Affective events theory as a framework for understanding third-party consumer complaints

Poor complaint management may result in organizations losing customers and revenue. Consumers exhibit negative emotional responses when dissatisfied and this may lead to a complaint to a third-party organization. Since little information is available on the role of emotion in the consumer complaint process or how to manage complaints effectively, we offer an emotions perspective by applying Affective Events Theory (AET) to complaint behavior. This study presents the first application of AET in a consumption context and advances a theoretical framework supported by qualitative research for emotional responses to complaints. In contrast to commonly held views on gender and emotion, men as well as women use emotion-focused coping to complain.

Can consumer complaints reduce product reliability? Should we worry?

We analyze a monopolist’s pricing and product reliability problem when consumers are entitled to product replacement but have heterogeneous cost of exercising this right, and we assess the implications of a decrease in consumers’ claiming cost on reliability, profit, and welfare. We find that reducing consumers’ claiming cost may reduce reliability and increase profit. Additionally, the model can explain why some firms encourage consumers to complain while others discourage consumers from complaining. We also show that welfare and profit are partially aligned, specially when consumers’ claiming cost are relatively low and the firm prefers to promote complaints; consequently, we find that encouraging complaints will eventually increase welfare

A study of Australian company responses to email complaints

As businesses and organisations move online, many question how to use Internet communication tools effectively, such as Web sites and electronic mail (Porter, 2001). Where and how should they invest their time and money in technology? This research explores a small part of this broad question, online complaining and electronic customer service. This paper extends prior US-based research of consumer complaints by email (Strauss and Hill, 2001) in several ways. First, it replicates their research in an Australian setting. Second, this research addresses several future research issues that Strauss and Hill (2001) raised. And third, this paper uses diffusion of innovation (Rogers, 1995) to explain some of the results. The results partially support the findings of Strauss and Hill (2001), take a small step towards further investigation of effective email responses and provide practical suggestions for better email customer service.

Complaining in cyberspace : the motives and forms of hotel guests’ complaints online

Traditionally, consumers who have been dissatisfied with service have typically complained to the frontline personnel or to a manager in either a direct (face-to-face, over the phone) manner, indirect by writing, or done nothing but told friends and family of the incident. More recently, the Internet has provided various “new” ways to air a grievance, especially when little might have been done at the point of service failure. With the opportunity to now spread word-of-mouth globally, consumers have the potential to impact the standing of a brand or a firm's reputation. The hotel industry is particularly vulnerable, as an increasing number of bookings are undertaken via the Internet and the decision process is likely to be influenced by what other previous guests might post on many booking-linked sites. We conducted a qualitative study of a key travel site to ascertain the forms and motives of complaints made online about hotels and resorts. 200 web-based consumer complaints were analyzed using NVivo 8 software. Findings revealed that consumers report a wide range of service failures on the Internet. They tell a highly descriptive, persuasive, and credible story, often motivated by altruism or, at the other end of the continuum, by revenge. These stories have the power to influence potential guests to book or not book accommodation at the affected properties. Implications for managers of hotels and resorts are discussed.

Consumer complaint actions: a conceptual model based on complainants about advertising in Australia

This article presents a new conceptual model detailing consumer complaint responses relating to exposure to unacceptable advertising. The model is initiated by consumer perceptions of negative inequity which elicits one of three consumer complaint responses based on the identified triggers that may influence complaining propensity such as demographic, psychographic, cultural, situational and social factors. Complainant perception of the process encountered together with the overall outcome of their experience affect future complaint behaviour as shown by this evolving model as the end reaction flows on to form the consumer’s next response to a similar situation. The advertising industry in Australia is valued annually at over $8 billion and some advertisements have been identified as ‘unacceptable’ by elements in society. Industry and regulatory response to consumer complaints is thus an important area to address and there is no extant literature utilising such an holistic model.

Self-service technologies and consumer complaining behaviour : an empirical investigation

Consumers often report dissatisfaction with technology-based services. This thesis, for the first time, examines consumer complaining behaviour with regard to these services, and identifies the factors that influence it. Complaint management strategies are recommended that benefit both organisations and consumers in this evolving service context.

Relations between regulation, competition policy and consumer protection in telecommunications, electricity and water supply

The purpose of this article is to discuss the relations between regulation, competition policy and consumer protection these relations in three key sectors of Brazil’s infrastructure: telecommunications, electricity and water supply. A study of the literature points to two general principles. First, the need for consumer protection depends on the “degree of sovereignty” enjoyed by consumers, defined in terms of the cost of consumer organization, consumers’ ability to evaluate services, and the level of competition in each sector. Second, the less sovereignty consumers enjoy the more consumer protection institutions are involved with regulation agencies. The evidence for the Brazilian case apparently corroborates these points. In addition, it is important to stress that consumer complaints in regulated sectors seem to have increased more intensely than in others. The article is divided into three sections. Section 1 presents theoretical elements and aspects of the relations between regulation, competition policy and consumer protection evidenced by international experience. Section 2 analyzes the Brazilian experience and in particular the available statistics on consumer complaints about telecommunications, electricity and water supply, submitted to Fundação Procon-SP during the nineties. The last section points to possible configurations of the institutional relations between competition policy, regulation and consumer protection, showing how the existing configuration of these areas in the three infrastructure sectors discussed confirms that the theoretical framework proposed has reasonable predictive power.

Consumer Focus: Getting Static about Your Satellite or Cable TV Complaint?, November 2016

The Attorney General’s Consumer Protection Division receives hundreds of calls and consumer complaints every year. Follow these tips to avoid unexpected expense and disappointments. This record is about: New Credit and Debit Card Chips

Real estate agents : why is education important?

Real Estate Agency education in Australia has undergone many changes during the last 40 years. This is primarily due to the changing nature of consumer protection provided by government and the expectation of increased fields of knowledge relating to real estate transactions. Each state and territory within Australia has a range of regulatory bodies to oversee consumer protection and the distinct licenses and educational requirements that comprise their regimes. Since the 1970’s minimum educational requirements in New South Wales are prescribed for real estate agency work. However, very little research exists in the Australian literature, where an analysis has been undertaken to evaluate these changes, which includes course content, hours allocated for each subject, assessment criteria for each subject,the educational qualification attained, and the requirement for industry experience as a pre-requisite for licensing approval. It is argued that the change to educational requirements, has impacted negatively for the consumer, with an increase in consumer complaints, particularly during the last 10 years.

Physiological Factors Influencing Toughness in Cooked Saddletail Snapper (Lutjanus malabaricus)

Saddletail snapper (Lutjanus malabaricus) is a commercially significant tropical species in Australia and has been the subject of consumer complaints of extreme toughness in cooked fillets. Textural and biochemical analyses including collagen and hydroxylysyl pyridinoline (PYD) cross-links concentrations were conducted on 101 commercially harvested Saddletail snapper to identify causes of toughness. Fish age was found to account for 75.6% of observed variation in cooked muscle texture (work done) of Saddletail snapper. A significant linear relationship (P < 0.001) between PYD content and cooked muscle texture was also identified accounting for 50.3% of observed variation. The concentration ratio of PYD to total collagen (TC) ranged from 0.04 to 0.38 mol PYD per mol of TC. Fish size was also found to be a poor indicator of fish age and therefore a poor indicator of the potential risk of toughness of the cooked muscle.

Tastes and odours in potable water:perception versus reality

Tastes and odours are amongst the few water quality standards immediately apparent to a consumer and, as a result, account for most consumer complaints about water quality. Although taste and odour problems can arise from a great many sources, from an operational point of view they are either ”predictable” or ”unpredictable”. The former - which include problems related to actinomycete and algal growth - have a tendency to occur in certain types of water under certain combinations of conditions, whereas the latter - typically chemical spills - can occur anywhere. Long-term control is one option for predictable problems, although biomanipulation on a large scale has had utile success. Detection and avoidance is a more practicable option for both predictable and unpredictable problems, particularly if the distribution network can be serviced from other sources. Where these are not feasible, then water treatment, typically using activated carbon, is possible. In general there is a reasonable understanding of what compounds cause taste and odour problems, and how to treat these. An efficient taste and odour control programme therefore relies ultimately on good management of existing resources. However, a number of problems lie outside the remit of water supply companies and will require more fundamental regulation of activities in the catchment.