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PROJECT TOPIC- THE IMPACT OF CUSTOMER COMPLAINTS HANDLING ON MARKETING PERFORMANCE IN THE SERVICE INDUSTRY”A COMPARATIVE STUDY OF PRIVATE AND PUBLIC ENTERPRISES IN NIGERIA”

PROJECT TOPIC- THE IMPACT OF CUSTOMER COMPLAINTS HANDLING ON MARKETING PERFORMANCE IN THE SERVICE INDUSTRY”A COMPARATIVE STUDY OF PRIVATE AND PUBLIC ENTERPRISES IN NIGERIA”

CHAPTER ONE
INTRODUCTION

1.01 BACKGROUND OF THE STUDY:

The dream of any good enterprenuer is not actually to sell what he can sell. In pttrsuance of this line of action, the customer must be
placed at the centre of all marketing activities without which no marketing activity takes place. Customer satisfaction is the pivot on
which all activities revolve, be it in production or in marketing.
Although service oriented companies do not have any tangible good to their credit, the most effective means of measuring consumers
satisfaction is by listening to their compJaints. These complaints are not actually made to tarnish the itnage of the producers, but to
improve on their services. Since the consumers do not own anything from the payment he makes, the perishable services he receives must
offer enough satisfaction for the sums of ~noneys o expended.
To a good producer, these complaints will actually guide him in the planning of his product, by way of determining what his customers
actually want and to the quantities they can afford to acquire. Appropriate pricing may be an outcome of a customers complaint.
The prices to which the best service is offered could really affect its demand. If best decisions are taken in that line, the producer is likely
to triumph over his competitors.

Marketing concepts which involve letting the people know of the product and sending the products to where it is actually needed, will create no less impact. A good mix of product, price: place and planning will give a fantastic reap-off.
Empirical evidence has shown that service firms typically lay behind manufacturing firms in their use of marketing, In comparison to manufacturing firms, service finns appear to be generallv less likely to have marketing-mix activities carried out, less 1ikeIy to perform analysis in the offering area, more likeIy to handle their advertisement internally than to go to experts, less likely to have an overall sales plan, less likely to develop sales training programmes, less likely to use marketing research firms and consultants and less likely to spend as much on marketing when expressed as a percentage of gross sales.
There are several reasons why service firms have neglected marketing. One of the reasons is that many of them are small, so do
not use expansive marketing techruque because of cost. In some cases they are deemed irrelevant. Some of them are business finns like .
Law, Architectming, Accounting and Management consultant finns, think it is unnecessary using professional in their field for their
functional activities. Most observers agree that competition in industry after industry is becoming increasingly intense.

More and more companies worldwide are searching for ways to build sustainable advantage to counter this threat. As costs rise, as productivity stagnates and as service quality deteriorate, more service firms need to take interest in marketing. More market sophistication is needed as competition intensifies. More pressure is now on service firins to increase productivity. Since the service business is highly labour intensive, cost have been rising rapidly.

To this end, it is not enougli just to make workers work harder, more training will provide the needed skill geared towards customers’ satisfaction. The quality of service may be improved by reducing quantity and vise versa and finally increase in equipment has a lot to do with improvement in services rendered.
In a nutshell, customer services should be of prime importance to service oriented companies, which could be improved upon by
taking customers complaints very seriously and acting in the direction that will bring a better satisfaction to the customers. To this end, it is
important for companies to develop customer services that are desired by customers and effective against competitors. The company has to
decide the most important services to offer, the level at which services should be provided and the form of each service.

The service-mix can be co-ordinated by a customer-service department that l~andles complaints and adjustments, credit maintenance, technical servlce and customer information. Marketers need to lcnow more about marketing service products.
Service are activities or benefits that one party offers essentially as intangible product to the other and do not result in the ownership of
anything. Service are not only intangibles, they are also inseparable, variable and perishable. Two main types of service can be identified
viz: 
– Materials Service:- which consists of the actual productor service which you are selling. It is all about getting the product right.
– Personal Service: this is the way in which the material service is delivered. It is about the interaction bebveen your employees and your customers. It is probably tlle most visible part of the operation and often the part on which a company is adjudged “good or bad”. Personal service is the focus of this research work. Though service industries have always lagged behind in the use of inarlceting concepts, there are compelling need for a change in attitude.
In another alternative expression, services can be classified into People or Equipment based. A good example in this case is a Lawyer or an Acco~lntingc onsultant; a motor mechanic or an air-craft used in conveying passenger. While the previous is people based, the latter is equipment based. It could also need the client presence or not. In this case, a doctor needs the presence of the patient (client) for him to do his work. T11e motive for providing such services may differ.

A private and Government hospitals provide close to the same service but while the private hospital wants to maximize profit, the Government hospital wants to maximize senice to the people. In whatever way they are looked at, all are service oriented. Admittedly, customer complaints must be geared towards maximum satisfaction and should be treated as such. However, the pill given in one case may not be the same with another and the dosage in one may differ fiom the other.
Customers’ complaints should not be a threat it should be viewed on a positive side as an instrument of change that will improve the condition of the firm, industry and the economy generally. If marketing is a means of knowing customers needs, providing them, and making sure it gets to the target customers at the appropriate time, and profitable, the view of these customers is expected to improve marketing performance if well handled. 

PROJECT TOPIC- THE IMPACT OF CUSTOMER COMPLAINTS HANDLING ON MARKETING PERFORMANCE IN THE SERVICE INDUSTRY”A COMPARATIVE STUDY OF PRIVATE AND PUBLIC ENTERPRISES IN NIGERIA”

1.02 STATEMENT OF THE PROBLEM:

From the foregoing, the impact of customers complaints on the Marketing of services is un-quantifiable. However, the neglect of this
all- important aspect of marketing has caused untold problems to service firms and the industry in particular and the econotny in
general, due to slack in the general performance in the industry.
A very satisfied customer might tell one or two people how pleased he or she is, but research has shown that a dissatisfied one is likely to teIl on average ten other people about the bad experience. 

The service industry has lagged behind in marketing of their products. This has paved way for serious economy issues among whch are:- dissatisfaction of cristorners needs and expectation, which leads to customer sourcing for alternatives where practicable. This result to loss of customer, loss of revenue and reliance on government subvention where available. Low level of capacity utilization results, fixed cost rises and retrenchments follow.

The few one that are able to survive maintained monopoly advantage to the detriinent of the consumers in particular and eccmomy in general. W~ afto IIows is the government advocation of privatization of such ‘ Key’ but inefficient service industries. Most Nigerian enterprenuers in the service industry are very un-serious. Apart from keeping low customer relationship, they were never at the seat of their business. They will be globe trotting.

One wonders what business has heishe in Germany/Tokyo etc when his customers are here unsatisfied. With public enterprises, authorities that should receive and act swiftly on complaints are not easily accessible. Customers who have been humiliated by the desk attendants leave with great disappointment.
Most of the displayed “Complaint Boxes” have performed no serious fiinction than:- “Pour your complaints or observation in this hole and
get out of the premise7′. No one answers your letter. How does one (a customer) explain the following vices:- You arrive at the door and it is locked (complete closure for break even thoogh they are offering essential services).
Yon enter and there is nobody there. Or there is somebody there, but with their back to you Nepa,-Nitel.
There is somebody there but he or she waks off as you approached – Government House & offices.
There are two people there but they are interested in each other not you-old Generation Banks and Govenment offices.
There is a large queue and only one person is serving while lots of others are walking about doing other things – Afri Bank savings Aics Unit, Dunlop Nigeria – Ikeja, Government offices. There is Ioud music blaring, which you find unbearable –
Loading Bay of Private 8: Government transport services. There is someone at reception but nowhere to sit and wait –
African Petroleum Head office Tjora- Apapa and lots more you can think of.

1.03 OBJECTIVE OF THE STUDY:

Today customer’s expectations are higher than ever before. In every organization, there are bound to be times when things don’t turn out as expected. Infact things may well go completely wrong. It is rarely the fact that something goes wrong that causes customers to be lost, but rather the way in which the organization responds to it.
The main purposes of this study, therefore are:
i. to establish how private and public Enterprises in Nigeria have faired or failed in handling customer complaints, . . 11. the impact on their marketing performances. That is, to evaluate the problems created by ineffective handling of customer complaints
 111. To understudy the nature of these complaints and how it affects the economy and the consumers.
iv. A comparative analysis covering private Enterprises, one-man business, corporate organization and Public Enterprises (with dichotomy between monopoly and non- monopoly set- ups) will be done.
Solutions to the problems at hand will be sought and methods of overcoming any possible shortcoming that is expected to arise due to its implementation will be given a reasonable solution.
Recommendation on a lasting solution to the problem which if implemented will go a long way to solving this menace, will be propotmded.
All these will be done in line with the Nigeria environment which constitutes the main area of study. If implemented, the customers, enterprenuers and the government should be happy.

PROJECT TOPIC- THE IMPACT OF CUSTOMER COMPLAINTS HANDLING ON MARKETING PERFORMANCE IN THE SERVICE INDUSTRY”A COMPARATIVE STUDY OF PRIVATE AND PUBLIC ENTERPRISES IN NIGERIA”

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