Consumer Complaint Satisfaction and Customer Retention: A Study of Complaint Satisfaction in Electronic Industry

Abstract

The aim of this article is to understand consumer complaint satisfaction in the electronics industry. The focus has been placed on consumers of household electronic items who have complained to the company due to one of several reasons (e.g., technical glitch, malfunction, and defect). The various factors responsible for complaint satisfaction have been determined through literature reviews and primary surveys (questionnaires). The three kinds of justice dimensions of organizational behavior (Procedural, Interactional and Distributive) have been incorporated into the model to measure a company’s response to any complaint. The data of 595 consumers of Delhi-National Capital Region (NCR) (India) have been collected and analysed using smartPLS 2.0. software. The findings of the study reveal that the process of handling customer complaints affects customer satisfaction and retention rate. Customer who have good experiences during the complaint-handling process, exert positive word of mouth (WOM) and those who have bad experiences during the complaint-handling process exert negative WOM. To study the relationship between complaint satisfaction level, consumers repurchase intention and WOM intention a complaint satisfaction model has been constructed.