(Assignment 3 – Reading): Complaint Management

a) What are the potential consequences of ineffective or absent complaint management?

b) Examples of behavior Types of response (Hischman, 1970 and Singh, 1988) Behavior categories (Rogers, Ross and Williams, 1992 and Lam and Tang, 2003) voiceprivate complaining bad-mouthing voicing complaint to provider complaining to management third party publicizing exit /switchchange future behavior loyaltydo nothing

c) Three sets of criteria are listed as ways of characterizing different cultures. In your own words, explain what each set means. power distance masculinity-femininity individualism – collectivism

e) masculinity-femininity "Masculinity is defined as a situation in which the dominant values in society are success, money and material. Femininity is defined as a situation in which the dominant values in society are caring for others and quality of life."

g) Proposition 3: "The more favourable the attitude toward complaining, the lower the exit behaviour."

i) Complaining is customers’ right, not an obligation. I always complain when I am dissatisfied because I feel it my duty. Complaining is not easy, but it should be done when ‘‘things’’ are not right. For me, complaining usually makes me more frustrated. Complaining about anything is distasteful to me. People who have little else to do are the ones who complain the most. I am embarrassed to complain no matter how bad the product/service was. I always feel better once I voice my dissatisfactions through a complaint.

Lessons for Managers

1.Verbal complaints to staff and managers should be taken very seriously. 2.The consumers should not be denied voicing their dissatisfaction. 3.By voicing their complaint to the staff or manager, the consumers indicate a wish to stay with the company rather than choose the exit option.

Lessons for Managers 4.Voicing consumers should not experience a „frustration effect“. 5.Voicing should result in positive outcomes. 6.Remember that once the customer lodges a complaint, the original transaction may become less relevant to the consumer‘s ultimate satisfaction than events that follow the complaint.

Lessons for Managers 7.When a service failure occurs, customers expect immediate and active corrective action. 8.Employees must be empowered to take the necessary action to resolve problems on the spot. 9.A customer may take writing a letter to the company HQ or taking legal action as less confrontational and may look upon this as a way to ensure financial compensation, BUT: These measures are more likely to result in customer exit.

Lessons for Managers 10.Managers receiving few complaints should not be complacent. 11.The presence of a dissatisfied customer in a service setting is critical because customer-to- customer interactions can influence valuation and satisfaction. 12.Managers can train their frontline staff about how customers from specific cultures will behave following unsatisfactory service episodes.

Lessons for Managers 13.Educating consumers about mechanisms and options of complaining and removing the fear of confrontation and the intimidation factor might enhance the propensity to complain BECAUSE 14.Considering the cost of „defecting customers“, organisations should attempt to develop easier ways for customers to communicate their dissatisfaction with the hotel management rather than elsewhere.