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(Naumann, Jackson and Rosenbaum, 2001). Management of customer satisfaction and customer retention, prerequisites of organizational success, has thus gained further importance (Maxham III, 2001) due to increasing number of alternatives in a competitive business environment (Eccles and Durand, 1998). Complaint management philosophy of an organization could affect both customer retention and profitability (McAlister and Erffmeyer, 2003). This is particularly important in today's business in which customers have become more sophisticated (Sujithamrak and Lam, 2005); and they search more in the process of purchasing (Hoffman, Kelley and Rotalsky, 1995); demand to have more options (Peterson, 1995); and respond boldly when encounter service failures. They may easily complain in case of dissatisfaction and/or they may negatively react against the service failures (Smith, Bolton and Wagner, 1999 …