Can complaint-handling efforts promote customer engagement?

Abstract

This study aims to fill an important research gap in customer management, namely, the extent to which customer engagement arises as a consequence of an effective complaint-handling strategy. In tackling this question, we offer new insights into service research that may help researchers and managers better understand customer non-transactional behaviors to complaint-handling actions. To test the conceptual framework, we employ self-reported information from a sample of customers who have experienced a service failure in the financial services industry. Findings show that complaint handling will increase not only customer satisfaction with the complaint-handling process but also customer engagement. Satisfaction also plays a mediating effect. Therefore, in the event of a service failure, a proper management of the problem will lead to more engaged customers.