The Impact of Organizational Responses to Complaints on Post Purchase Behavioral Intentions via Recovery Satisfaction - The Case of Saigon Commercial Bank

Abstract

In the context of harsh competition happening in the retail banking sector in Vietnam, the question on how to retain existing customers through offering effective responses to service failure has become a critical focus point of bank executives. Satisfactory responses to customer complaints may help to increase the volume of their repurchases and positive word of mouth intentions about the bank. Understanding the effects of organizational responses to customer complaints helps commercial banks develop more effective service recovery strategies and enhance customer satisfaction with service recovery. This research aims to explore the impacts of organizational responses to customer complaints in the context of the Saigon Commercial Bank; particularly, the study investigates the impact of apologies, attentiveness, explanation, facilitation, promptness and redress on satisfaction with service recovery. Additionally, 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 was used and the results reveal that organizational responses including apologies, attentiveness, explanation, promptness and redress have a significantly positive relationship with complainant satisfaction (satisfaction with service recovery)