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Logistics service failures and recovery strategies: is the response time or the discount amount more important?

Hasan Emin Gurler (Kilis 7 Aralık University, Kilis, Turkey)
Ramazan Erturgut (Akdeniz Universitesi, Antalya, Turkey)

Marketing Intelligence & Planning

ISSN: 0263-4503

Article publication date: 17 June 2024

Issue publication date: 3 September 2024

337

Abstract

Purpose

Although trade volumes in e-retailing have increased significantly in recent years, logistics service failures are inevitable, especially at the delivery stage. Therefore, it is essential to provide customers with effective recovery strategies to increase their satisfaction and repurchase intentions. There is a lack of empirical evidence on whether the response time or the discount offered in compensation is more crucial for customers. Therefore, this study aims to determine whether the response time or the discount offered for high and low criticality failures has a greater impact on customer satisfaction levels and repurchase intentions for female and male customers.

Design/methodology/approach

A scenario-based experimental design method has been adopted to collect data, and 697 participants aged 18 and 58 years have been reached. The research utilized a between-subjects design, incorporating three factors: gender (female vs male), criticality (high vs low) and compensation (7 days: 10% discount, 10 days: 20% discount and 14 days: 30% discount). Six scenarios depicting the failure of an online retailer were created, and factorial univariate ANOVA was conducted to test the hypotheses.

Findings

The study's results show that in terms of customer satisfaction, female customers attach more importance to the response time in the case of high criticality and the amount of discount offered in the case of low criticality. On the other hand, male customers give more importance to the response time in terms of customer satisfaction when they experience a high or low criticality failure. In the case of low criticality, response time is more important for male customers to increase their repurchase intentions, while the amount of the discount is more important for female customers.

Originality/value

The study demonstrates the relative importance of the response time and discount amount according to the criticality level of failures and to guide business managers in terms of the recovery strategies they will implement. It focuses on gender differences and determine whether the response time or discount amount is more important for male and female customers in high or low-criticality situations.

Keywords

Acknowledgements

This study is derived from Hasan Emin Gurler's Ph.D. thesis titled “Evaluation of the Strategies Used in the Compensation of Logistics Service Failures By Customers: An Experimental Research”.

Citation

Gurler, H.E. and Erturgut, R. (2024), "Logistics service failures and recovery strategies: is the response time or the discount amount more important?", Marketing Intelligence & Planning, Vol. 42 No. 7, pp. 1299-1329. https://doi.org/10.1108/MIP-07-2023-0372

Publisher

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Emerald Publishing Limited

Copyright © 2024, Emerald Publishing Limited

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