Service Failure in Online Retailing

Abstract

Organized service recovery policies and programs are important tools to firms in their efforts to maintain satisfied, loyal customers. Although service failure and recovery issues have received considerable attention in the literature, these topics have received only limited attention in the context of online retailing. Specifically, we lack an understanding of the types of online service failures occurring, the success with which firms are recovering from these failures, and consumer reactions to the service failure/recovery encounters they are experiencing. Therefore, this research involves two studies employing both qualitative and quantitative methods with samples of online shoppers to provide an initial examination of the service recovery management of online retailers. The results provide a typology of online service failures and demonstrate a number of areas in which online retailers are failing to effectively manage their service recoveries. The discussion includes implications for online retailers as well as directions for future research.

Analysis of the Driven Types of Consumer Silence Behaviors in Scenarios of Service Failure

“…Service failure means that services delivered fail to meet customer expectations (Holloway and Beatty, 2003). Thus, service failure will inevitably result in cognitive dissonance to some extent.…”

An Exploration of Consumer Complaint Behavior towards the Hotel Industry: Case Study in Macao

“…For example, if a hotel guest failed to check in through a self-check-in/out kiosk, then he/she may not easily solve the problem through the same kiosk. Holloway & Beatty (2003) stated that generic recoveries such as long delays, poor customer support, and poor communication are common problems in technology-based recovery efforts. Therefore, an effective online complaint handling system should be implemented to help hotels retain their customers.…”

Analyzing Factorial Data Using PLS: Application in an Online Complaining Context

“…Fourth, the formation of customer evaluative judgments are different in online settings (Shankar, Smith, and Rangaswamy 2003). Fifth, the types of service failures experienced may be different for the online and offline environment and customers tend to complain more online than in traditional marketplace (Holloway and Beatty 2003). Finally,…”

“…offline) services, only limited attention has been paid to the antecedents and consequences of satisfaction with complaint handling in online settings despite the great differences that exist between online and offline settings and therefore the way complaint management procedures are perceived by customers in both settings. First of all, effective complaint management is particularly important for e-services as customers can terminate their relationship with the service provider by just a simple mouse click (Holloway and Beatty 2003). Second, Holloway and Beatty (2003) state that satisfaction with complaint recovery is especially crucial for online service providers as poor service online may hurt online as well as offline sales.…”

“…First of all, effective complaint management is particularly important for e-services as customers can terminate their relationship with the service provider by just a simple mouse click (Holloway and Beatty 2003). Second, Holloway and Beatty (2003) state that satisfaction with complaint recovery is especially crucial for online service providers as poor service online may hurt online as well as offline sales. Third, in an online environment customers cannot directly see and touch the product, nor can they directly bring it home after buying it (Reichheld and Schefter 2000).…”