Effective Complaint Handling Systems, Customer Loyalty, and Sustainable Financial Performance in Pakistani Banks: A Marketing and Accounting Perspective Using PLS-SM

Abstract Focus of this study is to find out the important factors or determinants that would help the organization for developing an effective complaint handling system in Pakistan. Furthermore, the study also tries to explore the relationship exists between those extracted determinants and customer loyalty. For this purpose, a survey based on a five-point Likert Scale has been conducted to collect the primary data from the individual bank customers. 315 respondents of different banks situated in Pakistan are the sample size of this study. Out of 315 respondents, 300 respondents successfully filled the questionnaire and returned it to the researcher which means the response rate is almost 95.24%. After conducting the detailed analysis, nine (9) important factors or determinants i.e., visibility, accessibility, responsiveness, objectivity, confidentiality, complaint handling charges, customer focused approach, accountability and continual improvements are found which may help for developing an effective complaint handling system. PLS analysis shows that, the hypothesis related to accountability, customer focused approach, continual improvements, confidentiality, objectivity, responsiveness, and visibility are accepted because of significant p values while the hypothesis related to accessibility and complaint handling charges are not accepted due to greater/insignificant p values. Keywords: Visibility, Accessibility, Responsiveness, Objectivity, Confidentiality, Complaint Handling Charges, Customer Focused Approach, Accountability, Continual Improvements, Complaint Handling System, Customer Loyalty, Marketing