1.1 Background
In today’s business world, the value and importance of customers is not something that should be set aside by companies. Marketing plans and strategies would be incomplete without paying much consideration to the customers (Asch, 2001). Customers will and should always be a part of the agenda in any marketing plan of any company. Because of the implications for profitability and growth, customer retention is potentially one of the most powerful weapons that companies can employ in their fight to gain a strategic advantage and survive in today's ever increasing competitive environment (Leong, 19933). Consumer behaviour has been defined as the "acquisition, consumption and disposition of products, services, time and the concepts by decision making units" (Jacoby 1975, 1976).
Consumer behaviour is perhaps one of the most interesting aspects of marketing because it deals with the individual characteristics of consumers. It is basically the buying behaviour of the final consumers which are the individuals and households who buy the goods and services offered in the market for their personal consumption (Folkes, 1984). However, because of certain consequences, some organisations nowadays could not provide what is due for the consumer which leads to consumer complaints. One of the industries which face customer complaints is the banking industry. Accordingly, the customer complaints can cause many problems and issues for an organisation.
For this study, the researcher will attempt to determine the implications of customer complaints in a banking industry. Specifically, the banking industry that will be given emphasis is Wing Hang Bank of Hong Kong. Furthermore, this dissertation also aims to identify the factors that cause customer complaints and how the bank tries to solve these issues.
1.2 Aim
The major aim of this study is to identify the effects or implications of customer complaint in a banking industry like Wing Hang Bank of Hong Kong.
1.3 Objectives
· Identify the roots of customer complaints in Wing Hang Bank of Hong Kong
· Determine the implications of customer complaints to the organisational performance of Wing Hang Bank of Hong Kong
· Recognise how the company solve the issue for customer complaints
· Examine how Wing Hang Bank of Hong Kong can improve their relation with customers.
2.1 Literature Review
2.1.1 Complaints
Complaint behaviour is action – taking. It is an action taken by an individual that involves communicating something negative regarding a product or service (Jacoby, J. and Jaccard J.J. (1981)). (Mowen, J. (1993)) stated that complaint behaviour is any one of a number of actions that is triggered by perceived dissatisfaction with a purchase episode. Complaining has never had a positive meaning (Barlow J et al, (1996)) and no individual likes to be complained upon. However, complaints, if handled properly, can provide a feedback mechanism that can help an organization to rapidly and inexpensively shift products, service styles and/or market focus to meet the needs of the customers (Johnston, R. (2001), Harrison – Walter L. J. (2001)). Complaints can tell an organization how services and products are liked to be delivered, thereby help it maintain, if not increase market share (McCole P. (2004)). The father of modern attribution theory, Fritz Heider, notes,
“most of us attribute blame to individuals, rather than the circumstances surrounding product or service failure” (Barlow, J. et al. (1996) page 12)
Therefore, manifestation of employees can influence customers’ perceptions of an organization. To create a delightful customer experience, employees must be motivated, competent in complaint handling through proper training, be able to take stress in both reasonable and unreasonable times, and creative in their thinking. Satisfied customers and employees with job satisfaction can create a better relationship and have a bigger chance to be successfully retained by an organization. (Claycomb, C. et. al (2001); Hansemark, O. et. al (2004)).
A study conducted by California Polytechnic State University and Chinese University of Hong Kong titled “Quality management initiatives in the banking industry – a meta analysis of Hong Kong and the UK” suggested that,
“To survive and prosper in this environment, it is vital for these banks to improve the quality of services that they provide to their customers.” Specifically, they should: “…………Increase the practices of awareness training, management workshops, complaint management systems and customer satisfaction surveys………” (Li E. et al, (2001)).
Therefore, proper complaint management becomes one of the important tools for bank to differentiate and to improve customers’ satisfaction.
2.1.2 The Effort Model – Consumer Complaining Behaviour
This study will be using the Effort Model (EM) of first-stage complaining behaviour to explain the increase of complaints. The EM builds upon the conceptual work by (Blodgett and Granbois (1992)) and (Kowalski (1996)). In the EM, complaining behaviour has been defined in three stages. They are: a) most dissatisfied consumers still do not voice complaints, b) latter-stage complainants have identified themselves as dissatisfied by voicing complaints, and c) their behaviour tends to be responsive to recovery attempts rather than to initial dissatisfying experiences. (Huppertz, J. W., Mower E. and Associates (2003)). Simply put, it takes work to complain. Not only does this required physical effort and time, but the consumer must also take into consideration whether or not to complain and how to go about it. The Effort Model is an important model in consumer complaining behaviour (CCB) process. The Effort Model is summarized in the following chart. Because of its importance in the CCB process, EM focuses solely on first-stage consumer complaining behaviour. First-stage CCB is defined as the initial behavioural responses to dissatisfaction with a purchase or service.
2.1.3 The Hong Kong Chinese Consumer Complaint Behaviour
Following are two studies defining the Hong Kong Chinese consumer behaviour and motives. In later part of this study, the Effort Model together with the findings of the two studies will be used to compare with the primary and secondary research data to see if the consumer behaviour and motives have been changed.
The Department of Psychology, University of Hong Kong has conducted an experiment investigating Chinese consumer complaint behaviour in 2001. They find out that Chinese consumer would be less likely to complain when the situation involved direct face to face confrontation with the responsible party. This is due to the salience of face concern in Chinese culture (Chiu, C. et al. (2001)). Chinese consumer may consider complaint behaviour an interpersonal action that involves face management. Because the development of consumerism has occurred only recently in Hong Kong, consumers are less likely to be aware of their rights and the appropriate action to put forward. Therefore, consumer education should be an important policy to be implicated.
Another study conducted by the Hong Kong Polytechnic University finds that the most common types of Chinese complaint behaviour towards dissatisfied hotel restaurant service are “warn family and friends”, and “stop patronizing the restaurant” (Heung V. et. al, (2003)). The most common complaint motives are ranking from seeking corrective actions, asking for explanation, seeking apology and expressing emotional anger. The motive of seeking compensation is not the cause of complaint.
2.1.4 Banking in Hong Kong – consumer complaints
In order to understand more of the complaint trend in Hong Kong, the author studies materials published by the (Hong Kong Consumer Council (HKCC)) with information regarding complaints in the past ten years, starting from 1996 to 2005 (Appendix II g). In the (year-end review for 2000 (9 January 2001) Appendix II c), the Chairman of the Consumer Council, Professor Andrew Chan Chi-Fai, noted the rise in the level of consumer complaints particularly in the service sector, which has grown at a much faster pace over the years. The rapid growth in the total number of complaints is in an unbelievably speed. For example, the council has recorded 8,805 complaints in 1996 and 36,614 complaints in 2005; a growth rate of 316% in a ten-year’s time. (Available from the press releases from Hong Kong Consumer Council (2006)). For the last 10 years, there has been an upward trend in customer complaints for all industries lodged with the Hong Kong Consumer Council. In 1996, there were only 297 complaints in the financial sector out of a total of 8,805 lodged while in 1998, there was an upsurge in consumer complaints where 533 complaints in the financial sector out of a total of 22,750 were lodged. The rising trend was sited due to the economic slowdown since the latter part of 1997 (Complaint Statistics for 1996-1998, Hong Kong Consumer Council, Appendix II g.). For 2005, consumer complaints escalated to a new record high of 36,614 cases where 769 were in the financial sector. It coincided with a year of strong economic rebound in Hong Kong though an analysis of the complaints gave no immediate clue that a robust economy is to blame for the rise. As the economy progressively shifts to a service-based one, consumer complaints rise. In 2000, service-related complaints represented 46% of all complaints. This has risen to 62% for 2005 (Year ender 2005, Hong Kong Consumer Council, Appendix II e.). As for the financial sector, the consumer complaints have increase from 297 (in 1996) to 796 (in 2005), or 160% for the last ten years, (Consumer Complaint Statistics for 1996 – 1998, Complaints Statistics for the year 2004 to 2006, Consumer Council of Hong Kong (2006), Appendix II g.)
The complaint figures in financial services in Hong Kong from 1996 to 2001, a raise from 297 to 989 complaints at a growth rate of 233% within 6 years (available from press releases – Consumer Complaint Statistics for the year 1996 to 1998, 1999 to 2001, Appendix II g). Financial services were among the top 10 consumer complaints in 2001 (Year-end Review for 2001 (10 Jan 2002), Appendix II c). In order to improve protection for consumers in the financial sector, the council has invited the Hong Kong Monetary Authority (HKMA) and Legislative Council (LegCo) to step in and declared a policy position “ Submission to Legco Panel on Financial Affairs ‘Consumer protection in the banking sector’ (13 June 2002)” (Appendix II d). A guideline is directed from HKMA for all banks to follow in complaint handling. (Information available from Appendix I and II)
2.1.4 Wing Hang Bank in Hong Kong
Wing Hang Bank is the 5th largest bank in Hong Kong with an interesting history of how the bank started in 1937 with only 19 staffs to the nowadays 50 branches and representative offices throughout Hong Kong, Macau and Mainland China (Wing Hang Bank, 2006) historical background is the affiliation with the Bank of New York, which has become the 10th largest bank in the United States. Yet, Wing Hang Bank in Hong Kong is only regarded as a medium sized bank offering competitive banking products and services as the others. Interesting enough, Wing Hang Bank has the ability to attract customer deposits along the years with a comparatively small branch network and minimal advertising if not nothing. Wing Hang Bank has rights to believe that its success is based on the rewarding experience offered to its customers. However, without exception, Wing Hang Bank is also suffering a high complaint rate from 2001 to 2003 which it has never experienced before. (Please refer to Appendix III a. and Figure 3 for Complaint Statistics of Wing Hang Bank)
2.1.5 Effective Complaints-Handling Procedure
In order to develop an effective complaint-handling procedure, the system must be made up of both consumer education and information processing. Consumer education is essential in developing an effective complaint-handling procedure as this would help the company understand its clients more and the different types of complaints that it can encounter. By means of consumer research, the company can develop ways on how to handle complaints more appropriately. Research will also enable the company to acquire useful customer information for better complaint management procedures. The information to be gathered from customer research should then be processed by the company. Processing these data is necessary in keeping track of the complaints forwarded; this on the other hand can help in minimizing consumer dissatisfaction (Gilly, Stevenson & Yale, 1991).
2.1.6 Options for Handling Consumer Responses
Complaints and reaction levels tend to vary; the staff in charge of handling the complaints of the consumers should then apply appropriate means in order to manage them. Generally, the receiver should only listen and refrain from interrupting the client while the complaint is being explained. It should also be part of the protocol that the complainants are given enough time to explain their side. Once this is done, the staff can start asking questions to get more information regarding the problem. With this option, the aim is to clam the client. Once the cause of the complaint has been fully verified, the receiver should then direct the customer to the person who can directly solve the problem. If further analysis of the complaint is necessary, a follow up call should be made (Herb, 2005). To resolve the problem, the service center should offer possible option to the client. Examples of which are phone in troubleshooting or free home services can be offered. Product returns and full reimbursement are some of the remedies the company can provide for worst cases. If none of these are possible, the company could offer the services of other experts through referral.
There will be instances however, where the company would encounter chronic complainers. These are clients who are not willing to accept any remedial means the company is offering. In order to handle them, the service center staff should offer reasonable attention, attentive listening, accurate responses and true intentions of solving the customer’s problem (Ramsey, 2005). It is essential that the company does not dwell on these customers; what is important is that the staffs gives its best and offer all possible means to solve it.
2.1.7 Customer Relationship Management
Customer Relationship Management (CRM) pertains to any activity that involves interaction between the business and the customer. It is based on the concept of creating learning relationships (Day, 2000). This relationship can be considered as a give and take relationship. Both customers and businesses can benefit from the formation of learning relationships. Businesses can actually determine the value of each customer in the business by forming these learning relationships as well as those who are and will need additional attention. On the other hand, business have the improved capacity to serve better their customers since they now the products and services that will benefit them most.
Developing and nurturing a lasting relation with the customers is viewed as one of the keys towards delivering customer satisfaction that affects sales. According to Jackson (1985), there are two extreme types of customer relationship. The first one is called “always-a-share relationship”; this type of relationship is characterized by accommodating and detached transactions. This relationship also views the customers as replaceable. The second extreme relationship is called “lost-for-good relationships”. This type of relationship relies on the benefits of the products, carried by the store, to the customers; this is the only reason why the customer patronizes the store. Given this, if the customer sees that the products are no longer beneficial to them there will be no reason to continue on patronizing the store. It is also important that store managers learn to recognize customers whom relationships must be built and maintain and customers whom relationships should be discontinued. This step will allow stores to maintain its status quo.
Based from the statements given above, it can be concluded that CRM focuses on building relationship to be able to create customer profiles and predict buying trends. Doing so will allow the business to make necessary adjustments in their services of products so that it will become more suitable and referred by customers. In addition, knowing the customer’ preferences will give a company an edge over the competition since they will be able to develop products and service that can offer more benefits to the customers based on what they need.
CRM Programs help define the general attitude of the members of the company when interacting with customers. It is based on what the customer directly tell the business, information collected through other business transactions and other demographic acquired (Day, 2000, p. 66). Through these sources of information, businesses will be given the opportunity to get to know their customers on a different level. Aside from being able to identify the needs of their customers, they will also be able to differentiate customer requirements. With this, businesses can improve the way they interact with their customers by enhancing contacting methods, sales approaches and/or automated technology that they are offering (Day, 2000, p. 66).
According to Gerson (2005a), something is missing the implementation of CRM in today’s businesses. In addition, he stated that in order for customer relationship management programs to truly work, business must focus on the person. In other words, Gerson believes that tracking purchasing trends or giving incentives so that people will stay with the company are not the steps that needs to be taken to make CRM work. In line with this, he suggests that business must analyze everything that customers bring into the situation such as emotions, motivations, intentions, interests, knowledge, attitudes, behaviors and desires (Gerson, 2005a, p. 2).
There is another observation that Gerson was able to make. He believes that businesses are focusing of technology in the belief that it will be able to help them improve CRM. This is in coherence with Day when he mentioned that call centers have technologically advanced equipments; however, they are not able to maximize its utilization. It is a fact that most call centers are after equipment acquisition since they believe that doing so will allow them to serve better their customers.
It is true that technologically advance equipments used in call centers are helping agents deliver quick and efficient service to their customers. However, the relationships being form during these brief interactions are not strong enough to influence the purchasing behavior of their customers. If call centers continue depending on technology to improve their customer relationship management, then there is a great chance that improvement will not come. This is the case since technology is only one aspect of customer relationship management. Businesses must be able to make the same realization.
Continued dependence on technology can also result to the regression of the customer relationship building skills that employees have. Since the whole organization has been operating under the notion that customer relationships are being built by utilizing CRM software and equipments, then they are also operating under the notion that all they have to do is pick up the phone and the rest is up to technology.
With this, it can be stated that aside from technology centric culture, call centers must also adapt a customer-centric culture. The combination of the two culture can prove to be beneficial for the businesses. While technology provides the tools that will make customer relationship building easier, focusing on people willow businesses to form personal relationships with their customers. This kind of relationship is the kind that will be able to somehow influence the purchasing behaviors of customers. In order for this relationship between companies and customers to grow, certain conditions must be present.
According to Gerson, relationships grow as long as the following conditions are observable and are being practiced by the parties involved.
- Mutual Trust
- Open lines of Communication
- Give each other’s needs and do away with the things that are not wanted
- Mutual Support
- Listening to each other
- Reciprocated Empathy
- Growing with each other
It is evident that the conditions presented above appeals more to the psyche and emotions of the customers. By practicing the aforementioned conditions, businesses will be able to ensure that the relationships they build with their customer will last. Furthermore, they will be able to establish the needed personal relationships. This is important because personal relationships will allow businesses to determine the personal preferences of each customer and compare them with the overall formulation of their products and services.
In the case of call centers, it is important to note that, although, customers will appreciate if agents are knowledgeable about the products and services that they offer, customer will find it more easy to avail of the offers if agents will be able to show them how the product can benefit them. In order for agents to do this they must know what is important to the customer at the moment. Equipped with that knowledge agents will be able to determine how the product or service fits into the current situation of the customer. All of the information needed to position a product or service is obtainable through probing or asking the customer about it. However, customers will only trust agents with such information if they have formed a sort of relationship. Again CRM programs come into play.
Aside form the abovementioned benefit of CRM, Gerson (2005b) also outlines other beneficial results that companies will be able to get out of CRM programs.
- it can used as a marketing tool to provided competitive advantage
- it can result to more satisfied customers thus longer lasting relationships can be formed
- increased rate of customer referrals
- increased in profit
- increase of repeat customers
- improvement of the quality of products and services being offered
- improvement of employee performance due to boost of morale and employee satisfaction
- switch to a customer centric corporate culture
- increased internal productivity
This outline of beneficial results that customer relationship management programs provide proves that its implementation can help the call center industry to be more profitable and sustainable. Since CRM programs affects employee performance it means that they will be able improve the skills of call center agents.
2.1.8 Total Quality Management
According to Ross (1999), Total Quality Management is the incorporation of all the functions and processes of the organization (p. 1) to be able to develop the quality of the services and or/products that they offer. With this, it can be stated that customer relationship management programs are included in total quality management. The need to develop an effective total quality management is important due to various reasons. However, these reasons are still geared towards providing customers with the great business experience with the company. It is also the case that total quality management views customer satisfaction in relation to customer retention and increase in the profits.
However, there are different takes on this topic. Some researchers believe that customer satisfaction creates to customers who will keep on doing business with the same company. This results from the customers’ experience when they were conducting business with that particular company. These researchers believe that the presence of customers who are willing to spend a little more just to be able to do business with their preferred company confirms that customer experience; in this case, customer satisfaction can help businesses in increasing their profit. In fact, a number of companies believe so much in the power of customer satisfaction together with other key factors like revenue and profit that they use it to measure their business’ over-all performance.
This take on customer satisfaction brings about the concept that business must include customer satisfaction programs in their budget allocation. One such example of this practice can be observed in Sears Roebuck & Co. Other retail stores even use customer satisfaction rating as a measure for employee compensation. Employees and executives are being rewarded based on the feedback that the store gets from its customers. Businesses do this in order to foster a culture of delivering top-quality customer service that will improve financial performance. This statement simply means that businesses believe that the more satisfied the customers are the more profitable the store will be. They give much importance to on the fact that it is costly to attract customers but even more expensive to lose them (Kiska, 2004).
According to Bain and Co. (as cited in Bashkaran, 2005), the cost of gaining new customers is 6-7 times more expensive than retaining customer and a 5 percent increase in customer retention can also increase profit by 25-95 percent. But the on the average American companies lose 50 percent of their customers every 5 years. This, to a certain degree, proves that there is an indirect relation between customer satisfaction and increase in sales through increased customer retention.
On the other hand, there are those researchers who believe that customer satisfaction does not always translate to customer loyalty or retention. According to two Harvard researchers, Jones and Sasser, customer satisfaction result in varying levels of loyalty which affects the customers’ disposition towards patronage. This means that customer satisfaction do not create loyal customers because even satisfied customers have the tendency to change stores. This change of store by the customers can be justified by the level of satisfaction that they will get from another store. Therefore, the focus of customer satisfaction must be aimed at proving the highest value bundle to the customers in order to ensure the highest level of customer satisfaction (as cited in John, 2003, p. 7).
Even though, the two examples provide different view regarding the relation of customer satisfaction and customer retention, it is evident that customer satisfaction affects customer retention. And customer retention results in increased profit since customer retention lessens the turnover rates (Reichheld and Sasser, (1990). The only difference that was actually posted by the two articles involves how customer satisfaction affects customer retention. The first example stated that customer satisfaction automatically results in customer retention while the second views that customer retention is dependent on the degree of satisfaction that the customers get.
Nevertheless, both articles showed that there is a correlation between customer satisfaction, customer retention and increase in profit. This being the case, it can be stipulated that if call centers recognize the correlation between the three then they will be able to sustain their business and ensure that its future it secured. Moreover, implementing customer relationship management programs will allow call centers to identify the sets of customers that are more susceptible to outbound contact methods and those that would rather stay with inbound call methods. In doing so, they will also be able to lessen the stress of their agents by providing them with hot leads.
Since Total Quality Management is founded on the philosophy of perpetual improvement (Hansen, 2005), it means that businesses must always be on their feet to keep up with the demands of the market. Therefore, businesses must accept that change is an integral part of success. They must be willing to give up old inefficient business strategies and start formulating new ones.
In addition, Hansen (2005) stated that the key to improving the quality of products and services that a company offers is develop the processes of identification, production and support of the products and services. This means that everybody with the company must be work together in order to resolve the problematic processes. In the middle of this, managers must be able to act as leaders and provide trainings to their subordinates. The skills that employees acquire through training will be their tools in initiating change. Managers must also keep track of the developments within the company. This means that they must constantly review and measure the performance of the team. This way they will be able to gauge if the process being used is helping in achieving the preferred result of the company.
Hansen also suggested that a systematic method of improvement be used. This will allow companies to implement the improvement programs gradually and assess the immediately visible results. This is also a risk management mechanism to ensure that minimal losses will be accrued. Below is the total Quality Management process improvement according to Hansen. It also includes the problem solving sequence to better identify the areas within the company that needs to be improved.
TQM Process Improvement and Problem Solving Sequence
PLAN (PLAN A CHANGE)
DO (IMPLEMENT THE CHANGE)
CHECK (OBSERVE THE EFFECTS)
ACTION
(EMBED THE FIX INTO
THE PROCESS FOR GOOD)
DEFINE
THE
PROBLEM
IDENTIFY
POSSIBLE
CAUSES
EVALUATE
POSSIBLE
CAUSES
MAKE
A
CHANGE
TEST
THE
CHANGE
TAKE
PERMANENT
ACTION
1. Recognize that what you are doing is a "PROCESS"
2. Identify the commodity
being processed.
- Process Inference
3. Define some measurable characteristics of value to the commodity.
4. Describe the "PROCESS"
o Process Flow Analysis's
o Flow charts
o List of steps
5. Identify the "Big" problem
o Brainstorming
o Checklists
o Pareto analysis
6. "BRAINSTORM" what is causing the problem.
7. Determine what past data shows.
o Frequency distribution
o Pareto charts
o Control charts
- sampling
8. Determine the relationship
between cause and effect
o Scatter diagrams
o Regression analysis
9. Determine what the
process is doing now
o Control charts
- sampling
10. Determine what change would help
- Your knowledge
of the process - Scatter diagrams
- Control Charts
- sampling - Pareto analysis
****Then make
the change.
11. Determine what change worked (confirmation).
- Histograms
- Control charts
- sampling - Scatter diagrams
12. Ensure the fix is embedded in the process and that the resulting process is used.
Continue to monitor the process to ensure:
A. The problem is fixed for good.
and
B. The process is good enough
o Control charts
- sampling
****To ensure continuous
improvement, return
to step 5
3.1 Methodology
Referring to the aim and objectives set for the dissertation, the author will now demonstrate the methodology of the means of obtaining data for analysis and coming to the conclusion to meet the aim and objectives. Though it does show ethnic concerns to those out there, interviews will be tied with the primary data research collection of this dissertation and the secondary research will be supported through the use of the research of other scholars as mentioned in the literature review.
3.1.1 Research Design
This study uses the descriptive approach. This descriptive type of research will utilize observations in the study. To illustrate the descriptive type of research, Creswell (1994) will guide the researcher when he stated: “Descriptive method of research is to gather information about the present existing condition. The purpose of employing this method is to describe the nature of a situation, as it exists at the time of the study and to explore the cause/s of particular phenomena.”
The research described in this document is based on qualitative and quantitative method. The qualitative method permits a flexible and iterative approach, while the quantitative research method permits specification of dependent and independent variables and allows for longitudinal measures of subsequent performance of the research subject. During data gathering the choice and design of methods are constantly modified, based on ongoing analysis. This allows investigation of important new issues and questions as they arise, and allows the investigators to drop unproductive areas of research from the original research plan.
The value of qualitative research can best be understood by examining its characteristics. One of the primary advantages of qualitative research is that it is more open to the adjusting and refining of research ideas as an inquiry proceeds. Also, the researcher does not attempt to manipulate the research setting, as in an experimental study, but rather seeks to understand naturally occurring phenomena in their naturally occurring states. Inductive reasoning, as opposed to deductive reasoning, is common in qualitative research, along with content or holistic analysis in place of statistical analysis (Meyer et al, 1995).
On the other hand, quantitative method is compatible with the study because it allows the research problem to be conducted in a very specific and set terms (Cooper & Schindler, 1998). Besides, quantitative research plainly and distinctively specifies both the independent and the dependent variables under investigation.
It also follows resolutely the original set of research goals, arriving at more objective conclusions, testing hypothesis, determining the issues of causality and eliminates or minimises subjectivity of judgment (Kealey & Protheroe, 1996). Furthermore, this method allows for longitudinal measures of subsequent performance of research subjects (Matveev, 2002). Finally, it provides achieving high levels of reliability of gathered data due to i.e. controlled observations, laboratory experiments, mass surveys, or other form of research manipulations. This study should be based on surveys and statistical treatments, so basically the quantitative approach fits well with it.
3.1.2 Respondents of the Study
The main purpose of this case study is to identify the implications of customer complaints to Wing hang Bank in Hong Kong. Hence, the respondents of this study include 30 managers and employees of the company. The managers are chosen because the respondents find them more reliable for this study. The true identity of the respondents is not revealed for confidential purposes.
After selecting the appropriate population, the researcher use inferential statistics in order to draw a concrete conclusion. Inferential statistics is used to be able to know a population’s attribution through a direct observation of the chosen population or simply the sample. This is because it is easier to observe a portion or a part than observe the whole population. However using a sample has also its own disadvantages; hence, there is a need to choose the most suitable sample from any population.
3.1.3 Interview/Questionnaire Structure
The researcher design a questionnaire for the for the interview process. The primary aim of the questionnaire is to determine what the effects of customer complaints to the organisation are. This research will use a mixture of closed questions and more open comments in the questionnaire. A closed question is one that has pre-coded answers. The simplest is the dichotomous question to which the respondent must answer yes or no.
Through closed questions, the researcher will be able to limit responses that are within the scope of this study. For example, the researcher intends to ask the respondents what they think of business value in general. Using a multiple choice method, the answer of the respondents would be within the one of the limited expected answers of the researcher. Thus the researcher will design a closed question type to remain focused on the statement of the problem and on the main purpose of the study. However, the researcher will nevertheless extend the closed questions with the comments option to be able to gather qualitative data for this study.
In addition, closed questions will be used in the survey because the answers are easy to analyse and are straightforward as target respondents are mostly busy that they do not have enough time to give attention to open questions. Closed response questions save the respondent having to think of possible replies.
3.1.4 Data Collection and Analysis
The study use questionnaires and interviews to gather pertinent data. Moreover, the researcher also uses previous studies related to customer complaints and approaches on how to handle customer complaints. A structured questionnaire is employed by the researcher so as to save time and effort in the organization of the answers that will be gained. In the interview, the researcher hopes that those questions that are not tackled by the questionnaires will be gathered from using the interview. The straightforward approach of the interview guarantees that there would be a response generated by the researcher with regards to the questions asked.
In this research the utilization of secondary and primary data were used by the researcher. The secondary sources of data are collected from published articles from business journals, theses and related studies customers behavior, complaints and strategically approach in handling customers. The primary source of data comes from a questionnaire and interviews conducted by the researcher. The primary data frequently gives the detailed definitions of terms and statistical units used in the survey. These are usually broken down into finer classifications. Herein, the researcher constructed a questionnaire and administered them to the respondents. The respondents were requested to answer the inquiries in the survey-questionnaire, each grading the statements using the Likert scale. The equivalent weights for the answers will be:Range Interpretation
0.00 – 1.49 Strongly Disagree
1.50 – 2.49 Disagree
2.50 – 3.49 Undecided
3.50 – 4.00 Agree
4.50 – 5.00 Strongly Agree
In the Likert technique, a set of attitude statements are presented, where subjects of a study are asked to express agreement or disagreement using a five-point scale. The degree of agreement is given a numerical value ranging from one to five, thus a total numerical value can be calculated from all the responses (Underwood, 2004).
3.1.5 Validation of the Instrument
For validation purposes, the researcher pre-tested a sample of the set survey questionnaires. This was done by conducting an initial survey to at least five respondents from the chosen respondents of the companies. After the respondents answered, the researchers then asked them to cite the parts of the questionnaire that needs improvement. The researcher even asked for suggestions and corrections from the respondents to ensure that the survey-questionnaire is effective. Automatically, these five respondents were not included as respondents for the study.
3.1.6 Administration of the Instrument
The researcher excluded the five respondents who initially used for the validation of the instrument. The researcher also tallies, score and tabulate all the responses in the provided interview questions. Moreover, the interview used is a structured interview. It is consisted of a list of specific questions and the interviewer does not deviate from the list or inject any extra remarks into the interview process. The interviewer may encourage the interviewee to clarify vague statements or to further elaborate on brief comments. Otherwise, the interviewer attempts to be objective and tries not to influence the interviewer's statements. The interviewer does not share his/her own beliefs and opinions. The structured interview is mostly a "question and answer" session.
Statistical Treatment of Data
After all the data from the researcher-made questionnaire were collected, the following statistical formulae were used:
1. Percentage – to determine the magnitude of the responses to the questionnaire.
n
% = -------- x 100 ; n – number of responses
N N – total number of respondents
2. Weighted Mean
f1x1 + f2x2 + f3x3 + f4x4 + f5x5
x = --------------------------------------------- ;
xt
where: f – weight given to each response
x – number of responses
xt – total number of responses
4. Results
This part of the study shall be discussing the findings based on the self-administered questionnaire conducted by the researcher. The primary objective of this study is to determine the implications of customer complaints to Wing Hang Bank. The study intends to investigate the customer behavior and complaints regarding the services offered by the banking industry. It also aims on identifying the effect of customer complaints in the performance of employees. Prior to the initiation of the interview process, the purpose, the significance and objectives of the study were relayed to the participants. They were also assured that all the information they had provided are solely for the purpose of the study while their identities would remain confidential
For this study, primary research and secondary research will be used. Primary research will be conducted using anonymous questionnaires that will be sent to 30 managers and employees of Wing Hang Bank. The questionnaires will be used to collect quantitative data. The conduct of this study entails the level and position of the respondents. It is assumed that the attributes of the respondents influence their behaviour and answers on the survey questions.
The researcher also will be conducting closed questions. The questionnaires were used to collect quantitative data and the interviews were used to provide qualitative insights into the data collected. This study was divided into two parts. The first part shall provide the profile of the respondents, the personal description which includes the age, gender, length of service to the company.
The second part will be the discussion of the results based on the interview conducted by the researcher.
Part A: Demographic Profile
This part will be the discussion of the demographic profile of 30 managers and employees who have been chosen in this study. The description of the respondents includes their age, gender and length of service in the Wing Hang Bank.
Table 1 and Figure 1 show the age range of the respondents. Ten (33.33%) of the respondents’ age ranges from 36-40 years old, showing that most of them were already an experienced person in the job. Respondents of ages between 231-35 and 41 years old and above over all compromised 30% of the total respondents. These also shows the percentage of the ages of the respondents compromised to the following distribution; ages between 36-30 (6.67%), 20-25 (0%), and ages below 20 (0%).
The sample populations’ gender depicts an unequal distribution of the sexes. The above table and the figure shows the total respondents based on their gender. The survey results indicate that 18 (60%) of the respondents are male and 12 (40%) are female which indicates that men are more likely to have a position in organization.
The table and the figure above illustrated the number of years of the respondents in their respective companies. It shows that most of the respondents are providing services in 10-12 years (30%) with their respective companies. This means that most of the managers are knowledgeable enough to answer these queries. Further, 7 (23%), 6 (20%), 5 (17%) and 3 (10%) out of the respondents handle managerial position for 13-15 years, 10-12 years and 7-9 years and 4-6 years respectively.
Part B Discussion of Interview Results
The proceeding sections will present the results in accordance to the Likert technique. It will be remembered that the respondents of the study were presented a set of attitude statements so they can express their agreement or disagreement with the use of a five-point scale, wherein 5 is equivalent to an answer that merits a strong disagreement and 1 as showing a strong agreement (see chapter 3). This will provide a greater understanding about the observations of the following respondents towards their working force.
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