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Article
Publication date: 21 June 2022

Irfan Ahmed, Sanjay S. Mehta, C. Ganeshkumar and VivekShankar Natarajan

The objective of this paper is to develop a map of the contours of the phenomenon of retailer failure by aggregating, parsing and extracting known findings regarding business…

Abstract

Purpose

The objective of this paper is to develop a map of the contours of the phenomenon of retailer failure by aggregating, parsing and extracting known findings regarding business failure in marketing, business and other streams of inquiry to provide a comprehensive understanding of research on the topic. Defined as the converse of retailer performance, an understanding of retail failure is expected to yield insights for performance measurement and benchmarking studies.

Design/methodology/approach

The paper includes a systematic literature review, employing state-of-the-art tools such as VOSViewer.

Findings

The analysis reveals patterns in the intellectual structure of the research on retail failure, as well as patterns of influence. While the discipline of marketing has been surprisingly limited in the study of retail failure, study of retail failure has been pursued by other branches of the business discipline, and even some disciplines other than business.

Originality/value

This paper provides a comprehensive and systematic literature review on the topic of retail failure.

Details

Benchmarking: An International Journal, vol. 30 no. 2
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 29 May 2020

Gregory G. Kaufinger and Chris Neuenschwander

The purpose of the study is to evaluate whether the selection of accounting method used to value inventory increases or decreases the probability of a retail firm's ability to…

Abstract

Purpose

The purpose of the study is to evaluate whether the selection of accounting method used to value inventory increases or decreases the probability of a retail firm's ability to remain in existence.

Design/methodology/approach

This study employs a binary logistic regression model to predict group membership and the probability of failure. The study utilizes an unbalanced sample of US publicly traded failed and functioning retail firms over a ten-year period.

Findings

The results clearly support the conclusion that there is a difference in the probability of retail firm failure with respect to the accounting method used to value inventory. Merchants using a cost-based valuation method were 2.3 times more likely to fail than firms using a price-based method. The results also affirm existing bankruptcy literature by finding that profitability, liquidity, leverage, capital investment and cash flow are factors in retail failures.

Practical implications

The results suggest that traditional merchants cannot simply blame e-commerce or shifts in demographics for the retail Apocalypse; good management and proper valuation of stock still matter.

Originality/value

This study is the first to look at firm failure in the retail sector after the great recession of 2008, in an era known as the “retail Apocalypse.” In addition, this study differs from other firm failure literature by incorporating cost- and price-based inventory valuation methods as a variable in firm failure.

Details

American Journal of Business, vol. 35 no. 2
Type: Research Article
ISSN: 1935-5181

Keywords

Article
Publication date: 6 September 2011

Hsin‐Hui Lin, Yi‐Shun Wang and Li‐Kuan Chang

The purpose of this paper is to investigate consumer responses to online retailer service recovery remedies following a service failure and explores whether the phenomenon of the…

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Abstract

Purpose

The purpose of this paper is to investigate consumer responses to online retailer service recovery remedies following a service failure and explores whether the phenomenon of the service recovery paradox exists within the context of online retailing.

Design/methodology/approach

This paper reports on the results of two studies. Study I explores the main and interaction effects of the various dimensions of service recovery justice (i.e. distributive justice, procedural justice, and interactional justice) on customer satisfaction, negative word‐of‐mouth (WOM), and repurchase intention based on the justice theory. Study II investigates whether the phenomenon of the service recovery paradox exists (i.e. whether customers have higher satisfaction, higher repurchase intention, and lower negative word‐of‐mouth after experiencing an effectively remedied service failure as compared to if the service failure had not occurred). A laboratory experimental design is used to test the research hypotheses.

Findings

The results show that distributive justice, procedural justice, and interactional justice have a significant positive influence on customer satisfaction. Among the three dimensions of service recovery justice, only distributive justice has a significant positive influence on repurchase intention, and only interactional justice has a significant negative influence on negative WOM. Additionally, both the interaction between distributive justice and procedural justice and the interaction between distributive justice and interactional justice are found to significantly influence customer satisfaction, negative WOM, and repurchase intention. The results also indicate that the service recovery paradox does not appear to exist in the online retailing context.

Practical implications

The findings will allow online retailers to develop more effective strategies for preventing service failure and improving customer satisfaction, negative WOM, and repurchase intention.

Originality/value

This study contributes to the understanding of consumer responses to online retailer's service recovery after a service failure.

Details

Managing Service Quality: An International Journal, vol. 21 no. 5
Type: Research Article
ISSN: 0960-4529

Keywords

Article
Publication date: 30 March 2010

Mark Palmer, Geoff Simmons and Ronan de Kervenoael

The purpose of this paper is to examine students' perceptions of managerial mistakes and why (and why not) managers admit mistakes.

2523

Abstract

Purpose

The purpose of this paper is to examine students' perceptions of managerial mistakes and why (and why not) managers admit mistakes.

Design/methodology/approach

This paper provides a reflective account of how students' perceive management mistakes and deal with admitting “mea culpa” – “I am to blame”.

Findings

The findings show a range of attitudes: they highlight the intermingling pressures associated with the cultural environment and mistakes; they identify media characteristics and its influences on mistakes and mea culpa; they highlight ceremonial processes and tasks that shape and influence the declaration of mea culpa; and they identify how the psychology and sociology of mistakes confronts and affects students. Taken together, the study highlights the varying degrees of wariness that is carried forward by the students from vicariously learning about management mistakes.

Originality/value

This paper links up with recent discussions on retail failure and retail pedagogy. It is hoped that this paper will encourage more academics to address, and engage with, management mistakes creatively in their teaching.

Details

International Journal of Retail & Distribution Management, vol. 38 no. 4
Type: Research Article
ISSN: 0959-0552

Keywords

Open Access
Article
Publication date: 2 May 2023

Sarah Amsl, Iain Watson, Christoph Teller and Steve Wood

Inaccurate product information on retail websites lead to dissatisfied customers and profit losses. Yet, the effects of product information failures (PIFs) remain under-explored…

1723

Abstract

Purpose

Inaccurate product information on retail websites lead to dissatisfied customers and profit losses. Yet, the effects of product information failures (PIFs) remain under-explored, with the mobile commerce channel commonly overlooked. This paper aims (1) to investigate the negative effects of PIFs on shoppers' attitudes and behaviours in a mobile context. The authors further (2) evaluate the impacts of the cause and duration of a PIF, changes of expectations towards the retailer after a PIF occurred and how previous mobile shopping experience in general decreases the effects of PIFs.

Design/methodology/approach

The authors conducted a scenario-based experiment with a one-factorial between-subjects design. The six most common PIFs of an international leading online fashion retailer are operationalized and tested against a control group. The final sample consists out of 758 mobile shoppers from the UK.

Findings

The results demonstrate that the perceived severity of PIFs based on showing customers incorrect information is higher when key information is lacking. Further, when the cause of a PIF is attributed to the retailer, it results in higher recovery expectations towards them. The results also reveal that respondents who have shopped mobile before perceive PIFs as less severe than inexperienced ones.

Originality/value

This research expands the online service failure literature by examining PIFs and its effects in the specific context of mobile commerce. The authors also provide recommendations for a better management of PIFs like the incorporation of PIFs information into reporting packs.

Details

International Journal of Retail & Distribution Management, vol. 51 no. 9/10
Type: Research Article
ISSN: 0959-0552

Keywords

Open Access
Article
Publication date: 20 July 2023

Sarah Amsl, Iain Watson, Christoph Teller and Steve Wood

Online shoppers make product purchase decisions based on product information shown on a retailer's website and potentially in comparison to that seen on competitors' websites…

1893

Abstract

Purpose

Online shoppers make product purchase decisions based on product information shown on a retailer's website and potentially in comparison to that seen on competitors' websites. Insufficient, poor quality or missing information about a product can lead to reduced retailer sales. Measuring online product information quality (PIQ) is therefore an essential element in helping retailers maximize their potential success. This paper aims (1) to identify directly quantifiable PIQ criteria, (2) to assess the effects of PIQ and (3) to evaluate the moderating effect of product involvement.

Design/methodology/approach

The authors conducted a scenario-based experiment within 3,544 do-it-yourself (DIY) online shoppers from the United Kingdom (UK). Within an 8 × 2 × 2 between-subjects design, the authors manipulated the factors PIQ criteria (8), PIQ level (2) and product type (2).

Findings

The findings support that poor PIQ has a negative impact on consumers online shopping outcomes. The authors also found that the effects of PIQ differ between the various criteria, the product category and the level of consumer involvement in the selling process. In the context of product depiction, title readability and product attribute comparability with other retailers' websites a high level of PIQ is required. Moreover, high involvement products need a higher level of PIQ than low involvement products.

Originality/value

This research expands website quality and service failure literature by introducing PIQ criteria and its effects in the context of online retailing. The authors also establish actionable managerial recommendations to assist retailers to embrace and utilize PIQ to better understand their own potential website and thus business improvements.

Details

International Journal of Retail & Distribution Management, vol. 51 no. 9/10
Type: Research Article
ISSN: 0959-0552

Keywords

Article
Publication date: 4 July 2008

Lukas P. Forbes

This paper aims to focus on non‐internet‐based self‐service technologies through the presentation of failure and recovery strategies employed by service firms using self‐service…

4401

Abstract

Purpose

This paper aims to focus on non‐internet‐based self‐service technologies through the presentation of failure and recovery strategies employed by service firms using self‐service forms of interaction.

Design/methodology/approach

The paper employs the critical incident technique using 508 customer responses to present nine failures and nine recovery strategies used by self‐service technology firms. It presents data on post‐recovery satisfaction levels and propensity to switch behavior. The paper also compares findings in the non‐internet self‐service technology context to findings from e‐tail and bricks and mortar settings.

Findings

Findings indicate that: non‐internet self‐service technology customers experience different types of service failure relative to traditional retail and e‐tail settings; non‐internet self‐service technology firms employ a different series of recovery strategies relative to traditional retail and e‐tail settings; and post‐recovery switching by customers can be high even with satisfying experiences.

Originality/value

This paper strengthens the existing failure and recovery literature by presenting data on the largest growing sector of the service industry, self‐service technologies, and the largest sector within self‐service technologies (non‐internet purchases). These findings will have value to traditional firms looking to expand to their channels in addition to firms currently experiencing customer dissatisfaction.

Details

Journal of Services Marketing, vol. 22 no. 4
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 26 January 2010

Eun‐Jung Lee and JungKun Park

The purpose of this paper is to identify types of service failures in a double deviation scenario within the contexts of online retailing.

2785

Abstract

Purpose

The purpose of this paper is to identify types of service failures in a double deviation scenario within the contexts of online retailing.

Design/methodology/approach

Critical incident technique; customer complaints to online third parties; and four‐factor justice dimensionality.

Findings

Findings of this paper show distinctive sets of service failures in two separate service failure stages of double deviation (i.e. the initial service failure and recovery failure stages) within online retailing. Initial service failures mainly reflect cognitive issues generated from an online‐specific store atmosphere and threaten distributive or procedural justice perceptions. In comparison with distributive and procedural justice perceptions still being dominant, service failures in the recovery failure stage consist of interpersonal and emotional issues generated from customer‐company interactions, threatening interpersonal justice perceptions.

Originality/value

This paper contributes to broadening the current understanding of the dynamics of online customer dissatisfaction, by first identifying types of service failures that occur in both stages of online double deviation. This paper also introduces customer complaints to online third parties as a useful data resource for the study of service failure/recovery.

Details

Managing Service Quality: An International Journal, vol. 20 no. 1
Type: Research Article
ISSN: 0960-4529

Keywords

Article
Publication date: 1 August 2005

Lukas P. Forbes, Scott W. Kelley and K. Douglas Hoffman

The authors propose focusing on e‐commerce service failure and recovery through the presentation of failure and recovery strategies employed by e‐commerce service firms.

8435

Abstract

Purpose

The authors propose focusing on e‐commerce service failure and recovery through the presentation of failure and recovery strategies employed by e‐commerce service firms.

Design/methodology/approach

The authors employ the critical incident technique using 377 customer responses to present ten e‐tail failures and 11 e‐tail recovery strategies used by e‐commerce service firms. The authors also present data on post‐recovery satisfaction levels and propensity to switch behavior.

Findings

Findings indicate that: e‐tail customers experience different types of service failure relative to traditional retail settings; e‐tail firms employ a different series of recovery strategies relative to traditional retail settings; and post‐recovery switching by e‐tail customers can be high even with satisfying experiences.

Originality/value

This paper strengthens the existing failure and recovery literature by presenting data on the largest growing sector of the service industry. These findings will have value to traditional firms looking to expand to e‐commerce channels in addition to e‐commerce firms currently experiencing customer dissatisfaction.

Details

Journal of Services Marketing, vol. 19 no. 5
Type: Research Article
ISSN: 0887-6045

Keywords

Article
Publication date: 11 November 2021

Erlinda Nusron Yunus

This study examines the different effects of service recovery strategies on customers' future intentions when online shoppers were experiencing delivery failures. Two types of…

Abstract

Purpose

This study examines the different effects of service recovery strategies on customers' future intentions when online shoppers were experiencing delivery failures. Two types of problem severity are evaluated: wrong-product delivery (issues with the product quality or quantity) and late delivery. This study also investigates the impact of service criticality on the relationship between service recovery strategies and customers' future intentions.

Design/methodology/approach

This study employs experimental research with 123 online shoppers as participants. Following the results, a subsequent test is conducted to examine the effect of participants' demographics on future intentions. Finally, the current study elaborates the findings using qualitative research, interviewing both sides impacted by the service failures: online shoppers and e-retail managers.

Findings

The findings show that complementing product replacement with monetary compensation is the most effective strategy to improve repurchase intention after a dissatisfaction moment. This effect is indifferent to service criticality and severity. Age influences the participants' repurchase intentions, in which younger people are less tolerant of service failures. In contrast, gender and education level do not provide any differences. To prevent delivery failures, managers participating in this study suggest several best practices regarding systems and infrastructure, people and coordination and collaboration with logistics partners.

Research limitations/implications

The study mainly examines a limited type of service and service failures. Further studies are encouraged to expand the variables and scenarios, as well as to employ more distinctive methods, to enrich the findings related to recovery strategy in the e-commerce industry.

Practical implications

Given proper compensation, service failure could create momentum for online retailers to boost customer loyalty. This study suggests that managers design the most effective service recovery to win customers back to the business.

Originality/value

This paper enriches the literature related to a service recovery strategy, particularly within the online shopping context.

Details

International Journal of Productivity and Performance Management, vol. 72 no. 5
Type: Research Article
ISSN: 1741-0401

Keywords

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