Professional Documents
Culture Documents
Chapter 5 Objectives
To outline the courses of action open to
a dissatisfied customer
Explain the factors influencing complaint
behaviour
Identify the principles of an effective
service-recovery system
Explain the techniques for identifying
the root cause of service failures
Figure 5.1:
Customer Satisfaction Formula??!!
Customer Response to
Service Failure
Do nothing, but the service provider’s
reputation is diminished (Current situation of
Teletalk)
20
10
0
Immedi- Under Within 3 -14 15-28 Over
ately days days 28
24 hrs 48 hrs
18% 29% 8% days
8% 8% 29%
Perceived response time
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia 13
Figure 5.5
Impact of number of contacts made to get
problem resolved on satisfaction
70
60 55% All respon-
dents
50
37% 34%
40
27%
30
18%
20
10
0
1 2 3-4 5+
27% 19% 30% 24%
Number of contracts (Average: 3.4)
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia 14
Figure 5.6
Impact of problem experience/complaining
on Customer loyalty for all products/services
% Exceeded/satisfied expectations with action taken
100 95
%
90 83
80 %
70
60
46
50
%
40
23 23
30 % %
20 10
10 %
0
No Exceeded Satisfied Dissatisfied Non-
Mollified
problem expectations complainants complainant
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia 15
Conduct research
Identify service Monitor complaints
complaints Develop ‘complaints as
opportunity’ culture
Develop effective
Resolve complaints
systems & training in
effectively complaints handling
Justice Considerations
Source: S.Tax and S.W. Brown, Handbook of Services Marketing and Management, © 2000, Reprinted by permission of
Sage Publications Inc.
Lovelock, Patterson, Walker: Services Marketing 3e © 2004 Pearson Education Australia 18
The Role of Justice in the
Complaint Handling Procedure
Principles of Effective
Service Recovery
Fishbone diagram: a
cause and effect analysis