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Discusses customer dissatisfaction and how it is expressed. Reports on a study showing that customers will complain to management if the problem is severe and if they are encouraged to participate in service management, whereas if service firms create barriers within the complaint‐handling process and set up luxury‐oriented and aloof service images, customers will adopt more harmful negative word of mouth forms of complaining. Proposes ways of managing customer complaints, for controlling the more harmful types of dissatisfaction and for maximizing opportunities to develop loyal customer bases through effective handling of problems.

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