Customer complaints and service policy in electronic commerce

Customer complaints and service policy in electronic commerce
Y-W. Fan*, Y-F. Miao and S-C. Wu
Department of Information Management, National Central University,
No 300, Jhongda Rd., Jhongli City, Taoyuan County 32001, Taiwan (R.O.C.)
Handling customer complaints is an important strategy to retain customers. Therefore, in the event of service failure, eretailers
should concentrate on recovery policies. However, studies discussing prevention policies to avoid customer
complaints are scant. This study collected 5933 real customer complaint data from an electronic commerce customerservice
database and classified customer complaints into 6 types. The findings showed that a number of customers were
dishonest and took advantage of recovery policies. After interviewing business managers and consultants, this research
suggests that e-retailers have prevention policies to guarantee accuracy of packaging and delivery processes. Prevention
policies can reduce customer complaints, and avoid extra costs for businesses conducting recovery policies.
*To whom all correspondence should be addressed.