Effects of distributive justice complaints resolution strategies on customer satisfaction in Kenya’s banking industry

Abstract

aintaining a loyal customer base has witnessed banks invest in various marketing strategies among them complaint resolution strategies so as to have an ever satisfied clientele. The pu rpose of this study is to establish the effect of customer complaint resolution strategies on customer satisfaction . The study utilizes an explanatory survey design and focuses on all the 20 banks based in Eldoret , Kenya as at June 2010. Additionally, 2300 custome rs a re targeted for the study. A sample of 372 customers was selected using systematic sampling techniques. A self - administered questionnaire wa s used to collect primary data and both descriptive and inferential statistics were used for data analysis . The study reveals two dimensions of complaint resolution strategies; Equity and Need and explai ned 57% of the total varianc e hence distributive justice theory on complaint resolution is valid in Kenya. Results of the Hypothesis testing indicated that distribut ive co mplaint resolution strategies a re significant (p<0.05) and accounts for 17 % of customer satisfaction . The study concludes that distributive complaints resolution strategies are an important feedback mechanism to establish customer satisfaction levels and banks are advised to invest in them