Intercultural Communication Paper Essay

Ip Man is a martial arts film based on the life of Yip Man, a Chinese martial arts grandmaster who specializes in â€Å"Wing Chun†. The scene is set in the 1930s in Foshan, China, where the wealthy Ip Man is well-respected in his community for his martial arts prowess. However, his home is seized and his family struggles for survival during the Japanese invasion in 1937. Although Ip was a martial arts grandmaster and a prosperous man in Foshan, he was the epitome of humility throughout the film. Humility is a characteristic often found amongst the Chinese to promote harmony and reduce conflict within the community (Hu, and Grove 56). Ip often displays non-verbal cues of humility such as bowing or lowering his head when conversing with fighting opponents or countrymen. He also constantly denies his skill in â€Å"Wing Chun† to his adoring followers. In order to support his family, Ip Man works as a coolie where he reunites with one of his old friends. There, coolies are picked off by Japanese soldiers to train with Japanese martial arts students and rewarded with rice if they defeat their opponents. Loyalty to friends is of utmost important to the Chinese community. Chinese citizens could not depend on the government of China to protect them and had to survive on their own, and help each other out in difficult times (De Mente). Ip does not hesitate to enter Japanese territory to look for his friend when he does not return from one of the fighting sessions. There, he sees another one of his friends killed over a bag of rice and in a drunken rage, defeats ten Japanese fighters. The proud Ip does not take the ten bags of rice he won from the fight but brings the one bag of rice his friend died for back to his grieving family. Ip displays an incredible level of loyalty by risking his safety to avenge his friend and return what rightfully belongs to his dead friend’s family as a final act of friendship. Ip astounds a Japanese general with his martial arts and is forced to fight him publicly. Ip receives incredible support from the Chinese audience and eventually defeats the general, killing him in the process. He then escapes to Hong Kong with his family. The Chinese are very patriotic toward their country and culture. This Chinese pride stems from the guanxi (relationship) with their fellow countrymen. The Chinese tend to deviate and support people from their own province in foreign situations. In a separate scene, an enraged Ip strikes his friend when he discovers that he working for the Japanese as a translator and calls him a traitor. The guilty translator cries out that he is Chinese and that he is not a traitor but appears to be visibly shaken by Ip’s words. This film truly reflects the Chinese culture at a time when Chinese values and beliefs were strong. Although these beliefs are dimming because of the modernization of China, these values of humility, loyalty and pride are still evident in the country today.

Industrial Organization and Regulation of the Market

A market could be described in simple words as a place where buyers and sellers meet to exchange goods and/or services. In this context the market does not have to take a physical location. This has been made possible by advances in technology where it’s now possible to sell/by goods and or services over the telephone or through the internet.There are different types of markets and these markets are determined by many factors. In general we have two broad categories of markets; these are the industrial markets and consumer markets.Consumer MarketsConsumer markets are the markets for products and services bought by individuals for their own or family or domestic use. Goods bought in consumer markets can be categorised in several ways:†¢ Fast-moving consumer goods (â€Å"FMCG's†)†¢ Consumer durables†¢ Soft goods†¢ Services (e.g. hairdressing, dentists, childcare)Industrial MarketsIndustrial markets involve the sale of goods between businesses. These ar e goods that are not aimed directly at consumers. Industrial markets include†¢ Selling finished goods†¢ Selling raw materials or components†¢ Selling services to businessesIndustrial markets often require a slightly different marketing strategy and mixOrganization and Regulation:In every kind of market situation mistakes just like in the public sector can and do occur. When governments fail we call it government failure but when markets fail we call it market failure. Of course, most deviations from the ideal are minor and do not impose significant costs on society. But when deviations are significant there is often a call for government to do something about the problem. For example, markets can deviate significantly from the competitive ideal — e.g., firms may acquire significant market power, undertake deceptive practices or collude like cartels in order to make abnormal profits.When it comes to regulation and organization of markets there are usually a few goals that every industry and or government wants to achieve. These include consumer protection (from sub-standard or harmful products), price controls (to prevent over exploitation of consumers and unhealthy competition), prevent counterfeiting and black market trading. In essence thus regulation involves administrative guidance of the market in order to make it more efficient.By efficiency we mean Economic efficiency and Economic efficiency is something much more than producing goods at the lowest possible cost. It involves providing individuals with the goods and services they desire, in the quantities, qualities, places, and times they desire them, with the least use of society's scarce resources. Economists argue that if markets are competitive, if accurate information is available, if resources are mobile, and if individuals engaging in the transactions bear the full costs and receive the full benefits of their transactions, economic efficiency will be achieved.Regulation can either be internal or external. Internal regulation usually involves regulation within the industry especially in the field of competition. External regulation involves control through government policies.External regulation includes:Social Regulation.This involves government regulation to contain negative externalities. Environmental problems, like pollution and congestion, are hard to solve[1]. Due to this governments come up with measures to control this, these measures include: Rights to pollute and rights to use highways.Rights to PolluteCreating rights to pollute the air can – paradoxically – help to control pollution. A â€Å"right-to-pollute† solution for pollution control defines a right to pollute and allows that right to be bought and sold. In essence these rights are limited this makes their prices high. In order to avoid paying these huge amounts firms instead install pollution abatement equipments and these help reduce overall pollution.This means that the level of allowable pollution can be specified, as we now do for instance to limit sulphur dioxide emissions in the United States to combat acid rain.[2] Once pollution rights are defined and a given supply is established, a market price can be determined. Then those who can reduce pollution most efficiently, that is, for less than the value of a right to pollute, will reduce pollution and sell their rights to pollute to others. Those who face higher pollution abatement costs can buy the pollution rights and use them for permission to emit pollution.Thus, at market equilibrium, the price of pollution rights reflects the marginal cost of controlling pollution to the level that the available pollution rights will allow.Rights to Highway UseWe pay no price for highway use. We incur the private cost of a vehicle trip between two points, including not only fuel, oil, tire wear, and so on, but also the driver's (and passengers') time, and when congestion is serious that time compo nent goes up.[3] The familiar problem of excessive traffic congestion arises because each of us decides whether to make a highway trip on the basis of the average cost rather than the marginal cost of the trip to society.[4] An additional car can join a stream of cars on the highway and it will share in the average costs and delays of all the other cars. Yet that marginal vehicle causes delays to all the others, delays that the driver of the marginal vehicle does not take into account when joining the traffic stream.A solution to the highway congestion problem can come from assigning a property right in road use — a right to delay others, like the right to pollute. Electronic devices exist now that will record time spent on a road. When placed in vehicles, these devices function like the electricity meter in your house, but they identify the time and location of your road use[5]. Technology and economics combine in these devices to make billing drivers for road use feasible, and that can avoid excessive congestion.Such devices and fees are in effective use in Singapore[6] and many of us should expect to see them in our lifetimes. There are many other areas where social regulationWas introduced in clumsy forms – consumer protection for example – that are improving gradually, based on economicIdeas that improve information and market function.Economic regulation.Economic regulation in many markets has taken a form whereby the number of firms in an industry is determined by the government and the markets firms can serve are specified by the regulatory commission. Prices and rates of return are regulated and, importantly, entry into the industry is either forbidden or made very difficult by law. Thus economic regulation maybe in the form of antitrust laws or price fixation. In antitrust cases, courts follow either â€Å"per se† rules, under which certain facts determine guilt or innocence, or they examine circumstances more broadly and follow a â€Å"rule of reason† analysis, to determine the appropriateness of the observed behaviour.The per se procedure is quicker and easier, and of course it gives more precise guidelines to business firms, but it requires what lawyers call â€Å"bright line,† or clear, rules. The disadvantage of such per se rules is that they may be over or under inclusive. The alternative, rule-of-reason, analysis allows courts to examine the circumstances of each case. It is in these rule of reason analyses that economics is applied far better now than in the past.Limitations of regulation:  Regulation leads to increased costs of conducting business. The direct and indirect costs of regulation result in higher prices and increased costs of employing workers. These costs act as a tax on job creation and employment. They also cause a decrease in productivity. The higher business costs that result from regulation are passed along to consumers in the form of higher prices (indirect taxation). To the extent that lower income individuals spend a greater proportion of their income on the goods and services affected, the higher prices are in essence a form of regressive taxation.[7]Conclusion:The organization and or regulation of any market has its ups and down. Markets and governments always fail from time to time. Due to this a harmonious relation needs to exist between the government and industries. This requires that where regulation leads to increased.Reference:Ellerman, A. Denny, et al. (2000) Markets for clean air: The U.S. acid rain program, Cambridge University Press, Cambridge.Mills, David E. 1981. Ownership arrangements and congestion-prone facilities. American Economic Review 71: 493-502.Phang, Sock-Young, and Mukul G. Asher. 1997. Recent developments in Singapore's motor vehicle policies. Journal of Transport Economics and Policy 31: 205-25.Roger Sherman, The Future of Market Regulation available a: www.seapres.wp8.htm.Sherman, Roger. 1967. A private ownership bias in transit choice. American Economic Review 57: 1211-17.Sherman, Roger. 1971. Congestion interdependence and urban transit fares. Econometrica 39: 565-76.Theriault III, Rene J. 1999. The congestion crisis: An evaluation of traffic and congestion remedies for the Washington, DC metropolitan area. Undergraduate thesis, University of Virginia.[1] Roger Sherman, The Future of Market Regulation available a:www.seapres.wp8.htm[2] Ellerman, A. Denny, et al. 2000. Markets for clean air: The U.S. acid rain program, Cambridge: Cambridge UniversityPress. [3] Sherman, Roger. 1967. A private ownership bias in transit choice. American Economic Review 57: 1211-17. [4] Mills, David E. 1981. Ownership arrangements and congestion-prone facilities. American Economic Review 71: 493-502. [5] Theriault III, Rene J. 1999. The congestion crisis: An evaluation of traffic and congestion remedies for the Washington,DC metropolitan area. Undergraduate thesis, University of Virginia. [6] Phang, Sock-Young, and Mukul G. Asher. 1997. Recent developments in Singapore's motor vehicle policies. Journal ofTransport Economics and Policy 31: 205-25. [7] Web article available at:www.regulation.org

Customer Complaint Behavior

Consumers’ complaint behaviour. Taxonomy, typology and determinants: Towards a uni? ed ontology Received (in revised form): 16th August, 2003 Dominique Crie ? is Professor of marketing at the University of Sciences and Technologies of Lille, in the Business Administration Department (IAE). He manages the postgraduate degree course: statistical specialisation for marketing databases. He is also a marketing consultant and statistician, member of the Association Francaise de Marketing and of the Societe Francaise de Statistiques. ? ? ? ?His research focuses on the customer relationship, particularly in relation to satisfaction, loyalty and retention. Abstract Complaint behaviour is a set of consumer dissatisfaction responses. It is an explicit expression of dissatisfaction, but dissatisfaction is only one determinant of this behaviour. Complaint behaviour can be analysed as various types of response but also as a process. This paper proposes an integrated framework of the various theories of complaint behaviour leading toward a uni? ed ontology and to interpreting it from a new perspective. Dominique Crie ?IAE de Lille, 104, Avenue du Peuple Belge, 59 043 Lille Cedex, ? France. Tel: 33 (0)3 20 12 34 64; Fax: 33 (0)3 20 12 34 48; E-mail: [email  protected] com INTRODUCTION This paper reviews a concept still relatively rarely considered by companies: consumer complaint behaviour. Within the framework of the relationship paradigm, complaint behaviour is a powerful signal which companies should take into account. On the one hand, it gives an organisation a last chance to retain the customer, if the organisation reacts appropriately, on the other hand it is a legitimate and ethical act toward the consumer.Generally, but not exclusively, complaint behaviour is one of the responses to perceived dissatisfaction in the post-purchase phase. In the ? rst section of the paper, a taxonomy of response styles used by dissatis? ed consumers is proposed. Then consumer com plaint behaviour (CCB) is de? ned and situated with regard to these various types of response. Finally, after clustering ‘complainers’ and ‘non-complainers’, this paper tries to track down the main dimensions of the CCB taxonomy through a structuralisation of its determinants within a diachronic approach — the objective being to propose a clari? d conceptual and theoretical framework to integrate the large variety of works on the subject. The conclusion highlights a synthesis of this conceptual structure with regard to a uni? ed ontology. A TAXONOMY OF THE TYPES OF RESPONSE TO DISSATISFACTION A dissatis? ed consumer may adopt several types of response, classi? cation of which may be delicate. The taxonomy of responses ? rst requires a distinction between the notions of response and of action to be established. Indeed, the term ‘action’ implies a very speci? c behaviour, 60Database Marketing & Customer Strategy Management Vol. 11, 1, 60â €“79 Henry Stewart Publications 1741–2439 (2003) Consumers’ complaint behaviour Table 1: A taxonomy of the types of response to dissatisfaction Towards enitity Response type Behavioural Public (Sellers, manufacturers, of? cial organisations, associations, justice) Complaint Legal action Return of the item Request for repair No action, with or without modi? cation of the attitude Forget or forgive Private (Family, friends, relations) Word of mouth Boycott/leaving Non-behavioural hile the term ‘response’ contains several modalities which are not exclusively behavioural, notably change of attitude or inactivity. This distinction establishes a ? rst dimension. The second is represented by the entities towards which responses are directed: the public one includes sellers, manufacturers and consumer associations or legal action; the private one includes family, friends or relatives. Finally, responses show different intensities according to the two previous dimensions. Responses may vary from inactivity to legal action — either simply to express dissatisfaction or to obtain repair or compensation (Table 1).The heterogeneity of these various response types may be partially explained by the cause and intensity of dissatisfaction and by the nature and importance of the product or service of concern. On the other hand, consumers may mix or connect several response types for the same dissatisfaction. This aspect is relatively neglected by the literature, although Hirschman1 notes that complaint and exit are not two symmetric elements: when a customer leaves the company, he/she loses ‘the opportunity’ to use their voice, while if he/she uses the complaint ? rst, he/she is always free to leave later if the complaint does not succeed.So exit can be a substitute for and complement to a complaint. The more expensive and complex the product, the more consumers are inclined to initiate public action, however the greater likelih ood is that they will stay inactive or choose private action. 2–4 The authors of the ? rst stream of literature are numerous, but Hirschman’s work remains standard in the conceptualisation of responses to dissatisfaction through the model ‘Exit, Voice and Loyalty’. Exit is an active and destructive response to dissatisfaction, exhibited by a break of the relationship with the object (brand, product, retailer, supplier. . ). The verbal response (Voice) is a constructive response with an expectation of change in an organisation’s practices, policies and responses; it is characterised by complaints towards friends, consumer associations and relevant organisations. The third type of response (Loyalty) has two aspects, constructive and passive, the individual hoping that things will evolve in a positive way. For Brown and Swartz,5 it is especially a feeling of impotence that is the cause of this behavioural loyalty. ‘The neglect of the incident and the inherent inactivity’ can, however, be considered as evidence for loyalty.Research designed to explain the various types of response to dissatisfaction is limited. Scales have been created for this purpose by Day et al. 6 but they are without methodological and Henry Stewart Publications 1741-2439 (2003) Vol. 11, 1, 60–79 Database Marketing & Customer Strategy Management 61 Crie ? psychometric validation. Only Bearden and Teel7 have investigated the various types of response using a Guttman scale. The data are collected from ? ve items of increasing intensity: (1) family and friends warning, (2) return of the item and/or complaint, (3) contact with the manufacturer, (4) contact with consumer associations or of? ial organisations and (5) legal action, notably when the customer does not obtain satisfaction with the seller. 8 Empirically validated, this scale does not, however, take into account the non-behavioural responses highlighted by previous research, and a sin gle item relates to private action. 9 Of a rather formative nature, every item contributes in its own way to the development of the intensity of the responses. Day10 con? rms the relevance of the use of such a scale. The main aim of this taxonomy is to clarify the various responses a dissatis? d consumer could use, in order to track down more precisely those which the company can observe directly. DEFINING CONSUMER COMPLAINT BEHAVIOUR Among the various types of response to dissatisfaction, some of them more direcly concern CCB. The ? rst conceptual base of this phenomenon concerning post-purchase was stated at the end of the 1970s. 11 Jacoby and Jaccard12 de? ne it as ‘an action begun by the individual who entails a communication of something negative to a product (service), either towards the company or towards a third entity’. For Day et al. 13 it is the consequence ‘of a given act of consumption, following which the consumer is confronted with an experience gen erating a high dissatisfaction, of suf? cient impact so that it is, neither likened psychologically, nor quickly forgotten’. Fornell and Wernerfelt14 consider that the complaint is ‘an attempt of the customer to change an unsatisfactory situation’. Finally, Singh15 suggests that this behaviour, activated at an emotional or sentimental level by a perceived dissatisfaction, is part of the more general framework of responses to dissatisfaction which consists of two dimensions (see also Day and Landon16).The ? rst dimension, grounded completely or in part in actions initiated by the consumer (conveying expression of his/her dissatisfaction not only to the seller, but also to third parties, friends or relations17,18), is behavioural but does not necessarily entail action towards the company; it is essentially within this dimension that CCB should be considered. The second dimension refers to absence of action by the consumer, for example when he/she forgets a generati ve episode of dissatisfaction. 19,20 In this way, CCB must, rather, be conceived as a process, ie its ? al manifestation does not directly depend on its initiating factors but on evaluation of the situation by the consumer and of its evolution over time. So, CCB really constitutes a subset of all possible responses to perceived dissatisfaction around a purchase episode, during consumption or during possession of the good (or service). In fact, the notion of ‘complaint behaviour’ includes a more general terminology which also involves the notions of protest, communication (word of mouth) or recommendation to third parties21 and even the notion of boycott.This notion is conceptually inserted in a set of explicit demonstrations, generally towards the seller, of a consumer’s dissatisfaction. It seems then that it is necessary to include in the de? nition of CCB a set of responses, heterogeneous in their targets — the study of this behaviour not being separable from understanding of all the responses to dissatisfaction. 62 Database Marketing & Customer Strategy Management Vol. 11, 1, 60–79 Henry Stewart Publications 1741–2439 (2003) Consumers’ complaint behaviour DISSATISFACTION Behavioural response Non-behavioural response Towards company Perceptible by the companyTowards market Not perceptible by the company Inactivity Change of attitude Complaint Legal action Leaving Negative word of mouth Repeat purchase or behavioural loyalty Simple complaint Repair compensation Figure 1: Responses to dissatisfaction and complaint behaviour In the rest of this paper, therefore, the term ‘complaint behaviour’ is used in the conceptual meaning of a public behavioral response to dissatisfaction. So, for a company, only part of these responses will be perceptible, including complaint in the sense described previously (Figure 1). On the other hand, it is the retailer who will be most affected by CCB.The manufacturer is se ldom sought out, so such crucial information reaches him only rarely, and often not at all. 22,23 A TYPOLOGY OF DISSATISFIED CONSUMERS Several authors have tried to individualise groups of consumers with regard to the type of response adopted in the wider framework of dissatisfaction. Most researchers offer a ‘normative typology’ within which the ‘complainers’ can be placed but without really distinguishing particular groups. These are opposed to the ‘non-complainers’,24–27 in this way these works are more concerned with responses to dissatisfaction than CCB in its strict sense.They are poor in terms of possible categories and are not grounded in a rigorous analysis of response styles. Certain typologies nevertheless allow a few speci? c behaviours in the expression of CCB to be extracted, for example the ‘irritated actives’,28,29 the ‘activists’,30 the ‘complainers’, the ‘irates’,31 th e ‘voicers’,32 the ‘slightly offended’ or the ‘champions’. 33 For Hirschman34 the complaint must be considered as feedback on the quality delivered by the company, the ‘complainers’ are called ‘alert customers’ (because they allow the company to improve the product or service) asHenry Stewart Publications 1741-2439 (2003) Vol. 11, 1, 60–79 Database Marketing & Customer Strategy Management 63 Crie ? Table 2: Main types of complainers Behaviour Complaint (prostestation) Public action Voicers Champions Complainers Authors Dart and Freeman Weiser36 Etzel37 Shuptrine38 Bearden39 Day40 Gronhaug and Zaltman41 Singh42 Keng43 Masson44 Warland45 Singh46 Weiser47 Pfaff48 Warland49 Singh50 Dart51 Lost in action Weiser55 35 Private action Slightly offended Irates Authors Weiser52 Dart53 Singh54Request for repair Measures of retaliation Active upsets Irritated Detractors Activists opposed to ‘inert customers’. Th e complaint is then a factor of enhancement for company performance. Taken as a whole the typology of dissatis? ed consumers overlaps with that of the responses to dissatisfaction and develops its structure at the same time as the intensity of the CCB modalities chosen by consumers, going from simple complaint to retaliatory measures in a register of public or private actions (Table 2).Generally speaking, the various typologies outlined do not allow retailers or manufacturers to appreciate the complexity and variety of CCB in order to respond in an effective way, but it is likely that certain behaviours will be more speci? c in a given situation. For example, within the framework of a dissatisfaction bound to durable goods (high price and high commitment), one would tend to observe among ‘complainers’ a stronger proportion of ‘irritated actives’ or ‘irates’. In a weakly competitive market they will tend to be ‘activists’.If the usu al quality level of products is weak, ‘detractors’ and ‘irates’ will be observed. Finally, within the framework of a well-established relationship a majority of ‘champions’ or ‘slightly offended people’ would be expected. TOWARDS A DIACHRONIC APPROACH TO CCB The literature does not propose a systematisation in the organisation of antecedents and determinants of CCB. This de? ciency is essentially due to the fact that CCB is regarded as an immediate act and not as a process. In fact, this concept lacks a clearly identi? ed theoretical framework which allows the rganisation of a heterogeneous set of factors that initiate and modulate it and which can take into account resemblances and differences that also comply with the more global notion of dissatisfaction responses. Indeed, an ambiguity in the study of CCB results from the fact that it should not include, by semantic de? nition, the non-behavioural aspect of responses to dissatis faction or customers leaving. The 64 Database Marketing & Customer Strategy Management Vol. 11, 1, 60–79 Henry Stewart Publications 1741–2439 (2003) Consumers’ complaint behaviour iachronic nature of the phenomenon of complaint could probably explain similarities and differences which exist between these two concepts. The number of implied variables strengthens the idea that CCB is not an instantaneous phenomenon, it is the outcome of a process of preliminary evaluations under the in? uence of initiating and modulating factors. This approach also raises the question of the effect of time on a consumer’s initial impulse to complain. CCB occurs after increasing re? ection by the consumer. 56–57 and Stephens and Gwinner,58 offer the ? rst longitudinal approach to CCB on the basis of in-depth interviews.For them, CCB results from a double cognitive evaluation. 59 The ? rst is de? ned as a process by which the individual estimates how much in? uence a p articular situation, in a given environment, has on his/her well being. The second may be analysed as a problem resolution strategy. The CCB depends then on the situation and on the psychological resources of the individuals. Within this framework, it is then relevant to think that generally the intention to complain or protest must occur at the same time as dissatisfaction and under the in? uence of initiating factors.This primary intention is then the object of various distorting or modulating factors meaning that the ? nal outcome is often different from that intended, it can be highly altered or just not come about at all. This idea then leads to the consideration of a number of non-behavioural responses to dissatisfaction or responses not perceptible by the company (cf. Figure 1) as being in some way failed CCBs. It is thus relevant to analyse how this intention arises and changes over time. After a phase of initiation represented by the initial level of dissatisfaction, then a phase of re? ction necessary for the integration of its cause and for the evaluation of the possible responses, there follows a phase of decision and of action which will in fact re? ect only the residual dissatisfaction at the conclusion of the process. This remaining dissatisfaction can nevertheless be reinforced to reach a higher level than that of the initial dissatisfaction, for example if the consumer is strengthened in his/her decision, either by the problem worsening, by the salesperson’s attitude or by the encouragement of third parties. In that case, measures taken by the consumer can be more signi? ant than those initially intended. Nevertheless the process does not stop with the voicing of the complaint, it also includes evaluation of the company’s response and concludes with the ? nal behaviour which ensues from it (repurchase or exit). It is then advisable to restore, in a diachronic framework, various streams of literature whose main object is to explai n the result of this process. Indeed, when researchers take time into account in CCB, it is essentially the available time to protest that is considered60 and not the period separating the episode of dissatisfaction from the response to it.But, the procedural knowledges are connected in time. They echo information relative to processes, that is to say sequences of actions, or sequences of reasoning in the sense that they order, or at least structure, the progress of several operations, possibly several procedures. This cognitive approach to complaint behaviour places it totally within the framework of a decision process. TOWARDS AN INTEGRATION OF THE VARIOUS ANTECEDENTS AND DETERMINANTS OF CCB In a simplistic way and besides its diachronic aspect, it is possible to distinguish within the conceptual part of the literature related to the determinantsHenry Stewart Publications 1741-2439 (2003) Vol. 11, 1, 60–79 Database Marketing & Customer Strategy Management 65 Crie ? Psycholo gical sphere – Sociocultural factors – Frustration/assurance – Learning – Attribution – Attitude/complaint – Experiences – Educational level DISSATISFACTION Negative word of mouth Economic sphere – Structure of the market – Frequency of purchases – Interactions buyer / seller – Costs of the complaint – Probability of success – Expected profit – Incomes – Switching barriers – Equity – Loyalty – InformationTYPE OF RESPONSE Complaint Legal action Inactivity Leaving Ethical sphere Figure 2: Antecedents and determinants of CCB of CCB, three spheres of factors which interact with different weights to lead, eventually, to CCB or to other modalities of response to dissatisfaction such as de? ned above. The psychological sphere is made up of individual variables re? ecting the propensity to CCB. The economic sphere groups together elements of cost and exchange structu res. Finally, the ethical sphere incorporates transactional equity, concentrating on the erception of the value of the link with the company and on the accuracy and helpfulness of the information given, for example, regarding ways to resolve the disputes, etc (Figure 2). On the other hand, the diachronic approach to CCB requires its various antecedents and determinants to be anchored on two points: ? rst on the initiating factors and secondly on the factors modulating the mode of complaint. This point of view allows not only integration of the various explanatory theories and the synthesis described above but also for a short path to complaint to be distinguished from a long one.This distinction, notably, can take into account the role of time and of both types of factors on CCB. In a short path the in? uence of the modulating factors is less, the complaint occurring mostly at the sale point, almost simultaneously with delivery of the product or service. It is an immediate emotional reaction rather than an extended process. In a long, extended path, however, there are more modulating factors which seem to shape the type of response. (The variables of the ethical sphere work as initiators, those of the economic sphere have a modulator role and those of the psychological sphere can be classi? d as either type. ) On the whole, four entities are directly involved in CCB: the product or service, the customer, the supplier and the episode of dissatisfaction. These various actors allow, within the framework of a diachronic approach, the multiple antecedents and determinants of CCB (Table 3) to be re-ordered. 66 Database Marketing & Customer Strategy Management Vol. 11, 1, 60–79 Henry Stewart Publications 1741–2439 (2003) Consumers’ complaint behaviour Table 3: Various determinants of CCB according to the stage and the actorStage of CB Actor Product/service Initiation of CB Dissatisfaction level Modulation of CB Structure of the market Alternative s Purchase rate Price, complexity of the product/service Attitude, Experience/CB Learning, Information/CB Loyalty Education, Age, Sex Ethnicity Way of life Secondary evaluation of response possibilities Absence of management of post purchase Ease of access to the company Switching barriers Switching costs Customer/seller interactions Size of the company, business sector Expected pro? t Transaction costs of CB Probability of success Importance of consumer organisations CustomerPerceived frustration Perceived inequity Assurance (self control) Will to act Primary evaluation of the dissatisfaction Supplier Quality defect Incident/product or service Episode Situation, circumstances Dissatisfaction attribution Time-spatial simultaneity of the dissatisfaction and response possibilities Initiating factors of CCB Several factors may lead to CCB. Introducing and determining, partly, a consumer’s choice of a given type of response to dissatisfaction, they allow on the one hand a better understanding of consumers’ motivation for CCB and, on the other hand, a forecast of what response will be the most likely to be adopted.Ordinarily consumers need to be dissatis? ed in order to complain but other variables are necessary to switch from dissatisfaction to complaint. Such variables may lie in attribution of the cause of dissatisfaction or in psychosociological characteristics of the individual consumer (see Table 3). Dissatisfaction Dissatisfaction is a necessary antecedent of CCB, but is often not suf? cient61,62 (see also Jacoby and Jaccard,63 Westbrook64 and Ping65 on the notion of complaint without dissatisfaction66). It is the activating factor of the process. 7 Besides, Oliver68 underlines the existing relationship between the intensity of the dissatisfaction and this behaviour. 69 Grandbois et al. ,70 Richins,71 Maute and Forrester72 prove that the gravity of the problem is correlated in a positive way with the various responses to dissatisfaction includi ng CCB. The more the dissatisfaction increases, the more the verbal complaint strengthens and the more the probability of leaving the company grows. For Singh and Pandya,73 the relationship ‘intensity-type of response’ is not linear and admits threshold effects.When the level of dissatisfaction exceeds a given threshold consumers tend to use either negative word of mouth or leaving or appeal to a third party. On the other hand, the relationship between attitude to the Henry Stewart Publications 1741-2439 (2003) Vol. 11, 1, 60–79 Database Marketing & Customer Strategy Management 67 Crie ? complaint and CCB itself can be modulated by the intensity of the dissatisfaction. 74–76 Attribution of the cause of the dissatisfaction Psychosociological factorsTo lead to CCB, the consumer has to identify clearly the party responsible for his or her dissatisfaction during a given consumption episode (Table 3). In numerous cases it is the consumer himself/herself, for ex ample when he/she judges he/she did not make the right choice. So, even if for Valle77 the attribution of responsibility for dissatisfaction operates as an intermediary between the confusion and the response which follow, it is advisable to classify it as an initiating factor of CCB. According to Weiner et al. 78 a success or failure can be attributed either to elements under the control of the individual (internal cause[s]), or to environment or situational factors (external cause[s]). On the other hand, the performance can be attributed to invariant factors (stable) or evolving with time (unstable). The type of attribution achieved by the consumer determines a priori the response that may be chosen. If an external attribution is necessary for a private type action, a legal action or a request for repair, in the case of an internal attribution it is especially inactivity which dominates. 9 Usually, consumers who perceive the cause of their dissatisfaction as being stable (the same problem may recur) or controllable (the individual thinks that the retailer could have prevented the trouble) are more inclined to leave the product or the company and to engage in negative word of mouth than those who think that the problem has little chance of recurring and that the supplier could not prevent it (see also Folkes80). Some individual characteristics are to be considered as initiators of CCB, although they can also play a modulating role according to the situation (Table 3).Fornell and Westbrook,81 according to Mischel,82 associate CCB with the feeling of frustration felt by a dissatis? ed consumer. Frustration arises not only when the objective assigned to a given behaviour is blocked or interrupted before its ful? lment, but also when the result achieved has a lower level than that sought, or when its realisation requires more resources than the consumer can, wants or expects to spend to reach the desired objective. This feeling is also present when the means to re ach the satisfaction, both at the resources level and at the wanted object level (product or brand), are reduced or suppressed.Along the same lines, frustration can arise in situations of purchase intention (unavailability of the product or of the brand) or in post-purchase situations (dissatisfaction of use or of ownership). The more substantial the frustration, the greater the risk of aggressiveness and CCB. For Stephens and Gwinner83 the stress of dissatisfaction adds to the daily stress and CCB is connected to a double evaluation of the situation during a cognitive process. Three constituents form the primary evaluation of the stress: (1) the level of modi? ation of the individual objectives; (2) the incongruity between these objectives and the incident; (3) the level of the person’s ego infringement (humiliation, self-esteem, ethical values). A second evaluation of possible response strategies is then initiated according to: (1) the responsibility attribution for the con fusion; (2) the possibility of solving the problem (capacities of the individual, probability of success); (3) the feeling that things will go better afterwards. If 68Database Marketing & Customer Strategy Management Vol. 11, 1, 60–79 Henry Stewart Publications 1741–2439 (2003) Consumers’ complaint behaviour the resulting stress of the primary evaluation can be reduced by a solving strategy (secondarily estimated), the probability of CCB is great. If, on the other hand, this strategy risks increasing the initial stress, the main probability turns out to be a non-behavioural response or a response towards the market (see Figure 1). Other individual characteristics may also in? ence the start of a complaint process,84 eg loyalty to the brand, product or supplier; the level of quality assessment, the educational level and tastes; the ability to detect quality differences (a function of experience) and the acquired level of information; perception of the ‘cost /pro? t’ ratio of the possible actions. For Lapidus and Pinkerton,85 the consumer–retailer relationship is one of social exchange and, therefore, equity theory may be applied in order to explain the initiation of CCB.The consumer compares his/her inputs/outputs ratio with those that he/she perceives to be received by the seller. Naturally this comparison can be biased according to the trend (positive or negative) of the revealed inequity. The complaint appears then as an attempt to reduce the perceived inequity (see also Blodgett et al. 86). Secondly, the costs inherent in the complaint and its perceived outcome can be considered as inputs and outputs of this theory. Finally, learning theory can also be mentioned: the inclination to CCB is essentially a function of past experiences87–90 and of their outcome. 1 Modulator factors of CCB Dissatisfaction can be organised around two congruent factors: the former is situational, the latter temporal. It can indeed occu r where the product is purchased or the service is delivered and thus be immediate, but it can also take place at a distance from the act of purchase. In the same way, the response to dissatisfaction can be either immediate or deferred. So the CCB can consist of rather a short path in the case of a dissatisfaction on the spot and of an immediate response, or a long circuit in the case of delayed dissatisfaction with regard to the purchase act or of a postponed response.It is then, especially in this last situation, that numerous variables can intervene to modify the consumer’s actual response, by moderating or aggravating it: ultimately the intensity of the CCB will thus depend on an evaluation of the situation during a temporal process. The market structure, sociocultural characteristics or evaluation of the various costs associated with CCB will act as modulators of the process outcome. The market structure The market structure can be regarded as an element in? uencing the response type choice adopted by a dissatis? ed consumer (see Table 3).For Hirschman,92 consumers are ready to voice their complaints in two circumstances: (1) the way they balance the certainty of leaving and the uncertainty of an improvement in the product or service quality and (2) the estimation they make of their capacity to in? uence the organisation by voicing their concerns. These two factors are far from being independent. Fornell and Didow93 situate CCB in the larger ? eld of rational choice — with the slight difference that choice in economic theory is in the pre-purchase period, while CCB is generally a post-purchase phenomenon.The objects of choice are also different: products and services in the ? rst case, type of response in the second. In this theoretical framework, they show that verbal action can be Henry Stewart Publications 1741-2439 (2003) Vol. 11, 1, 60–79 Database Marketing & Customer Strategy Management 69 Crie ? expressed as a preference functi on and as the possibility of purchasing elsewhere. Indeed, in a restricted competitive environment, verbal action will be the only possible action for a dissatis? ed consumer. 4,95 In contrast, when competitors are numerous, the customer’s leaving becomes the most likely reaction and his/her action is then situated at the market level (see Figure 1). Therefore, the market structure appears as a powerful determinant of CCB. On the other hand, and within this framework, sensitivity of the various customer segments, either to price or quality, shapes the dominant response type to dissatisfaction. Those sensitive to price may leave the company, those sensitive to quality are more inclined to complain. 6 It also seems that buyer–seller interaction frequency (ie purchase rate) plays a part in the preference for verbal action. 97 The more frequent these interactions the fewer the public actions. 98 On the other hand, Barksdale et al. 99 report that the lower the level of purc hase at the same supplier, the greater the tendency to CCB. New purchases lead to more complaints and the usual suppliers receive more complaints than the new ones. For Weiser,100 the degree of ease of access to the company and the willingness of the customer to complain are determining elements in the choice of a response type. In a more speci? way, Andreasen101 emphasises, within the framework of nearly monopolistic markets or markets perceived as such, that the response type is a function of the: perceived heterogeneity of the offer quality; level of knowledge; level of perceived switching costs; probability of success of a verbal action both for the individual and the community; supposed complaint level of other consumers; and the degree of loyalty to the product, brand or supplier. The attractiveness of the alternatives or the availability of substitutable goods shows a strong relationship with the response type adopted by the consumer. 02 In the same way, the more important th e company the more the number of complaints. 103,104 Day et al. 105 classify in three categories the factors which can in? uence the propensity to CCB: (1) the circumstances de? ning the interests at work and evaluation of the costs and likely pro? ts of a search for compensation; (2) the characteristics of the individuals or the situation surrounding the costs and the purely psychological pro? ts of alternative actions, as well as the general tendency of the mediation interventions; (3) market conditions and the legal climate.For Day et al. , this latter category determines the probability of a favourable outcome to the action taken. Generally speaking this type of action will also depend on the nature of the product or service, the usable channels of complaint and the third parties which could intervene. On the other hand, for Andreasen and Best,106 the inclination of consumers to perceive problems depends on the nature of the exchange. For services this propensity is greatest, be cause they are, by nature, more dif? cult to assess (see Shuptrine and Wenglorz,107 Bearden and Masson108).But there is also a unit of time and place during service delivery which favours CCB. Referring to the attribution theory, Zeithaml and Bitner109 consider that because the customer is an actor in service delivery, the customer appropriates more willingly a part of responsibility in his/her dissatisfaction and tends to protest less often. Sociocultural factors Some sociocultural factors have to be acknowledged as modulators of the complaint process (see Table 3). For Day 70 Database Marketing & Customer Strategy Management Vol. 11, 1, 60–79 Henry Stewart Publications 1741–2439 (2003)Consumers’ complaint behaviour et al. ,110 (1) the standards of life and the effectiveness of the marketing system, (2) the degree of regulation and control of economic activities and marketing practices and (3) the availability of information to help consumers make their choice or to know where to complain, represent three groups of characteristics to be taken into account for a cross-cultural approach to the phenomenon. Richins,111 within the framework of an international comparison, shows that in the USA the factors most correlated to CCB are price, the dif? ulty the consumer faces in resolving the confusion by himself and the attribution of the cause of dissatisfaction. In the Netherlands Richins found the correlating factors were price, responsibility for the damage and its felt intensity. The most determinative variables remain the attribution of responsibility and the perceived consequences of a complaint, two variables less correlated to CCB in the American sample. Cornwell, Bligh and Babakus112 clearly highlight that ethnic origin plays an important role in CCB especially through values and the way of life.Webster113 also ? nds an in? uence of ethnic factors when the effect of social variables is controlled. Furthermore, women generally have a grea ter inclination to complain and people living in rural areas are more prone to negative word of mouth. 114 For Farhangmehr and Silva,115 educational level is a determining variable; the higher it is the more consumers tend to complain in a dissatisfaction situation (see Gronhaug,116 Morganosky and Buckley117). In their study, the reasons for silence on the part of the consumer are: the effort and waste of time involved (44. per cent) which can be compared with the expected gain; the feeling of not being understood or that the problem will not be resolved (30. 3 per cent); and not knowing where and how to complain (21. 1 per cent) which is related to the consumer’s information level. Obviously these proportions can vary with the opinion that consumers have about the possibility of resolution of their problem according to the sector or company concerned. 118 Gronhaug and Zaltman119 show that economic indicators such as income have only a weak explanatory power and that it is th e same for demographic factors. 20–123 For Singh124 the ‘complainers’ tend to have superior incomes, a higher educational level, are still working and are younger (also Bearden et al. 125). Laforge126 indeed shows that elderly people complain less, this in agreement with the sociological theory of learned helplessness which makes the individual passive because he/she perceives the situation as uncontrollable. The costs of the complaint In reference to the works of Landon,127 the pro? t of a complaint is a function of the result minus the cost of complaint.This result is itself estimated with regard to the importance and the nature of the damage sustained. The consumer’s preference for verbal action is then related to the expected value of the complaint outcome (connected with the importance of the dissatisfaction) minus the associated costs. 128 The latter depend notably on the image of the company, especially in the resolution of disputes, on the consumer ’s experience of CCB and on the nature of the dispute. An arbitration is thus achieved between cost and pro? of every possible action so as to gain maximum utility. 129 Gronhaug and Gilly130 use transaction costs theory131 in order to explain the various consumer responses to dissatisfaction. Three dimensions of this theory (speci? city, uncertainty and exchange frequency) can be invoked to Henry Stewart Publications 1741-2439 (2003) Vol. 11, 1, 60–79 Database Marketing & Customer Strategy Management 71 Crie ? explain CCB. Does approaching the distributor or manufacturer entail speci? c costs? Generally, CCB requires time and effort thus generating a mixture of ifferent types of costs, eg opportunity cost of the elapsed time, deliberation costs, transportation costs — these can be called CCB transaction costs. These costs are speci? c to the envisaged response type whether it is actual or not. They cannot be paid off afterwards, at best they could be used as a l earning stage in order to reduce them during a later complaint. Uncertainty arises from any transaction (ie complaint) and the consumer looks for information to reduce this uncertainty to a bearable level. Finally, the complaint frequency has a direct in? ence on its organisation, possibly becoming a ‘routine’, thus reducing the associated costs. This theory thus explains more frequent CCB when consumers have superior educational level: they know their rights so the level of uncertainty associated with the complaint is reduced and there is, therefore, a global decrease of the perceived costs of a complaint. Nevertheless, as a general rule, the majority of dissatis? ed customers do not complain. Kolodinsky132 insists moreover on the assessment, by the consumer, of the temporal cost of the choice of an appropriate response.Furthermore, as the search for a new product or supplier also generates numerous costs, it is often the case that the dissatis? ed consumer refrains fr om any action. 133,134 MANAGERIAL IMPLICATIONS FOR HANDLING COMPLAINTS Businesses are, too often, completely hopeless at dealing with complaints, although complaint management has become an important issue for many companies. Some elements of the various theories mentioned above allow managers to understand better the complaint process in order to cope with it better.First of all, and within the framework of relationship marketing, complaint management is a major strategic issue. On the one hand complaint management has a retention function in the sense that where a customer satis? ed with the treatment of his/her complaint gets a second-order feeling of satisfaction his/her con? dence with the company is strengthened. Thus companies that respond to consumer dissatisfaction and complaints with appropriate recovery strategies and satisfactory complaint resolution can turn dissatis? ed consumers into satis? ed ones, positively in? uencing repurchase rates (eg Bearden and Oliver135).To decrease the effect of dissatisfaction and the incidence of further negative actions, companies need to show, at the least, that they are responsive to legitimate complaints. But, if problems are resolved poorly, they are only the beginning of a multitude of ‘hidden’ actions which do not come to the attention of the business. So, proper handling of customer complaints improves repeat patronage intentions and reduces negative word of mouth. 136 Finally, in dealing with complaints, truly marketing-oriented companies must examine not only the costs of the remedy, but also the cost of not settling the complaint.The usual rationale is that complaints represent valuable feedback to companies that allows them to take corrective action vis-a-vis the defective product or ` service as regards either the critical incidents137 or adjustment of the offer to match customer expectations. Both actions are of strategic nature: the ? rst is concerned with customer relationship managemen t and retention, the second with an equally long-term strategy, ie continuous improvement of the product or service in order to ? t customer expectations. 72 Database Marketing & Customer Strategy ManagementVol. 11, 1, 60–79 Henry Stewart Publications 1741–2439 (2003) Consumers’ complaint behaviour From an operational point of view, the complaints handling process begins before the customer addresses his/her complaint to the seller or manufacturer. All must be done in order that the various costs associated with this behaviour are reduced, so that complaints are encouraged, facilitated and even solicited in order for companies to take corrective action. Kotler138 suggests that the best thing a retailer can do is to make it easy for a customer to complain.For example, Saint Maclou, a French nationally-advertised carpet manufacturer and retailer, indicates on each bill the name of the person to contact if a problem arises and, if the trouble remains unresolved, th e name of a more empowered executive is given. Access to the company thus has to be multichannel. The customer must be assured that he/she will be listened to and that his/her problem will probably be successfully resolved. Lastly, and according to justice theory, the consumer must be conscious that the failure will be corrected fairly, that is to say with impartiality, transparency, effectiveness and fairness.As the majority of dissatis? ed consumers leave the company without complaining, managers have to overcome customers’ natural disinclination to complain. Thus this process is concerned with service recovery, that is to say, the recti? cation of mistakes or compensation of customers. Service recovery is de? ned as the response a provider makes to a service failure;139 service failure usually requires dissatisfaction on the part of the customer. It begins with thanks for the approach by the customer: salespeople or staff need to learn to use ‘complaint welcomingâ₠¬â„¢ procedures.Then the complaint must be listened to. Psychologically speaking it is important for the customer to cope with his/her frustration through a kind of debrie? ng by oral or written expression of the trouble. For instance, complaint letters to Railtrack in the UK rose to an all time high in 2001, without the writers realistically expecting any immediate bene? t other than the ability to articulate their frustration. Complaint, especially voice, gives the customer an opportunity to ‘tell their side of the story’ which serves as a kind of reward for the customer. 40 Furthermore, Levy and Weitz141 argue that a salesperson’s willingness to listen can be an important source of consumer dissatisfaction and complaint intentions. A salesperson’s willingness to listen has been described as the degree of attentiveness a person shows. 142 According to Palmroth,143 a salesperson must ask questions until s/he understands the full nature of the complaint wi thout appearing to place blame on the customer. These salespeople should be seen as trustworthy, friendly, expert, honest, helpful and concerned.The third step is concerned with the acknowledgment of the failure, if justi? ed. (If not, it is necessary to explain why and, according to the attribution theory, to gently point out the misuse of the service or product. It should also be noted that some consumers may complain not out of dissatisfaction but in an effort to gain fraudulently from retailers or manufacturers. ) This is, however, related to the salesperson’s familiarity with the product and awareness of any possible problems with the merchandise in question.Apologies are the next step and empowered contact employees must be able to offer immediate redress where possible or advice on the way to proceed, always in order to reduce customers’ costs and frustration. Indeed, of customers who register a complaint, about 60 to 75 per cent will do business with the provid er again if their complaint has been resolved, and this Henry Stewart Publications 1741-2439 (2003) Vol. 11, 1, 60–79 Database Marketing & Customer Strategy Management 73 Crie ? gure goes up to 95 per cent if the customer feels that the complaint was resolved quickly. Furthermore, providing compensation is a common response to customer complaints. In addition to the tangible bene? ts received, customers typically see the compensation as a symbolic expression of regret by the provider. 144 In a word, courteous and fast treatment by front of? ce personnel can enhance favourable post-complaint responses145 and staff must persuade the customer that all will be done to ensure that the trouble does not recur. Other authors provide some rules of thumb.For example, Davidow146 presents a model framework that divides the organisational responses to complaint into six separate dimensions: timeliness, facilitation, redress, apology, credibility and attentiveness. Nevertheless, according to Mitchell,147 a study shows that 51 per cent of his sample who had complained about a service and 23 per cent about products were less than completely satis? ed with the responses they received. The importance of regulatory authorities in determining how complaints should be managed in a marketing sense, and their active involvement in researching this area and etting standards should also be noted. Generally speaking the legal analysis assumes that it is important that companies are involved in ? xing problems with consumers. But more often, sector-based organisations are proactive and promulgate codes of conduct or of deontology in order to provide a conventional frame for a wide range of business activities, including complaints. For instance, Consumer Complaint Form (CCform; coordinated by the Federation of European Direct Marketing) is a European Commission Information Society Technology funded project to reach a consensus between business, consumers, academics and egulators on new, more ef? cient and transparent processes for complaints management. The CCform project aims to develop an online, multilingual complaint form and a best practice business process. With CCform, consumers will be able to make complaints in their own language, and then the form will be translated into the companies’ preferred tongue. Note that cultural norms appear to change the way people react to dissatisfaction and so the response type. Consumers will be able to track the progress of their complaint, and, if necessary, escalate their grievance to a dispute resolution service or regulator.CCform can be used by any company doing business by e-commerce, distance selling or local retail operations. 148 Complainants may have recourse to a third party and an escalation in the process can result. In this sense, the complaint handling can also be seen as a dispute prevention mechanism. On the other hand, and from a customer relationship management point of view, CCB is an imp ortant early warning. Furthermore, Powers and Bendall-Lyon149 have shown that the number of complaints increased as a result of the introduction of a complaint management programme in an hospital context.Complaint management programmes enable organisations to receive complaint information in order to identify and accommodate dissatis? ed customers and identify common failure points in order to improve service quality. Each complaint either by phone, face to face, letter or e-mail, should be recorded in the database. The manager should be able to link each product, customer and complaint together. For example, a customer with an increasing complaint rate may be in a leaving phase and should be carefully monitored. Indeed, and although customer 4 Database Marketing & Customer Strategy Management Vol. 11, 1, 60–79 Henry Stewart Publications 1741–2439 (2003) Consumers’ complaint behaviour relationship management aims to establish and maintain ongoing customer relati onships by focusing on the speci? c customer’s needs in order to deliver high levels of customer satisfaction and company loyalty, one major aspect of customer relationship management is the effective handling of customer complaints. CONCLUSION AND FUTURE RESEARCH This paper allows CCB to be placed and de? ed within the larger framework of responses to dissatisfaction and then suggests an integrating framework of diachronic nature. Until now research into CCB has taken a deductive approach, researchers trying to deduce its causes from contextual or individual elements without being really interested in the process taking place in a temporal space of variable duration. The various works of literature studied offer different explanations for CCB but few of them consider the sequence and interaction of initiating or modulating factors in a process.CCB is indeed essentially described in its immediate nature, that is to say as an instantaneous event. Nevertheless, the nature and i ntensity of response to dissatisfaction certainly depend on the type of experience and on the responsible product/service but they also involve two other actors (the supplier and the customer) in a diachronic framework. The variability of individual reactions, notably revealed by the lack of a clear typology of ‘complainers and noncomplainers’, results from a different weighting of constitutive elements of the process over time.The joining together and organisation of these elements, from which three large areas can be isolated (the utilitarian sphere of the economists, the ethical sphere of equity and the psychological sphere, notably represented by attribution), supply a synthetic approach by describing CCB in two stages: initiation and modulation. The initiation phase is related to the dissatisfaction level which determines the opening of the process. It is then followed by a search for attribution of the problem and by the perception of the inequitable character of the transaction engendering frustration or stress which the individual will try to minimise.It is during the evaluation of the problem resolution strategies that modulators, such as experience and attitude towards the complaint, personality of the individual and his/her sensitivity to quality, will or will not allow the process to evolve towards the actual complaint. Other factors of this type can be isolated, such as loyalty level and information level, the degree of nearness (commitment) in the relationship with the supplier, the market structure (particularly the possibility of choice alternatives) and ? ally, the hoped/expected utility of the complaint with regard to the perceived costs as well as the accessibility of the company for CCB. If CCB is taken to be a process it becomes easy to link together all the response types following an episode of dissatisfaction and this knowledge is helpful for complaints handling, eg in encouraging the customer to complain or in avoiding his leaving. The TARP study150 indeed indicates that 90 per cent of dissatis? ed consumers initiate no action and leave the product, brand or company.So, the managerial implications arise not only from contextual factors but also from the diachronic aspect of the phenomenon. Although initiators are only weakly accessible to action by the manager, except by avoiding dissatisfaction and by strengthening the perceived equity of transactions, some Henry Stewart Publications 1741-2439 (2003) Vol. 11, 1, 60–79 Database Marketing & Customer Strategy Management 75 Crie ? modulators can be amended so as to lead the dissatis? ed customer to complain more frequently. Thus the company can contribute to the modi? ation of consumers’ attitudes towards CCB by: rendering more favourable the perception of previous experiences; restoring a feeling of equity after a complaint; decreasing the costs, particularly the psychological ones; and ? nally, establishing interpersonal relationships th at reduce the attraction of alternatives. It is necessary to reward customers who complain by including them in this step and by getting them used to this cultural change. It is necessary to insist on the urgency of a dissatisfaction communication to the company and to shorten the response delay (free phone number, speci? coupon, website, CCform. . . ) in order to minimise the negative constituents of the modulators. From a passive role of complaint reception, the company has to evolve towards a proactive stage in the genesis and the actual expression of CCB. It is then necessary to gather information about dissatisfaction as quickly as possible in order to divert a process which would otherwise probably lead to the customer leaving. So, complaints must be regarded more as a marketing tool than as a cost (better service to the customer and customer retention); they constitute a fundamental element of relationship marketing.This synthesis should encourage the number of research studi es into the diachronic side of CCB, in the sense that any dissatisfaction (of external attribution) requires that the consumer get in touch with the company. So, the relationship between dissatisfaction, complaint intention and actual response deserve to be clari? ed in connection with time. It is also advisable to analyse more exactly consumers’ expectations of complaints. It is indeed by satisfying these expectations that marketers can hope to increase the number of ‘complainers’. References 1 Hirschman, A. O. (1970) ‘Exit, voice and loyalty: Responses to decline in ? ms, organizations and states’, Harvard University Press, Cambridge, MA. 2 Day, R. and Landon, E. Jr. (1977) ‘Toward a theory of consumer complaining behavior’ in Woodside, Sheth and Bennett (eds) ‘Consumer and industrial buying behavior’, North Holland Publishing Co. , Amsterdam, pp. 425–437. 3 Richins, M. L. (1987) ‘A multivariate analysis of re sponses to dissatisfaction’, Journal of the Academy of Marketing Science, Vol. 15, No. 4, pp. 24–31. 4 Levesque, T. J. and McDougall, G. H. G. (1996) ‘Customer dissatisfaction: The relationship between types of problems and customer response’, Canadian Journal of Administrative Sciences, Vol. 3, No. 3, pp. 264–276. 5 Brown, S. and Swartz, T. (1984) ‘Consumer medical complaint behavior: Determinants of and alternatives to malpractices litigation’, Journal of Public Policy and Marketing, Vol. 3, pp. 85–98. 6 Day, R. L. , Grabicke, K. , Schaetzle, T. and Staubach, F. 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(1995), ‘Customer retention: The importance of the ‘‘Listening Organisation’’ ’, Journal of Database Marketing, Vol. 2, No. 4, pp. 344–358. 34 Hirschman (1970) op. cit. 35 Dart and Freeman (1994) op. cit. 36 Weiser (1995) op. cit. 37 Etzel, M. and Siverman, B. (1981) ‘A managerial perspective on directions for retail customer satisfaction research’, Journal of Retailing, Vol. 57, No. 3, pp. 124–136. 38 Shuptrine and Wenglorz, (1980) op. cit. 39 Bearden, W. , Crockett, M. nd Teel, J. (1980) ‘A past model of consumer complaint behavior’, in Bagozzi, R. P. (ed. ) ‘Marketing in the 80’s: Changes and challenges’, AMA Proceedings, Chicago, IL, pp. 101–104. 40 Day (1980) op. cit. 41 Gronhaug and Zaltman (1981) op. cit. 42 Singh (1988) and (1990) op. cit. 43 Keng, K. A. , Richemond, D. and Han, S. (1995) ‘Determinants of consumer complaint behaviour: A study of Singapore consumers’, Journal of International Consumer Marketing, Vol. 8, No. 2, pp. 59–67. 44 Masson and Himes (1973) op. cit. 45 Warland (1975) op. cit. 46 Singh (1988) and (1990) op. cit. 47 Weiser (1995) op. cit. 48 Pfaff and Blivice (1977) op. it. 49 Warland, R. H. , Hermann, R. O. and Moore, D. E. (1984) ‘Consumer and community involvemen t: An exploration of their theoretical and empirical linkages’, Journal of Consumer Affairs, Vol. 18, No. 1, pp. 64–79.. 50 Singh (1988) and (1990) op. cit. 51 Dart and Freeman (1994) op. cit. 52 Weiser (1995) op. cit. 53 Dart and Freeman (1994) op. cit. 54 Singh (1988) and (1990) op. cit. 55 Weiser (1995) op. cit. 56 Kolodinsky (1995) op. cit. 57 Conlon, D. E. and Murray, N. M. (1996) ‘Customer perceptions of corporate responses to product complaints: The role of explanations’, Academy of Management Journal, Vol. 9, No. 4, pp. 1040–1056. 58 Stephens, N. and Gwinner, K. P. (1998) ‘Why don’t some people complain? A cognitive-emotive process model of consumer complaint behavior’, Journal of The Academy of Marketing Science, Vol. 26, No. 3, 172–189. 59 Lazarus, R. S. (1966) ‘Psychological stress and the coping process’, McGraw Hill, New York. 60 Kolodinsky (1995) op. cit. 61 Day (1984) op. cit. 62 Oliver, R. L. ( 1987) ‘An investigation of the interrelationship between consumer (dis)satisfaction and complaint reports’, Advances in Consumer Research, Vol. 14, pp. 218–222. 63 Jacoby and Jaccard (1981) op. cit. 4 Westbrook, R. A. (1987) ‘Product/consumption based affective responses and postpurchase processes’, Journal of Marketing Research, Vol. 24, No. 3, pp. 258–270. 65 Ping, R. A. (1993) ‘The effects of satisfaction and structural constraints on retailer exiting, voice, loyalty, opportunism and neglect’, Journal of Retailing, Vol. 69, No. 3, pp. 320–352. 66 These authors mention the possibility of complaint by satis? ed consumers, either to try to obtain more from the company, or for fear of a future breakdown or because of doubt in the performance of the product or because of propensity to complain. 67 Singh, J. 1989)

How can Sainsburys develop an effective marketing plan to position Research Proposal

How can Sainsburys develop an effective marketing plan to position themselves in the UK SUPERMARKET - Research Proposal Example een noticed that there is a lack of new entrants in the market because of economic fluctuations and stagnation of technological advancement in the country. Based on the data achieved from the last year i.e. 2012, it was found that the revenue generated through the supermarket retailing segment was around  £134 billion, which reveals an average annual growth of 1.3 percent from 2008-13 (IBIS World, 2013). This segment offers employment to approximately 945,694 people in the UK. According to IGD Research the supermarket segment performed its best in 2001, as a growth of 6.5 percent was registered; this kept diminishing since then and came down to 3.3 percent in 2003. The market fluctuated ever since and in 2011 it was recorded to be around 3.8 percent (Institute of Grocery Distribution, 2012). Tesco has the highest market share in the UK, which is about 30 percent, then comes Asda and J Sainsbury (Grocery News, 2013). The problem statement of this research study is to identify the current status of the supermarket segment in the UK. In order to develop an effective marketing plan for Sainsbury’s, a comprehensive analysis of various supermarkets would be done, especially those which are successfully doing business in the country. The customer’s attitude would be evaluated to understand their views on supermarkets present in the UK. The objective of this study at first is to identify the existing players in the market and evaluate the market trend accordingly. Secondly, secondary as well as primary data would be collected in order to understand the needs and preferences of the customers in case of shopping from supermarkets. Lastly, a marketing plan has to be designed for a supermarket chain called Sainsbury’s, so that it can effectively grab market share and be among the market leaders in the UK. This study mainly focuses on designing an effective marketing plan for Sainsbury’s, so that it can grab a higher market share in the UK and carry on profitable

Research Methods Essay Example | Topics and Well Written Essays - 2250 words

Research Methods - Essay Example The different perspectives of each individual researcher scholar vary to a large degree, ranging from those who view the two research strategies as separate processes, to those that are ready to mix the two approaches within their projects. As for example, we find that Bryman (1988) in his paper contended that the best process for completing one’s research work is using best of both the processes, or in other words, a combination of the qualitative and quantitative approaches should be adopted. Hughes (1997) on the other hand warned against such mixed methods, and suggested that quantitative approaches are scientific and hence more objective in nature (413-420). While exploring the subject of quantitative and qualitative researches, this paper is primarily based on epistemological notions presented within the query, `what is research and what are the research techniques?’ Eileen Kane, in the book Doing your own research (1985, gives an interesting perspective to the ent ire debate on the research processes, where she comments, â€Å"research techniques are a bit like fishing flies: you choose the right one for fish you want to catch. No fisherman would use the same kind of fly for twenty different varieties of fish† (51).... her wishes to use in his/her research work depends, as suggested by Kane (1985), on the researcher’s wish, which he must decide as per his requirement and subject. Data Input data output analysis knowledge William M.K. Trochim depicted the methods followed in any research project, in Knowledge based research (fig 1). Fig 1: The Yin and the Yang of Research (Trochim, 1999, 8). The figure represents the framing of the studied material using the Knowledge Base. Left side of figure depicts the research theory, while the right part depicts the research practice, and the theoretical introduction of any research project and the practical aspect on how to formulate the undertaken research project are linked. The left arrows delineate the validity types that must be accounted in any research paper, which is actually concept of providing the reader with a unifying theory for understanding the entire project. The right arrows point to the research practice areas that match the validity t ypes in order to prove the research problem (Trochim, 1999). While conducting a research a researcher may adopt various techniques as per his subject requirements. The various research techniques that one may adopt are conducting interviews, questionnaires, participant observation, and studying written sources (Kane, 1985, 51). Each technique gives a certain form of information and not any other type; however, the techniques can complement each other within one research paper (fig 2). Fig 2: The figure (Kane, 1985, 52) shows the various ‘petal-like’ research techniques that are combined together within a single project. In the figure we find petals representing research techniques, they overlap at the centre, while each overlaps with its neighbour at the sides. The areas that do not overlap

Cheerleading Practice Essay Example | Topics and Well Written Essays - 250 words

Cheerleading Practice - Essay Example Although it was difficult to catch up with the professionals, I poured my heart and soul into the routines and quickly caught on. I continued to dance through the pain in the hope that I was strengthening the muscles around the injury. As time passed, I was asked to audition for Atlantic Art’s dance company and was accepted into a family of incredibly talented dancers. The company included me in a great number of shows, community service opportunities, competitions, and theater projects. Over the years, I traveled to New York for Youth American Grand Prix and competed against ballet dancers from all over the world, danced in The Rock School of Pennsylvania and the Orlando Ballet School. The proceeding years I traveled back to New York, performed in the famous Broadway show ‘Wicked’.   Today, after almost six years, my back does not bother me anymore. I believe dancing has helped my mind and body overcome the obstacles that my cheerleading accident caused.

Regulation of Advertising and Promotion Essay Example | Topics and Well Written Essays - 500 words

Regulation of Advertising and Promotion - Essay Example NAD examines that whether not all the claims being made in the advertisement are true. It also makes sure that the product being promoted on any platform should not mislead the audience as it can be a threat to consumers (National Advertising Division, 2013). NAD may also play an effective role during the promotion of alcohol in school. It makes sure that the sponsors are not misleading the consumers by making them think that they must start the consumption of alcohol before their legal age. NAD would also examine that the whether the claims being made by the companies regarding their alcoholic products are accurate or they are again misleading the consumers. As there are children in school the alcohol companies must keep in mind the guidelines of Children Advertising Review Unit (CARU). FTC or Federal Trade Competition makes fair competition possible between the rivals. FTC also deals with deceptive advertisement. It fosters free trade and restrains the growth of economy within any prescribed area. It oversees all the deceptive issues and then deals with it according to the Federal law. It promotes competition, restrains unfair method of competition and ensures the honest labeling of every product. This regulatory agency is also responsible for creating awareness among the companies about their rights (Protecting Americas Consumer, 2013). Federal regulation imposed during the promotion by alcohol companies can also be quite effective as it will foster healthy competition, not letting any company to practice monopoly. It will let the audience present decide the brand of their choice based on the effectiveness of promotion. No company would be allowed to promote their product unless their product features are same as they have claimed. The significance of both the regulation differs from one another. Self-regulation is imposed for the purpose of the letting the customers know that the product is

No idea Assignment Example | Topics and Well Written Essays - 500 words

No idea - Assignment Example A is a single grade higher than B and the goal is therefore realistic. The goal is timely because it will take two months (Rouillard 47). To raise the performance of the rugby team that I coach, from ten touch downs to twelve, I will train with them on the field for two hours once a week starting next Friday till the last Friday of April 2014. I and the team is the who, training is the what, field is the where, two hours once a week is the when, touchdowns is the which, and raising the performance is the why. Fifteen touchdowns are measurable, training for two hours once a week is attainable, building a capacity to add two touchdowns in one month is realistic and starting next Friday until the last Friday of April, 2014 is my goal’s time bounds (Rouillard 47). To become a more sociable neighbor than I have been, I want to make one new friend in our new neighborhood every month starting in April 2014 so that I will have eight new friends by December 2014. In this goal, I is the who, making is the what, our new neighborhood is the where, every month is the when, new friend is the which and become a more sociable neighbor is the why. Making one new friend monthly and eight friends by December is measurable. The goal to make one friend monthly and eight friends in eight months is attainable. It is realistic that a person can make one new friend monthly and eight months are enough time for it (Rouillard 47). To expand our campus entrepreneurial club by ninety members in the next three months, we will conduct a massive campaign on campus using press, posters, and social media to recruit prospective members. We is the who in this goal, campaign is the what, campus is the where, more members is the which, and expand is the why. Ninety members is measurable and recruiting ninety members in three months is attainable. This goal is realistic because it can be broken down to recruiting thirty new members every month to get ninety in three months

Policy Writing Assignment 1 Example | Topics and Well Written Essays - 1500 words

Policy Writing 1 - Assignment Example 3. Definitions 3.1 â€Å"Discrimination occurs when someone, or a group of people, is treated less favourably than another person or group because of their race, colour, national or ethnic origin; sex, pregnancy or marital status; age; disability; religion; sexual preference; trade union activity; or some other characteristic specified under anti-discrimination or human rights legislation. Workplace discrimination can occur in the recruitment and selection; terms, conditions and benefits, provision of training; and selection for transfer, promotion, retrenchment or dismissal† (AHRC, 2011). 3.2 â€Å"Harassment occurs when someone is made to feel intimidated, insulted or humiliated because of their race, colour, national or ethnic origin; sex, pregnancy or marital status; age; disability; religion; sexual preference; trade union activity; or some other characteristic specified under anti-discrimination or human rights legislation. It can also happen if someone is working in a ‘hostile’ or intimidating environment. Harassment can include telling insulting jokes or derogatory comments about someone’s race or religion; sending explicit or sexually suggestive emails; displaying offensive or pornographic posters; or asking intrusive questions about someone’s personal life, including their sex life† (AHRC, 2011). ... ing employees; psychological harassment or intimidation; assigning meaningless tasks unrelated to the job or even impossible jobs; deliberately changing work rosters to inconvenience particular employees; or undermining work performance by deliberately withholding information vital for effective work performance† (AHRC, 2011). 3.4 â€Å"Racial and Religious Vilification occur where a person engages in conduct that incites hatred, serious contempt, revulsion or severe ridicule against another person or group of people, because of their race or religious belief or activity† (UB, 2010, p.2). 4. Policy Statement This organisation is committed to valuing diversity, thus achieving trust and confident of the community by not tolerating discrimination, harassment, bullying or racial or religious vilification. Unacceptable behaviour jeopardises the harmonious, safe, positive and productive environment possibly affecting the physical and mental health of an individual. The reputat ion of not only the individual but also the organisation or employer as a whole will be ruined (AS, 2010, p.9). Reporting of unacceptable behaviour is strongly encouraged for appropriate action against breaches of this Policy. 5. Responsibility 5.1 Employee or individual responsibility: Employees and executive members are to behave ethically and professionally, whilst being responsible for their own behaviour (AS, 2010, p.7) An individual is liable for causing, instruction, inducing, aiding or permitting another to perform a discriminatory or unacceptable behaviour and may be subjected to disciplinary and/or legal action (TRSA, 2011, p.6) Employees to maintain confidentiality not participate in rumours, as this is an act of defamation and they may face action (AS, 2010, p.28). 5.2 Employer’s

The Wall Street financial reform (2010) Research Paper

The Wall Street financial reform (2010) - Research Paper Example The passing of the law was aimed at making the financial system of the United States more accountable and transparent in order to avoid similar situations in future and ensure that there is a working system in place to protect the money belonging to tax payers (Kolb 112). The law included such major topics as the creation of a bureau for protection of consumer finances, creation of an oversight council for financial stability, the limitation of complex and large instruments of finance and transforming the derivative market to assume a more transparent image. The law also included the introduction of oversight and new requirements for the agencies dealing with credit rating. It also gave company shareholders a say concerning the bonuses paid to their chief executive officers. All these components targeted to strengthen the economy of the United States and protect the consumer against the increased shrewdness of the business world (Kolb 114). Way back in the year 1933, a law called the Glass-Steagall act had placed what was seen as a wall of complete separation between brokerages and banks. The act was largely repealed in 1999 by another act that was aimed at modernizing financial matters in the country. The restoration of the Glass-Steagall act was regarded by some commentators as very vital, with some of them referring to it as the most functional component in the reform of Wall Street. However, the Democratic Party leaders in the house refused to permit an amendment by Maurice Hinchey, a member of the Republican Party. The amendment was meant to restore the Glass-Steagall act as part of the Frank bill of 2009 (Pezzuto 67). Later on in 2009, Hinchey introduced the restoration act of the Glass-Steagall act as a separate bill proposal. Despite the politics that has played on the restoration of the act, the Volker rule, which was introduced by the administration of president Obama has been viewed as the twenty first century version of the Glass-Steagall act. The r ule establishes strict rules on banks against using their money in making risky investments. A few years earlier, in 2002, senator Sarbanes and representative Oxley proposed the Sarbanes-Oxley act. The act was a reaction to the escalating number of accounting and corporate scandals in the United States. Such scandals include the ones that affected Worldcom and Enron. The bill was signed into law by the then president of the United States, George Bush (Carney 48). During the enacting of the Wall Street financial reform act of 2010, the process brought political alignments mainly in the major political parties. The parties still had a large ideological separation since they had just come from an election, during which a large ideological rift had been created. By the Month of May 2010, the bill had been passed by both the senate and the house. However, there were differences in the version from the house and the one from the senate which was referred to the congressional conference co mmittee of the United States for harmonization. The differences that were to resolved in the bills included whether the proposed consumer protection agency was to be independent as suggested by the senate or an affiliate to the Federal Reserve as proposed by the house of representatives. Another difference was whether

HRM - Summary post Essay Example | Topics and Well Written Essays - 250 words

HRM - Summary post - Essay Example The L&D strategies need to be clear and must mention the learning outcomes whilst promoting the self-esteem of employees. Currently, my focus organization has an effective L&D strategy. Within their budget they have created opportunities of learning via classroom sessions, seminars and various job rotations so an employee fully understands and learns different aspects of his job and his role within the organization. As effective as it is, the mundane routine often leads the employees to be strayed. The continuous office routine incorporated with lengthy seminar and classroom session sometimes seem meaningless to the employees. Job rotations too are difficult to manage and incorporate. On the other hand learning from everyday activities or incidental learning must be incorporated in the strategy for a better training. Make the training fun so the employees wish to learn and excel. Providing incentives at the end of training session would optimize the employee’s performance. The employees must be sent on field for some practical knowledge and must be trained to implement these details when they return to the

What is Art for Me Essay Example for Free

What is Art for Me Essay Art is everywhere. It can be tangible or intangible. It can be seen, sometimes heard. It has several forms. Also, there are several ways on how a person can be pleased about a piece of art. One of the things I have learned from this course, HUM 1, is that art in its simplest form is still art. Yes, people may see things differently but there will always be something that will suit our taste. Art surpasses the view of what can be seen and at times, it values beauty over functionality. Art can truly be judged by you, the individual, as far as you, yourself, are concerned, by only one measure. It is not a static but an energy measure. Do not ask what the art is or ought to be, for this is debatable and will inevitably lead to an endless argument. Ask only what it does – not what it does to somebody else, for this again is only hearsay, but what it does to you. No matter how good a painting may be by any and all theoretical aesthetic standards, if it does not do something special to you, then you will seemingly be uninterested about it. Now, let’s take a look at art and the technological advancements our world is bringing forth. When you think deeper, you’ll get to realize both the good and bad sides. The good thing about it is that art joins the flow of evolution and thus it is not outdated. A bad thing is that there are a lot of masterpieces that are wrongly claimed by people who are not the artist to be credited for. Well, obviously, art is something that is timeless. It develops and further develops. The way art is becoming is art itself. It is vital to appreciate art critically but with an open mind, because there are still patterns that are important to follow when we want to discover what it is made of or why was it created. Everything depends on the significance or the meaning the artist wants to give and the impact that he wants to give to the spectators. They might start with different things in mind but when a connection between them is established, rest assured that they’ll both understand what the artwork’s story really is.

Employee recruitment in China

Employee recruitment in China Introduction The introduction of the ‘‘open-door policy in 1978 has sparked exceptional economic growth in mainland China. A significant driving force of this remarkable economic feat remains China as one of the worlds most attractive destinations for foreign capital investment. In 2008, â€Å"foreign direct investment (FDI) inflows reached US$109 billion and recorded a period growth of 41.1% in real terms between 2003 and 2008†. The Chinese government generally welcomes foreign investment and implements a wide range of incentive policies to foreign businesses (Euromonitor, 2010). With the growing importance of the Chinese domestic market to the world economy and introduction of government incentives, large number of international companies has established operations in China. The opening up of the vast market has formed many opportunities and, at the same time, created many problems to foreign enterprises (Siu Darby, 1999). This mainly because of the unique political, economi c and cultural environment different in China, it led foreign investors or expatriates manager difficult to introduce their preferred approach in managing the employees and the organisation in China (Siu Darby, 1999). Human resource management is one of the mostly frequently discussed ( Bjorkman Lu, 1999), as well as managing local Chinese employees away from ones home office is never an easy task (Gross, 2007). The purpose of this working paper is to review the major HRM challenges of multinational enterprises (MNEs) operating in China; the issues they faces when trying to apply global corporate HR policies in Chin with a focus on their justice implications. It begins with review of the recent China employment and recruitment situations, and then the evidences of challenges issues facing of MNE in Chinas HRM practices. In the following section includes several major HR critical issues in training and development and staff retaining. At the end of the section, major issues of employees management included leader developing, cross-cultural expatriates management and managerial effectiveness in cross-cultural are individually introduced. A research area is then identified in the conclusions. Recruitment Recruitment is about selecting and recruiting employees. The purposes of recruitment help MNE to meet the organization everyday jobs, legal and social obligations regarding the composition of the workforce. This increases organizational and individual effectiveness in the short term and the long term (Schuler and Huber, 1993). Analysed by most of the MNE industries, online advertising of recruitment is now a standard part of the recruitment process for them. It has been embraced by technology companies like IBM and cosmetics company Loreal in China evaluates their prospects from online recruitment (Xinhua News Agency, 2010). However, many multinational companies assume that a country with a population as large as Chinas would not have a labor shortage. In fact, the rising demand for Chinese labor has exceeded its supply, and hiring talented employees is even more difficult (Gross Connor, 2007). Chinas rapid economic growth has caused the countrys huge labour force faces difficulty i n providing the right skills needed for many foreign companies. Research found that this is mainly due to inadequate and out-of-date university training; graduates often do not possess the required skills including computer literacy and foreign languages. Cheap labour costs have long been history Chinas advantage over other developing countries which enhance the countrys competitiveness in attracting FDI. But Chinas booming coastal cities are now actually facing a shortage of manual labour, become a major issue for most MNEs manufacturing sector suffer in manual labour recruiting (CRIENGLISH.com, 2010). Guangdong, one of the economic powerhouses in South China Province, reported a shortage of half a million workers as business has skyrocketing for many companies (Xinhua News Agency, 2010). Some manufacturers closed down production lines because they could not find enough workers. â€Å"Low-wage workers are fading from the scene†, leading foreigner investors struggle with near double-digit unemployment (Xinhua News Agency, 2010). However, â€Å"higher wages could ease labor shortages by prompting factories to reduce their work forces† (New York Times, 2010). Hence the provincial authority has adjusted the minimum wage by an average of 21% to attract the labour mainly blue collar. â€Å"The rise will bring the minimum wage up to 1,030 yuan (150 U.S. dollars) in the provincial capital, Guangzhou, and to 920 yuan in Dongguan, a major manufacturing center† (Xinhua News Agency, 2010). Similarly to other booming regions like coastal cities of Fujian Province, Jiangsu Province and Shanghai City raised its monthly minimum wage rate by 13 percent to 960 yuan. According to Euromonitor (2010), â€Å"Chinas productivity stood at US$6,286 per person employed in 2009, significantly up from US$2,641 in 2004 owing to the countrys strong economic performance†. Critically, recruitment of factories manual labour is becoming an issue for many MNEs in China and employers have to increase their starting pay to attract them. Accordingly, the hiring of blue-collar is getting tougher and tougher in China because of one-child policy adopted by China in 1978. The parents with child born in late 1980 and early1990s are normally at middle-class income groups; as a result they can afford to send their children up to tertiary education. Overtime these groups of children are in the age of 20s now and are more educated and hence no longer willing to work in factories. They are far too optimistic about their career options and see no need to work hundreds of miles from their families. Besides, the new generation of workers born in the 1980s and 1990s are aware of their employment rights. For example, â€Å"unions have begun to aggressively exercise their rights by engaging in organizational efforts with large multinational companies such as Intel after informal discussions have failed† (Gross Connor, 2007). Commonly in China, Younger Chinese become major trends in the current labor market. They not only dem and higher pay but also ask for better opportunities for career development. Similarly, skilled middle managers are extremely sought after (Gross Connor, 2007). The Cultural Revolution had invaded the education of those born between 1950 and 1965 (Wang, 2002). During that time, people of this generation were sent to the countryside to work in agriculture. The so-called â€Å"Cultural Revolution Generations† in China are less recruit due to their lacking in skills (Gross Connor, 2007). While recruiting qualified Chinese labour is challenging from both of legal and human resources standpoint (BizTimes, 2007). Employers that are willing to take the time to understand the Chinese labour market and recent economic trend of employment will likely be successful. Training Training is mainly on-the-job and is seen as a lifelong process (Fischer, 2000). It focuses on employees knowledge, skills, attitudes and personalities (Human Resource Development Review, 2002). These enable staff members to discharge their job related skills and duties professionally and effectively (Grzeda, 1999). Training for newly hired employees have to go classroom curriculum like company policies, labor law, company culture, compensation packages, company expectations, company goals, company KPI (Key Performance Index) and of course hands-on equipment training (Kleiman, 1997). Companies in China for example in Electronic Industries spent between 1 to 3% from the overall input cost on training. (Xiao J Tsang M.C, 1999) But the number is gradually going up for a simple reason due to high attrition rate, particularly amongst the younger workers. The attrition rate always a worsening effect on the company as other FDI move in and attract those workers with managerial experience, offering better pay rates and further training opportunities (Randeree, 2009). The rich and wealthy companies are willing to pay handsomely for the experienced staffs of other companies and competitors. As in common, the culture of pinch staffs from one another is common in China (Wong, 1999). Despite Chinas high adult literacy rate of 94.5% in 2009, the countrys huge labour force faces difficulty in providing the right skills needed to support Chinas rapid economic growth (www.euromonitor .com). Research finding has showed the local Chinese graduates do not possess the required skills including computer literacy and foreign languages due to out-of-date university training. In order to cope with skills shortage problem, training programme provided in MNEs suit various needs (Cheung, 2004). They include overseas training programmes, on-site management skills development programmes and language courses (Wang, 2002). In fact, staff Training can help MNEs in China reduce turnover. Young Chinese professionals and graduates are attracted to the training opportunities that foreign companies can offer (Shen, 2006). Most of Chinese are not well-versed in spoken English language. Many MNEs send their employees for overseas training to enhance themselves in spoken English and true un derstanding of Western business practices (Waxin, 2007). Besides, it also creates a closer bond between employees and a better understanding of company culture (Ritchie et al., 2001). Rather than that, every company has their own training centre equipped with comprehensive training systems and real-live hand-on training equipments. Many of them have established their own training facilities. These programs have proven effective in building company loyalty and increasing retention (Meier, 1995). These may cost heavy, but they cannot do without it. Carrefour China, an example, established a Carrefour China Institute (CCI) in Shanghai in year 2000 to train Chinese managers (China Daily, 12 AUG 2008). Since then, the school has trained about 15,000 managers, and 40,000 employees have attended a range of training programs for self improvement. Regularly, a number of local managers are sent off to Europe for further training to gain greater overseas market knowledge and experience. Wal-Ma rt Chinas regional training centers, also located in Shanghai are other examples of winning internal training programs (Gross and Connor, 2007). Retention The most valuable assets of every MNE are its labor force; retaining them has become a challenge to company management because of varied employee needs (Som, 2005).Employee retention is critically benefited for an organization save the cost of turning over a staff position (Berry, 2008). For most MNEs in China, recruiting is only half the game. However, the biggest challenge that companies face, by a significant margin, is difficult to keep the talent employees as well as attract the excellent and qualified candidates among the masses. It is gradually increase complexity for companies in China to retain key talent, mainly as the lure of higher salaries affect the Chinese to abandon posts for more lucrative positions. Empirical study showed Chinese employees aged between 25 and 29 shift jobs most frequently, which implies this group of employees is the hardest to retain (www.mercer.com.hk). Hewitts 2009/2010 data shows that most Asian companies continue to experience double-digit volu ntary turnover rate, particularly China reported the top four markets which is the highest turnover rate after India, Australia and New Zealand (www.hewittassociates.com). Obviously, the high employees turnover rate has become the significant issue of most organization. Significantly, it has morale and financial impact on the daily operation of an organization (Cox Blake, 1991). While many would believe comparatively high turnover rate in China mainly due the competition for talent along with better wages offer from competitors (Byman, 2007). MNES move in and attract those worker with managerial experience, offering better training opportunities (Whiteley et al., 2000).The survey of ‘Employee Retention in China 2006–2007 sheds light on why employees determine to stay or leave and what organizations can do to stanch the accelerating outward flow of human talent (Howard et al., 2007). Survey respondents included 215 HR professionals and 862 employees in a wide range of organizations operating in China; while 81 % participants organizations were multinational (Work and life in China, 2008). To summaries the findings, the cause of turnover is the availability of better career opportunities elsewhere, particularly the growing entry of new MNES each year (Tung, 2007). HR professionals from survey described that competitors presenting a better salaries and sufficient compensation, but also noted the impact on retention of regional salary differences between Chinas coastal and inland cities (Howard et al., 2007). Not surprising, organizations that face high employee turnover often suffer negative residual effects among remaining employees. In short, the misunderstanding of employees needs is difficult for a company to retain and prevent turnovers (Branham, 2005).However, successful companies in China rely on a relatively small group of key talent to drive the business forward (Speth and Doeringer, 2006). The key strategy of MNEs applied to retain the talents further discuss in next paragraph. A high rate of turnover usually forces an organization to face difficult dilemmas (Wong. Wong. Hui Law, 2001) More and more people change numerous jobs within a year rather than choose to grow in one; and this has also been a problem for corporate management. Employee turnover demands management attention because it incurs costs in rehiring, training, placement, and motivating employees (Aberra, 2008). However,high employee satisfaction with working style of an organization should bode well for retention (Howard et al., 2007). Retaining often focus on opportunities for employers to promote the right employees or tangible rewards like compensation or remuneration based on appropriate performance appraisal (Whiteley et al., 2000). For instance, a comprehensive reward system can be a kind of rewarding either pay for hours worked or pay for pieces of work completed. Besides, most companies have retention bonuses to retain the key staffs and key talents. Some of the retention programs ar e sponsor for further educations, overseas training, stocks option and career advancement opportunities (Branham, 2001). Of cause conditionally, the employees who took the programs like further educations or overseas training have to be borne with company for number of years pending the amount spent. Commonly, talented employees would be less likely to leave the company ones if they are well compensated and motivated (Hong Chao, 2007 p. 217). However, sometimes retention method was inconsistent with its value in specific instances. Therefore, organizations should aware to these specialized occasions when developing strategies for retaining talent. Managing Employees Leaders developing For foreign companies operating in China, the difficulties are magnified by the talent shortage for future leader, particularly of managers and executives. For example, approximately 60% of companies surveyed in Hewitts 2003 Best Employers in China study reported shortages in leadership skills (www. hewittassociates.com). It further reported many talented executive have been lured away from an MNE job into a well-paid position with a leading Chinese company. For many foreign investors, developing future leaders tends to be very difficult in China mainly of rapid turnover. A good example is the America firm Leshan-phoenix Semiconductor Cooperation, in Sichuan Province, struggling with annual turnover rates of their local managers of 20% or more (onsemiconductor.com, 2010). This is mainly because demand for strong leadership executives far exceeds supply; they are tempted to leave their current position for higher pay and a bigger title (Meridian Resources, 2007). In fact, a competent leader helps multi-national corporations work effectively in the Chinese workplace. As foreign company enter fully into China marketplace, it forming competing domestically with local corporations. High turnover makes planned, consistent leadership development extremely difficult. Cross-cultural expatriates management China is the top expatriates destination followed by the U.S., UK, Singapore and Switzerland, survey reveals (kwintessential.co.uk, 2009). But, predicament comes from greatest challenges of expatriates failure grown concern for many multinationals in the evaluation of managerial performance (Leunga and Kwong, 1999). Evidence, empirical figures finds Western expatriate failures in China to range as wide as 25% to 70% (Harzing, 2002; Selmer, 2002). Significantly, such high failure rates potential impact business relationships between Western expatriates and Chinese organizations. Whereby, a financial loss can be inferred, due to damage to business relationships as a result of low commitment levels commited by expatriate (Lund Barker, 2004; Harzing, 2002). Lund Barker (2004) further cited such financial loss is estimated to range from US$250,000 to US$ 1,000,000 per expatriate. Further, Goodall Warner cited in Black (1988), 2007) showed there is high percentage up to 40% of expatriate managers terminated their foreign assignments early of their poor performance. Eventually it represents the organizational failure to manage human resources internationally (moinul.com, 2007). However, there might be several reasons why many expatriates fail to deliver the objectives. Research found that (Hays, 1974; Feng Pearson, 1999), they are three exact dimensions have been recognized as related with their overseas performance: the environment, the task, and the individual. This is due to expatriates are often faced with radically unfamiliar cultures, politics, language differences, length of assignment, and legal systems (Rahim, 1983; Feng Pearson, 1999). Sometimes, there is not inability from expatriates, but culture conflict affect local Chinese managers are less likely than their foreign counterpart to handle independent decision making responsibilities (Leunga Kwong, 1999). Chinese and expatriate managers may have different principles in judging within their job scope as well as criteria used for performance evaluation. Managerial effectiveness in cross-cultural Culture is an important contextual issue in employees management study. In general, management is closely related to the culture (Drucker, 2003). According to Wang (2002), the communist style of education and the long history of China differentiate the cultures of organization management between Mainland China from those of Asian countries, American and European cultures. This is especially true for MNEs who have operations on a global scale and employ people of different countries, ethical and cultural backgrounds. Cultural difference can have a direct impact on individual managerial effectiveness (Goodall Warner, 2007). It affects the motivation and satisfaction manager as well as staff; and effectiveness of key organizational systems such as recruitment, training, performance evaluation and rewards (Goodall Warner, 2007). Sometimes cultural sensitivity drove the management effort since the different in culture of management concept. Take the case study of Japanese T.L. Electroni cs Company based in China for example, the Chinese workers commented the style of Japanese management is not conductive their expectation (Whiteley et al., 2000). It is generally assumed the HR management approach is due to remarkable cultural difference between the parent country and the host country. In fact, a MNE should focus on a combination of global integration and local adaptation, allowing its employees to â€Å"think globally, act locally†. To ensure global thinking, the global company has to encourage the local employees to accept the corporate culture and values. For instance, Chinese employee who employed in the Western setting is encouraged to learn the Western-style organization management and communication skills. Meanwhile, operations of the Company have to adjust to comply with the legal requirements and services that reflect the Chinese culture. Conclusions In conclusions, recruiting the right people, training in right time, retaining the best staff, and employees empowerment of recent human resource management are difficult tasks for any MNEs operating in China. Chinas rapid economic growth has created more job opportunities but it also creates more opportunities for labour turnover to others organizations with higher paid indeed. This heavy labour turnover in China has been a substantial problem in managing Chinese employees .This hindered many multinational corporations localization plans because those talents who have been trained for succession have usually ended up as the focus of aggressive recruiting efforts by other organizations. Eventually, they face a dilemma of whether it is worthwhile to invest in better compensation packages and training programs, because it might possible happen with the employees leaving the organizations at the end. However, every issue has its balanced view of its advantages. Still, China Government, Provincial Government, City and Town Government give the best support to foreign investors in terms tax rebate, , free land, training cost subsidizes and so forth. Even though the labour cost (cost on training and wages) is growing fast in China but it is still cheaper than America, Europe and most of well to-do countries in Asia like Japan, Korea, Singapore, Taiwan and Hong Kong. At least, the great population of China is having highly educated workforce with hungry for knowledge, it is easily trainable. References Xinhua News Agency, 2010. ‘Chinese manufacturers learn to love labor lost http://news.xinhuanet.com/english2010/china/2010-03/25/c_13224772.htm Gross, A., Connor, A. (2007). China Recruiting and Retention Issues http://www.pacificbridge.com/publication.asp?id=81 BizTimes. (2007). Employee recruitment in China is challenging New York Times. 2010. ‘Defying Global Slump, China Has Labor Shortage http://www.nytimes.com/2010/02/27/business/global/27yuan.html