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International Business Management
Year: 2016  |  Volume: 10  |  Issue: 2  |  Page No.: 92 - 100

Investigating the Impact of Complaints Handling and Perceived Behavioral Control on Customer Loyalty in Car Repair Service Kendari, Southeast Sulawesi

Rahmat Madjid    

Abstract: The study aims to empirically investigate the relationship between complaints handling, perceived behavioral control and customer loyalty in car repair service in Kendari, Southeast Sulawesi at the level of construct dimensions. A survey method approach was used in this study. A questionnaire is designed to focus on issues related to efforts made to investigate causes of service failure and to develop recovery strategies that meet customer expectations of how their car repair service should handle such problems. Data collected have been analyzed by using statistical techniques such as confirmatory factor analysis and multiple regressions. Results show that complaints handling that have the more significant positive influence on customer loyalty and perceived behavioral control has a significant positive impact on customer loyalty. However, the simultaneous complaints handling and perceived behavioral control have significant effects on customer loyalty in car repair service. For a more holistic investigation approach of customer loyalty, a future study could examine other antecedents such as complaints handling and perceived behavioral control of alternatives. Moreover, the investigation of the mediation role of perceived behavioral control on the link between complaints handling and loyalty could enhance the research model. The major contribution of this study is that it is the first attempt to investigate the impact of complaints handling and perceived behavioral control on loyalty in car repair service.

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