Exploring the role of the Amazon effect on customer expectations: An analysis of user‐generated content in consumer electronics retailing

Abstract

While Amazon's disruption of the retail market has been associated with significant changes in consumer behavior, empirical studies on how interacting with Amazon has changed customers' expectations toward other offline/online retailers remain scarce. Such Amazon‐driven perceptions of service attributes are sometimes referred to as the ‘Amazon effect’. After clarifying the meaning of the Amazon effect and reviewing the studies on consumer complaints online, this paper aims to identify key triggers for the Amazon effect from consumer comments on social media. Based on natural language processing techniques, a content and sentiment analysis of users' comments drawn from the Facebook pages of three leading consumer electronics retailers in Italy over a two‐year span (2016–2018) was used to evaluate the dissatisfaction toward these retailers associated to Amazon‐related service attributes. The findings show that there is a wide diffusion of consumer comments and service complaints related to the Amazon effect on consumer electronics retailers, especially regarding price, customer service, in‐store staff, and post‐purchase support. Compared with corresponding evaluations on the Italian Amazon website, the negative sentiments revealed in consumers' comments on Facebook suggest that the Amazon's service standards have raised consumer expectations and have made consumers less satisfied when they interact with other retailers. We argue the need for further research to better clarify Amazonification in terms of customer impatience and dissatisfaction in general, also going beyond price and logistics issues, which are usually considered as the main constitutive factors.

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