The paper analyzes the unique dimension of managerial perceptions relating to complaint management strategies adopted by banks and dwells on whether or not the expectations of customers are being fulfilled by their respective banks. The study explores the complaint handling mechanisms adopted by the banks (service recovery methods), keeping in view dimensions of customer complaining behavior and the importance assigned by them to put such a system in place. The author formulated a strategy which could give insights relating to the manner in which customer grievance redressal system has to be handled. The research design of the study is exploratory and uses the survey method.

Marketing practices in India are undergoing a subtle transformation. The focus has shifted from broadly defining segmentation and targeting strategies to micro segmentation and value-based practices. The changing consumption and savings profile of the Indian consumer have opened doors for many marketers who want a share of the wallet of the `great Indian consumer'. At present, India is witnessing a marketing boom not witnessed before. One of the major reasons for this phenomenon is the rapid growth in the services sector. After liberalization organizations started giving more importance to `services'. It is sometimes felt, that one of the major areas where services marketing is distinct from product marketing, is in the level of interaction between the service provider and the service consumer. Real marketing takes place at this `confluence' and many relationships are created or destroyed at this confluence. Consequently, businesses are trying to offer high quality services to ensure customer satisfaction leading to customer repurchase and building long-term customer loyalty.

However, no service can truly offer a foolproof experience, which is why, service failure, remains a problematic issue for almost every firm in the world (Ennew and Shoefer, 2003). Ensuing customer evaluations, could affect the company's bottom line either positively or negatively. Customers might become more loyal and recommend the firm to their friends and relatives or even exit the firm and badmouth their negative experiences to the public. Banking operations abound with several critical incidents of service `accidents'. Despite its strategic relevance, many service companies (including banks) are not giving complaint management the importance it deserves (Stauss, 2002). Corrective measures such as complaint management are only punitive and not preventive. Moreover these are often vaguely defined and not explicit enough to help the consumer in any way.

Management Research Journal, Empirical Study, Management Strategies, Marketing Practices, Value-based Practices, Micro Segmentation, Services Sector, Banking Operations, Quality Management, Literature Review, Management Review, Service Industry Management, Market Research.