Justice, Trustworthiness, Satisfaction, Complaint-handling, Confidence, Value to money
Before Covid-19, there was not much trend of online shopping in Pakistan, people tried to shop by going to markets or malls, but due to Covid-19, there was a lockdown and people were unable to go out of their homes. People then started online shopping and they had no other option. Because people had just learned this method of shopping they were having a hard time in trusting brands and companies.
Fadilah (2023) investigated that The digital era saw the emergence of many digital items as people started to interact with them. One of the many ways that the advancements of the modern era influence human life via telecommunications. There are multiple PT. Telkom Indonesia, Tbk, PT. Indosat, Tbk, PT. XL Axiata, Tbk, and other telecommunications firms operating in Indonesia today. The biggest provider of network services and telecommunications in Indonesia is PT Telkom Indonesia. In West Kalimantan, it is a big and well-known company among the youth. It makes an effort to offer the most recent advancements and the greatest customer service as a result. Customer handling guarantees a favorable reputation for the community and has a major impact on customer satisfaction. The purpose of this study was to examine how handling complaints affected customer loyalty, which in turn affected customer satisfaction at PT Telkom Indonesia.
A questionnaire was given to 205 respondents—who were selected through the use of purposive sampling—in order to gather data. The collected data were then examined using AMOS 26 statistical software and structural equation modelling (SEM). As per the results, there was a positive and notable correlation between 1) Complaint Handling and Customer Loyalty, 2) Complaint Handling and Customer Satisfaction, 3) Customer Loyalty and Customer Satisfaction, and 4) Customer Loyalty may act as a mediator in the relationship between Complaint Handling and customer satisfaction. The present study will also see if good complaint handling procedures significantly satisfied customers or not.
Idris (2023) studied that Universities frequently receive complaints from students who are their clients when they are offering services to them. In order to satisfy students with the services they receive, universities must handle complaints in a prudent and equitable manner. The purpose of the essay is to assess how well students handle complaints and how this affects their customer satisfaction and loyalty. The purpose of the study is to determine whether student satisfaction mediates the relationship between complaint-handling tactics and student loyalty, as well as whether fairness in managing students’ complaints, interactional justice, procedural justice, and distributive justice affect student contentment. The current study will also check if customer who shop online become loyal to the brand if they handle their complaints effectively and provide them with quality products.
Saprudin and Albanna (2023) investigated that Customer retention is a critical component of any banking strategy in today’s highly competitive environment. The goal of this study is to investigate and explain the impact of service quality, personal selling, and complaint handling on customer retention among Islamic bank customers in Indonesia, with customer satisfaction serving as an intervening variable. The population of this study was Islamic bank clients in Indonesia, and the sampling strategy utilized was purposive sampling. There were 107 respondents in total. The data analysis technique employed is SEM-PLS, with Warp PLS version 7.0 as the data processing tool. The findings of this study show that service quality, personal selling, and complaint handling all have a considerable beneficial impact on customer satisfaction. Customer satisfaction has a considerable positive effect on customer retention, however the three independent factors have no direct impact on customer retention. Different outcomes when service quality, personal selling, and complaint handling have a strong beneficial impact on customer retention after being mediated by customer satisfaction variables. The present study will also see the satisfaction of customers of different brands with complaint handling methods.
Sari (2023) examined Islamic (Sharia) banks are financial establishments that adhere to moral and ethical standards found in Islam. The potential for Islamic banking in Indonesia has grown thanks to the country’s Muslim community. Effective handling of complaints and high-quality services since satisfying customers’ expectations will surely affect their satisfaction—including that of individuals who use or save other bank products. Satisfied consumers inherently influence long-term client loyalty. Because their survival is largely dependent on maintaining customer happiness and loyalty, it has therefore motivated many banks, especially Islamic banks, to be more effective and efficient in their commercial operations, including sustaining customer satisfaction and loyalty. The purpose of this study was to examine how customer satisfaction and loyalty at the Pontianak branch of Bank Kalbar Syariah are affected by complaint handling and service quality. 201 respondents were chosen through the use of a purposive sample method. By distributing questionnaires, research data were gathered. Using AMOS 26 software, structural equation modelling, or SEM, was used to analyze the data. The results showed that: 1) There was a positive and significant correlation between complaint handling and service quality and customer satisfaction; 2) There was a positive and significant correlation between complaint handling and service quality and customer loyalty; 3) There was a positive and significant correlation between customer satisfaction and customer loyalty; and 4) The relationship between customer loyalty and complaint handling, service quality, and customer satisfaction was mediated. Current studies will also analyze if customer satisfaction depends on effective policies of complaint handling and if there loyalty increases if we provide them with quality products which are according to their investments.
Objectives of the study
To analyze if justice and trustworthiness increase loyalty of the customers
To find out whether effective complaint handling increase potential customers
To investigate if the satisfaction of the customer is based on timely responses of their queries
To examine if online shopping gratify needs of the customer
What factors increase the loyalty of the customers towards particular brand or company?
How to improve the complaint handling system?
Is trustworthiness the key to associate customers with the company?
How to increase potential customers?
How can a brand do justice with the money of the customers?
H1: Justice has a significant impact on the loyalty of the customers
H2: Justice has a significant impact on the satisfaction of the customers
H3: Trustworthiness has a significant impact on the loyalty of the customers
H4: Trustworthiness has a significant impact on the satisfaction of the customers
- Theory Background
2.1 Research Overview
2.1.1 Organizational fairness
In any workplace, organizational fairness is a crucial idea. This is how a worker feels about the justice of their job. An organization may become more productive and have a better work environment if its employees believe that their workplace is fair. On the other hand, a lack of organizational justice may cause a worker to lose faith in their boss. (“Study.com,” n.d.)
There are three types of organizational fairness
Interactional justice is Fairness in how people treat each other in daily encounters as well as when resources are allocated. Interactional justice is giving respect to others, admiring others. It includes courtesy, empathy and equality in the treatment of others.
This study has applied interactional justice to see if being respectful towards the customers when they ask for refunds or exchange or even asking questions before buying a particular product affects their loyalty towards the brand or not.
A complicated system of interrelated ideas aims to benefit all members of a society is called as distributive justice. The aforementioned concepts encompass equality, equity, need, proportionality, and justice. (“Study.com,” n.d.)
Distributive justice has been applied in this research to check if customers are getting products according to the money they have spent and if is exactly what they needed or what they selected from website. Because buyer needs justice, they spend a lot of money on products by just seeing a picture online. It should be considered that they are provided with quality products.
Procedural justice includes the policies and procedures used to provide the desired outcome, including timing, speed and flexibility. (Russo et al., 2022)
Present study has implemented procedural study to find out if customers are satisfied with the delivery timings and getting what they perceived. In online shopping customers depends on the fairness served by sellers because they do not see the products in person, and sometimes they are not familiar with the product. It is important to know if they are satisfied with the procedures of delivery and quality of the product.
2.1.2 Satisfaction with the complaint handling
A measurement of a client’s happiness with a company’s goods, services, and capabilities is called customer satisfaction. A business can use customer satisfaction data, such as surveys and ratings, to decide how best to alter or improve its goods and services. Customer satisfaction has to be an organization’s first priority.
Elan (A well-known clothing brand) owned by Khadija Shah had faced a lot of criticism due to poor complaint handling system. Owing to delay in the arrival of Elan’s lawn, the customers, who had booked their orders in advance and made online payments, expressed their displeasure and criticized the clothing brand.
Even the influencers with millions of followers on Instagram had faced the same issue. They posted against Elan. It means customer’s satisfaction is related with the brand’s complaint handling procedures. It should be good to avoid negative feedback on social media.
2.1.3 Loyalty of the customer towards brand
A customer’s willingness to interact with and make repeat purchases from you rather than your rivals is a sign of their ongoing emotional bond with you, which is referred to as customer loyalty. When a customer has a good experience with you, they become loyal, which builds trust. (“What is customer loyalty,” n.d.)
Loyal customers are always happy. They suggest what they use to others and they use the products of a particular company. They give positive feedback on social media, which then increases the demand of the brand they purchase from. Loyal customers are active and ready to see what’s new a company they trust is launching and they ask frequent questions about the updates.
2.1.4 Mood and Emotions of the customer
Customer emotions are the feelings that consumers feel throughout the purchasing process. These include joy, enthusiasm, happiness, rage, frustration, and so forth.
Only satisfied customers can buy repeatedly from a brand , so that satisfaction of the customer should be given prime importance. Customers earn their money with a lot of hard-work, they cannot afford to waste their money. Sometimes, they buy any product for their special events and special occasions, for their loved ones. A brand’s disloyalty and negligence can spoil their event and hurt their precious emotions. Being careful about the outcomes can help in increasing potential customers.
2.1.5 Value to Money products
Giving value to customers means offering customers a good deal on a high-quality product; nevertheless, customer value goes well beyond that. (Maza, 2023)
Customers of today aren’t just interested in quality or affordability. In addition, customers expect the good or service they purchase to meet a need or solve an issue. Customers are searching for businesses that regularly offer value because they have an abundance of options when it comes to buying.
Consumers find value in a business that enhances their general well-being and simplifies their life. They believe that the advantages of their purchase outweigh the price, and they will keep giving the company their business.
2.1.6 Refund and exchange policies builds trust of the customer
It is imperative to have a robust return and exchange policy for multiple reasons. First of all, it fosters consumer trust. Customers feel more comfortable making purchases when they are aware that they may simply return an item if they are unhappy. A return policy that is clear and easy for customers to understand shows that the retailer values their business and is prepared to stand behind the caliber of their merchandise. (“How to use your return policy to build trust with customers,” 2023)
Second, conversion rates can be increased with the use of a robust return policy. Because customers are unable to physically touch or handle the object before making a purchase, many buyers are reluctant to make an online purchase. Retailers remove this obstacle and offer customers piece of mind by providing a hassle-free return policy.
Return and exchange policies are great marketing tools and can increase sales to next level.
The quality of always being good, honest and sincere, so that people can trust you and they can rely on you. (“Trustworthiness,” n.d.)
Brand trust is not always assessed by repeat sales or long-term usage, but rather by how customers see your brand and their willingness to give you their time, money, energy, or knowledge over other organizations.
- Research Methodology
Research Methodology is the specific procedures or techniques used to identify, select, analyze information about the topic.
3.2 Research Design
Considering the design that is going to be employed in this research, it will utilize quantitative method of study and data will be collected through survey method from the public who shop online from different brands. The data will be collected with the help of questionnaire.
Both correlation and experimental research maybe used to formally test hypothesis or predictions.
3.3 Research Sample
Questionnaire will only be given to the people who buy products online to check their positive or negative experiences and to check if they are satisfied with the quality of the products or not.
3.4 Measuring Instrument
For the quantitative analysis of complicated data, researchers from different fields utilize software package SPSS (Statistical Package For Social Sciences). Researcher of the current study will also use SPSS for data analysis and will apply correlation test.
Likert scale will be used.
A variable in research is just a phenomenon that you are trying to measure in some manner.
3.5.1 Independent variable
The variable that the researcher modifies or manipulates is known as independent variable and is thought to directly affect the dependent variable. In the present research the independent variables are Justice and Trustworthiness.
3.5.2 Dependent variable
The variable being test or quantified is known as dependent variable. In current investigation the dependent variables are Satisfaction and Loyalty of the customers.
3.6 Reliability and Validity
Reliability and validity describes how efficiently a methodology or test measures something. Reliability measures consistency while validity is used to find correctness.
3.7 Correlation and regression analysis
Correlation and regression tests will be applied to see if Justice and Trustworthiness are significant predictors of satisfaction and loyalty of the customers in online shopping or not.
Covid –19 has completely changed the dynamics of the world. People started to study online, work online, even shopping online. In online shopping it is very hard to win the trust of the customers, so researcher of this study will conduct quantitative method to check if the sellers are trustworthy and give justice to the money the consumer. Will they be able to achieve potential customers or win their loyalty towards their products. Researcher will also see what policies satisfy their customers and what should be improved.
Attention required! | Cloudflare. (n.d.). Just a moment… https://asq.org/quality-resources/customer-satisfaction
Fadilah, W. N., Wendy, W., Listiana, E., Heriyadi, H., & Komari, N. (2023). The effect of complaint handling on customer loyalty and its impact on customer satisfaction (Study on consumers of PT Telkom Witel of West Kalimantan). East African Scholars Journal of Economics, Business and Management, 6(1), 11-16. https://doi.org/10.36349/easjebm.2023.v06i01.002
How to use your return policy to build trust with customers. (2023, August 20). ConvertMate – AI Product Page & CRO. https://www.convertmate.io/resources/return-policy/how-to-use-your-return-policy-to-build-trust-with-customers
Idris, M., Abidin, M., & Willya, E. (2023). Justice in handling complaints and its impact on satisfaction and loyalty in higher education. Perspectives of Science and Education, 61(1), 24-39. https://doi.org/10.32744/pse.2023.1.2
Maza, C. (2023, May 23). What is customer value? Definition, formula & importance. Zendesk. https://www.zendesk.com/blog/customer-value/
Mäkelä, A. (2022, September 22). What is customer emotion? The must know. Feedbackly. https://www.feedbackly.com/blog/what-is-customer-emotion-the-must-know/
What is customer loyalty. (n.d.). Oracle | Cloud Application
ons and Cloud Platform. https://www.oracle.com/cx/marketing/customer-loyalty/what-is-customer-loyalty/
Russo, I., Masorgo, N., & Gligor, D. M. (2022). Examining the impact of service recovery resilience in the context of product replacement: The roles of perceived procedural and interactional justice. International Journal of Physical Distribution & Logistics Management, 52(8), 638-672. https://doi.org/10.1108/ijpdlm-07-2021-0301
Saprudin, E., & Albanna, H. (2023). The effect of service quality, personal selling, and complaint handling on customer retention of sharia bank customers with customer satisfaction as intervening variable. Bulletin of Islamic Economics, 1(2), 19-33. https://doi.org/10.14421/bie.2022.012-03
Sari, I. P., Giriati, G., Listiana, E., Rustam, M., & Saputra, P. (2023). The impact of complaint handling and service quality on customer satisfaction and customer loyalty in customers of pontianak branch of bank Kalbar Syariah. East African Scholars Journal of Economics, Business and Management,6(1), 17 -28. https://doi.org/10.36349/easjebm.2023.v06i01.003
Study.com. (n.d.). study.com. https://study.com/academy/lesson/organizational-justice-definition-and-relevance-to-organizational-behavior.html
Trustworthiness. (n.d.). In Oxford learner’s dictionaries | Find definitions, translations, and grammar explanations at Oxford learner’s dictionaries. https://www.oxfordlearnersdictionaries.com/definition/english/trustworthiness