The Effect of Proper Complaint Handling on Customers’ Satisfaction and Loyalty in Online Shopping

Online shopping still imposes some challenges despite many benefits. That’s due to the lack of physical stores and the face-to-face physical interaction between the buyers and the sellers. Customers find difficulty to complain through email or phone when receiving an online order that falls below expectations. This research tests whether rapid complaint handling, resilience and service recovery management, may lead to customer loyalty and satisfaction. Also, whether a positive word of mouth increases customer base and retention, taking the Lebanese online shopping as our research area. The internet capacity with its scope and interactivity, provides retailers with a rich and flexible new channel. Despite the growing popularity of online shopping in Lebanon, lack of quality internet, security concerns, and lack of trust in the complaint handling platforms used prevents Lebanese from fully utilizing internet’s full potential. Self-constructed structured questionnaire was presented to 100 respondents who experienced online shopping in Lebanon. Results showed that, loyalty customer base relies on rapid and flexible customers’ complaint handling, encouraging positive word of mouth. In addition to fair, customized and creative compensation