IDEAS home Printed from https://ideas.repec.org/a/eee/joreco/v52y2020ics0969698919301614.html
   My bibliography  Save this article

Dissatisfaction after service failures as a realized transaction risk: Customer opportunism as a function of external and internal rewards

Author

Listed:
  • Khantimirov, Denis
  • Karande, Kiran
  • Ford, John

Abstract

An increasing number of customers claim what they can, rather than what they deserve after service failures. Drawing on insights from economics and social psychology, the present manuscript regards dissatisfaction triggered by the service failure as a realized transaction risk and advances understanding of opportunistic claiming behavior by empirically investigating the role of a customer's perceived inequity with the service recovery process in triggering the intention to make opportunistic claims. The manuscript highlights the importance of perceived customer power when it comes to engaging in opportunism; this relationship becomes more pronounced in negative inequity situations after experiencing a service failure.

Suggested Citation

  • Khantimirov, Denis & Karande, Kiran & Ford, John, 2020. "Dissatisfaction after service failures as a realized transaction risk: Customer opportunism as a function of external and internal rewards," Journal of Retailing and Consumer Services, Elsevier, vol. 52(C).
    • Handle: RePEc:eee:joreco:v:52:y:2020:i:c:s0969698919301614
    DOI: 10.1016/j.jretconser.2019.101896
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0969698919301614
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jretconser.2019.101896?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Joseph Henrich, 2001. "In Search of Homo Economicus: Behavioral Experiments in 15 Small-Scale Societies," American Economic Review, American Economic Association, vol. 91(2), pages 73-78, May.
    2. Oliver, Richard L & Swan, John E, 1989. "Equity and Disconfirmation Perceptions as Influences on Merchant and Product Satisfaction," Journal of Consumer Research, Journal of Consumer Research Inc., vol. 16(3), pages 372-383, December.
    3. Berry, Leonard L. & Seiders, Kathleen, 2008. "Serving unfair customers," Business Horizons, Elsevier, vol. 51(1), pages 29-37.
    4. Gronhaug, Kjell & Gilly, Mary C., 1991. "A transaction cost approach to consumer dissatisfaction and complaint actions," Journal of Economic Psychology, Elsevier, vol. 12(1), pages 165-183, March.
    5. Tversky, Amos & Kahneman, Daniel, 1992. "Advances in Prospect Theory: Cumulative Representation of Uncertainty," Journal of Risk and Uncertainty, Springer, vol. 5(4), pages 297-323, October.
    6. Williamson, Oliver E., 2010. "Transaction Cost Economics: The Natural Progression," Journal of Retailing, Elsevier, vol. 86(3), pages 215-226.
    7. Linda Babcock & George Loewenstein, 1997. "Explaining Bargaining Impasse: The Role of Self-Serving Biases," Journal of Economic Perspectives, American Economic Association, vol. 11(1), pages 109-126, Winter.
    8. Samuel Bowles & Robert Boyd & Colin Camerer & Ernst Fehr & Herbert Gintis & Joseph Henrich & Richard McElreath, 2001. "In search of homo economicus: Experiments in 15 small-scale societies," Artefactual Field Experiments 00068, The Field Experiments Website.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gong, Xiushuang & Wang, Hanwen & Zhang, Xiadan & Tian, Hui, 2022. "Why does service inclusion matter? The effect of service exclusion on customer indirect misbehavior," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).
    2. Boadi, Evans Asante & He, Zheng & Antwi, Collins Opoku & Md Altab, Hossin & Bosompem, Josephine & Hinson, Robert Ebo & Atuobuah Boadi, Victoria, 2022. "Value co-creation and employee service behaviours: The moderating role of trust in employee - hotel relationship," Journal of Retailing and Consumer Services, Elsevier, vol. 66(C).
    3. Yang, Yan & Hu, Jing, 2021. "Self-diminishing effects of awe on consumer forgiveness in service encounters," Journal of Retailing and Consumer Services, Elsevier, vol. 60(C).
    4. Ray, Arghya & Bala, Pradip Kumar & Chakraborty, Shibashish & Dasgupta, Shilpee A., 2021. "Exploring the impact of different factors on brand equity and intention to take up online courses from e-Learning platforms," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    5. Huang, Yu-Shan (Sandy) & Dootson, Paula, 2022. "Chatbots and service failure: When does it lead to customer aggression," Journal of Retailing and Consumer Services, Elsevier, vol. 68(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Khantimirov, Denis & Karande, Kiran, 2018. "Complaint as a persuasion attempt: Front line employees’ perceptions of complaint legitimacy," Journal of Retailing and Consumer Services, Elsevier, vol. 43(C), pages 68-76.
    2. Francisco Campos-Ortiz & Louis Putterman & T.K. Ahn & Loukas Balafoutas & Mongoljin Batsaikhan & Matthias Sutter, 2012. "Security of property as a public good: Institutions, socio-political environment and experimental behavior in five countries," Working Papers 2012-26, Faculty of Economics and Statistics, Universität Innsbruck.
    3. Dan Ariely & Nina Mazar, 2006. "Dishonesty in everyday life and its policy implications," Working Papers 06-3, Federal Reserve Bank of Boston.
    4. Rafael Di Tella & Ricardo Pérez-Truglia, 2010. "Conveniently Upset: Avoiding Altruism by Distorting Beliefs About Others," NBER Working Papers 16645, National Bureau of Economic Research, Inc.
    5. Croson, Rachel & Gächter, Simon, 2010. "The science of experimental economics," Journal of Economic Behavior & Organization, Elsevier, vol. 73(1), pages 122-131, January.
    6. Bruno S. Frey & Margit Osterloh, "undated". "Yes, Managers Should be Paid Like Bureaucrats," IEW - Working Papers 187, Institute for Empirical Research in Economics - University of Zurich.
    7. Floris Heukelom, 2007. "Who are the Behavioral Economists and what do they say?," Tinbergen Institute Discussion Papers 07-020/1, Tinbergen Institute.
    8. Levine, Jordan & Chan, Kai M.A. & Satterfield, Terre, 2015. "From rational actor to efficient complexity manager: Exorcising the ghost of Homo economicus with a unified synthesis of cognition research," Ecological Economics, Elsevier, vol. 114(C), pages 22-32.
    9. Breuer, Janice Boucher & McDermott, John, 2012. "Culture, caution, and trust," Journal of Development Economics, Elsevier, vol. 97(1), pages 15-23.
    10. Slonim, Robert & Wang, Carmen & Garbarino, Ellen & Merrett, Danielle, 2012. "Opting-In: Participation Biases in the Lab," IZA Discussion Papers 6865, Institute of Labor Economics (IZA).
    11. Anne Corcos & Yorgos Rizopoulos, 2011. "Is prosocial behavior egocentric? The “invisible hand” of emotions," Post-Print halshs-01968213, HAL.
    12. Litina, Anastasia, 2012. "Unfavorable land endowment, cooperation, and reversal of fortune," MPRA Paper 39702, University Library of Munich, Germany.
    13. Liqi Zhu & Gerd Gigerenzer & Gang Huangfu, 2013. "Psychological Traces of China's Socio-Economic Reforms in the Ultimatum and Dictator Games," PLOS ONE, Public Library of Science, vol. 8(8), pages 1-6, August.
    14. Finocchiaro Castro, Massimo, 2008. "Where are you from? Cultural differences in public good experiments," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 37(6), pages 2319-2329, December.
    15. Frank Cowell & Marc Fleurbaey & Bertil Tungodden, 2015. "The tyranny puzzle in social preferences: an empirical investigation," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 45(4), pages 765-792, December.
    16. Blair Cleave & Nikos Nikiforakis & Robert Slonim, 2013. "Is there selection bias in laboratory experiments? The case of social and risk preferences," Experimental Economics, Springer;Economic Science Association, vol. 16(3), pages 372-382, September.
    17. Ehmke, Mariah & Lusk, Jayson & Tyner, Wallace, 2010. "Multidimensional tests for economic behavior differences across cultures," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 39(1), pages 37-45, January.
    18. Cordes, Christian & Richerson, Peter J. & Schwesinger, Georg, 2010. "How corporate cultures coevolve with the business environment: The case of firm growth crises and industry evolution," Journal of Economic Behavior & Organization, Elsevier, vol. 76(3), pages 465-480, December.
    19. Michel Zouboulakis, 2010. "Trustworthiness as a Moral Determinant of Economic Activity: Lessons from the Classics," Forum for Social Economics, Taylor & Francis Journals, vol. 39(3), pages 209-221, January.
    20. Kimbrough, E.O. & Vostroknutov, A., 2012. "Rules, rule-following and cooperation," Research Memorandum 053, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:joreco:v:52:y:2020:i:c:s0969698919301614. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/journal-of-retailing-and-consumer-services .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.