Description
The purpose of this paper is to show how to identify red flags in letters responding to
customer complaints and demonstrate elements of effective response letters
International Journal of Culture, Tourism and Hospitality Research
Writing a credible form letter: implications for hospitality and tourism service recovery strategy
Tom DeWitt Drew Martin
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Tom DeWitt Drew Martin, (2009),"Writing a credible form letter: implications for hospitality and tourism service recovery strategy",
International J ournal of Culture, Tourism and Hospitality Research, Vol. 3 Iss 4 pp. 361 - 368
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Writing a credible form letter: implications
for hospitality and tourism service recovery
strategy
Tom DeWitt and Drew Martin
Abstract
Purpose – The purpose of this paper is to show how to identify red ?ags in letters responding to
customer complaints and demonstrate elements of effective response letters.
Design/methodology/approach – Using actual form letter responses, the paper shows how to identify
weaknesses in form letters and remedies for improving their credibility. Measurement criteria follow the
concept of fairness which has roots in Kant’s moral idealism theory.
Findings – The paper identi?es key elements that should be included in credible form letters.
A combination of distributive, procedural, and interactional justice is required for an effective response.
Practical implications – Tourism and hospitality managers issuing effective template responses (form
letters) have the opportunity to improve consumer trust, loyalty, and future complaint intentions.
Originality/value – The training exercises provide examples for managers and consultants to teach
employees how to develop effective responses to customer complaints.
Keywords Hospitality management, Customer loyalty, Tourism, Complaints
Paper type General review
M
anaging successful customer relationships requires an effective feedback system
(Stauss and Seidel, 2004). Actively engaging dissatis?ed customers provides
information for continuous improvement as well as an organization’s redemption
opportunity in the customer’s eyes. Effective resolution to customers’ dissatisfaction leads to
greater trust and stronger organizational loyalty (Tax et al., 1998) and reduces negative
word-of-mouth (Maxhamand Netemeyer, 2002). Positive outcomes improve future customer
feedback, which increases the understanding of changing customer needs (Hocutt et al.,
1997). Service recovery must satisfy immediate customer concerns as well as to create an
environment of trust for future complaint intentions.
Many companies employ a template, popularly known as a ‘‘form letter’’, as a service
recovery component. Form letters offer bene?ts including the ability to simplify and
standardize the response process. Given tourists measure their travel experiences based
on a wide array of variables (see Martin and Woodside, 2007), companies walk a ?ne line
responding to complaints by a form letter. Can ?rms reap the relationship bene?ts
associated with an effective service recovery and enjoy the ef?ciencies associated with form
letters? One method is to apply a perceived justice approach to constructing formal
responses. From the customer’s perspective, did the company show fairness in the tangible
outcome, process, and interaction? Formal written letters that exhibit these qualities tend to
be received more favorably. Following the retailing literature (Blodgett et al., 1997; Tax et al.,
1998), the tourism and hospitality literature addresses the need to provide responses are
perceived as fair (Shoefer and Ennew, 2004; Severt and Rompf, 2006; Yavas et al., 2004).
Although these authors address how customers evaluate written correspondence,
managers need guidance developing more effective responses to customer complaints.
DOI 10.1108/17506180910994578 VOL. 3 NO. 4 2009, pp. 361-368, Q Emerald Group Publishing Limited, ISSN 1750-6182
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INTERNATIONAL JOURNAL OF CULTURE, TOURISM AND HOSPITALITY RESEARCH
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PAGE 361
Tom DeWitt and Drew
Martin are both Assistant
Professors based at the
College of Business and
Economics, University of
Hawaii at Hilo, Hilo, Hawaii,
USA.
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Stressing the credibility’s importance in a complaint recovery context, management must
change beliefs with only proper communication (Lewis, 1983). To help understand the
dif?culty in writing an effective response, this paper identi?es the three key elements using
the fairness or justice approach. Next, a formal correspondence is examined to show
examples of poor complaint recovery. Following the discussion, a training exercise is
provided for tourism and hospitality managers for training.
Is responding to complaints worth the effort?
Costs associated with analyzing, preparing and providing information are about $220 per
complaint letter (Stauss and Seidel, 2004, p. 172). Some businesses receive thousands of
complaint letters annually. Can they afford to respond to every customer concern?
Screening complaint letters allows companies to reduce costs by targeting concerns within
the company’s ability to control. A snowstorm is an uncontrollable event. Sending a formal
letter to apologize for a snowstorm probably will not improve the customers’ relationships
with air carriers.
On the other hand, no response to complaints due to controllable forces can decrease
customer loyalty (see Homburg and Fu¨ rst, 2005). Reinartz et al. (2005) conclude sub optimal
allocation of customer retention expenditures impact long-term customer pro?tability.
Restaurants failing to respond to complaints about poor service may lose loyal customers.
More problematic is the message diffusion rate when customers are unsatis?ed. In 2001, an
e-mail customer letter to a hotel manager about bad service was forwarded to three
additional people. Content analysis of one-fourth of the 4,000 messages received by the
letter authors shows that the message diffused through 46 states, 31 countries, 35
universities, and more than 70 other organizations (Shea et al., 2004).
Customer loyalty is ‘‘a deeply held commitment to rebuy or re-patronize a preferred product
or service consistently in the future, despite situational in?uences and marketing efforts
having the potential to cause switching behavior’’ (Oliver, 1997, p. 392). Loyalty’s behavioral
component re?ects the customer’s willingness to act on their commitment to the relationship.
Customer motivation comes from feelings of attachment, and sincerity of personal attitudes
towards the company (Lacey, 2007). Credible responses to complaints reinforce or add to
the consumers’ positive beliefs about the ?rm’s willingness to resolve problems. The result is
a more positive attitude towards the ?rm. Alternatively, a form letter’s less than credible
response likely erodes customer loyalty.
Credibility and the form letter
Credibility refers to an individual’s perception of information’s trustworthiness. Does the
individual feel she is treated fairly by the company? Philosophically, the concept of fairness
has roots in Kant’s (1788/2004) moral idealism theory. What rights do affected parties have?
What course of action most respects those rights? These concerns in?uenced US legislation
in 1962 to protect consumers’ rights. President Kennedy’s Consumer Bill of Rights codi?ed
the ethics of exchange between buyers and sellers. The legislation guarantees consumers
the right:
1. to safety;
2. to choose;
3. to be informed; and
4. to be heard.
Form letter recipients expect written communication to re?ect these rights.
A letter recipient rates the communication’s source based on the information provided, and
correlates ratings with the receiver’s willingness to attribute truth and substance to the
information (Hovland et al., 1953, p. 21). For tourist and hospitality managers, credibility
provides opportunity to regain trust by explaining what went wrong, why, and how the
organization plans to prevent repeat occurrences (Davidow, 2003). Retailing research
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discusses the use of distributive, procedural, and interactional justice for effective con?ict
resolution (Blodgett et al., 1997; Tax et al., 1998).
Distributive justice
Distributive justice requires that the customer perceives a fair tangible outcome of the
dispute. Has the individual’s subjectively derived favorable evaluation of any outcome
and/or experience associated with consuming a product (see Westbrook, 1980)? For
example, an airline that overbooked a ?ight offers two passengers an upgrade to ?rst class
for the inconvenience of taking a later ?ight. The passengers accepting this offer consider
better in-?ight service worth waiting an hour for the next ?ight. In this case distributive justice
has been met because the perceived tangible reward exceeds the inconvenience.
Distributive justice can be conceptualized as a purchase outcome, whereby consumers
compare rewards and costs with anticipated outcomes (see Bolton and Bolton, 1991). This
conceptualization is consistent with Oliver’s (1981) discon?rmation paradigm – customers
compare perceived performance to expectations. When product performance exceeds
expectations, positively discon?rmation occurs; performance falling short of expectations is
negatively discon?rmed. Greater discon?rmation means more customer dissatisfaction, and
more positive the discon?rmation leads to higher satisfaction. Discon?rmation helps
understand customers’ reactions to recovery (Oliver, 1981). Under certain conditions (e.g.
high redress) post-recovery satisfaction can be higher than exists without the service failure
(Hocutt et al., 1997). Has the customer been fairly compensated for the service failure?
Procedural justice
Procedural justice refers to perceived fairness of the criteria used by decision makers in
arriving at the outcome of a dispute. If customers understand and perceive the policies,
procedures, and criteria used by decision makers is fair, they likely will accept the outcome
as stated in the correspondence. Tax et al. (1998, p. 72) ?nd procedural justice re?ects
aspects of customer convenience and ?rm follow-up and accessibility. Customers want
timely responses and accessibility to the decision makers.
Morris (1988) con?rms customers want full explanations of the problem’s cause and actions
implemented to prevent future recurrences. Johnston and Fern (1999) also suggest that
information is required by complainers, as an assurance that the problem will not happen
again. Customers should be given the security that their complaint has been received and
that their problem has been understood properly (see Stauss and Seidel, 2004). A credible
?rst response to a complaint includes a summary of the customer’s speci?c problem, the
measures implemented to address the concern, and an expected settlement deadline.
Interactional justice
Interactional justice refers to how people are treated during the con?ict. Satisfaction with
complaint handling is strongly associated with relationship commitment and trust (Tax et al.
1998). Trust plays a central role in relationship building and maintenance (Chaudhuri and
Holbrook, 2001). Trust is de?ned as ‘‘a willingness to rely on an exchange partner in whom
one has con?dence’’ (Moorman et al., 1993, p. 315). In a recovery context a customer’s trust
re?ects his/her willingness to accept vulnerability, based upon a positive complaint
resolution expectation (Dunn and Schweitzer, 2005). Doney and Cannon (1997) stress trust
is most relevant in high uncertainty situations. Trust reduces uncertainty when consumers
feel vulnerable because they can depend on the ?rm to act in their best interest. A
consumer’s decision to complain represents a situation in which both vulnerability and
uncertainty are at play. When relationship partners interact in ways that demonstrate their
care for the needs and bene?ts of others, then trust is strengthened and future uncertainty
and vulnerability diminishes (Holmes and Rempel, 1989). Is the customer treated fairly?
Identifying red ?ags in written responses to customer complaints
The following letter is a response to a customer complaint about bad service at a hotel. In this
case, the customer stayed at ABC Hotels on December 13, 2007. The customer called
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housekeeping two times to request an extra pillow. A third attempt to call was not successful
because the telephone line was busy. The pillow was delivered eventually – after the guest
had been asleep for nearly one hour. The distraught customer sent a detailed complaint
letter to ABC on December 15, 2007 (Figure 1).
Fromthe customer’s perspective, is ABC’s response fair? To meet the distributive justice test,
the correspondence must show evidence that ABC is attempting to make the customer
whole again. Although the late pillow upset the customer, this incident was not a major
inconvenience. Smith still had a comfortable room and he could have put a ‘‘Do not disturb’’
sign on his room door to prevent being awakened. Reasonable tangible outcomes include a
free room upgrade or a discount coupon for Smith’s next stay at ABC. The letter only
mentions that an investigation of the problem is in progress, so the reader could not interpret
that the distributive justice has been met.
For procedural justice, the letter must assure the reader that the decision criteria are fair.
Including the brochure about ?ling a complaint helps to educate Smith on ABC’s complaint
process and perhaps the criteria for judging the outcome. Unfortunately, the letter’s late
arrival and lack of resolution are more compelling reasons to doubt that procedural justice is
met. The Hotel’s manager is not even certain that an additional two weeks will be suf?cient to
solve the problem. Speci?c mention of the complaint also is not mentioned in the letter. The
customer is not reassured that the company even understands the problem. Had ABC
responded in a timely manner, summarized the problem, and provided a decision, the
customer would have perceived the complain process to be fair.
Finally, the letter lacks evidence of interactional justice. The letter is vague. Smith is not
assured that a favorable outcome is imminent. The manager did not even apologize for the
inconveniences that Smith experienced. Sending the brochure actually could increase
Smith’s anxiety that the complaint will not be addressed. The manager’s statement that he
hopes to be able to respond to Smith’s concerns in two weeks is not compelling evidence
that ABC’s management cares about customers’ feelings. For the response letter to be more
effective, the manager should apologize for inconveniences that Smith experienced. The
letter’s wording must state that a favorable outcome is imminent and the customer’s future
patronage is important.
Conclusions and implications
Service recovery provides both an avenue for customers to complain and insight into what
they value in their experience with the ?rm. Such information allows ?rms to continually
improve and to enhance their perceived value. Customer feedback management is only
successful if ?rms resolve to respond effectively to consumer complaints. Complaint
Figure 1 ABC response to a customer complaint
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resolution should convert complainants into advocates rather than detractors (see
Reichheld, 2003). Effective responses to customer complaints are essential for this
conversion process.
The preceding example demonstrates howbusiness can identify red ?ags in their responses
to customer complaints. Customers react favorably to responses if the letter’s contents
include compelling evidence that they are being treated fairly. Have the customers’ basic
rights been respected? Does the letter provide a fair, tangible outcome? Is the response
timely? Does the letter provide evidence that the company understands the customer’s
problem? Will the customer perceive that the organization cares about the customer? The
following guidelines are recommended for managers to improve their use of form letters in
service recovery.
First, not all complaints need responses because some concerns are out of the ?rm’s control
(e.g. the bad weather delayed the ?ight). Screen letters carefully to decide which complaints
require written responses. The estimated total process cost of screening complaint letters is
about $19 (Stauss and Seidel, 2004, p. 172); however, this process helps to determine
whether or not to move forward with a response.
Second, generic letters may do more hard than good. Trivializing the customers’ complaint
suggests the ?rm does not really want to listen to the problem. A vague letter is not going to
remedy the current situation or suggest improvement of future services. Customer loyalty
hangs in the balance when a poorly written response is sent.
When written responses are needed, ?rms must balance a timely response with the need to
provide a credible response. Preliminary communication can summarize the problem and
inform the customer when they can expect a description of the actions taken to address the
problem. This action communicates that the customer’s problem is taken seriously. Such a
response advances the ?rm’s recovery and customer relationship management goals than a
form letter response.
A letter may not be suf?cient to start the service recovery process in some cases. Time
sensitive issues may require face-to-face interactions or telephone calls (see Reinartz et al.,
2005). For example, a form letter apologizing for the late arrival of one’s luggage is less
effective than face-to-face interactions. Responding with a traditional letter, even a well
written one, may exacerbate the problem.
Finally, managers need to recognize that only a small percentage of unhappy customers
bother to write complaint letters. Since these complaints only represent the tip of the iceberg,
rapid implementation of operational changes is needed to address the customers’
concerns. Slow action or inaction alienates loyal customers.
Training exercises
1. A mechanical problem caused a departure delay and the passenger missed her
connecting ?ight. The customer had to wait three hours at the airport for the next ?ight to her
destination. When Ms. Watanabe returned from her trip, she wrote a complaint letter to the
airlines on May 1, 2008. Below is the airline’s response to the complaint letter (Figure 2).
Does this response meet reasonable standards for distributive, procedural, and interactional
justices? Why or why not?
2. Read the following scenario.
Julie Barrow and a companion arrived at the restaurant hostess stand and notice a sign
asking patrons to wait to be seated, but no one is there. After waiting 15 minutes, a less
than enthusiastic restaurant employee appeared. Julie made reservations yesterday and
she was surprised because no record of the reservation exists. Julie protested, but the
employee told her that the restaurant is booked for lunch and nothing can be done about
the mistake. The hostess suggests that the couple wait in the bar until a table becomes
available. They waited for 45 minutes in the crowded and noisy bar. Eventually, they are
seated at a small table in the smoking section next to the noisy kitchen entrance. When
the server took the food order, he informed Julie that the restaurant is out of the entre´ e she
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selected. During the meal, the server never checked on Julie’s table and he dropped off
the bill without asking whether she wanted to order anything else. Upon returning home,
Julie sent a letter of complaint to the restaurant, detailing the experience.
As the restaurant’s manager, you have just received Julie’s complaint letter. Write a formal
response to the letter.
Trainer’s notes
The following comments represent one possible solution to the training exercises. Other
answers may be acceptable if compelling justi?cation is presented. Trainers should consider
altering the scenarios to create different outcomes to make the sessions more engaging. The
authors look forward to receiving comments, suggestions, or modi?cations that trainers ?nd
effective in working with these exercises.
Exercise 1
Given the number of uncontrollable variables connected to providing good air transportation
services, frequent ?iers occasionally are inconvenienced. According to the US Department
of Transportation (2008), air ?ights are on time between 64 percent and 82 percent. The on
time statistics suggest that missing a connecting ?ight is not an atypical occurrence.
Reimbursing airfare for every passenger inconvenienced by late ?ights would bankrupt any
air carrier.
To satisfy the distributive justice test, the airline has provided the customer with a travel
certi?cate. These certi?cates typically discount the price of a future air ticket. The letter’s
polite tone provides evidence of interactional justice. By showing appreciation for the
complaint letter, the company shows empathy for the passenger and encourages future
interaction. Finally, the timely response letter provides some evidence of procedural justice.
While the letter does not address the speci?c problem, a potential red ?ag, missing
connecting ?ights are industry-wide occurrences. To make this letter more effective, the
company also should consider adding a sentence or two that explains steps that the Airline
is taking to reduce the likelihood of future ?ight delays. Airline companies probably receive
hundreds of similar complaints annually. The quick and empathetic response plus the
inclusion of the air certi?cate probably would tip the balance favorably.
Figure 2 Air Blair response to a customer complaint
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Exercise 2
A compelling response letter must be timely. The correspondence should begin with an
apology for the poor service. These attributes are necessary for procedural justice. A short
paragraph outlining Julie’s speci?c concerns needs to be included in the letter for
interactional justice. The scenario described suggests that the restaurant’s service
production exceeds the business’ capacity. An effective response letter would include an
admission that problems exist with the restaurant’s reservation system and steps being
taken to prevent the problem from occurring again. Stating that the restaurant is working to
solve the problem is important because the Julie was unhappy with the dining service
delivery. This statement is necessary for effective distributive justice. Finally, to make the
customer whole again, the manager should include a coupon for a free meal or
complementary drinks on Julie’s next visit. If only the complimentary meal or drink is offered,
Julie probably would not feel the distribution justice test is met.
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maximize customer pro?tability’’, Journal of Marketing, Vol. 69 No. 1, pp. 63-79.
Severt, D.E. and Rompf, P.D. (2006), ‘‘Consumers’ perceptions of fairness and the resultant effect on
customer satisfaction’’, Journal of Hospitality and Leisure Marketing, Vol. 15 No. 1, pp. 101-21.
Shea, L., Enghagen, L. and Khullar, A. (2004), ‘‘Internet diffusion of an e-complaint: a content analysis of
unsolicited responses’’, Journal of Travel and Tourism Marketing, Vol. 17 No. 2/3, pp. 145-65.
Stauss, B. and Seidel, W. (2004), Complaint Management: The Heart of CRM, Thomson Higher
Education, Mason, OH.
Tax, S.S., Brown, S.W. and Chandrashekaran, M. (1998), ‘‘Customer evaluations of service complaint
experiences: implications for relationship marketing’’, Journal of Marketing, Vol. 62 No. 2, pp. 60-76.
US Department of Transportation (2008), ‘‘Percentage of US ?ights on time (2007-2008)’’, available at:
www.transtats.bts.gov (accessed September 4, 2008).
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Journal of Consumer Research, Vol. 7 No. 1, pp. 49-54.
Yavas, U., Karatepe, O.M., Babakus, E. and Avei, T. (2004), ‘‘Customer complaints and organizational
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Vol. 11 No. 2/3, pp. 31-46.
Corresponding author
Tom DeWitt can be contacted at: [email protected]
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doc_435926420.pdf
The purpose of this paper is to show how to identify red flags in letters responding to
customer complaints and demonstrate elements of effective response letters
International Journal of Culture, Tourism and Hospitality Research
Writing a credible form letter: implications for hospitality and tourism service recovery strategy
Tom DeWitt Drew Martin
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Writing a credible form letter: implications
for hospitality and tourism service recovery
strategy
Tom DeWitt and Drew Martin
Abstract
Purpose – The purpose of this paper is to show how to identify red ?ags in letters responding to
customer complaints and demonstrate elements of effective response letters.
Design/methodology/approach – Using actual form letter responses, the paper shows how to identify
weaknesses in form letters and remedies for improving their credibility. Measurement criteria follow the
concept of fairness which has roots in Kant’s moral idealism theory.
Findings – The paper identi?es key elements that should be included in credible form letters.
A combination of distributive, procedural, and interactional justice is required for an effective response.
Practical implications – Tourism and hospitality managers issuing effective template responses (form
letters) have the opportunity to improve consumer trust, loyalty, and future complaint intentions.
Originality/value – The training exercises provide examples for managers and consultants to teach
employees how to develop effective responses to customer complaints.
Keywords Hospitality management, Customer loyalty, Tourism, Complaints
Paper type General review
M
anaging successful customer relationships requires an effective feedback system
(Stauss and Seidel, 2004). Actively engaging dissatis?ed customers provides
information for continuous improvement as well as an organization’s redemption
opportunity in the customer’s eyes. Effective resolution to customers’ dissatisfaction leads to
greater trust and stronger organizational loyalty (Tax et al., 1998) and reduces negative
word-of-mouth (Maxhamand Netemeyer, 2002). Positive outcomes improve future customer
feedback, which increases the understanding of changing customer needs (Hocutt et al.,
1997). Service recovery must satisfy immediate customer concerns as well as to create an
environment of trust for future complaint intentions.
Many companies employ a template, popularly known as a ‘‘form letter’’, as a service
recovery component. Form letters offer bene?ts including the ability to simplify and
standardize the response process. Given tourists measure their travel experiences based
on a wide array of variables (see Martin and Woodside, 2007), companies walk a ?ne line
responding to complaints by a form letter. Can ?rms reap the relationship bene?ts
associated with an effective service recovery and enjoy the ef?ciencies associated with form
letters? One method is to apply a perceived justice approach to constructing formal
responses. From the customer’s perspective, did the company show fairness in the tangible
outcome, process, and interaction? Formal written letters that exhibit these qualities tend to
be received more favorably. Following the retailing literature (Blodgett et al., 1997; Tax et al.,
1998), the tourism and hospitality literature addresses the need to provide responses are
perceived as fair (Shoefer and Ennew, 2004; Severt and Rompf, 2006; Yavas et al., 2004).
Although these authors address how customers evaluate written correspondence,
managers need guidance developing more effective responses to customer complaints.
DOI 10.1108/17506180910994578 VOL. 3 NO. 4 2009, pp. 361-368, Q Emerald Group Publishing Limited, ISSN 1750-6182
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PAGE 361
Tom DeWitt and Drew
Martin are both Assistant
Professors based at the
College of Business and
Economics, University of
Hawaii at Hilo, Hilo, Hawaii,
USA.
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Stressing the credibility’s importance in a complaint recovery context, management must
change beliefs with only proper communication (Lewis, 1983). To help understand the
dif?culty in writing an effective response, this paper identi?es the three key elements using
the fairness or justice approach. Next, a formal correspondence is examined to show
examples of poor complaint recovery. Following the discussion, a training exercise is
provided for tourism and hospitality managers for training.
Is responding to complaints worth the effort?
Costs associated with analyzing, preparing and providing information are about $220 per
complaint letter (Stauss and Seidel, 2004, p. 172). Some businesses receive thousands of
complaint letters annually. Can they afford to respond to every customer concern?
Screening complaint letters allows companies to reduce costs by targeting concerns within
the company’s ability to control. A snowstorm is an uncontrollable event. Sending a formal
letter to apologize for a snowstorm probably will not improve the customers’ relationships
with air carriers.
On the other hand, no response to complaints due to controllable forces can decrease
customer loyalty (see Homburg and Fu¨ rst, 2005). Reinartz et al. (2005) conclude sub optimal
allocation of customer retention expenditures impact long-term customer pro?tability.
Restaurants failing to respond to complaints about poor service may lose loyal customers.
More problematic is the message diffusion rate when customers are unsatis?ed. In 2001, an
e-mail customer letter to a hotel manager about bad service was forwarded to three
additional people. Content analysis of one-fourth of the 4,000 messages received by the
letter authors shows that the message diffused through 46 states, 31 countries, 35
universities, and more than 70 other organizations (Shea et al., 2004).
Customer loyalty is ‘‘a deeply held commitment to rebuy or re-patronize a preferred product
or service consistently in the future, despite situational in?uences and marketing efforts
having the potential to cause switching behavior’’ (Oliver, 1997, p. 392). Loyalty’s behavioral
component re?ects the customer’s willingness to act on their commitment to the relationship.
Customer motivation comes from feelings of attachment, and sincerity of personal attitudes
towards the company (Lacey, 2007). Credible responses to complaints reinforce or add to
the consumers’ positive beliefs about the ?rm’s willingness to resolve problems. The result is
a more positive attitude towards the ?rm. Alternatively, a form letter’s less than credible
response likely erodes customer loyalty.
Credibility and the form letter
Credibility refers to an individual’s perception of information’s trustworthiness. Does the
individual feel she is treated fairly by the company? Philosophically, the concept of fairness
has roots in Kant’s (1788/2004) moral idealism theory. What rights do affected parties have?
What course of action most respects those rights? These concerns in?uenced US legislation
in 1962 to protect consumers’ rights. President Kennedy’s Consumer Bill of Rights codi?ed
the ethics of exchange between buyers and sellers. The legislation guarantees consumers
the right:
1. to safety;
2. to choose;
3. to be informed; and
4. to be heard.
Form letter recipients expect written communication to re?ect these rights.
A letter recipient rates the communication’s source based on the information provided, and
correlates ratings with the receiver’s willingness to attribute truth and substance to the
information (Hovland et al., 1953, p. 21). For tourist and hospitality managers, credibility
provides opportunity to regain trust by explaining what went wrong, why, and how the
organization plans to prevent repeat occurrences (Davidow, 2003). Retailing research
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discusses the use of distributive, procedural, and interactional justice for effective con?ict
resolution (Blodgett et al., 1997; Tax et al., 1998).
Distributive justice
Distributive justice requires that the customer perceives a fair tangible outcome of the
dispute. Has the individual’s subjectively derived favorable evaluation of any outcome
and/or experience associated with consuming a product (see Westbrook, 1980)? For
example, an airline that overbooked a ?ight offers two passengers an upgrade to ?rst class
for the inconvenience of taking a later ?ight. The passengers accepting this offer consider
better in-?ight service worth waiting an hour for the next ?ight. In this case distributive justice
has been met because the perceived tangible reward exceeds the inconvenience.
Distributive justice can be conceptualized as a purchase outcome, whereby consumers
compare rewards and costs with anticipated outcomes (see Bolton and Bolton, 1991). This
conceptualization is consistent with Oliver’s (1981) discon?rmation paradigm – customers
compare perceived performance to expectations. When product performance exceeds
expectations, positively discon?rmation occurs; performance falling short of expectations is
negatively discon?rmed. Greater discon?rmation means more customer dissatisfaction, and
more positive the discon?rmation leads to higher satisfaction. Discon?rmation helps
understand customers’ reactions to recovery (Oliver, 1981). Under certain conditions (e.g.
high redress) post-recovery satisfaction can be higher than exists without the service failure
(Hocutt et al., 1997). Has the customer been fairly compensated for the service failure?
Procedural justice
Procedural justice refers to perceived fairness of the criteria used by decision makers in
arriving at the outcome of a dispute. If customers understand and perceive the policies,
procedures, and criteria used by decision makers is fair, they likely will accept the outcome
as stated in the correspondence. Tax et al. (1998, p. 72) ?nd procedural justice re?ects
aspects of customer convenience and ?rm follow-up and accessibility. Customers want
timely responses and accessibility to the decision makers.
Morris (1988) con?rms customers want full explanations of the problem’s cause and actions
implemented to prevent future recurrences. Johnston and Fern (1999) also suggest that
information is required by complainers, as an assurance that the problem will not happen
again. Customers should be given the security that their complaint has been received and
that their problem has been understood properly (see Stauss and Seidel, 2004). A credible
?rst response to a complaint includes a summary of the customer’s speci?c problem, the
measures implemented to address the concern, and an expected settlement deadline.
Interactional justice
Interactional justice refers to how people are treated during the con?ict. Satisfaction with
complaint handling is strongly associated with relationship commitment and trust (Tax et al.
1998). Trust plays a central role in relationship building and maintenance (Chaudhuri and
Holbrook, 2001). Trust is de?ned as ‘‘a willingness to rely on an exchange partner in whom
one has con?dence’’ (Moorman et al., 1993, p. 315). In a recovery context a customer’s trust
re?ects his/her willingness to accept vulnerability, based upon a positive complaint
resolution expectation (Dunn and Schweitzer, 2005). Doney and Cannon (1997) stress trust
is most relevant in high uncertainty situations. Trust reduces uncertainty when consumers
feel vulnerable because they can depend on the ?rm to act in their best interest. A
consumer’s decision to complain represents a situation in which both vulnerability and
uncertainty are at play. When relationship partners interact in ways that demonstrate their
care for the needs and bene?ts of others, then trust is strengthened and future uncertainty
and vulnerability diminishes (Holmes and Rempel, 1989). Is the customer treated fairly?
Identifying red ?ags in written responses to customer complaints
The following letter is a response to a customer complaint about bad service at a hotel. In this
case, the customer stayed at ABC Hotels on December 13, 2007. The customer called
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housekeeping two times to request an extra pillow. A third attempt to call was not successful
because the telephone line was busy. The pillow was delivered eventually – after the guest
had been asleep for nearly one hour. The distraught customer sent a detailed complaint
letter to ABC on December 15, 2007 (Figure 1).
Fromthe customer’s perspective, is ABC’s response fair? To meet the distributive justice test,
the correspondence must show evidence that ABC is attempting to make the customer
whole again. Although the late pillow upset the customer, this incident was not a major
inconvenience. Smith still had a comfortable room and he could have put a ‘‘Do not disturb’’
sign on his room door to prevent being awakened. Reasonable tangible outcomes include a
free room upgrade or a discount coupon for Smith’s next stay at ABC. The letter only
mentions that an investigation of the problem is in progress, so the reader could not interpret
that the distributive justice has been met.
For procedural justice, the letter must assure the reader that the decision criteria are fair.
Including the brochure about ?ling a complaint helps to educate Smith on ABC’s complaint
process and perhaps the criteria for judging the outcome. Unfortunately, the letter’s late
arrival and lack of resolution are more compelling reasons to doubt that procedural justice is
met. The Hotel’s manager is not even certain that an additional two weeks will be suf?cient to
solve the problem. Speci?c mention of the complaint also is not mentioned in the letter. The
customer is not reassured that the company even understands the problem. Had ABC
responded in a timely manner, summarized the problem, and provided a decision, the
customer would have perceived the complain process to be fair.
Finally, the letter lacks evidence of interactional justice. The letter is vague. Smith is not
assured that a favorable outcome is imminent. The manager did not even apologize for the
inconveniences that Smith experienced. Sending the brochure actually could increase
Smith’s anxiety that the complaint will not be addressed. The manager’s statement that he
hopes to be able to respond to Smith’s concerns in two weeks is not compelling evidence
that ABC’s management cares about customers’ feelings. For the response letter to be more
effective, the manager should apologize for inconveniences that Smith experienced. The
letter’s wording must state that a favorable outcome is imminent and the customer’s future
patronage is important.
Conclusions and implications
Service recovery provides both an avenue for customers to complain and insight into what
they value in their experience with the ?rm. Such information allows ?rms to continually
improve and to enhance their perceived value. Customer feedback management is only
successful if ?rms resolve to respond effectively to consumer complaints. Complaint
Figure 1 ABC response to a customer complaint
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resolution should convert complainants into advocates rather than detractors (see
Reichheld, 2003). Effective responses to customer complaints are essential for this
conversion process.
The preceding example demonstrates howbusiness can identify red ?ags in their responses
to customer complaints. Customers react favorably to responses if the letter’s contents
include compelling evidence that they are being treated fairly. Have the customers’ basic
rights been respected? Does the letter provide a fair, tangible outcome? Is the response
timely? Does the letter provide evidence that the company understands the customer’s
problem? Will the customer perceive that the organization cares about the customer? The
following guidelines are recommended for managers to improve their use of form letters in
service recovery.
First, not all complaints need responses because some concerns are out of the ?rm’s control
(e.g. the bad weather delayed the ?ight). Screen letters carefully to decide which complaints
require written responses. The estimated total process cost of screening complaint letters is
about $19 (Stauss and Seidel, 2004, p. 172); however, this process helps to determine
whether or not to move forward with a response.
Second, generic letters may do more hard than good. Trivializing the customers’ complaint
suggests the ?rm does not really want to listen to the problem. A vague letter is not going to
remedy the current situation or suggest improvement of future services. Customer loyalty
hangs in the balance when a poorly written response is sent.
When written responses are needed, ?rms must balance a timely response with the need to
provide a credible response. Preliminary communication can summarize the problem and
inform the customer when they can expect a description of the actions taken to address the
problem. This action communicates that the customer’s problem is taken seriously. Such a
response advances the ?rm’s recovery and customer relationship management goals than a
form letter response.
A letter may not be suf?cient to start the service recovery process in some cases. Time
sensitive issues may require face-to-face interactions or telephone calls (see Reinartz et al.,
2005). For example, a form letter apologizing for the late arrival of one’s luggage is less
effective than face-to-face interactions. Responding with a traditional letter, even a well
written one, may exacerbate the problem.
Finally, managers need to recognize that only a small percentage of unhappy customers
bother to write complaint letters. Since these complaints only represent the tip of the iceberg,
rapid implementation of operational changes is needed to address the customers’
concerns. Slow action or inaction alienates loyal customers.
Training exercises
1. A mechanical problem caused a departure delay and the passenger missed her
connecting ?ight. The customer had to wait three hours at the airport for the next ?ight to her
destination. When Ms. Watanabe returned from her trip, she wrote a complaint letter to the
airlines on May 1, 2008. Below is the airline’s response to the complaint letter (Figure 2).
Does this response meet reasonable standards for distributive, procedural, and interactional
justices? Why or why not?
2. Read the following scenario.
Julie Barrow and a companion arrived at the restaurant hostess stand and notice a sign
asking patrons to wait to be seated, but no one is there. After waiting 15 minutes, a less
than enthusiastic restaurant employee appeared. Julie made reservations yesterday and
she was surprised because no record of the reservation exists. Julie protested, but the
employee told her that the restaurant is booked for lunch and nothing can be done about
the mistake. The hostess suggests that the couple wait in the bar until a table becomes
available. They waited for 45 minutes in the crowded and noisy bar. Eventually, they are
seated at a small table in the smoking section next to the noisy kitchen entrance. When
the server took the food order, he informed Julie that the restaurant is out of the entre´ e she
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selected. During the meal, the server never checked on Julie’s table and he dropped off
the bill without asking whether she wanted to order anything else. Upon returning home,
Julie sent a letter of complaint to the restaurant, detailing the experience.
As the restaurant’s manager, you have just received Julie’s complaint letter. Write a formal
response to the letter.
Trainer’s notes
The following comments represent one possible solution to the training exercises. Other
answers may be acceptable if compelling justi?cation is presented. Trainers should consider
altering the scenarios to create different outcomes to make the sessions more engaging. The
authors look forward to receiving comments, suggestions, or modi?cations that trainers ?nd
effective in working with these exercises.
Exercise 1
Given the number of uncontrollable variables connected to providing good air transportation
services, frequent ?iers occasionally are inconvenienced. According to the US Department
of Transportation (2008), air ?ights are on time between 64 percent and 82 percent. The on
time statistics suggest that missing a connecting ?ight is not an atypical occurrence.
Reimbursing airfare for every passenger inconvenienced by late ?ights would bankrupt any
air carrier.
To satisfy the distributive justice test, the airline has provided the customer with a travel
certi?cate. These certi?cates typically discount the price of a future air ticket. The letter’s
polite tone provides evidence of interactional justice. By showing appreciation for the
complaint letter, the company shows empathy for the passenger and encourages future
interaction. Finally, the timely response letter provides some evidence of procedural justice.
While the letter does not address the speci?c problem, a potential red ?ag, missing
connecting ?ights are industry-wide occurrences. To make this letter more effective, the
company also should consider adding a sentence or two that explains steps that the Airline
is taking to reduce the likelihood of future ?ight delays. Airline companies probably receive
hundreds of similar complaints annually. The quick and empathetic response plus the
inclusion of the air certi?cate probably would tip the balance favorably.
Figure 2 Air Blair response to a customer complaint
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Exercise 2
A compelling response letter must be timely. The correspondence should begin with an
apology for the poor service. These attributes are necessary for procedural justice. A short
paragraph outlining Julie’s speci?c concerns needs to be included in the letter for
interactional justice. The scenario described suggests that the restaurant’s service
production exceeds the business’ capacity. An effective response letter would include an
admission that problems exist with the restaurant’s reservation system and steps being
taken to prevent the problem from occurring again. Stating that the restaurant is working to
solve the problem is important because the Julie was unhappy with the dining service
delivery. This statement is necessary for effective distributive justice. Finally, to make the
customer whole again, the manager should include a coupon for a free meal or
complementary drinks on Julie’s next visit. If only the complimentary meal or drink is offered,
Julie probably would not feel the distribution justice test is met.
References
Blodgett, J.G., Hill, D.J. and Tax, S.S. (1997), ‘‘The effects of distributive, procedural, and interactional
justice on postcomplaint behavior’’, Journal of Retailing, Vol. 73 No. 2, pp. 185-210.
Bolton, R.N. and Bolton, R. (1991), ‘‘A multistage model of customers’ assessments of service quality
and value’’, Journal of Consumer Research, Vol. 17, March, pp. 375-84.
Chaudhuri, A. and Holbrook, M.B. (2001), ‘‘The chain of effects from brand trust and brand affect to
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Corresponding author
Tom DeWitt can be contacted at: [email protected]
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