ABSTRACT

Purpose - With growing competition in the service distribution industry, the importance of managing customer complaints has increased. If firms handle customer complaints effectively, they can strengthen customer loyalty and repurchase intention. Many studies have focused on customers expressing complaints, yet research on silent customers is scant. This study focuses on two types of complainers and non-complainers. In other words, this study is to examine the value of voice complaint intention and no-action intention. This study also investigates how perceptual and relational factors affect complaint intention. Research design, data, and methodology - This study was carried out using the survey with undergraduate students who have faced a service failure in a retail store(fast foods, electronics, apparel). And if such complaint were to occur again, respondents were asked about any possible action they would take. 300 questionnaires were distributed and a total of 279 respondents provided complete and usable data. The sample consisted of 158 males(56.6%) and 121 females(43.4%). The structural equation modeling analysis was used for the hypothesis test. Results - The results are as follows. First, attitude toward complaining, likelihood of successful complaint, and ease of complaint were positively related to voice complaint intention. Second, attitude toward complaining, likelihood of successful complaint, and ease of complaint were negatively related to no-action intention. Third, commitment was positively related to voice complaint intention but didn't have a significant negative impact on no action. Forth, voice complaint behavior reduced switching intention and no-action intention enhanced switching intention. Conclusions - The findings of this study confirm the value of complaint behavior and show voice complaint intention and no-action intention should be managed differently. Voice complaint intention is evaluated positively because it reflects customers' concerns about the company, while no-action intention is evaluated negatively. Attitude toward complaing is the most effective in increasing voice complaint intention and likelihood of successful complaint is a major factor in reducing no-action intention. Also, in explaining switching intention, voice complaint intention plays a more important role than no-action intention.

KEYWORD

Perceptual Factor, Relational Factor, Voice Complaint Intention, No-Action Intention, Switching Intention.

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