 Should retailers pay to bring customers back? The impact of quick response and coupons on purchase outcomesKiane Goudarzi, Adilson Borges and Jean Charles Chebat Journal of Business Research, 2013, vol. 66, issue 5, 665-669 Abstract: Many retailers use coupons to compensate customers who complain. They also establish procedures to manage complaints quickly to avoid customer defection. Little attention has been paid to how these managerial actions used by retailers (e.g. coupons, quick response, etc.) interact and no research has linked these actions to consumers' actual behavior (e.g. the amount of money spent in the store before and after the incident). This paper investigates how quick responses and coupons jointly impact consumer behavior. This research tracked purchase patterns before and after an incident using loyalty card information from a grocery store. The paper shows that slow responses can reduce sales at this store by €950,000 a year. The results also show that when the response is slow, giving a coupon is counter-productive, since the loss is significantly higher when a coupon is issued. Keywords: Service failure; Service recovery; Complaint management; Real purchase data; Quick response; Coupons (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:66:y:2013:i:5:p:665-669 DOI: 10.1016/j.jbusres.2012.02.042 Access Statistics for this article Journal of Business Research is currently edited by A. G. Woodside More articles in Journal of Business Research from Elsevier |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.