When Customers Complain Illegitimately:Potential Countermeasures and Recommendations for Managers

Bachelor Thesis from the year 2020 in the subject Business economics - Business Management, Corporate Governance, grade: 1,3, University of Mannheim, language: English, abstract: This thesis provides an extensive overview of the recent literature on illegitimate customer complaints, offering relevant insights and recommendations for managers. In recent times, illegitimate customer complaints have become an increasing problem for companies in various industries. In these cases, customers voice complaints, although no actual problem has occurred. Nevertheless, best practice guidelines for dealing with this type of complaint that are based on scientifically substantiated evidence are still hard to find. Specifically, this thesis identifies an increasing customer orientation, generous return policies, and changes in the technological environment as the main drivers facilitating illegitimate complaints. The influence of other factors on illegitimate complaining behavior, such as the "domino effect" as a situational factor, is also highlighted. With additional consideration of the motives of complainers (where a distinction can be made between fraudulent returners, freeloaders, fault transferors, peer-induced esteem seekers, solitary ego gainers, and disruptors), countermeasures are derived. The empowerment of employees, inter alia, through an increase of their responsibility, the implementation of complaint databases and complaint management systems, and the revision of the existing service culture and return policy, were identified as the most effective counter-measures to the negative impacts of illegitimate complaints.