scholarly journals A Study on Service Failure That Influence Repurchase Intention in Online Retailing: A Study among Online Shoppers in Klang Valley

2019 ◽  
Vol 136 ◽  
pp. 04088
Author(s):  
Tan Chee How ◽  
Ho Khang Yi ◽  
Salini Devi Rajendran

Online retailing sector is a huge potential market with boundless prospect, so now, reducing service failures and increasing customers’ repurchase intention has become the first mission for every online retailer in order to increase their competitive advantages and market shares and to become the industry leader. The goals of this study is to identify the types of service failures that the online shoppers experiencing and which service failure is most critical toward repurchase intention of online shoppers. SPSS statistics analysis method has been used to analyze the data collected from the respondents. According to the result, it confirms that there are five types of service failures have significant relationship to the repurchase intention of online shippers. This study may likely to be a reference for related online retailer to examine their operation performance and customer loyalty in order to provide better services and boost up business in online retailing industry.

2019 ◽  
Vol 4 (1) ◽  
pp. 13
Author(s):  
Yeshika Alversia ◽  
Rizky Wijayanti

<em>The shifting pattern of shopping habit into a digital nowadays perceived by the business players as the trigger of the growth in e-commerce and e-marketplace. Indonesia is currently one of the largest markets in Southeast Asia for online shopping. On the other hand, it is inevitable that there are still many obstacles and problems that defer the optimized growth of e-marketplace in Indonesia. There are customer concerns about issues that may arise when they do online shopping. Service failures that often arise eventually encourage customers to complain. Failure in service that lead to the emergence of various complaints from customers is an inevitable thing. Each company must prepare an optimal strategy to manage those complaints. The objective of this research is to find out whether there is a difference effect of service failure explanation in the form of excuse, justification, reference and apology on customer satisfaction and repurchase, in the high level of problem condition compared to the low level of problem condition, for the case of online shopper e-marketplace in Indonesia. Furthermore, this research is conducted with the purpose to build the best strategy of giving response using service failure explanation (i.e. excuse, justification, reference and apology). Researchers use a scenario-based experiment as the method and then all the data were analysed using T-test and ANOVA. Total 325 respondents of online shoppers in Indonesia were collected, and the results revealed that apology and justification are the best choices for responding customers’ complaints.</em>


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Erlinda Nusron Yunus

PurposeThis study examines the different effects of service recovery strategies on customers' future intentions when online shoppers were experiencing delivery failures. Two types of problem severity are evaluated: wrong-product delivery (issues with the product quality or quantity) and late delivery. This study also investigates the impact of service criticality on the relationship between service recovery strategies and customers' future intentions.Design/methodology/approachThis study employs experimental research with 123 online shoppers as participants. Following the results, a subsequent test is conducted to examine the effect of participants' demographics on future intentions. Finally, the current study elaborates the findings using qualitative research, interviewing both sides impacted by the service failures: online shoppers and e-retail managers.FindingsThe findings show that complementing product replacement with monetary compensation is the most effective strategy to improve repurchase intention after a dissatisfaction moment. This effect is indifferent to service criticality and severity. Age influences the participants' repurchase intentions, in which younger people are less tolerant of service failures. In contrast, gender and education level do not provide any differences. To prevent delivery failures, managers participating in this study suggest several best practices regarding systems and infrastructure, people and coordination and collaboration with logistics partners.Research limitations/implicationsThe study mainly examines a limited type of service and service failures. Further studies are encouraged to expand the variables and scenarios, as well as to employ more distinctive methods, to enrich the findings related to recovery strategy in the e-commerce industry.Practical implicationsGiven proper compensation, service failure could create momentum for online retailers to boost customer loyalty. This study suggests that managers design the most effective service recovery to win customers back to the business.Originality/valueThis paper enriches the literature related to a service recovery strategy, particularly within the online shopping context.


2018 ◽  
Vol 32 (6) ◽  
pp. 755-766 ◽  
Author(s):  
Xiaofei Tang ◽  
En-Chung Chang ◽  
Xing Huang ◽  
Meng Zhang

Purpose A combined model involving the intensity of negative emotions and the strategic combinations (timing and means) of service recovery is developed. The purpose of this paper is to evaluate the performances of these different combinations through customer satisfaction, repurchase intention and fitting curves between the two under hotel service scenarios. Design/methodology/approach A 2 (recovery timing: immediate/delayed) × 2 (recovery means: psychological/economic) × 3 (type of service failure: failure in a delivery system/failure in responding to customer needs/improper employee behavior) between-subject experimental design was used with 456 participants. Findings The results suggest that immediate and economic recovery effectively raises the service recovery evaluations from customers with low-intensity negative emotions, whereas delayed and psychological recovery helps customers with high-intensity negative emotions to give higher evaluations. Originality/value When service failures happen, the strategies for and timing of recovery directly influence customers’ service recovery evaluations. This study sheds light on the role that negative emotions play in the process of service recovery and provides implications for service industry managers.


2020 ◽  
Vol 12 (12) ◽  
pp. 5119 ◽  
Author(s):  
Taehyee Um ◽  
Taekyung Kim ◽  
Namho Chung

To gain competitive advantages and sustainable service innovation, hotels are considering artificial intelligence technologies (AI), including robots, kiosks for service automation and chatbots. However, due to the change of the service process and unfamiliar communication interface, hotel customers may have difficulties in adopting the new change. In this paper, we tried to find out if the failure of AI-based services would affect customers’ perception. For this, we designed the experiment by separating AI (i.e., chatbot) services and self-service technology (SST, i.e., pad) services and service failures and successful cases, respectively. As a result, SST showed more positive perceptions and revisit intention in the successful service situation. The service failure situation showed no differences between chatbot and SST. In addition, novelty and the need for interaction characteristics of customers showed significant differences between groups in terms of service success and failure, respectively. Additionally, we explored negative word-of-mouth (WOM) to learn further effects by service failures and successes.


2019 ◽  
Vol 4 (01) ◽  
pp. 13
Author(s):  
Yeshika Alversia ◽  
Rizky Wijayanti

<em>The shifting pattern of shopping habit into a digital nowadays perceived by the business players as the trigger of the growth in e-commerce and e-marketplace. Indonesia is currently one of the largest markets in Southeast Asia for online shopping. On the other hand, it is inevitable that there are still many obstacles and problems that defer the optimized growth of e-marketplace in Indonesia. There are customer concerns about issues that may arise when they do online shopping. Service failures that often arise eventually encourage customers to complain. Failure in service that lead to the emergence of various complaints from customers is an inevitable thing. Each company must prepare an optimal strategy to manage those complaints. The objective of this research is to find out whether there is a difference effect of service failure explanation in the form of excuse, justification, reference and apology on customer satisfaction and repurchase, in the high level of problem condition compared to the low level of problem condition, for the case of online shopper e-marketplace in Indonesia. Furthermore, this research is conducted with the purpose to build the best strategy of giving response using service failure explanation (i.e. excuse, justification, reference and apology). Researchers use a scenario-based experiment as the method and then all the data were analysed using T-test and ANOVA. Total 325 respondents of online shoppers in Indonesia were collected, and the results revealed that apology and justification are the best choices for responding customers’ complaints.</em>


2000 ◽  
Vol 14 (6) ◽  
pp. 513-528 ◽  
Author(s):  
Adrian Palmer ◽  
Rosalind Beggs ◽  
Caroline Keown‐McMullan

Author(s):  
Hyunseok Song ◽  
Kevin K. Byon

This study was designed to examine the moderating effects of the power–distance belief (PDB) on the relationship between employees’ service failures and customers’ transactional and non-transactional outcomes in a fitness center context. To test the relationships among these variables, we employed two pretests and a main experiment. In Pretest 1, a critical incident technique (CIT) was used to identify the employees’ service failure situations in fitness centers. Then, in Pretest 2, we developed two written scenarios that described employees’ service failures according to low and high severity and confirmed the differences between these two scenarios with a manipulation check. In the main experiment, we employed scenarios to examine the relationships among service failures’ severity, PDB, and customers’ non-transactional and transactional outcomes. We used Hayes’ PROCESS macro to test the PDB’s single moderating effect on the relationship between the service failures’ severity and the customers’ responses. According to the results, the moderating effect on the relationship between the service failures’ severity and fitness center customers’ non-transactional and transactional behaviors was confirmed. We extended the understanding of fitness center customers’ reactions, depending upon individual PDB to service failures, by comparing low- and high-service failure situations. Our findings also suggest that segmenting fitness center customers may help managers recognize that their customers’ varying responses depend on PDB.


Energies ◽  
2021 ◽  
Vol 14 (12) ◽  
pp. 3432
Author(s):  
McKenzie Thomas ◽  
Kimberly L. Jensen ◽  
Dayton M. Lambert ◽  
Burton C. English ◽  
Christopher D. Clark ◽  
...  

Biochar is a co-product of advanced biofuels production from feedstocks including food, agricultural, wood wastes, or dedicated energy crops. Markets for soil amendments using biochar are emerging, but little is known about consumer preferences and willingness to pay (WTP) for these products or the depth of the products’ market potential for this product. This research provides WTP estimates for potting mix amended with 25% biochar, conditioned on consumer demographics and attitudes about product information labeling. Data were collected with an online survey of 577 Tennessee home gardeners. WTP was elicited through a referendum contingent valuation. Consumer WTP for an 8.81 L bag of 25% biochar potting mix is $8.52; a premium of $3.53 over conventional potting mix. Demographics and attitudes toward biofuels and the environment influence WTP. Biochar amounts demanded are projected for the study area’s potential market. Optimal prices, profits, and market shares are estimated across different marginal costs of producing biochar potting mix.


Author(s):  
Clemens Hutzinger ◽  
Wolfgang Weitzl

In pursuit of better purchasing decisions (e.g., choosing the right restaurant or hotel), prospective customers increasingly turn to social media, such as Facebook, to source information about new products, services and brands. On Facebook, a brand’s former, current and potential customers are not only exposed to marketer-created brand postings, but also to other customers’ subjective evaluations, personal thoughts and feelings regarding their consumption experiences (Hennig-Thurau et al., 2010). Research has shown that consumers strive for multifaceted goals when sharing consumption-related postings online. For instance, some satisfied customers want to help the company by posting favorable statements about a positive brand experiences, known as positive electronic word of mouth or PeWOM (Hennig-Thurau et al., 2004), while others want to help their fellow shoppers by giving a neutral description of a regular brand experience (ReWOM). However, many dissatisfied customers also use Facebook brand-pages as a public platform to express their unfavorable thoughts and negative emotions (e.g., anger) after a service failure by means of an online complaint or negative electronic word of mouth (NeWOM; Ward & Ostrom, 2006; Weitzl et al., 2018). Consumers that are directly affected by the service failure and involved in the recovery process are referred to as complainants. The reasons why customers spread NeWOM are diverse. They range from venting (i.e., lessening his/her frustration and reduce anger), via revenge (i.e., intentionally sabotaging and harming the company; Grégoire et al., 2009), warning others (Willemsen et al., 2011), to advice seeking (to acquire new skills/information to better use and/or repair the product; Willemsen et al, 2013). Earlier research demonstrates that online complaints can have strong and diverse detrimental effects, particularly on a brand’s potential customers (so-called online complaint bystanders), including unfavorable attitudes and an increased willingness to criticize the involved brand to others (e.g., Chevalier & Mayzlin, 2006; Sen & Lerman, 2007). However, evidence also exists that ‘webcare’, which is company’s online complaint handling response to a public complaint can repair negative reactions of these bystanders to some extent (e.g., Weitzl & Hutzinger, 2017). It remains, nevertheless, unclear how far such positive reactions can be stimulated with webcare among NeWOM bystanders.


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