The negative effects of failed service recoveries

Research has shown that more than half of attempted recovery efforts fail, producing a ‘double deviation’ effect. Surprisingly, these double deviation effects have received little attention in marketing literature. This paper examines what happens after these critical encounters, which behavior or set of behaviors the customers are prone to follow and how customers’ perceptions of the firm’s recovery efforts influence these behaviors. For the analysis of choice of the type of response (complaining, exit, complaining and exit, and no-switching), we estimate multinomial Logit models with random coefficients (RCL). The results of our study show that magnitude of service failure, explanations, apologies, perceived justice, angry and frustration felt by the customer, and satisfaction with service recovery have a significant effect on customers’ choice of the type of response. Implications from the findings are offered.

Discounts and consumer search behavior : the role of framing

This paper studies the pure framing effect of price discounts, focusing on its impact on consumer search behavior. In a simple two-shop search experiment, we compare search behavior in base treatments (where both shops post net prices without discounts) to discount treatments (where either the first shop or the second shop posts gross prices with separate discount offers, keeping the net prices constant). Although the objective search problems are identical across treatments, subjects search less in discount frames, irrespective where the discount is offered. There is evidence showing that subjects only base their decisions on salient characteristics of the situation rather than on the objective price information.

Conceptualizing the ιnfluence of the self-service technology context on consumer voice

The self-service technology (SST) context is characterized by consumer participation in service production and delivery, independent of service personnel; a lack of interpersonal interaction between consumers and service personnel; and consumers being required tointerface and interact with technology. With these features of the SST context in mind, in situations where SSTs fail to perform as promised, some challenges arise: consumers who are dissatisfied do not have the security or reassurance of service personnel to assist them; service personnel do not have the opportunity to prompt consumers to voice their dissatisfaction; and consumers need to initiate their own complaint response. If consumers fail to report their dissatisfaction directly to the organization, organizations will not know that a problem exists and may experience negative consequences such as consumer switching behavior. As reports of consumer dissatisfaction with SSTs become increasingly common, it is important, therefore, to investigate how organizations with SST-based offerings can encourage consumers to voice their dissatisfaction directly to the organization. Although the antecedents of consumer voice are well documented in the interpersonal services context, in the context of SSTs they have been subject to very little conceptual or empirical scrutiny. This paper argues that voice needs to be revisited with respect to SSTs due to their unique characteristics compared to interpersonal services, and presents a conceptual model of the antecedents of consumers' voice behavior in the context of SSTs.

Relationship marketing and pay TV: satisfaction, complaining behavior, service recovery, and repurchase

The aims of this research included demonstrating the detenninants of Pay TV subscriber satisfaction, and displaying the relationships between key aspects of relationship marketing, such as perceptions of value, satisfaction, customer complaint behavior and service recovery, and the intention to repurchase. A survey of 171 Australian respondents suggested that the perceived quality of the variety of the programs available and the perceived quality of the monthly program guide were major contributors to value, and that value was the main driver of overall satisfaction, which in tum was the main driver of the likelihood of disconnection from the Pay TV service. Those respondents who reported having a problem but not complaining directly about it were significantly more likely to have the intention to disconnect in the future, but they were not significantly different in tenns of their value perceptions or overall satisfaction.

Predicting consumer innovative behavior using alternative theories and likelihood measures: a longitudinal study

This paper reports on a longitudinal study of consumers, where two dominant theories that purport to predict innovative behavior are applied and compared directly, using a methodology suggested as ideal by past researchers. Predictions made prior to launch were then evaluated against multiple measures of purchase likelihood, and against actual adoption behavior up to 12 months after launch. The results of this study suggest that perceptions of the innovations characteristics (PIC) predicted the selfreported likelihood of adoption better than the Domain Specific Innovativeness (DSI) scale, a personality-based measure. Prediction of actual adoption was largely inaccurate and both theories massively over predicted adoption levels, however the DSI scale was slightly more accurate. The conclusions here are that no one theory could make adequate predictions of behavior, that purchase likelihood measures are a poor substitute for measuring actual behavior but that purchase probability scales should be used more often in adoption research.

Self-service technologies and consumer complaining behaviour : an empirical investigation

Consumers often report dissatisfaction with technology-based services. This thesis, for the first time, examines consumer complaining behaviour with regard to these services, and identifies the factors that influence it. Complaint management strategies are recommended that benefit both organisations and consumers in this evolving service context.

Who chose this restaurant anyway? The effect of responsibility for choice, guarantees and failure stability on customer complaining

Customers often behave in the context of a group, with different behavior occurring in this context to that which transpires in an individual context. However, customer complaining behavior (CCB), including voice, negative word of mouth, in addition to that transmitted electronically, and exit, in a group setting has not been studied previously. A service failure during a group celebration at a restaurant and the pattern of CCB that ensues is examined. This is based on customers’ level of responsibility in restaurant selection on behalf of the group, the presence of an unconditional service guarantee, and the perceived stability of the failure. Findings suggest that customers are more inclined to exit when they have participated to a greater degree in choice and that the presence of an unconditional guarantee interacts with participation to influence negative word of mouth intentions. Perceived failure stability had the greatest influence on CCB.

The impact of price expectations on consumer's behavior in frequently purchased goods markets: empirical evidence and implications

Este trabalho investiga como os padrões de compras de consumidores de bens estocáveis são afetados por suas expectativas de preços. Usando um modelo dinâmico padrão de maximização da utilidade, deriva-se uma expressão analítica para as compras dos consumidores como uma função das suas expectativas em relação aos preços futuros. Em seguida, uma versão mais tratável do modelo é construída, de forma a ilustrar graficamente como os diferentes tipos de expectativas de preços implicam diferentes padrões de compras dos consumidores. Além disso, na aplicação empírica, investigo qual o modelo de expectativas de preços, entre aqueles comumente utilizados na literatura, é consistente com os dados. Por fim, encontra-se suficiente heterogeneidade em expectativa de preços dos consumidores. Mostra-se que famílias de pequeno porte acreditam que os preços seguem um processo de Markov de primeira ordem, enquanto famílias de alta renda são racionais.

INFLUENCE OF DISCOUNT PRICE ANNOUNCEMENTS ON CONSUMER'S BEHAVIOR

The theoretical framework that underpins this research study is based on the Prospect Theory formulated by Kahneman and Tversky, and Thaler's Mental Accounting Theory. The research aims to evaluate the consumers' behavior when different patterns of discount are offered (in percentage and absolute value and for larger and smaller discounts). Two experiments were conducted to explore these patterns of behavior and the results that were obtained supported the view that the framing effect was a common occurrence. The patterns of choice of individuals in a sample were found to be different due to changes in the ways discounts were offered. This can be explained by the various ways of presenting discount rates that had an impact on the influence of purchase intentions, recommendations and quality perception.

Influence of discount price announcements on consumer's behavior

The theoretical framework that underpins this research study is based on the Prospect Theory formulated by Kahneman and Tversky, and Thaler's Mental Accounting Theory. The research aims to evaluate the consumers' behavior when different patterns of discount are offered (in percentage and absolute value and for larger and smaller discounts). Two experiments were conducted to explore these patterns of behavior and the results that were obtained supported the view that the framing effect was a common occurrence. The patterns of choice of individuals in a sample were found to be different due to changes in the ways discounts were offered. This can be explained by the various ways of presenting discount rates that had an impact on the influence of purchase intentions, recommendations and quality perception.

Consumer satisfaction and redress with a government third-party complaints agency

As governments around the world adopt a marketing orientation, the importance of consumer satisfaction to the effectiveness of the organization is being recognized. While some investigation of satisfaction with a government agencies' service has occurred, there is little examination of satisfaction with a government agency that acts as a third-party on the behalf of consumers to gain marketplace redress. Given the number of third-party complaints is increasing as a result of internet access to complaint channels, this research is a timely investigation. This study reports the findings of a survey of 454 complainants to an Australian Government agency: the Office of Fair Trading (OFT). The findings show that satisfaction with the service was subjectively experienced, based around individual expectations of the redress and satisfaction levels were higher when the redress sought was financial compared with non-financial forms of redress such as apology.

Consumer complaint behaviour and relationship marketing: a research agenda

A void identified within the Relationship Marketing literature is the lack of research on dissatisfactory or problem relationships, so the utilisation of work that has been conducted in the area of Consumer Complaint Behaviour (CCB) is appropriate. Therefore, this paper identifies ways in which the CCB literature may be used to advance knowledge in the field of Relationship Marketing. As the context of this paper is consumer - service provider relationships, an assessment is made of some of the implications of technology-infusion in service encounters, at two levels, namely at the broad relationship marketing level, that is, the likely impact of technology infusion on consumer - service provider relationships, and then more specifically regarding implications for CCB.