Abstract
In the context of harsh competition in the retail banking sector in Vietnam, how to retain existing customers through effective responses to service failure has become a critical focus point of bank executives. Satisfactory responses to customer complaints may help to increase repurchases and positive word of mouth about the bank. Understanding the effects of organizational responses to customer complaint helps commercial banks develop more effective service recovery strategies and enhance customer satisfaction. This research explores the impacts of organizational responses to customer complaints in the Saigon Commercial Bank (SCB). The study investigates the impact of apologies, attentiveness, explanation, facilitation, promptness and redress on satisfaction with service recovery. The effect of recovery satisfaction on post purchase behavioral intentions (repurchase intentions and positive word of mouth intentions) is also examined. Structural equation model analysis reveals that organizational responses including apologies, attentiveness, explanation, promptness and redress have a significantly positive relationship of satisfaction with service recovery.
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