Conciliation, Mediation and Arbitration
If complaints cannot be resolved directly between the consumer and retailer or manufacturer, they should be referred to third-party dispute resolution. Third-party mechanisms use the services of unbiased individuals or panels to resolve disputes through conciliation, mediation and arbitration.
Conciliation: - A neutral conciliator brings the parties together and encourages them to find a mutually acceptable resolution to the dispute.
Mediation: - A neutral mediator becomes actively involved in negotiations between the parties. The mediator can propose a resolution, but cannot dictate a settlement of the dispute.
Arbitration: - An independent individual or panel hears the facts on both sides of a dispute and reaches a decision. Usually both parties have previously agreed to abide by the decision, but in some systems, only the business agrees in advance to abide by the outcome of the arbitration.
Third-party dispute resolution is advantageous to business because it enables expeditious, economical and fair complaint resolution without government regulation or legal action. In fact, government agencies encourage the use of third-party mechanisms when complaints cannot be resolved directly between buyer and seller. Proponents of third-party systems point out that their use can help make manufacturers and retailers more responsive to consumer problems. By submitting disputes to a neutral decision-maker, a business can demonstrate goodwill through its willingness to seek unbiased solutions to consumer complaints.
A small percentage of consumers and businesses seek more formal third-party complaint resolution in small claims courts. Use of the courts can be cumbersome and costly for both sides and can usually be avoided if a good faith effort is made to resolve disputes at the company level or through informal dispute resolution.
Table of Contents
Handling Complaints : A Critical Form of Communications
Why is Complaint Handling Important?
Management's Role
Cost and Savings
Complaint Handling Staff
Publicizing the Complaint Management System
Co-ordination with Others in the Distribution Chain
Third-party Dispute Resolution
Basic Steps for Effective Complaint Management
Conclusion
Complaint Management Checklist
Entire Guide
Handling Customer Complaints - Third-Party Dispute Resolution to Resolve Customer Complaints
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