Abstract

In order to maximize the value of customer complaint data to solve quality assurance, service, and marketing problems, there must be an understanding of customer complaint and market behavior. This will provide a framework allowing organizations to quantify the data so that priorities can be set and quality assurance resources can be effectively allocated to solve the problems. Research shows that most customers do not complain when the encounter a problem, and when they do, the complaints often do not directly identify the source of the problem. Furthermore, a recent survey shows that retail, field systems and service systems actually filter and discourage complaints. Complainers tend to be heavy users of a product or service and thus represent the potential for the most market damage if their loyalty is compromised. Consumers who remain unsatisfied after complaining are twice as likely to tell others of their negative experiences than those with positive experiences. A sidebar article lists eight factors about customer behavior.