted for the partial

fulfillment of BBA study. Some deficiencies may be found in this study due to various

limitations. Some of the limitations are as follows:

 This study might not be representative of whole banking sectors as it covers only one

commercial bank. we selected Global IME Bank and we could only take data from

Indrachowk branch among its other several branches.

 This study concentrates only five independent variables i.e. job satisfaction, suggestions,

problem, feedback system and demographic variables.

 Questionnaire was only distributed to 20 customers so it might not be the representative of the

whole customers.

 Time constraints, limited budget, lack of experience, up-to-date information also stood as the

limitation of our study.

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CHAPTER 2: LITERATURE REVIEW

2.1 Review of Literature
Paradoxically, the direct expression of complaints is not the core of consumer

complaining behaviour studies. Complaints directly expressed are not the unique, neither

the first reaction of customers toward a problem. On the contrary, consumers voice their

complaints only seldom and under some determined conditions. Statistical data and

studies may offer some differences in the estimation of complaint rates, but these

differences can be explained considering both the specific sectors studied and the

research techniques applied. For sure, less than the half of the problems experienced by

customers are directly voiced (Best and Andreasen, 1977). Companies are normally

aware only of a small percentage of breakdowns. The metaphor of the tip-of-the-iceberg

(Best and Andreasen, 1977, p. 701; Wall, Dickey and Talarzyk, 1977, p. 100) can be

appropriately used in this context. In spite of few explicit complaints, most of the

problems stay hidden. For this reason, a small amount of complaints is anything but a

valid indicator of quality or of user satisfaction. On the contrary, a limited number of

complaints or, in certain cases, the absolute lack of complaints should be considered as an

“early warning signal” (Reichheld and Sasser, 1990, p. 109). For the same reason,

complaining reduction should not be considered as a valuable purpose. According to

Andreasen (1988, p. 675), on the basis of several studies, it is possible to "conclude that

consumers experience problems in about 20 percent of their purchases, complain to the

seller […] 40 percent of the time and perceive that they have received satisfaction from
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this

complaining behavior 60 of the time". However, the author warns that all the aspects

involved in consumer complaint behavior "vary significantly across purchase categories"

(p. 702). One of the first concepts to consider is dissatisfaction and its key role in CCB.

Not being the direct object of this study, it is possible to define satisfaction and

dissatisfaction as consequences of the perceived gap between the consumer expectations

and the real experience. This concept is generally defined as disconfirmation paradigm

(Oliver, 1987, p. 218). When the experience overcomes the expectations, the customer is

satisfied (positive disconfirmation); on the contrary, when the expectations are not

fulfilled by the experience, the customer is dissatisfied (negative disconfirmation). A

neutral reaction is normally the consequence of an even match between expectations and

experience (confirmation) (Blodgett, Granbois and Walters, 1993, p. 403). For these

reasons, dissatisfaction should be considered as an antecedent of complaining (Landon,

1980) while the intensity of dissatisfaction seems to play a secondary role (Oliver, 1987;

Prakash, 1991). However, dissatisfaction is not enough for complaining and consumer

complaint behavior could not simply be incorporated "into a theoretical model of

consumer satisfaction" (Bearden and Teel, 1983, p. 21). Day (1984, p. 496) underlines

that "complaining behavior is logically subsequent to dissatisfaction and is a distinct set

of activities which are influenced by a variety of personal and situational factors which

appear to be unrelated to the intensity of dissatisfaction". Consumer complaining

behavior is a multidimensional and extremely complex phenomenon which denies the

excessive simplification that has characterized some studies (Singh and Howell, 1985, p.

44). When customers decide to complain, they have previously passed through two
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distinct, even if interrelated, steps already identified by Hirschman (1970): they value

positively the balance between costs and benefits. Both costs and benefits are not only

economic, but also psychological (Andresen, 1988). The perceived benefit can be not

great enough to lead a consumer to complain, even if considerable dissatisfaction exists.

On the contrary, a consumer can complain even with a low level of dissatisfaction if the

perceived benefit is remarkable (Landon, 1977, p. 32) they value worthwhile the

complaining action because they esteem positively the likelihood of obtaining a favorable

solution.

As far as the first point is concerned, it is extremely important to understand that

complaining is not a cost-free activity. The cost of complaining is absolutely subjective,

but it is possible to recognize a material component, the time invested in introducing

complaints, and a psychological component which includes embarrassment, fear,

incertitude, confrontation.

As far as the second point is concerned, a dissatisfied customer evaluates the probability

of a favorable outcome of complaining estimating, also on the basis of "reputation" (Day

and Landon, 1977, p.433-434), the responsiveness of the company. By complaining,

customers can search for different possible outcomes which can be combined together.

On average, customers hope for a tangible solution of a specific problem, through refund,

exchange, repair; a psychological compensation obtaining apologies; a social benefit,

"preventing the cause for their dissatisfaction from occurring to other consumers"

(Landon, 1977, p. 32). In other circumstances, a complaint has only one objective:

venting anger and frustration for reducing stress. In this case, no reaction from the seller
 15

or the service is really expected and the complaining behavior has a cathartic effect

(Nyer, 2000).

The number of studies has been conducted regarding the services to customers and their

awareness. As such, we have reviewed some of them. Goyal and Thakur (2008) concludes that

public sector banks that have no monopoly licenses are to be given to new public sector banks

and foreign banks. However, when the public sector banks realized that government was no

longer there for them, they started devising various strategies for survival and growth. In the

present study, the researcher has taken two banks.

The present study is based on primary data as well as secondary data. The secondary data were

collected from technical books, articles, previous studies, committee reports, IBI bulletins, RBI

bulletins, staff training college of the SBI and from data relating to banks. The primary data

related to attitude of customers towards banking services were collected with the help of

questionnaire. The challenge for public sector banks as well as private sector banks will be in the

area of people, technology and competition. They must continuously invent new products and

service in the light of envisaged changes. Kamakodi (2007) examines how computerization has

influenced the banking habits and preference of Indian customers, and which factors influence

these preferences. Changing of residence, salary and non availability of technology based services

were given as the three main reasons for changing bank. Uppal and Kaur (2007) study customers’

awareness of various e-channels used by banks and suggest some measures for making e-banking

services more effective, which could contribute to transformation of Indian banks. The paper

concluded that most of the customers of ebanks are satisfied from the different e-channels and

their services, but the major obstacle to accept e-channels is the lack of awareness about these e-

channels and especially their operational part. The paper suggests some measures to make e-

banking services more effective in the future, which will be responsible for the transformation of

Indian banks. Mishra and Jain (2007) studied various dimensions of customer satisfaction in
 16

nationalized and private sector banks. The study concludes that satisfaction of customers is an

invaluable asset for modern organizations, providing unmatched competitive edge, which helps in

building a long term relationship. The best approach to customer retention is to deliver a high

level of customer satisfaction that result in strong customer loyalty. The two-stage factor analysis

is to arrive at the dimensions of customer satisfaction. The study analyzed ten factors and five

dimensions of customer satisfaction for both nationalized and private sector bank. Jain and Jain

(2006) show that the Indian banking industry has undergone radical changes due to liberalization

and globalization measures undertaken since 1991. There has been a great surge in retail banking.

The study based on responses received from 200 customers of HDFC bank, ICICI bank and some

other private and nationalized banks in Varanasi identified the various types of services offered

by banks, the level of satisfaction about different types of services, expectations about these

services and the level of segmentation among the services offered. Singh (2006) discusses

customer management in banks. As such, the management aims to target the customer with a

view to gain customer insight and provide value added products and services. Technology has

enabled the banks to reach customers in any part of the world at any time with customized

products, thereby moving towards the concept of customer satisfaction. Management must strive

to deliver positive experience (proper service delivery) to each customer; and as such, this may be

functional, emotional or situational for long term customers and business management in the

banks. Bhaskar (2004) analyzed that when good service is extended to a customer, a loyal

customer will work as an ambassador to the bank and facilitate growth of business. Customer

service is the base for business expansion because of the stiff competition prevalent in the

banking industry. The survival of banking business is dependent on customer service. To

conclude, the banking industry is active in India, due to technological revolution. Banks have to

utilize this opportunity to become strong organizations providing essential service. Furthermore,

Hasanbanu (2004) pointed out that rural customers do not have any idea as to how much time is

required for any type of bank services. The rural customers are not aware of the purpose
 17

availability of loan and how they can be availed, since they do not know the complete rules and

regulations and procedures of the banks, and as such, bankers reserve them for themselves and do

not find interest in educating the customers. The study is based on secondary and primary data.

The secondary data were collected from technical books, articles, previous studies, committee

reports, IBI bulletins, RBI bulletins, staff training college of the state bank of India and data

relating to banks, while the primary data related to customers banking services were collected

with the help of questionnaires. Nonetheless, the study was based on a sampling method.

However, Singh (2004) analyzed the level of customer services, and explained that customers’

satisfaction is determined by branch location and design, variety of services, rates and changes,

systems and procedures, delegation and decentralization, mechanization and computerization,

competitive efficiency, complaint redress and very importantly, staff skills, attitude and

responses. A sample of 100 customers’ depositors is taken and the responses are collected

through a pretested structured questionnaire that was analyzed and presented in the form of a

table. The ongoing review shows that a customer’s satisfaction of is an invaluable asset for the

modern organization. To reduce the complaints, bank should improve service because the

survival of banking business is dependent on customer service.

2.2 Theoretical framework

Complaining behavior is not a sudden way of acting .It is the effect from many causes.

Some of those causing factors are customer satisfaction, suggestion, problems and

feedback system. The more the customer satisfaction, the less they complain. They are

satisfied with the quality, health benefits, employee’s behavior in the organization so they

won’t complain. Similarly, the more the suggestions from the authorized person to the

customer, the more they feel good and maintain positive relationship. Complaining

behavior is also affected by problems occurring in the organization. The more the
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deviations and uncertainties, the more is the risk and more is the complaining behavior

and feedback system also affects complaining behavior as more effective the feedback

system, the better the customer feels and they try to retain in the organization.

There are various studies about the relationship between demographic characteristics and

customer complaint behavior. These studies have searched complaint behaviors of

customers from different countries according to their demographic characteristics.

Evidence from the literature, it can be thought that customers from different demographic

characteristics would have varied in post purchase behavior particularly in complaint

behavior in Turkey. In this research, we suggest that customers would act in various

compliant behaviors according to their different demographical characteristics. In

literature occupation, education, household income, age, gender, status, residence and

cars have been used as variables for defining customers’ demographical and

socioeconomic characteristics and these variables have been widely used to differentiate

the complaint behavior.

Higher status occupations are defined in terms of ownership, control of the means of

production and control over the labor power of others. People who function in higher

status occupations have characteristic personalities, motives and values that set them

apart from those in less prestigious positions (Williams, 2002:252). Tronvoll (2007),

reported from previous research that there is a significant relationship between

occupation and complaint behavior and from the study of Liefeld et.al. (1975) people

who have managerial and professional occupational status are complainers (Tronvoll,

2007:28-29-30-31).
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In summarizing the body of Customer Complaining Behavior (CCB) literature

researchers widely maintain that customers who complain are typically holding

professional jobs (Reynolds and Harris, 2005:322).

i. Relationship between occupation level and complaint behavior

There is a positive correlation between occupation level and complaint behavior. Age

has been used as another variable for defining demographical characteristics. While,

elders are less likely to report a dissatisfying experience, though those who do express

dissatisfaction are likely to take actions just like young consumers (Hakimah et. al.,

2010:64). Previous research has shown that the complaining behaviours of older

customers may differ from those of the population as a whole, with complaining being

found to decrease with age (Grougiou and Pettigrew,2009:989). Tronvoll (2007),

expressed that with respect to the age of customers most studies suggest that younger

customers are more likely to complain and middle aged customers were found to be

positively associated with complaints (Tronvoll, 2007:33-34). Most studies have

indicated that younger people file more complaints than older people (Ngai, et. al.,

2007:1378). Phau and Baird (2008), found a positive relation between age and

complaining behavior. They proposed that customers who are over the age of 40 begin to

expect more from their products purchased and also not having much interest related to

social expectations and perceptions, they are therefore more inclined to complain. The

respondents over the age of 54 might have more time in hand than those who are younger

and are therefore more willing to expend the time and effort involved in making a

complaint (Phau and Baird,2008: 593).

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ii. Relationship between age and complaint behavior

There is a positive correlation between age and complaint behavior. Education is

another important variable that strongly relates to occupation. Education affects customer

information processing and decision-making (Williams, 2002:252). College educated

customers tend to read more, read different magazines, spend less time for watching

television, rely less on well-known brands and put more time and effort into purchase

decisions than high school educated customers (Williams, 2002:252). In CCB studies, the

level of education has been treated as a demographic variable. High educational

attainment might be associated with a higher propensity or perceived competence to write

letters of complaint, a greater likelihood of perceiving injustice and perceiving reasons

for complaint, a higher expectation of value, or general attitudinal or value differences

between customers with different educational attainment (Liefeld et.al., 1975: 75).

According to Phau and Baird (2008), people who have tertiary education are less likely to

complain than those with lower educated ones (Phau and Baird, 2008:594). The majority

of studies have found a significant positive correlation between high education and

complaint frequency (Tronvoll, 2007:34).

iii. Relationship between education level and complaint behavior

There is a positive correlation between education level and complaint behavior. Income

obviously affects buying behavior in terms of the amount, types and prices of products

purchased (Williams, 2002:252). Also, income is correlated with complaint behavior. It is

reasonable to assume that consumers with higher incomes purchase more goods, and

more big ticket goods, therefore possibly having more to complain about (Liefeld et.al.,
 21

1975: 77). Individuals with higher income have greater personal resources which enable

them to express dissatisfaction more readily (Tronvoll, 2007:34). According to Haron and

Paim (2008) lower income and education group have been identified as having most

problem in unfair deals and deceptions in the market compared to the other consumer

groups (Hakimah et. al., 2010:64). Phau and Baird (2008), indicates that there is no

significant relationship between different levels of complaining behavior. But within

different income categories, when dissatisfied above the category of $40.000 they will be

more likely to complain than those with an income of less than $40.000 (Phau and Baird,

2008:594).

iv. Relationship between income level and complaint behavior

There is a positive correlation between household income level and complaint behavior.

The other variable is gender and it has been treated as a demographical factor in

complaint behavior research. According to study of Liefeld et.al., 1975 there is no

difference between the actual and expected rates of complaining between the sexes

(Liefeld et.al., 1975: 77). Phau and Baird (2008) report that they found there is no

significant difference between male and female complainers and this finding contradicts

the previous research by Heung and Lam (2003) and Kau et.al.(1995) who both found

females to complain more than males (Phau and Baird, 2008:593). Also Ngai, et. al.

(2007), suggests that males are more likely to want to get things straight, thus resulting in

more complaints from them to the management and to third parties than from females.

v. Relationship between gender and complaint behavior

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Females are more likely to complain than males. Males accept changes and easily adopt

with changing environment. They are flexible with their working standards unlike female

who tend to be timid in case of changing scenarios.

Customer
satisfaction

Customer
Suggestion
Complaints

Problem

Demographic

Variables
Feedback

Education Occupation Gender Age Income level

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Fig showing Theoretical framework

2.3 Conceptual Framework

Those above mentioned variables are believed to be relevant to customer complaints

where six variables are included here. The five variables are independent variable and

one variable is dependent variable. From the affirmation theoretical framework, the

present researcher has developed the conceptual framework. Here, Dependent variable

are customer complaints and Independent variable are job satisfaction, suggestion,

problem, feedback and demographic variables. They are directly linked with each other

so when a customer is satisfied, gets effective suggestions and if organization has a good

feedback system than employee won't feel bad about the systems and complain less in the

organization which builds the reputation of the business. There are some demographic

variables too which causes complaining behavior of customer in the organization. The

demographic variables include Gender, Age, Education level and Income level. When a
 24

commercial bank views this and gives more facilities regarding their age, income level,

educational facilities and special facilities to customer than this also helps a vital role in j

where demographic variables have also close relation with complaining behavior. From

this above mentioned now it’s clear that some of the independent variables has a relation

with customer complaints. If these variables satisfy the customers then customers will

have less conflicting behavior than if these are not satisfied than different problems like

organizational loss, loss of loyal customers frustration will arise. Therefore, in order to

get less customer complaints in commercial bank and other banking work too. During

the time we taken, there was a way to take only three independent variables so that there

will be easier to make the research more effective and this help our research to find the

more answers in a very effective way.

2.4 Research Gap

Based on the review of all literatures related with study, certain research gaps were

found. There have been a number of valuable research studies on customer complaints.

Best and Andreasen, (1977 and 1988), Reichheld and Sasser (1990), Oliver (1987),

Blodgett, Granbois and Walters, (1993), Landon (1980), Oliver (1987), Prakash (1991),

Bearden and Teel (1983). simplification , Singh and Howell (1985), Singh(2004) etc.

have conducted many researches in the field of job satisfaction. However, none of the

studies has been done in the Global IME Bank, Indrachowk bank of Nepal.

Many research has been conducted so far to know customer complaints behavior. Most of

them have been sample based studies. A few studies have attempted to customers

complaints in different organizations. While relating samples and conducting study there

are possibilities for sampling error but we have selected such a sample who will represent
 25

the whole. Hence the results need not be so accurate as the results shown by a study

based on census method. Further customer complaint is a sensitive issue which differs

from individual to individual and even time to time and place to place.

we found out that the research in complaints of Global IME bank, Indrachawk was not

done so, we develop a questionnaire and distributed it to the customers who were visiting

the bank and we got some information and we assimilated the taken information in the

research which fulfills the gap due to no past research in Global IME Bank, Indrachowk

branch.

CHAPTER 3: RESEARCH METHODOLOGY

Research methodology sets out overall plan associated with a study. It provides a basic

framework on which the study is based. Before presenting the analysis and interpretation

of data, it is necessary that research methodology be described first. In the absence of

methodology, it is likely that the conclusions drawn may be misunderstood. This chapter

therefore explains the methodology employed in this study.

3.1 Research Design

This study intends to evaluate the customers complaint behavior of the Global IME bank

Limited, Indrachowk branch. From the findings of the study, it is hope that the job

satisfaction of employees can be identified. The respondents of this study are the

employees working in Global IME Bank, Indrachowk branch. The research design that is

being used is descriptive study and correlational study. The descriptive research design
 26

has been adopted for fact-finding and searching adequate information about customers

complaining behavior and handling those complaints.. This design has also been

employed to assess the opinions, perceptions, and characteristics of respondents with

respect to demographic factors of the respondents who are handlings the complaints of

customers. We have also used the correlational design as there were many independent

variables on which the complaints behavior was related. The intensity of the relation was

also our prime focus. The several factors like customers satisfaction organizational design

feedback system causes complaints among the customers but we found that the two way

communication is what mattered a lot. The customer visiting the bank was not satisfied

with the communication system which proved that the complaint behavior was quite

more affected by the communication in the bank.

This study mainly focuses on the primary data analysis which is collected based on pre

specified questionnaires through the survey method. The data has been analyzed with the

help of descriptive statistics, statistical test and inferential analysis. Additionally, the

correlation between the statements also analyzed to examine the relation between the

questions. Other methodological issues associated with this study are dealt extensively in

the respective sections.

3.2 Population and Samples

Population refers to the entire group of people, events or things of interest that researcher

wishes to investigate. The populations of this study will consist of all the employees of

commercial banks who have been satisfied with their job. The total commercial banks in

Nepal are 28. For due to limitation of time I took only one commercial bank of Nepal and

that is Global IME Bank ltd, Indrachowk .

 27

The total employees in the Indrachowk Branch were 8, and there were many customers

visiting the organization out of which we gathered data from the complaints department

and also 20 customers were taken for the survey. Among the surveyed customers, 5 of

them were female customers and 15 were male. The sampling was done by the selection

of the people who can fit to the questionnaire list. Based on the population mean we have

taken for our research, some samples will be undertaken for the study.

3.3 Data collection/sources of data

In this study, the sampling procedure will be used with view of principle of validity,

principle of statistical regularity and the principle of optimization. The sampling

procedures which consists of sample size, sample of respondents and sampling method.

This study will focus on the attitudes of employees towards job satisfaction..

Regardless both primary and secondary data has been chosen to complete this research.

The secondary data was collected by collecting the different articles of different scholars

have been studied to complete this research. Different annual journal reports and other

research methodology have been used to complete this research. The primary data was

collected during the period of one week. 20 questionnaires were distributed among the

customers of Global IME Bank Limited, Indrachowk branch so that customer’s

complaints can be addressed through questionnaire method. The selection of the

respondents was made on the basis of different genders, different age groups and

different income level peoples. The customer gave some explanation about the survey.

3.4 Data processing techniques

Required information were collected, edited and entered in the spread sheet. Analysis was

done by using SPSS version 18. The following tools have been used to analyze the data.
 28

The Cronbach’s alpha has been calculated for testing the reliability of questionnaires and

variables identified for undertaking the study.

Validity and Reliability: The reliability of measure is established by testing for both

consistency and stability. Consistency indicates how well the items measuring a concept

hang together as a set Cronbach’s alpha is a reliability coefficient that indicates how well

the items and scale in a set are consistence. Since reliable scales are not necessarily

valid, researchers also need to be concerned about validity. The opinion of the experts of

the concerned field has been obtained and incorporated in the questionnaire to make the

study more validate. It assesses whether a scale measures what is supposed to be

measured. Thus validity is a measure of accuracy in measurement.

Descriptive Statistics: Average, percentage and standard deviation have been used to

present the detail overview of respondents’ profile in terms of age, gender, education

level and income level.

Correlation Analysis: Correlation analysis has been carried out to examine the

relationship between employee’s job satisfaction and factors that make employees

satisfied.

Regression Analysis: Multiple regression analysis has been used to examine the impact

of independent variables on dependent variables.

Hypothesis Testing: Independent sample t-test and One Way ANOVA have been

carried out to test the priori hypothesis on impact of gender, age, education levels and

income level differences on job satisfaction level of employees.

 29

CHAPTER 4: PRESENTATION AND ANALYSIS OF DATA

4.1 Introduction
This chapter deals with the presentation and analysis of data. In this chapter,the data

collected with the help of survey questionnaires have been presented and analyzed with

reference to the main objective to examine and understand customer's attitudes, opinions,

feedback and ultimately the level of customer complaints.

4.2 Presentation of Data

Presentation and analysis of the data, regarding the different variables under study which

were collected through questionnaires are as follows:

Table 4.2.1: Complaints received in different areas

Areas of complaint Approximate no. of

complaints in a week

Cash Teller 20

Customer Service Department 10

credit and others 7

ATM Services 0
 30

25

20

15

Approximate no. of complaints

10
in a week

0
Cash Teller Customer credit and ATM Services
Service others
Department

Fig 4.2.1: Complaints received in different areas

From the figure above, it becomes clear that there were high complaints regarding the

cash teller in the organization and ATM services have no complaints.

Table 4.2.2: Response days of complaints in different areas of organization

Areas of complaints Approximate Days taken to

respond to the complaints

Cash Teller 1

Customer Service Department 7

 31

Credit and others 3

ATM Services 1

4
Approximate Days taken to
3 respond to the complaints

0
Cash Teller Customer Credit and ATM Services
Service others
Department

Fig 4.2.2: Response days of complaints in different areas of an organization

From the figure above, it becomes clear that complaints in cash teller, customer service

department, ATM services and credit and others takes 1,7,1 and 3 respectively
 32

Table 4.2.3: Likelihood of customers visiting the same branch in two years to come

Response No of Customers Percentage

Strongly Agree 8 40

Mostly Agree 6 30

Moderately Agree 4 20

Mostly Disagree 2 10

Do not agree at all 0 0

Total 20 100
 33

40

35

30

25

20
Percentage
15

10

0
Strongly Mostly Moderately Mostly do not
Agree Agree Agree Disagree agree at all

Fig 4.2.3: Likelihood of customers visiting the same branch in two years to come

From the figure above,8 out of 20 strongly agree,6 out of 20 mostly agree ,4 out of 20

moderately agree and 2 out of 20 mostly disagree with visiting the same branch in two

years to come .

Table 4.2.4: Responses of customers if their complaints are handled are not.

Response No of customers Percentage

Yes 18 90

No 2 10

Total 20 100
 34

Percentage
100
90
80
70
60
50
Percentage
40
30
20
10
0
Yes No

Fig 4.2.4: Responses of customers if their complaints are handled are not.

From figure above, 90% customers felt that their complaints are handled in the bank and

10% customers felt their complaints were not handled in bank.

 35

Table 4.2.5: If the response is yes, then how many customers complaint could be

handled in the certain time period.

Hours/Days No of customers Percentage

Within 1 week 18 90

Within 1 month 2 10

Total 20 100

Percentage
100
90
80
70
60
50
Percentage
40
30
20
10
0
Within 1 week Within 1 month
 36

Fig 4.2.5: If the response is yes, then how many customer’s complaint could be

handled in the certain time period.

From figure above, 18 customers complaint were handled within one week and 2

customers complaint were handled within one month

TABLE 4.2.6: Responses of customers regarding the communication effectiveness in the

Bank.

Response regarding effectiveness No of customers

of communication

Strongly effective 5

Mostly effective 12

Moderately effective 3

Not effective at all 0

Total 20
 37

No of customers responding on effectiveness

of communication

Strongly effective
Mostly effective
Moderately effective
Not effective at all
Total

Fig 4.2.6: Responses of customers regarding the communication effectiveness in the Bank.

From figure above, 5 out of 20 found communication strongly effective, 12 out of 20 found

communication mostly effective, 3 out of 20 found communication moderately effective in the

organization.

CHAPTER 5: SUMMARY, CONCLUSION AND

RECOMMENDATION
5.1 Summary of the report
The present days are the competitive days. There are many banks offering similar

services like ours to customers. Customers have many choices regarding the Bank they

want to choose. Customer complaints can impact financial performance by affecting

 38

retention of customers. Higher the complaints, higher the chance of them to leave the

organization and lower the complaints, lower the chance of them shifting to other Banks.

Every organization should maintain good information depository regarding the

complaints that the organization are receiving and should take a proper action to

minimize such complaints. Many techniques for handling conflict have been developed

so far so according to the nature of conflict, the best technique should be used. Customer

complaints are not only related to customers but also the faulty system and may also be

related to the disinterested employees. Therefore, understanding about the complaining

behavior has become a growing concern for modern organizations as it is the key to

organizational success.

This field study is based on the customer complaints in Global IME Bank ltd,

Indrachowk Branch. Majority of the customers were satisfied regarding the services

provided but some of the complaints in the Cash Teller department should be minimized.

The Customer Service Department also needs to improve a little otherwise the responses

to our question relating to their complaints towards the organization was positive. The

complaints are frequently looked after and improvement is done as fast as possible.

Thus it can be referred that the Customer Complaints in Global IME Bank ltd,

Indrachowk Branch is less. The customers are satisfied with most of the services

provided.
 39

5.2 CONCLUSION
This is concluded from the above mentioned studies that the performance of the company

is not satisfactory. Even though the managers said that company maintains and manage

customer’s file including maintenance of database to ensure comprehensive data

collection of customers and goes through the systematic customer complaint handling

process but some of the customers were not satisfied with the behavior at the reception

desk of the organization. 3 customers were unsatisfied with the service other 17

customers were satisfied with the service in the bank. In most of the cases the company

does compensate the customer for the difficulties incurred by them. However, the

company maintains and manages customer’s filed including maintenance of database to

ensure comprehensive data collection of customers. It can be concluded that this

company is doing very well in the area of customer complaint handling if it is compared

with the other competitors and the activities are running well. The market coverage is

increasing.

5.3 RECOMMENDATION

In Global IME Bank, Indrachowk we gathered the practical knowledge of customer

complaint and its handling process. Though it is our first experience, we gathered some

problem by discussing with Complaint department and customers .So, we would like to

recommend about those problems:

 40

 The company follows the process of customer complaint handling process but it

should follow fair customer complaint handling process as we saw some of the

differential treatment to different status customers.

 The company should make competitive customer complaint handling structure to

attract new customers .

 The company's online recruitment system is not upgraded. It should be upgraded

for handling the customer complaint in the organization..

 The company should focus more to retain existing customers rather than attracting

new customers.

 Companies must make a database of the customers to know their needs, wants and

problems.
 41

APPENDIX

1. How often do you receive complaints in a week?

a. Less Than 10

b. Less Than 20

c. More Than 20

2. What are the major areas of complaints in a bank.at branch?

Cash Teller

CSD(Customer Service Department)

Credit and Others

ATM Services

3. Are the complaints addressed on timely basis?

Yes

No

4. Is there any complaints handling desks at branch? If Yes who is responsible

person at branch? Please Rate.

 CSD staffs

 Operations Incharge

 Branch Manager
 42

 Higher Authorities

5. How complaints are received at branch?

 Face to Face

 Filing of Letter

 via Electronic Media

6. Are the complaints or grievances made by customers addressed on time?

 Yes

 No

7. If the answer is yes then how long it will take to address the complaints?

 Within 1 hour

 Within 1 day

 Within 1 week

 More than that

 43

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