Challenges in the Era of Globalization - iaabd

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Proceedings of the 12th Annual Conference © 2011 IAABD product failure is the kind of negative and unexpected event that has been shown to bring about causal search (Weiner, 2000). Consumers may attribute product failure to themselves (internal focus), or to the retailer or some outside agent in the environment (external locus). Main themes in extant literature on customer complaint behavior encompass issues such as complaint handling in the affective nature of satisfaction (Dube & Menon, 2000), recovery-related emotions (Schoefer, 2008; Schoefer & Ennew, 2005), and negative WOM (Lerman, 2006). A retailer’s resistance to listening and responding to consumer complaints increases the likelihood that consumers will complain in private – in the form of negative WOM to family, friends and third parties (McAlister & Erffmeyer, 2003). Ways of seeking redress include refunds, exchanges, repairs, discounts on future purchases, or some combination of these (Blodgett et al., 1997; Orsinger, Valentini & Angelis, 2009). A service failure perceived as insignificant from the organization’s perspective can be of great importance to the customer. For example, as McDougall and Levesques (1999) demonstrated, a customer’s reason for buying a meal affects his or her perception of the seriousness of a service failure: a meal that is intended as a celebration is much more important to the customer than a casual meal, and a policy of fixed compensation from the provider will not always appease the dissatisfied customer. A provider’s failure to eradicate disappointment can lead to customers making strong negative judgments of the organization (Marmorstein et al., 2001; Boshoff, 1997 & 2005), and such dissatisfied clients will seek every opportunity to criticize the offending companies, thus becoming what Heskett et al. (2003) characterize as “terrorist” customers. There are investigations on the cognitive and affective antecedents of satisfaction with complaint handling. Stauss (2002) defines complaint satisfaction as “the satisfaction of a complainant with a company’s response to her/his complaint” (p. 174). A meta-analysis of satisfaction with complaint handling has identified antecedents such as expectation, performance, disconfirmation of expectations (Szymanski & Henard, 2001) and another study has looked at the affective responses to complaint handling experienced by the customer (Varela-Neira, Vazquez-Casielles & Iglesias, 2010). A meta-analysis by Orsinger, Valentini and Angelis (2009) looks at satisfaction and complaint handling (SATCOM) in relation to return intent, WOM behavior and SATCOM outcomes. The outcome of a purchase situation could be attributed to something temporary (unstable), or something likely to occur each time the product is purchased or used (stable) – customers expect the product to fail if they purchase it again in the future; if unstable, customers will purchase it again (Weiner, 2000). A consumer’s perception of attribution, in terms of locus, stability and controllability dimensions, is explained by Weiner (2000), who investigate different affective reactions. For example, when retailers are thought to have control over the cause of product failure and it is stable (re-occurs), consumers feel angry and desire revenge more than when the retailers are believed to lack control over the failure. And it is not until retailers comprehend the customers’ complaint behavior, their reasons for engaging in specific complaint behavior, and reasoning behind their behavior (cognitive processes), that they will recognize the link between complaint handling and customer loyalty. Customer loyalty could be described as a “customer’s commitment to do business with a particular organization, purchasing their goods and services repeatedly, and recommending the services and products to friends and associates” (McIlroy & Barnett, 2000, p. 348). Customer loyalty is neither easy to gain nor maintain, rather it is vulnerable, where “even if [a company’s] customers are satisfied with the service they will continue to defect if they believe they can get better value, convenience or quality elsewhere” (McIlroy & Barnett, 2000, p. 349). Oliver (1999, pp.34, cited in Chumpitaz & Paparoidamis, 2007) defines loyalty as: “a deeply held commitment to re-buy or re-patronize a preferred product/service consistently in the future, thereby causing repetitive same-brand or same brand-set purchasing despite situational influences and marketing efforts having the potential to cause switching behavior.” Brand loyalty consists of behavioral aspects and attitudinal aspects (Aaker, 1991; Assael, 1998; Jacoby & Chestnut, 1978; Oliver, 1999; Turker, 1964, as quoted by Chumpitaz & Paparoidamis, 2007). Behavioral loyalty refers to repeated purchases of a brand, whereas attitudinal loyalty refers to a degree of 116
Challenges in the Era of Globalization Edited by Emmanuel Obuah dispositional commitment. Behavioral loyalty is partly determined by situational factors, and attitudinal loyalty is more enduring (Chumpitaz & Paparoidamis, 2007; Colgate & Norris, 2001). Loyal customers are the backbone of any business because it is less expensive to keep customers than to recruit new ones (Gee, Coates & Nicholson, 2008). Conceptual framework In conceptualizing CCB, customer satisfaction and customer loyalty, customer complaint behavior focuses on satisfaction or dissatisfaction through voicing a complaint, private action or public action. Demographic factors may have a relationship with both CCB and customer loyalty. Figure 1 illustrates the constructs that extant literature consider relevant when conceptualizing satisfaction and complaint handling. We investigate the relationship between the dependent variable (customer loyalty) and the independent variables (CCB and customer satisfaction), with the moderating variable of demographic factors. Figure 1: Relationships between Customer Satisfaction, Customer Loyalty and Customer Complaint Behavior CUSTOMER COMPLAINT BEHAVIOUR VOICE Methodology DEMOGRAPHIC FACTORS Age CUSTOMER SATISFACTION CUSTOMER LOYALTY This study undertook a cross-sectional survey that involved qualitative and quantitative approaches. The methodological design of the study was correlational in nature. Using a self-administered questionnaire modified from previous studies, data was collected from a sample of 140 customers in Uganda as per Morgan and Krejicie’s (1970) table for determining sample size. The sample was selected through convenience sampling due to the nature of the respondents. The response rate for supermarket customers was 68%. Using a 5-point Likert scale (1 Strongly agree, 2 Agree, 3 Not sure, 4 Disagree, 5 Strongly disagree), respondents were asked key issues about variables in the study. A pilot test was carried out to test the validity of the research instrument to make sure that it was not vague. The questions in the questionnaire were tested using Cronbach’s alpha. The study was done to expand the understanding of how people who buy from supermarkets interpret the concepts of CCB, customer satisfaction and customer loyalty. After collecting the data, the raw data was coded and entered into the computer. The frequencies and percentages were then used to compare the responses. Validity and reliability tests were carried out. Thereafter, data from the reliable instruments was entered in the SPSS packages and correlations and regression tests were run. Data analysis: The instrument was reliable since the variables were higher than 0.60. 117
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Table of Contents Challenges in the
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Lennart Bangens, Goteborg, Sweden C
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Local Steering Committee Jacob Musi
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Track 1: Accounting, Finance, and I
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Abstract Challenges in the Era of G
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Abstract Determinants of Bank Lendi
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Empirical Results Challenges in the
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Table 3 Determinants of Competitive
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Research Findings Challenges in the
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Conclusion Challenges in the Era of
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37. Provision of sound education fo
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The cost structure Challenges in th
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Empirical Analysis Challenges in th
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Variable Coefficient Std. Error t-S
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Abstract The Changing Requirements
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The Model, Data and Variable Defini
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Track 8: Gender and Economic Develo
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Empirical results Challenges in the
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Abstract Gender, poverty and sustai
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Figure 1.1: Spread of directorships
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Theoretical Framework Challenges in
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Single 18.1 Masters and above 35.3
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Source: Field survey, 2010 Table 3:
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Track 9: Global Studies and Politic
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Conceptual Definitions Challenges i
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Conclusions and Implications Challe
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Abstract Exploring Organisational R
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district hospitals: Evidence from N
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Defining the Organisational Culture
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Table 1: A Summary of Operating Ban
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Discussion and Conclusion Challenge
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Abstract What does Globalization me
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7. I see globalization as providing
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Track 12: Information Systems and E
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Research Methods approach Challenge
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Statement of the Problem Challenges
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Convenient location of banks Challe
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Figure 1.Framework for Bank selecti
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Banks in Ghana Challenges in the Er
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References: Challenges in the Era o
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Figure 5: Causal loop diagram inclu
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The study seeks to: • examine typ
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Figure 2: Customer Perception of MT
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Relationship Commitment Total 1264.
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Factor Item Loading Imaginative 0.4
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Figure 1: Components of Data Analys
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Abstract Marketing Nigerian medicin
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References Challenges in the Era of
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Conclusion Dissatisfied 6 3.4 3.6 7
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Abstract Customer satisfaction with
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Methodology Challenges in the Era o
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Discussion Challenges in the Era of
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Postgraduate 19 Internet experience
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Average daily Internet hours z P-va
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GOVERNMENT MoFED SECTORS Structure
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Results Challenges in the Era of Gl
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Figure1.1Inflation and Indexation R
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Football Spectatorship Challenges i
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