Complainer characteristics when exit is closed

Abstract

Purpose The paper seeks to investigate whether the demographic and socio‐economic characteristics of complainers in a monopolistic market are different from those in a competitive market. Design/methodology/approach A literature review is undertaken, with particular emphasis on the socio‐economic characteristics of complainers. An empirical study is then presented. The empirical study consists of a large survey of satisfaction among consumers of the Norwegian Office for Social Insurance – a monopolistic governmental service provider. Findings The study reveals that complainers in this monopolistic market belong to lower socio‐economic groups. They typically have low incomes, are outside the labour market, have a modest standard of accommodation, and live alone. Research limitations/implications The study analyses only one type of monopolistic institution in only one country. The generalisability of the findings might, therefore, be limited. The study demonstrates that consumer complaint behaviour in this monopolistic market differs from behaviour reported in competitive markets. Moreover, the study indicates that complainers in this monopolistic market are confronted with different complaint barriers when exit is closed. Practical implications The findings of the study suggest that a monopolistic institution should encourage dissatisfied consumers to complain, and should make internal switching possibilities known to consumers. Originality/value This paper is the first to study complainer characteristics in a monopolistic market structure empirically. The paper questions previous assumptions that complainers necessarily belong to upper socio‐economic groups.

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