This website uses cookies to ensure you have the best experience. Learn more

Behavioural Economics And Customer Complaints Essay

4462 words - 18 pages

BEHAVIOURAL ECONOMICS AND CUSTOMER COMPLAINTS
IN
COMMUNICATION MARKETS

A report prepared for the Australian Communications and Media Authority (ACMA) in connection with the public inquiry “Reconnecting the Customer”

by
Dr Patrick Xavier*
Adjunct Professor of Economics & Finance,
Curtin University Business School.

May 2011

* Dr Patrick Xavier BEc (Hons), M.A., M.Ec, PhD is Director of Info-Comm Strategies and Adjunct Professor of Economics, Curtin Business School, Curtin University of Technology, Australia. Dr Xavier has published widely and has had extensive experience as a consultant to national and international agencies on regulatory reform ...view middle of the document...

3 Challenges posed by new developments in telecommunications 34

4. SUPPLY SIDE FOCUS 35
4.1 Behavioural economics and the supply side 35
4.2 Performance metrics – creating incentives 42
4.3 Consumer expectations and principles based complaints-handling 43

5. ADDRESSING INFORMATION DEFICIENCY 46
5.1 Consumer responsibility to make use of disclosed information 46
5.2 Consumer information requirements 50
5.3 Informed consent 51
5.4 Behavioural bias and pricing information 53
5.5 Price comparison sites 61
5.6 Broadband speeds and information disclosure 64
5.7 Simplification and default rules as regulatory tools 64
5.8 Singapore’s new measures to protect telecommunications customers 65
5.9 Policy and regulatory implications 66

6. BEYOND INFORMATION DEFICIENCY – REDUCING SWITCHING COSTS 69
6.1 Facilitating consumer switching 69
6.2 Data from consumer surveys about switching behaviour 71
6.3 Addressing barriers to switching 79

7. COMPLAINTS HANDLING AND BEHAVIOURAL ECONOMICS 82
7.1 Competition has not resulted in the expected improvement in complaints handling 82
7.2 Strengthened incentives/ penalties for service providers to comply with their customer 82 service and complaints-handling obligations
7.3 Approaches to improving complaints-handling 83
7.4 Complaints handling: Ofcom’s approach 86

8. CONCLUSION 89

APPENDICES 94
Appendix 1. OECD Consumer Policy Toolkit 2010 95
Appendix 2. Customer Complaints in the United Kingdom 99
Appendix 3. The UK Voluntary Code of Practice on Broadband Speeds 101
Appendix 4. US Government Guidelines on Information Disclosure 108
Appendix 5. The US Government Guidelines for Simplification and Default Rules 113
Appendix 6. The Body of European Regulators of Electronic Communications (BEREC) Recommendations on Best Practice Switching 115
Executive summary
This report examines the extent to which insights stemming from behavioural economics can contribute towards explaining the drivers of consumer dissatisfaction that are manifesting in consumer complaints. The report also highlights how these insights can assist in identifying operational policy and regulatory measures to facilitate best/good practice customer service and complaints-handling within the (tele)communications sector.
There is now already substantial (recent) literature on behavioural economics and insights from behavioural economics but relatively little on how governments/regulators have been drawing on these insights to improve consumer protection, especially in telecommunication markets. Accordingly, a major aim of this report is to conduct a ‘stocktake’ of initiatives in this regard. It identifies efforts made in Europe by the European Commission (EC), the Body of European Regulators of Electronic Communications (BEREC), the UK Office of Fair Trading (OFT), the UK Better...

Other Papers Like Behavioural Economics and Customer Complaints

Best Practices for Measuring Customer Satisfaction

646 words - 3 pages Best Practices for Measuring Customer Satisfaction Dana Atchley Keller Graduate School Introduction There are several means for measuring customer satisfaction including surveys, focus groups, complaints analysis and user groups. Research of top companies around the world seems to suggest that the customer survey method is used more often than any other. There can be problems with data collection and analysis from surveys but

Acsi Model Essay

588 words - 3 pages on the right side (customer complaints and customer loyalty, including customer retention and price tolerance). The indexes (shown in the diagram below) are multivariable components measured by several questions that are weighted within the model. The questions assess customer evaluations of the determinants of each index. Indexes are reported on a 0 to 100 scale. The survey and modeling methodology quantifies the strength of the effect of

Brand Switching Behaviour of Consumers in Telecom Industry

4212 words - 17 pages however, been associated with an acceleration in the level of consumer problems and complaints. In a recent series of enquiries the Australian Communication Media Authority (ACMA) cited evidence of excessive levels of consumer complaints and poor customer service in the Australian telecommunications industry. ACMA argues that the industry’s poor performance imposes real and significant costs on both consumers and industry. The ACMA (June 2011

Supershuttle

1798 words - 8 pages , the car did not arrive to the destination. The second problem the company does not utilize the company websites very effectively. Because Geoff Southern sent a message, which describes what happened, to the company and the company responded it very late. Nowadays many companies are interested in learning more about customer complaints. While formal communications in some areas are decreasing; for instance, sales/performance targets or new

Research Proposal of Customer Satisfaction

2522 words - 11 pages : The willingness of employees to help customers and provide prompt service. It also includes the speed of responses to complaints.  Friendliness: Friendliness helps to increase quality of service /product. Employees individual attention giving, caring to customer, etc are measured here.  Skill and knowledge: Skill is measured by the way how employee performs their task and delivers to customers. The employees’ skill highly depends on their

Customer Analysis

646 words - 3 pages =1680&bih=955#facrc=_&imgdii=_&imgrc=XsnG2L62_5LYNM%3A%3B69Js8H5-uBtARM%3Bhttp%253A%252F%252Fwww.biblebeliever.co.za%252FSouth%252520African%252520Stats_files%252Fsastats.gif%3Bhttp%253A%252F%252Fwww.biblebeliever.co.za%252FSouth%252520African%252520Stats.html%3B300%3B163 Demographical, geographical, psychological and behavioural are the four aspects in customer analysis. Demographic factors are the social characteristics of people

Virtual Organization on Riordan Manufactururing

927 words - 4 pages %. At this point, KFF is 20% short of its long-term goal of a 95% customer satisfaction rate. The recommendations suggested above will help to increase KFF’s numbers and with the proper knowledge and research KFF can reach its goal.  Reference Colander, D. C. (2010). Economics (8th Ed.). New York, NY: McGraw-Hill.

Decision Making Courses and How They Relate to Decision Making

1291 words - 6 pages , social security, low-income assistance. High Financing and Managing Government Covers cost-benefit evaluations which influence decision making. Role of public policy in affecting the efficiency of markets and the distribution of resources in society. High. Economic Analysis of Law Teaches students how to think as an economist about legal rules and evaluate alternative legal rules. Interpretation of legal rules Moderate Behavioural Economics

Rural Development Through Information Technology : a Case Study of Dhar District of Madhya Pradesh

576 words - 3 pages Empowering India’s 500 million plus mobile users, the country’s telecom regulator has decided to set up an online customer redressal mechanism, providing a platform for dissatisfied consumers to express their complaints against their service providers. Put simply, any customer can log on to this web-based system, that will be maintained by Trai, to register complaints, violations or any other grievance against their mobile operator. This

Customer Centrality

5844 words - 24 pages messages, but encompasses monetary transactions and product, service, and relationship experiences. Interaction response capacity represents the degree to which the firm is capable of offering successive products, services and relationship experiences to each customer by dynamically incorporating feedback from previous behavioural responses of that specific customer individually, and of other customers collectively. It requires the firm to invest in

Meditech Surgical Case Paper

934 words - 4 pages procedures in place to handle customer complaints, create reports to accurately forecast for sales, and they do not have a good relationship with their supplier to understand the production process. There are several processes and procedures that need to be implemented to help Meditech turn the business around and become customer friendly and profitable (Simchi-Levi, 2008). Meditech’s Problems in Introducing New Products and ALL Products

Related Essays

Diploma Of Management Essay

327 words - 2 pages uniforms and delivery vans always clean and washed. | Empathy | Listen and have a compliant procedure.Follow complaints at all times. | Responsiveness | Always be prompt and patient.Good listener.Be nominated for specific customers. | Policies and procedures for complaint * All employees have to greet customers and give them their name * Listen the complaint carefully and summarize with what the customer is saying * Do not argue with

Behavioral Economics Essay

610 words - 3 pages rational. Therefore, the two starts from different points. Both behavioural economics and economics try to proscribe and describe patterns of human spending. The implication is that it does not only try to describe human behavior but tries to dictate human behavior. Behavioral Economics The authors draw their arguments from two perspectives: descriptive and proscriptive perspectives. Descriptive explains human behavior and proscriptive tries to

Crm Prototype Essay

4050 words - 17 pages Satisfaction Customer Loyalty Business Performance Understanding customer requirements Meet customer expectations Deliver customer value Behavioural loyalty Attitudinal loyalty Revenue growth Share of customer Customer tenure Customer satisfaction, customer loyalty and business performance (Figure 2) CRM solutions create a good relationship between enterprise and the customer. Customer Care is the contact center where

Customer Satisfaction Essay

9073 words - 37 pages Customer Satisfaction Survey for a Modern Greek Bank and Relationships Between Customer Satisfaction, Customer Loyalty, Complaints Handling and Recommendation. Spyridon G. Aliferis, University of Paisley Business School, Scotland, UK (June 2006) Dr. Panagiotis Kyriazopoulos ABSTRACT The main subject of this survey is to measure and understand the elements of customer satisfaction and its impact to business growth and