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