Impact of Customer Complaints on Marketing Performance in the Service Industry

ABSTRACT  

sometimes think that they are doing well, only to later on that customers were dissatisfied and have not returned.

It is better to them to complain even about the petty things, than to wait until things become really bad. Not often the complaints simply arise because the does not feel he has been “treated right”.

It may be to note that: the reason why large percentage of customers change suppliers may have less or nothing to do with the quality of the product or service. It was because customers feel “the company did not seem to care and did not communicate with them.

They feel they were being taken for granted”. The first thing the customer who complains is looking for is a sympathetic ear. Handling complaints is probably the most common form of customer care and there is a standard procedure for dealing with it.

May customers see the way an organization handles the complaint as the test of commitment to the things being practiced and preached about customer care.

The major objective of this work is to establish the relevance of customer complaints and how service companies have fared or failed in handling customers’ complaints.

TABLE OF CONTENTS

Certification – – – – – – – – – i
Dedication – – – – – – – – – ii
Acknowledgment – – – – – – – – iii
Abstract – – – – – – – – – – iv
List of Tables – – – – – – – – – v
Table of Contents – – – – – – – – vi

Chapter One: Introduction
1.1 Background of the Study – – – – – – 1
1.2 Statement of the Problem – – – – – – 5
1.3 Objectives of the Study – – – – – – 6
1.4 Research Question – – – – – – – 7
1.5 Hypotheses – – – – – – – – 7
1.6 Significance of the Study – – – – – – 8
1.7 Scope of the Study – – – – – – – 9
1.8 Limitations of the Study – – – – – – 9
References – – – – – – – – 10

Chapter Two: Review of Related Literature
2.1 Historical Background of MTN Nigeria – – – 11
2.2 The Features of Service Products and Service Industry 15
2.3 Staffing and Staff Positioning in the Service Industry- 22
2.4 Customer Value Company’s Performance – – – 26
2.5 Determinants for Customers Care and Satisfaction – 30
2.6 Matters Involving Service Industry and Customer
Complaint in Nigeria – – – – – – – 35
2.7 Customer Complaint Policy of Known Firms in Nigeria 43
2.7.1 MTN Nigeria – – – – – – – 43
2.7.2 Fedex Redstar Express – – – – – 44
2.7.3 Union Bank PLC – – – – – – 44
References – – – – – – – – 46

Chapter Three: Research Methodology
3.1 Design of Survey Instruments – – – – – 48
3.2 Sources of Data – – – – – – – 49
3.2.1 Primary Source – – – – – – – 49
3.2.2 Secondary Source – – – – – – 49
3.3 Sample Population/Sample Size/Sample Area – – 50
3.4 Data Analysis Technique – – – – – – 51
3.5 Limitation of Methodology – – – – – – 52

Chapter Four: Data Analysis, Interpretation and Presentation
4.1 Introduction – – – – – – – – 54
4.2 Analysis of Questionnaire – – – – – – 54
4.2.1 First Hypothesis – – – – – – 68
4.2.2 Second Hypothesis – – – – – – 70
4.3 Other Findings – – – – – – – – 71
References – – – – – – – – 73
Chapter Five: Summary of Findings, Recommendations,
Conclusion and Suggestions for Further Study
5.1 Summary of Findings – – – – – – 74
5.2 Recommendations – – – – – – – 76
5.3 Conclusion – – – – – – – – 77
5.4 Suggestion for Further Study – – – – – 79

Bibliography – – – – – – – – 80
Appendix – – – – – – – – – 83
Research Questionnaire – – – – – – 84

INTRODUCTION 

The dream of any good entrepreneur is not actually to sell what he can sell but to retain customers. In pursuance of this line of action, the customer must be placed at the centre of all marketing activities without which no marketing activity takes place.

Customer satisfaction is the pivot on which all marketing activities revolves, be it in production or in marketing. Although service-oriented companies do not have any tangible good to their credit, the most effective means of measuring consumers satisfaction is by listening to their complaints.

These complaints are not actually made to tarnish the image of the producers, but to improve on their services. Since the consumers do not own anything from the payment he makes, the perishable services he receives must offer enough satisfaction for the sums of money so expended.

To a good producer, these complaints will actually guide him in the planning of his product, by way of determining what his customers actually want and to the qualities they can afford to acquire.

Appropriate pricing may be an outcome of a customer’s compliant. The prices at which the best service is offered could r
eally affect its demand. If best decisions are taken in that line, the producer is likely to triumph over his competitors.

Marketing concepts which involve letting the people know of the product and sending the product to where it is actually needed, will create no less impact. A good mix of product, price, place and planning will give a fantastic reap-off.

BIBLIOGRAPHY

Albert R., Adam J.S. and Gould P. (1981); Spatial Organizations: the
geographers’ view of the world; Englewood Cliffs, PrenticeHall New Jersey: Prentice Hall. P.531 – 532
Anderson E. W. & Sullivan M. W. (12 Spring 1993); Marketing
Science, “The Antecedents and Consequences of Consumer
Satisfaction for Firms.” P. 125-143.
Arinwodo, O. (May 28, 1998); National Concord: “Our Customers
Deserve an Effective Service”.
Brown A. (2 September 1989); Customer Care Management;
“Handling Complaint”. Oxfor : Butterworth Heinemann Ltd.
Birch, E. N. (1990) “Focus on Value” Creating Customer
Satisfaction, The Complaints Board, Research Report No 944 p.
3-4
Buskirk R. H. (1996); Principles of Marketing: Richardson Texas:
Richardson. P 37-41.
Cartwright R. & Green G. (1997); In Charge of Consumer
Satisfaction; Oxford: Blackwell Business Publisher Ltd Oxford
UK.
Chase R. B. (Nov- Dec 1998); Harvard Business Review; “Where does
the Customer fit in Service Operation.”

StudentsandScholarship Team.

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