Search results

In this research, we develop a comprehensive theoretical model of the consumer response to penalties and the penalty resolution process. Two mechanisms of consumers' response to penalty resolution are proposed: the perceptions of penalty fairness and feelings of gratitude. We delineate and test differences between gratitude and perceived fairness and identify factors differentially affecting them. Factors influencing feeling of entitlement, such as nature of the error, and consumer history and status with the provider, contribute to fairness perceptions. On the other hand, firm-customer interactions influence both gratitude and fairness assessments. Specifically, the penalty outcome provides benefits, hence induces gratitude, and is also perceived as the right thing to do, hence induces perceptions of fairness. However, factors that contribute to benefits received, but do not align with equity, such as type and uniqueness of compensation, influence gratitude only. The findings also confirm that, compared with fairness, gratitude more strongly influences active profirm behaviors, such as advocacy. This research offers important managerial implications. The findings suggest that service providers should consider customer history and relationship status in the penalty resolution process. Meeting customer expectations will enhance fairness perceptions and minimize the negative effect on loyalty. Further, flexible procedures for handling penalties, preferred type of compensation, and selectivity in treatment should stimulate feelings of gratitude and motivate consumers to actively promote the company via positive word of mouth.

PurposeThe purpose of this paper is to compare and contrast two types of shopping aids, that is, research‐supporting and solution‐oriented shopping aids, and examine their effectiveness, considering both consumer and situational factors.Design/methodology/approachExpanded selection and additional detailed information are chosen to illustrate research‐supporting shopping aids, and personalized product recommendations and product ratings are used as examples of solution‐oriented shopping aids. This conceptual paper proposes that usage of shopping aids has an effect on the purchase likelihood and decision satisfaction and focuses on studying the moderating role of consumer product knowledge and time pressure. The thesis is that congruence between the type of a shopping aid and consumer characteristics, such as product knowledge, or situational characteristics, such as time pressure, should enhance the effectiveness of shopping aids.FindingsThe research propositions in this paper delineate how the use of retail shopping aids should affect the consumer's purchase likelihood, decision satisfaction, decision confidence, and evaluation costs, under the moderating influence of product knowledge and time pressure. Overall, knowledgeable consumers and less time‐pressed consumers should benefit from research‐supporting shopping aids (i.e. expanded selection and additional product information), whereas novice consumers and time‐pressed consumers should benefit from solution‐oriented shopping aids (i.e. personalized product recommendation and product ratings).Originality/valueRetail shopping aids are designed to offer sales assistance for consumers to handle the obstacles to purchase completion. However, past efforts to install retail shopping aids have seen mixed results. This conceptual paper advocates that consideration of consumer characteristics and situational factors is necessary to understand the effects of shopping aid usage. This paper thus contributes to the understanding of solutions to purchase decision deferral and the determinants of decision satisfaction, and has practical implications for retailers regarding providing retail shopping aids to facilitate purchase completion and shopping experiences.