Investigating the Effects of Customer Complaints and Feedback Management on Customer Satisfaction in Select Banks in Anambra State, Nigeria

Abstract

This work examined the effect of customer compliant and feedback management on customer satisfaction in the Nigerian banking sector. In this study, turnaround time of banks to resolve complaints, banks response to customer complaints (responsiveness), employee courtesy, communication of service failures and handling process and service recovery were employed as the explanatory variable while customer satisfaction was employed as the dependent variable. In line with this, five hypotheses were formulated for the study. Relevant conceptual, theoretical and empirical literatures were reviewed in order to identify the knowledge gap. The study is anchored on equity theory. The study adopted survey research design. Primary data were used in the study. A total of 400 customers of five selected banks in Anambra Central Senatorial District were sampled for the study. Questionnaire was employed as the instrument of data collection. The data generated were analyzed using descriptive statistics, correlation analysis and multiple regression analysis. Turnaround time of banks to resolve customer complaint, banks response to customer complaints (responsiveness), communication of service failures and handling process and service recovery were found to have significant effect on customer satisfaction, while employee courtesy was found to have an insignificant effect on customer satisfaction in selected sampled banks in Anambra Central Senatorial District. The study concludes that complaints and feedback management has significant effect in customer satisfaction in banks in Anambra Central Senatorial District. The study recommends that banks should reduce their turnaround time to resolve compliant, ensure service recovery and retrain their employees on effective and quality service delivery to customers.

Keywords: Customer satisfaction, Equity theory, Customer complaint, Feedback, Service recovery and Communication