Residential mobile phone users complaints' in Spain

Consumer satisfaction is a key determinant of customer retention, profitability of operators, consumer welfare and a strategic variable for competition and international comparisons. Spain's mobile customer satisfaction is the lowest in the European Union according to recent EU studies (SMREC, 2013). Consumer complaints are numerous according to official statistics. In turn, consumer complaints (and how well they are dealt with) influence customer satisfaction and retention. This paper analyzes the determinants of the different types of complaints filed by residential consumers in Spain using the survey CIS (2009) and the report Ministerio de Industria (2012a). The first survey uses disaggregated information on 4,249 residential consumers while the report summarizes the complaints received by the Ministry of Industry's Telecommunications Customer Service Office. Econometric models are specified and estimated to quantify the effects. The results are used to characterize the profiles of typical complainers as well as the possible existence of a complaints divide due to income, age or education. Finally, policy recommendations are proposed to improve customer satisfaction and diminish the reasons for filing complaints.