The Financial Impacts of Customer Complaints Research Paper by write123

The Financial Impacts of Customer Complaints
A research paper assessing the effectiveness of offering discounts as a service failure recovery technique in the hotel industry.
# 105935 | 8,525 words | 20 sources | APA | 2008 | US

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This research paper assesses whether hotel companies should offer customers a discount by way of compensation for service failure. The study assesses whether offering customers a discount is an effective strategy to ensure their repeat business in spite of having suffered poor service. The study also assesses whether it is in the financial interests of the company to offer such compensation. This is done by evaluating whether the company is able to generate the cost of the discount back from the customer through their repeated business.

Purpose of the Study
Importance of the Study
Outline Methodology
Sources of Information
Reliability and Validity of Data
Limitations of the Study
Summary of Research Questions
Literature Review

From the Paper:

"The study is important in determining the strategy which the hotel industry should pursue in regards to offering discounts to customers. The practice of offering compensation as a means of service recovery is currently routine in many hotels. There has however been little analysis conducted as to whether the strategy is actually beneficial to the hotel. In the current market the conditions under which the strategy was devised do not necessarily hold, so there is no guarantee that the strategy remains as effective as when first introduced. It is important that the effectiveness of the strategy is assessed in order to ensure that the hotel can maintain their profitability and competitive market share."

Sample of Sources Used:

  • Baker, T. and Collier, D.A. (2005) The economic payout model for service guarantees. Decision Sciences, 36(2), 197-220.
  • Conlon, D.E. and Murray, N.M. (1996) Customer perceptions of corporate responses to product complaints: The role of explanations. Academy of Management Journal, 39, 1040-1056.
  • Davidow, M. (2003) Organizational responses to customer complaints: What works and what doesn't. Journal of Service Research, 5, 225-250.
  • Dube, L., Renaghan, L.M. and Miller, J.M. (1994) Measuring customer satisfaction for strategic management. Cornell Hotel and Restaurant Administration Quarterly, 35(1), 39-47.
  • Goodwin, C. and Ross, I. (1992) Consumer responses to service failures: Influence of procedural and interactional fairness perceptions. Journal of Business Research, 25, 149-163.

Cite this Research Paper:

APA Format

The Financial Impacts of Customer Complaints (2008, July 21) Retrieved April 20, 2024, from

MLA Format

"The Financial Impacts of Customer Complaints" 21 July 2008. Web. 20 April. 2024. <>