NUMBERS VERSUS WORDS: A COMPARISON OF QUANTITATIVE AND QUALITATIVE DATA ON SATISFACTION WITH COMPLAINT RESOLUTION EFFORTS

Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, 2004 by Hogarth, Jeanne M, Hilgert, Marianne A

ABSTRACT

Using data from the Federal Reserve System's consumer complaint program, this paper explores the similarities and differences in consumers' quantitative evaluation and qualitative comments regarding their satisfaction with the program. Quantitative analysis was based on seven items from a consumer satisfaction questionnaire. The qualitative comments were evenly split between positive and negative. Some related directly to the work of the complaints program while others related to much broader issues. These two data sources appear to reinforce each other. The comments provide similar information to that gleaned in the quantitative portions of the questionnaire, but provide additional insights on the quantitative data, pointing out specific areas within the areas of timeliness, thoroughness, and communication that could be targets for improvement.

INTRODUCTION

There's a saying that "a person with two watches never knows what time it is" - two sources of information may just as easily be in conflict as in agreement. So it is with managers charged with monitoring consumers' satisfaction with their products or services - they may have both quantitative and qualitative data about the same issue, and these data could be either at variance or in agreement with one another. If the qualitative and quantitative data reinforce each other, the manager's task is easy - fix what's broken and leave the rest well-enough alone. However, if the data are disparate, then decisions about what to fix - or even knowing what's broken - can be difficult.

The goal of this paper is to explore similarities and differences in consumers' quantitative evaluation and qualitative comments regarding their satisfaction with the consumer complaint program of a U.S. federal agency. Our study is motivated not only by a desire to improve the complaint program but also to improve customer feedback mechanisms. While quantitative data is relatively easy to manage and analyze, qualitative data is fairly resource intensive to sift through and analyze. If there are differing results from quantitative and qualitative data, then we need to explore ways not only to improve the program but also to improve feedback so that we can obtain consistent results. From an agency perspective, we want to gain a broader understanding of consumers' perceptions and experiences with the complaint process and to identify opportunities for improvements in the program. From a research perspective, we want to know more about the relationship between quantitative and qualitative inputs when assessing satisfaction.

In this paper, we begin with an overview of the Federal Reserve System and its Consumer Complaint program. We then explore consumers' satisfaction with the complaint process, measured quantitatively. Next, we explore consumer's satisfaction as seen through their qualitative comments. Finally, we discuss the implications of the similarities and differences in our findings, both for the organization and for the research community.

BACKGROUND ON THE FEDERAL RESERVE SYSTEM

The Federal Reserve System, the central bank of the United States, was established by law in 1913. The System includes a Board of Governors ("the Board") based in Washington DC and 12 regional Federal Reserve Banks. One of the Federal Reserve's general duties is "supervising and regulating banking institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers" (Board of Governors of the Federal Reserve System, 1994, p. 1). Financial institutions that are statechartered can join the Federal Reserve, becoming "state-member banks." The 12 Reserve Banks regularly examine these state member banks to determine the safety and soundness of the institutions and their compliance with numerous federal banking laws.

As part of its role in protecting the credit rights of consumers, the Federal Reserve also oversees financial institutions' compliance with federal consumer protection laws that deal with consumer credit and financial services such as the Truth in Lending, Equal Credit Opportunity and Electronic Fund Transfer Acts. A complete listing of the laws and regulations for which the Federal Reserve is responsible can be found at www.federalreserve. gov/Regulations/default.htm. Another responsibility involves investigating and resolving complaints filed by consumers against state member banks, primarily complaints that are related to the consumer credit and financial services area. Federal law specifically, section 18(f) of the Federal Trade Commission Act, 15 USC 57a (f) - mandates that the Federal Reserve investigate and resolve consumer complaints filed about state member banks. The act provides:

In order to prevent unfair or deceptive acts or practices in or affecting commerce (including acts or practices which are unfair or deceptive to consumers) by banks... [the Federal Reserve] shall establish a separate division of consumer affairs which shall receive and take appropriate action upon complaints with respect to such acts or practices of banks ... (Pubic Law 93-637, 1974).