In most cases of service failure, consumer complaint is an antecedent for service recovery. However, past studies have noted that the propensity of consumers to complain is generally low. While past studies have identified some factors that might influence an individual's propensity to complain, a relook at the consumer complaining behavior, specifically for services following a service failure, is required. This study attempts to understand the antecedents and consequences of consumer complaining. Variables are identified based on an extensive review of literature and data collected using a cross-sectional sample. The exploratory Factor Analysis using Principal Component Analysis (PCA) was conducted to identify the latent factors. The extracted factors accounted for 70.227% of total variance, and the Cronbach's Alpha for the extracted factors varied from 0.756 to 0.475.
Enhanced
contribution of services sector to Indian economy is well-documented. As per the
latest Economic Times Intelligence Group (ETIG) study, services sector contributes
close to 52% to India's GDP. With an increase in the contribution of the services
sector to the economy, the economy begins to depend heavily on the efficiency
with which services are created and delivered. Service failures can negatively
affect the efficiency, and thereby affect the health of the economy. Hence, there
is immense pressure on service firms to "do it right the first time".
However,
service failures are inevitable and unfortunately can't be hidden from consumers
(Boshoff and Staude, 2003). Factors like the idiosyncratic nature of services,
as well as organizational issues can contribute to service failure (Hogg, 1998;
Lewsi and Spyrakopoulos, 2001). In
simple terms, a service failure is conceptualized as any service delivery that
falls short of customer's expectations. Homas (1961), Walster et al. (1978)
view service failure as "an exchange in which customer encounters
a loss due to failure". Berry and Parasuraman (1991) view service failure
as "a flawed outcome that reflects breakdown in reliability".
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