Managing Complaints in South American Retail Banking

Abstract

This research results uncovered the existence of a six factor structure measuring service recovery for the South American retail banking industry. The two service recovery dimensions that appear to be the most related with global service recovery could be ascribed to the category of distributive justice, that is, reversing bank mistakes and providing compensation. The service recovery dimensions that could be categorized as procedural and interactional fairness were shown to be equally important to the customers surveyed. They were: customer time, complaint handling time, and treatment of customers, respectively. The dimension of employees' power to make decisions was shown not to be significant.