Impact of Customer Complaints on Marketing Performance in the Service Industry

Description

Download Impact of Customer Complaints on Marketing Performance in the Service Industry. Business Administration students who are writing their projects can get this material to aid their research work.

Abstract

Companies sometimes think that they are doing well, only to discover later on that customers were dissatisfied and have not returned. It is better to encourage them to complain even about the petty things, than to wait until things become really bad.

Not often the complaints simply arise because the customer does not feel he has been “treated right”.

It may be astonishing 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

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 really affect its demand. If best decisions are taken in that line, the producer is likely to triumph over his competitors.

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