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How an open and encouraging approach to customer complaints can reduce churn - An experimental study focused on customer interactions in SaaS companies followed a service failure

Jönsson, Tobias LU ; Jönsson, Gabriel LU and Nilsson, Elias LU (2022) FEKH29 20212
Department of Business Administration
Abstract
Purpose: This thesis mainly aims to investigate how an open and encouraging approach to customer complaints can affect churn in software as a service companies. This by examining how the approach affects the presentation of complaints, dissatisfaction, negative word-of-mouth and customers repurchase intention followed by a service failure.

Methodology: The thesis applies a quantitative approach consisting of an experiment with a control and experimental group. The experiment was conducted with 95 respondents who were given a fictitious scenario and stimuli depending on group affiliation. Data collected have been further analyzed with an Independent-sample T-test to measure whether the stimulus generates significant differences.

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Purpose: This thesis mainly aims to investigate how an open and encouraging approach to customer complaints can affect churn in software as a service companies. This by examining how the approach affects the presentation of complaints, dissatisfaction, negative word-of-mouth and customers repurchase intention followed by a service failure.

Methodology: The thesis applies a quantitative approach consisting of an experiment with a control and experimental group. The experiment was conducted with 95 respondents who were given a fictitious scenario and stimuli depending on group affiliation. Data collected have been further analyzed with an Independent-sample T-test to measure whether the stimulus generates significant differences.

Theoretical perspectives: The theoretical frame of reference is based on the concepts of complaining behavior, dissatisfaction, negative word-of-mouth and repurchase intention.

Result: An open and encouraging approach to customer complaints did not generate significant differences in complaint behavior. However, the results showed that the approach significantly reduced dissatisfaction and the tendency to engage in negative word-of-mouth, while at the same time significantly increasing the repurchase intention.

Conclusion: The thesis shows that an open and encouraging approach to customer complaints can create conditions for reducing churn by getting more customers to stay after a service failure. (Less)
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author
Jönsson, Tobias LU ; Jönsson, Gabriel LU and Nilsson, Elias LU
supervisor
organization
course
FEKH29 20212
year
type
M2 - Bachelor Degree
subject
keywords
Software as a service, Churn, Customer complaint, Customer complaint behaviour, Dissatisfaction, Negative word-of-mouth, Repurchase intentions, Service failure
language
Swedish
id
9076754
date added to LUP
2022-03-14 09:09:04
date last changed
2022-03-14 09:09:04
@misc{9076754,
  abstract     = {{Purpose: This thesis mainly aims to investigate how an open and encouraging approach to customer complaints can affect churn in software as a service companies. This by examining how the approach affects the presentation of complaints, dissatisfaction, negative word-of-mouth and customers repurchase intention followed by a service failure.

Methodology: The thesis applies a quantitative approach consisting of an experiment with a control and experimental group. The experiment was conducted with 95 respondents who were given a fictitious scenario and stimuli depending on group affiliation. Data collected have been further analyzed with an Independent-sample T-test to measure whether the stimulus generates significant differences.

Theoretical perspectives: The theoretical frame of reference is based on the concepts of complaining behavior, dissatisfaction, negative word-of-mouth and repurchase intention.

Result: An open and encouraging approach to customer complaints did not generate significant differences in complaint behavior. However, the results showed that the approach significantly reduced dissatisfaction and the tendency to engage in negative word-of-mouth, while at the same time significantly increasing the repurchase intention.

Conclusion: The thesis shows that an open and encouraging approach to customer complaints can create conditions for reducing churn by getting more customers to stay after a service failure.}},
  author       = {{Jönsson, Tobias and Jönsson, Gabriel and Nilsson, Elias}},
  language     = {{swe}},
  note         = {{Student Paper}},
  title        = {{How an open and encouraging approach to customer complaints can reduce churn - An experimental study focused on customer interactions in SaaS companies followed a service failure}},
  year         = {{2022}},
}