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‘When flash burns hands of customers’- Failure Attribution in Online Purchase
Khadija Ali Vakeel, ,
Published in Academy of Management
Volume: 2016
Issue: 1
Pages: 1 - 2
Flash sales are a recent phenomenon where e-tailer sells goods at deep discounts in a short time window. Of late in India, flash sales have become synonymous with failures where technical errors, payment channel issues and delivery problems are common due to high customer participation. A service failure leads to negative word of mouth, reduced purchase intention, and loyalty. Contrary to what previous studies on service failure indicate, even after service failure customers participate in flash sales in huge numbers. The netnographic study indicates that customers participate even after repeated service failure. Quantitative verification using PLS-SEM supports that magnitude of service failure attributed to external and internal locus of control acts as moderator in the relationship between deal proneness and intention to re-participate but in opposite direction to each other. Further, emotion experienced during service failure also influences re- participation intention. Results of the study show three segments of customers with 1) low internal failure OR 2) high external failure AND 3) high deal proneness show high re-participation intention.
About the journal
JournalAcademy of Management Proceedings
PublisherAcademy of Management
Open AccessNo