Management and Development Process

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Intense competition among service organizations to gain economic benefits has become one of the most challenging issues to the field of marketing. Besides, paying thoughtful attention to fines against customers is very important for organizations because of their benefits and adverse effects. Accordingly, this study sought to examine the relationship between the characteristics of these fines and service organizations’ customer satisfaction, loyalty and word-of-mouth communication in Kerman province. The statistics include all the users of these services institutions who have suffered from fines and the sample is composed of 385 people. To assess reliability of the questionnaire, 30 copies of it were randomly distributed and collected. The Cronbach alpha coefficient was 95 % for all questions. The research results indicate a significant relationship between the severity of penalties, adequacy of explanation and customers’ dissatisfaction. The results also suggest the existence of a significant relationship between customers’ dissatisfaction, word-of-mouth communication and loyalty.

Keywords: Organization Fines, Satisfaction, Loyalty, Word-of-Mouth Communication, Service Organizations

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