Service Failure and Complaining Behavior in Indian Banking Industry : A Factor Analytic Study

Service failure and the subsequent service recovery efforts of an organization can have profound effects on customers' satisfaction with an organization as well as helpful for maintaining the long-term relationship with the organization. The main objective of the study is to examine the dimensions of service failures in the banking industry. It is also the intention of the study to see if there is a specific pattern of complaint behaviors in Indian context. The study was conducted in four cities Delhi, Kolkatta, Bangalore and Mumbai. Factor analysis and chi-square analysis were employed to the dataset. The finding indicates that service failures constructs can be categorized into six underlying dimensions: commitment errors, complaint handing errors, costly services, task complexity, technological errors and organizational factors. Service failures dimensions can be used by the banks in India to improve their service process and delivery. The study found a specific pattern of compliant behavior in the banking industry