Week 4 DQ Annotated Bibliography (Due in 24 hours)/.Learning Resources.docx
I searched my university libary find out few sources below, may be it will helpful. Each Bibliography hv 3(three) Paragraph .
Tahir, H. M., Buttar, Z. A., & Ahmad, I. (2018). Consumer Complaint Behavior and Defection: The Moderating Role of Demographic Factors and Switching Cost. IUP Journal of Marketing Management, 17(2), 58–79. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=bsu&AN=129988202
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Write My Essay For MeAhmed, Rizwan & Vveinhardt, Jolita & Warraich, Usman & Hasan, Syed & Baloch, Akhter. (2020). Customer Satisfaction & Loyalty and Organizational Complaint Handling: Economic Aspects of Business Operation of Airline Industry. Engineering Economics. 31. 114-125. 10.5755/j01.ee.31.1.8290.
Manuel E. Sansalvador & José M. Brotons (2018) Development of a quantification model for the cost of loss of image with customer complaints, Total Quality Management & Business Excellence, 29:13-14, 1633-1647, DOI: 10.1080/14783363.2017.1289815
Important tips
This first paragraph of the annotation summarizes the source. It outlines the main findings and primary methods of the study.
This second paragraph of the annotation analyzes the source. It explains the benefits of the source but also the limitations.
This third paragraph of the annotation applies the source. It explains how the source’s ideas, research, and information can be applied to other contexts.
In general, annotated bibliographies should avoid referring to the first or second person (I, me, my, we, our, you, and us). Instead, students should aim to be objective and remove themselves from annotations. However, there may be some exceptions to this guideline. Check with your instructor if you are unsure about whether he/she will allow you to use “I” in your annotated bibliography.
Required Readings
American Psychological Association. (2010). Publication manual of the American Psychological Association (6th ed.). Washington, DC: Author.
Note: You should already have obtained a copy of this book at the beginning of your program.
Walden University. (2016a). DBA doctoral study template. Available from http://academicguides.waldenu.edu/researchcenter/osra/dba
Note: You must use this document to submit all Doctoral Study drafts in this course.
Walden University. (2016b). DBA prospectus guide. Available from http://academicguides.waldenu.edu/researchcenter/osra/dba
Walden University. (2016c). DBA student support materials. Available from http://academicguides.waldenu.edu/researchcenter/osra/dba
Walden University. (2016d). Doctoral study rubric and research handbook. Available from http://academicguides.waldenu.edu/researchcenter/osra/dba
Walden University. (2016e). MyDR process checklist. Available from http://academicguides.waldenu.edu/researchcenter/osra/dba
Walden University. (2016f). Sample annotated bibliography. Retrieved from http://academicguides.waldenu.edu/ld.php?content_id=16345933
Week 4 DQ Annotated Bibliography (Due in 24 hours)/Consumer Complaint Behavior.pdf
The IUP Journal of Marketing Management, Vol. XVII, No. 2, 201858
Consumer Complaint Behavior and Defection: The Moderating Role of
Demographic Factors and Switching Cost
© 2018 IUP. All Rights Reserved.
* Lecturer, Department of Commerce, University of Sargodha, Gujranwala Campus, Pakistan; and is the corresponding author. E-mail: hm.tahir87@gmail.com
** Lecturer, Department of Business Administration, University of Sargodha, Gujranwala Campus, Pakistan. E-mail: zeeshanakbar@yahoo.com
***Lecturer, Department of Commerce, University of Sargodha, Gujranwala Campus, Pakistan. E-mail: imtiaz.ahmad@uosgc.edu.pk
Introduction The last two decades have witnessed remarkable changes in the banking industry. The main feature that has been observed is the evolution of the extreme competition in this sector. The banking sector has undergone changes with regard to its regulations, consumer demand for services, technological changes, and the entry of new competitors who switched from businesses other than banking (Edward et al., 1999). Because of this, a competitive framework has been created, and most of the banks are trying to adopt defensive strategies in order to avoid switching of customers. According to Jacoby and Chestnut (1978), firms should make attempt to retain long term relations with their customers for achieving customer loyalty.
The purpose of this study is to investigate the post purchase behavior of Pakistani bank customers. Particularly, the relationship between public complaint actions, private complaint actions and customer defection has been examined. Moreover, the moderation effect of demographics and switching cost has also been studied. Data was collected through a survey of 240 bank customers from all over Pakistan. For data analysis, Hierarchical Multiple Regression has been used. The results of the study indicate that both complaints are strongly associated with customer defection, but private complaint has stronger effect on customer defection. Education, switching cost and ethnicity moderate both the relationships, whether public complaint or private complaint, while ‘others’ moderate this relationship in the case of public complaint. It was also found that education and marital status moderate the complaint behavior. The paper, being a pioneering attempt to investigate customer dissatisfaction in the banking industry, makes a unique contribution to the literature, specifically with reference to Pakistan,
Hafiz Muhammad Tahir*, Zeeshan Akbar Buttar** and Imtiaz Ahmad***
59Consumer Complaint Behavior and Defection: The Moderating Role of Demographic Factors and Switching Cost
There is strong econometric evidence that financial sector development fosters economic growth in Pakistan (Jalil and Feridun, 2011). The banking sector constitutes the core of the financial sector in Pakistan. Pakistan has a highly competitive banking industry (Nawab, 2014). Furthermore, the existence of key foreign players in the form of Deutsche Bank AG, HSBC Bank Middle East Ltd., Standard Chartered Bank Ltd., Dubai Islamic Bank Ltd. Samba Bank, Silk Bank, Burj Bank, AlBarqa, Barclays Bank PLC and The Bank of Tokyo-Mitsubishi UFJ, Ltd. pressurize the local competitors to be highly innovative in order to compete aggressively in development of products and services. In the face of such competition, banks endeavor to offer products and services that satisfy customer need more than the other available options (Ghazanfar and Kazmi, 2009). In addition, the quality of service and customer satisfaction is compulsory. There is no exception for Pakistani banks, where customer satisfaction is an effective tool that banks can use in order to gain a strategic competitive advantage in the banking sector. Due to intensive competition in the Pakistani banking sector, many banks are surrendering their existing customers to their arch rivals as a result of non-victorious attempts to attract customers (Mohsan et al., 2011).
Previous studies have revealed that the loss of customers results in a loss of market share, high cost for attracting new customers, decline in the revenues of the firm and the loss of free positive word of mouth (Colgate and Hedge, 2001). Ndubisi (2003a and 2003b) has mentioned that the issue of retaining a customer is very important because the defection of a customer is a costly affair. As explored by Jillian (2004), retailers of financial services aim to retain their customers by building strong relationships. Reichheld and Sasser (1990) are of the view that a 5% decline in customer defections could increase the profits by 25-85%. Most of the marketing scholars are of the view that the cost of gaining a new customer is as high as five to six times the cost of retaining an existing one (Larry and John, 1984; Desatnick, 1988; Jeffrey et al., 1995; and Anders and Bo, 2003). The main reason for defection is dissatisfaction. Most of the companies face customer dissatisfaction (James et al., 1999) but all do not have an opportunity to resolve the problems. Claes and Birger (1987) stated that organizations have to encourage customer complaints because it provides the company the opportunity to retain their dissatisfied customers.
Previous researchers have tried to find the difference between consumer complaining behavior and non-complaining behavior in terms of demographics (Bearden and Oliver, 1985; and Singh, 1990), personality factors like assertiveness, consumer alienation (Bearden, 1983; and Singh, 1990), attitude adopted for complaining (Bearden and Oliver, 1985; and Singh, 1990), and situational factors like consumer experience, cost benefit evaluations, attributions of blame and chances of successful redress (Folkes, 1984; Bearden and Oliver, 1985; Folkes et al., 1987; Singh, 1990; and Stephens and Gwinner, 1998). Recently, researches have been conducted to study the types of different complaint actions adopted by customers (Jacoby and Jaccard, 1981; Broadbridge and Marshall, 1995; Blodgett et al., 1995; Bennett, 1997; Eccles and Durand, 1998; Fisher et al., 1999; Nyer, 2000; Liu and McClure, 2001; Heung and Lam, 2003; and Kim et al., 2003).
The IUP Journal of Marketing Management, Vol. XVII, No. 2, 201860
The academic literature has some gaps in understanding how these complaint actions impact the defection or switching behavior and how different demographic variables moderate the relationship between consumer complaint behavior and defection if applied in another country. Researches in social sciences produce different results when conducted in another country or different settings.
In the paper, we are trying to explore and extend the literature on Pakistan to study how bank customers show their grievances, who they register their complaints with and whether different demographic variables moderate the relationship between CCB and defection. It has been observed that in Pakistan, bank customers switch from one bank to another (collected from various annual reports). The study dwells on the following questions:
• Which complaint behavior (public or private) best predicts the defection? • Does gender moderate this relationship? • Does income moderate this relationship? • Does education moderate this relationship? • Does marital status moderate this relationship? • Does ethnicity moderate this relationship? • Does switching cost moderate this relationship?
Literature Review Consumer Complaint Behavior (CCB) has been described as an exertion by someone and involves transmitting obstructive feelings about any product or service either to the manufacturer or marketer of that product or service or to the persons other than the manufacturer or marketer (Jacoby and Jaccard, 1981).
Consumer complaint behavior is defined as a phenomenon that consists of all those responses that result in dissatisfaction which revolves around a purchase transaction during the consumption or possession of the goods or services (Crié, 2003). Another definition of CCB is that consumer complaint behavior includes all those behavioral responses that a consumer is expected to utilize to cope with his/her dissatisfaction (Jagdip and Robert, 1991). It is not just an impromptu response, but a certain process that does not depend directly on starting factors but on the evaluation of situation by the customer and its evolution with the passage of time (Crié, 2003). CCB is also known as consumer complaint response shown by the consumer (Singh, 1990). It is actually a way by which a consumer responds to dissatisfaction (Singh, 1990). Consumer complaint behavior is a process that starts from evaluating consumption experience which results in the dissatisfaction and it terminates when the consumer completes all the behavioral as well as the non-behavioral reactions (Adelina and Julie, 1995). The purpose of these actions taken by a consumer is not only to complain against the seller, it also includes stopping the patronage, contacting the mass media, warning the family and friends, complaining to consumer court or registering complaint with the management (Vincent and Terry, 2003). Mason and Himes (1973) are of the view that
61Consumer Complaint Behavior and Defection: The Moderating Role of Demographic Factors and Switching Cost
these responses include switching the patronage, urging friends and family and complaining to a consumer council (Mason and Himes, 1973). These response styles are categorized into action group and no action group (Mason and Himes, 1973). These responses/actions may be classified, first, on the basis of ‘action’ and ‘no action’ group and second, on the basis of ‘private action’ and ‘public action’ (Day and Landon, 1977) (Figure 1).
To study consumer complaint behavior, researchers have labeled these responses and styles differently, such as complainers and non-complainers and activists and non-activists (Singh, 1990). Here it is noteworthy that a customer may indulge in one action (the public or private) or may be involved both in public as well as private complaints simultaneously (Kolodinsky, 1995). It is not necessary that dissatisfaction always results in a complaint (Jacoby and Jaccard, 1981). There is evidence that the people who complain may comprise those customers who are satisfied and recognize that complaining is beneficial for them (Jacoby and Jaccard, 1981). But the customers who are pleased but still complain about small issues to the firm are particularly those who perceive that the organization is famed for resolving the trouble fast and impartially (Day and Landon, 1977).
Public Action/Public Complaint In public action, the consumer complains directly to the vendor or contacts the consumer court or directorates of the state for demanding damages from that vendor and starts judicial proceedings against the retailer or manufacturer (Bearden, 1983). The public action taken by the customer may include verbal protest with the vendor, newspaper,
Figure 1: Types of Consumer Complaint
Responses
No Action
Action
Public Action
Private Action
Seek Redress from the
Firm or the Manufacturer
Complain to Business or Government
Agency
Take Legal Action to
Obtain Redress
Warn Family and
Friends About Seller/Product
Decide to Stop Buying Product and/or Boycott
Product
The IUP Journal of Marketing Management, Vol. XVII, No. 2, 201862
consumer agency (Vincent and Terry, 2003). When the consumers are dissatisfied they often call the retailer or manufacturer to recover damages. If the consumer fails to get a redressal from the company, they forward their complaints further by utilizing third-party complaint handling agencies such as the government, consumer protection departments, or media-sponsored consumer advocates (John and Richard, 1994). Public complaints provide double advantage: one, is to alert the retailer or manufacturer that there is a problem with the product or service and the second, is to provide a chance to businesses to satisfy its customers. Consumer facing dissatisfaction starts complaining publicly which sometime do not come into the attention of business (Adelina Broadbridge and Julie Marshall, 1995).
Private Action/Private Complaint Private actions are those which do not immediately come to the knowledge of service provider but have stronger effect on the revenue of the firm (Vincent and Terry, 2003). According to Adelina and Julie (1995), Bearden (1983) and Cornwell et al. (1991), in a private action, the dissatisfied customer puts on record their grievances through negative word of mouth, inform family and friends or decide not to buy any product or services again or abstain from transaction with that firm (Bearden, 1983; Cornwell et al., 1991; and Adelina and Julie, 1995). Action against the firm due to private complaint might result in bad publicity (Bearden and Oliver, 1985). It is more vital for the business to have knowledge of private actions because these are more significant when compared to public actions (Day and Jr., 1976). It has been found from the study of durable products that the ratio of private actions and public actions is equal (Day and Ash, 1979). By resorting to private action, a consumer can express his/her dissatisfaction without facing the service provider (Dawn, 2006).
Defection Defection is a process that a customer faces with multiple problem(s) (Colgate and Hedge, 2001). Defection has been described as consumers giving up one thing for another (Ron, 2002). It is an active and distractive response to dissatisfaction which is expressed as a breach of relationship with the product or service (Crié, 2003). In the banking industry, defection is defined in terms of no connection or correspondence between the bank and its customer (Kate, 1998). Actually, defection is when a customer takes the decision to stop buying any service or product from the firm which ultimately results in the dissolution of relationship with that firm due to the problem that occurred over time (Colgate and Hedge, 2001). It is difficult to identify customer defection at the early stages of this process (Kate, 1998). It may be called customer exit or customer switching behavior, which further is classified into two types—total defection and partial defection (Hirschman, 1970; and Colgate and Hedge, 2001). It is easy to identify total defection: it is when a customer closes his account with the business or when he/she switches to other business or service provider (Bolton and Bronkhorst, 1995; and Boote, 1998), whereas partial defection can be measured as the loss of some portion of the customer’s business (Reichheld, 1996). Compared to total defection,
63Consumer Complaint Behavior and Defection: The Moderating Role of Demographic Factors and Switching Cost
it is more difficult for the business to find out partial defection (Reichheld, 1996) because a single dissatisfied event can become the cause of defection (Limbrick, 1993). There are various reasons for defection. Clemes et al. (2010) are of the view that price, reputation of the bank, service quality, effective advertisement, involuntary switching, distance and switching cost have remarkable effect on switching behavior of bank customers.
Relationship Between Consumer Complaint Behavior and Defection According to Sheth et al. (1999) and Arnould (2004), consumers who want to show their disappointment might either choose to leave or continue with complaint behavior. From the previous studies, it is proved that there is a strong relationship of complaints with defection, and moreover private complaint is a stronger predictor of defection than public complaint (Malhotra, 2008). Consumers who stop any further purchasing are those who do not complain (Arnould, 2004). According to Crié (2003), sometimes customers may choose defection as an alternative to complaining. He explains that some consumers may not complain but quit any further transaction with the business. Mostly, customers who complain about dissatisfaction will not stop buying but some are those who are not satisfied but still avoid complaining (Sheth et al., 1999). Colgate and Hedge (2001) examined a body works that exhibited the association of complaint or no complaint with exit (defection) behavior. In this framework, defection is the dependent variable and it is correlated with complaint.
Additionally, researchers also found some remarkable distinctions and the effect of demographic variables on complaint actions. Kolodinsky (1995) found the steady effect when he examined the effects of income, education level and age on the above- said relationship. Clemes et al. (2010) revealed that young and high-income customers are more likely to switch from one bank to another. Research shows that dissatisfied customers show their adverse behavior most of the time through negative word-of- mouth and exit, instead of directly complaining to the service provider (TARP, 1981). In the retail-banking sector, up to 80% of customers complain to the bank prior to defecting (Colgate and Hedge, 2001). Customers who are dissatisfied with service providers communicate their bad experience normally with 9 more people and due to these dissatisfied customers the sales of a firm decreases 10 to 15% (TARP, 1981). Non-complainers are the least loyal customers than those who register their complaint but their worries are not reconciled (Buttle and Burton, 2002). For those customers who complain, when their complaint has failed, defection is often the last resort (Colgate and Hedge, 2001; and Chulmin et al., 2003). The facilities a customer gains from complaining include reimbursement, swapping, or expression of regret, but on the other hand the costs involved in complaining are time and trying (Singh, 1990). So, every bank has to control defection because when customers are satisfied they recommend the bank to others. According to Baumann et al. (2007), customers’ willingness to refer the bank to others can be anticipated by affective attitude, overall satisfaction and empathy.
The IUP Journal of Marketing Management, Vol. XVII, No. 2, 201864
Objectives • This study aims to investigate the effect of complaint actions on customer
defection.
• It also aims to study the moderating role of demographic factors on the above- said relationship.
• Lastly, it intends to measure the moderating effect of switching cost.
Hypothesis of the Study H1: There is a significant relationship between private complaint and customer defection.
H2: There is a significant relationship between public complaint and customer defection.
H3: The impact of private complaint on customer defection is stronger than that of public complaint.
H4a: Gender has significant moderating effect on the relationship between public complaint and defection.
H4b: Gender has significant moderating effect on the relationship between private complaint and defection.
H5a: Income has significant moderating effect on the relationship between public complaint and defection.
H5b: Income has significant moderating effect on the relationship between private complaint and defection.
H6a: Education has significant moderating effect on the relationship between public complaint and defection.
H6b: Education has significant moderating effect on the relationship between private complaint and defection.
H7a: Marital status has significant moderating effect on the relationship between public complaint and defection.
H7b: Marital status has significant moderating effect on the relationship between private complaint and defection.
H8a: Switching cost has significant moderating effect on the relationship between public complaint and defection.
H8b: Switching cost has significant moderating effect on the relationship between private complaint and defection.
H9a: Ethnicity has significant moderating effect on the relationship between public complaint and defection.
H9b: Ethnicity has significant moderating effect on the relationship between private complaint and defection.
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