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http://dx.doi.org/10.7469/JKSQM.2019.47.3.641

The Service Failure of Global Large Distribution Companies: the Failure Factors by Service Marketing Mix  

Lee, Young Jae (Homepluse Co.)
Choi, Suk Bong (Korea University)
Publication Information
Journal of Korean Society for Quality Management / v.47, no.3, 2019 , pp. 641-659 More about this Journal
Abstract
Purpose: Recently, the managing customer complaints properly has emerged as key source of competitive advantage in the large distribution industry. Effective customer complaint management helps firms minimize service failures and incense the capability to respond to customer's needs. Despite this importance, the in-depth prior study of a firm's service failures is very limited. Therefore, the actual service failure cases of large discount stores in Korea were analyzed in this study, and the types of service failures that occur at the service interface were identified. Method: Specifically, a total of 48,307 cases of customer complaints that have occurred in the past three years were collected from 1 January 2016 to 31 December 2018. Using 7 dimensions of service marketing mix. we have classified and analyzed systematically the service failure cases collected. Results: Among the cases of service failures, 34,921 (72.3%) cases were involved with the product factor, followed by 6,152 (12.7%) cases with person factor and 5,392 (11.2%) cases with process factor. Conclusion: By linking the main causes of service failure with the service marketing mix variables, this research presented a more systematic analytic model and verified by applying it to large domestic distribution company. Understanding the main factors affecting customer complaints n the large distribution industry can provide managers useful information and insight who want to achieve an effective customer complaint management.
Keywords
Service Failure; Customer Complaint Management; Service Marketing Mix; Case Study;
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