Grievance and Complaint Handling in Service Industry

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SERVICES AND CUSTOMER MANAGEMENT

GRIEVANCE AND COMPLAINT HANDLING IN SERVICE INDUSTRY

Group Members:
Gowtham Nannapaneni (10018)
Thammiah Ayappa (10042)
Amit Kumar Jha (10064)
Kundal Mahanta (10085)
Sowmya.B (10108)
Group Members:
Gowtham Nannapaneni (10018)
Thammiah Ayappa (10042)
Amit Kumar Jha (10064)
Kundal Mahanta (10085)
Sowmya.B (10108)
Group Members:
Gowtham Nannapaneni (10018)
Thammiah Ayappa (10042)
Amit Kumar Jha (10064)
Kundal Mahanta (10085)
Sowmya.B (10108)
Group Members:
Gowtham Nannapaneni (10018)
Thammiah Ayappa (10042)
Amit Kumar Jha (10064)
Kundal Mahanta (10085)
Sowmya.B (10108)
Group Members:
Gowtham Nannapaneni (10018)
Thammiah Ayappa (10042)
Amit Kumar Jha (10064)
Kundal Mahanta (10085)
Sowmya.B (10108)
Group Members:
Gowtham Nannapaneni (10018)
Thammiah Ayappa (10042)
Amit Kumar Jha (10064)
Kundal Mahanta (10085)
Sowmya.B (10108)
Group 10: Section ‘B’
Gowtham Nannapaneni (10018)
Thammaiah Aiyappa (10042)
Amit Kumar Jha (10064)
Kundal Mahanta (10085)
Sowmya.B (10108)

Contents
Introduction2
Reasons for customer complaining behaviour2
Expectation of a customer once they have made a complaint2
Importance of handling customer complaints3
Principles of good complaint handling4
Importance of listening, empathy and trust in handling complaints4
Reasons for failure of companies to improve their customer handling procedures5
Complaint handling process in the Banking sector6
Example-ICICI Bank’s complaint handling policy6
RBI’s Banking Ombudsman scheme7
Example-Vodafone complaint handling policy8

Introduction
A complaint is an expression of displeasure, such as low quality service at a store, or from a local government, etc. It is a term often used to refer to objections raised about poor treatment, mistakes, faults or injustices in dealings with public officials.

The first law of service quality and productivity might be: Do it right the first time. But the fact cannot be ignored that failures continue to occur, sometimes for reasons outside the organizational control. How well a firm handles customer complaints and resolves problems frequently determines whether it builds customer loyalty or watches its customers take their business elsewhere.

Reasons for customer complaining behaviour
Studies of consumer complaining behavior have identified four main purposes for complaining: 1. Obtain restitution or compensation: Consumers often complain to recover some economic loss by seeking a refund, compensation, and/or have the service performed again. 2. Vent their anger: Some customers complain to rebuild self-esteem and/or to vent their anger and frustration. When service processes are bureaucratic and unreasonable, or when employees are rude, deliberately intimidating, or apparently uncaring, the customers’ self-esteem, self-worth, or sense of fairness can be negatively affected. They may become angry and emotional. 3. Help to improve the service: When customers are highly involved with a service they give feedback to try and contribute toward service improvements. 4. For altruistic reasons: Finally, some customers are motivated by altruistic reasons. They want to spare other customers from experiencing the same shortcomings, and they may feel bad if they fail to draw attention to a problem that will raise difficulties for others if it remains uncorrected. Expectation of a customer once they have made a complaint

Whenever a service failure occurs, people expect to be adequately compensated in a fair manner. However, recent studies show that many customers feel they have neither been treated fairly nor received adequate recompense. When this happens, their reactions tend to be immediate, emotional and enduring.

Stephen Tax and Stephen Brown found that as much as 85percent of the variations in the satisfaction with a service recovery was determined by three dimensions of fairness: * Procedural justice...
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