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Discount reference moderates customers' reactions to discount frames after online service failure

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  • Sharifi, Seyed Shahin
  • Aghazadeh, Hashem

Abstract

This paper aims at investigating customers' reactions to discounts as service recovery offered in context of an online store. It argues that customers prefer dollar-off discounts to percentage-off discounts. The present research also argues that for discounts on price of one item out of several items, customers evaluate dollar-off discounts more positively (i.e., higher satisfaction and lower anger), while for discounts on the total price, customers react similarly to percentage-off and dollar-off discounts. Two online experiments confirm these arguments. This research discusses the importance of discount reference in online service recovery and represents effective service recovery regarding discount reference and discount frame as its practical implications.

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  • Sharifi, Seyed Shahin & Aghazadeh, Hashem, 2016. "Discount reference moderates customers' reactions to discount frames after online service failure," Journal of Business Research, Elsevier, vol. 69(10), pages 4074-4080.
    • Handle: RePEc:eee:jbrese:v:69:y:2016:i:10:p:4074-4080
    DOI: 10.1016/j.jbusres.2016.03.044
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    References listed on IDEAS

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    Cited by:

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    2. Azemi, Yllka & Ozuem, Wilson & Howell, Kerry E. & Lancaster, Geoff, 2019. "An exploration into the practice of online service failure and recovery strategies in the Balkans," Journal of Business Research, Elsevier, vol. 94(C), pages 420-431.
    3. Zhou, Cheng & Chang, Qian, 2024. "Informational or emotional? Exploring the relative effects of chatbots’ self-recovery strategies on consumer satisfaction," Journal of Retailing and Consumer Services, Elsevier, vol. 78(C).
    4. Xing, Xinyu & Song, Mengmeng & Duan, Yucong & Mou, Jian, 2022. "Effects of different service failure types and recovery strategies on the consumer response mechanism of chatbots," Technology in Society, Elsevier, vol. 70(C).

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