Although the importance of complaint management for the success of companies is acknowledged, it is little noticed in comparison to other issues of customer relationship management. In literature on complaint management we barely find concrete approaches that focus on a sustainable increase of shareholder value as well as on dynamic effects like e. g. repurchase behavior and word of mouth. By the growth of online social networks along with the evolution of Web 2.0 technologies, the importance of these effects on value-based management is increasing. As a consequence, there is a lack of wellfounded decision making on how to allocate resources for complaint processing in business practice. This paper contributes to embedding the concept of value-based management in the field of complaint management particularly by considering the dynamic effects of repurchase behavior and word of mouth. It is based on a design research approach where the artifact is a basic system dynamics simulation model which was prototypically implemented. The results of the paper show how customer equity – as a measure for shareholder value – is influenced by dynamic effects. The model is meant to be adapted to different company- or industry-specific environments.
Meier, Marco and Reinwald, Dieter, "A System Dynamics Approach to Value-based Complaint Management Including Repurchase Behavior and Word of Mouth" (2010). ECIS 2010 Proceedings. 55.