Article Preview
TopIntroduction
According to London (1980), a customer complaint can be seen as a form of feedback that expresses the customer's dissatisfaction with a product or service. The act of making a complaint is often regarded as an indication that the customer cares about the quality of the product or service and wants to see improvements. From the organization's perspective, a complaint is an opportunity to address the customer's concerns and make things right, potentially turning a dissatisfied customer into a loyal one. Therefore, it is important for responsible organizations to take customer complaints seriously and respond to them promptly and appropriately, as it can have a significant impact on their reputation and long-term success. Complaints are an opportunity for organizations to collect information regarding a consumer’s opinions, needs, beliefs, and attitudes. Therefore, the complaint can also be considered in an optimistic sense as providing problem-related documentation of customers regarding a product or service. The emerging developments in international markets have enlarged the responsiveness of an organization to its consumers (Sitko‐Lutek et al., 2010; Atalik, 2007). The promptness and effectiveness of customer complaint handling is a vigorous portion of this responsiveness of the organization (Dey et al., 2009). Despite early displeasure, if a consumer complaint is managed and handled appropriately, a business can keep company goodwill and steadily improve long-term relations with customers (Sitko‐Lutek et al., 2010; Reichheld and Sasser, 1990). Filip (2013) described that consumer complaints should be measured as a vigorous indicator of business performance valuation, signing difficulties, or failures in core business processes that need swift repossession to shun migration of profitable clients. Businesses must absorb that the costs of losing clients are both profit decline and adverse word of mouth.
Customer complaint managing conquers a fundamental role in the process of customer relationship management (CRM) and positions complaint management as an imperative strategic tool for organizations of all categories (Hossain, 2023; Strauss and Hill, 2001). Knowing the value of complaints about refining the offerings of the organization and building long-term sustainable relationships is a recognized marketing practice. Effectually handling customer complaints rises the probability of superior buyer satisfaction and, consequently, repeat patronage behavior while lessening bad word-of-mouth (Strauss and Hill, 2001; Blodgett, Granbois, & Walters,1993). Besides, there is evidence that longtime buyers are more profitable since they tend to buy in larger quantities and more repeatedly than new buyers (Reichheld & Sasser, 1990). Complaint management provides firms with a priceless chance to discover areas for development. Allowing such comments of displeasure to be answered with positive responses and changes is critical for any successful company. As a result, when businesses respond to consumer complaints and provide a timely remedy, they are more likely to make more than one consumer happy (Hossain, 2023). According to Huang et al. (2018), when complaints are handled quickly, clients become more happy with the service and loyal to the firm.
The United States' Consumer Financial Protection Bureau (CFPB) was created to help American financial customers report complaints and access support related to their financial matters. As a federal agency, the CFPB is responsible for ensuring that banks, lenders, and other financial institutions treat their customers fairly (Hossain, 2023). By providing a platform for consumers to report complaints and issues, the CFPB plays a vital role in protecting consumers' rights and interests in the financial sector. In summary, the CFPB is a government organization in the US that is dedicated to safeguarding consumer rights and promoting fair practices in the financial industry.