Effectiveness of Customer Complaint Handling and its Impact on Customer Retention: The Case of Unibank Ghana Limited

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Date
August, 2016
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Abstract
Market competitiveness demands that companies employ measures to influence potential customers and retain existing customers. It is rather sad situation when companies don’t take measures to assess customer complaints to ensure effective resolution. The study sought to assess the effectiveness of customer complaint handling procedures and its impact on customer retention using Unibankghana Limited as case study. This study was conducted using a quantitative research approach and an explanatory research design. The study population included both customers and management of Unibankghana Limited. A respondent sample of 84 respondents made up of 80 customers and 4 branch managers from the 4 selected branches of the bank were sampled to respond to the data collection instrument. The study employed convenient sampling technique. Data was collected through questionnaires. Factor and correlation analysis were used to analyze data. Findings showed that most complainants have made complaints just once or twice predominantly about automatic teller machine (ATM) failures and totally defective ATM machines. The study showed that the reactions of most customer complainants were mostly an expression of disappointment, negative perceptions about the bank, telling other people about their complainants and having an overall mindset of negativity against the bank. Finally, the study showed that majority of customer complainants still maintain accounts with Unibankghana Limited and still transact business with Unibankghana Limited despite making complaints. Based on the findings, the study recommended that management of Unibankghana Limited integrate a complaint mechanism / button into the ATM machines to enhance complaint taking and also ensure total organizational focus to significantly improve services which were found to breed the most complaints.
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A thesis submitted to the Department of Marketing and Corporate Strategy of the Kwame Nkrumah University of Science and Technology in partial fulfillment of the award of the degree of Master of Business Administration (Strategic Management).
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