Understanding Gen Y and Their Complaint Behavior towards Bank

Abstract

In banking industry where company has various direct service delivery moments with consumers, complaints seem inevitable. In Indonesia, banking industry has always been ranked as the top 5 industries that get a lot of complaints from consumers. In this study, we interested to discuss about complaint behavior intentions, specifically within Generation Y consumers. In this study, we particularly interested to discuss about complaint behavior intentions of Generation Y consumers. This is important as an effort to predict future market trends, since nowadays, consumers are dominated by digital consumers like Generation Y. Thus, identifying whether the unique characteristics of Generation affects their complaint behavior will be beneficial for company in creating an appropriate complaint handling strategy. The data in this study were collected using online survey questionnaire to a total of 131 banking customers. A regression analysis was performed to examine the effect of Generation Y characteristics towards their intention to complain. The results showed that from five Generation Y’s characteristics tested in this study, only characteristics of tech savvy and desire to engage in social media were proved to significantly affect Generation Y’s intention to complaint. Meanwhile, all the characteristics of Generation Y do not have effects on to their intention to repurchase after service recovery effort from service provider. Moreover, the study also provides managerial implications to suggest ways for banks to manage customers’ complaint, particularly that comes from Generation Y.