The influence of Complaint Handling and Service Recovery on customer satisfaction, customer loyalty and customer retention.
Zhibek Adzhigalieva, Ratih Hurriyati, Heny Hendrayati

School of Postgraduate Studies (SPs), Indonesia University of Education (UPI)
Jl. Dr. Setiabudhi No. 229 Bandung 40154
Jawa Barat - Indonesia

Abstract

This paper examines previous researches about complaint handling and service recovery. The purpose of this paper is to define the concepts of ^complaint handling^ and ^service recovery^ and find out the influence of these concepts on variables, namely customer satisfaction, customer loyalty and customer retention. To reach these goals, systematic literature review was used as a research methodology. Based on literature review author has developed a model of influence of complaint handling and service recovery on customer satisfaction, customer loyalty and customer retention, where were reflected the findings of this paper. We have found that customer satisfaction is highly affected by complaint handling and service recovery. Customer loyalty and customer retention don^t have a direct correlation with complaint handling and service recovery. However, the influence of complaints handling on customer loyalty can be mediated by customer satisfaction showing a positive relationship also. Customer retention is highly affected by customer satisfaction and customer loyalty, so it has also indirect correlation with complaint handling and service recovery.

Keywords: complaint handling, customer loyalty, customer satisfaction, customer retention, service recovery

Topic: Marketing Management