Discount reference moderates customers' reactions to discount frames after online service failure

Seyed Shahin Sharifi and Hashem Aghazadeh

Journal of Business Research, 2016, vol. 69, issue 10, 4074-4080

Abstract: This paper aims at investigating customers' reactions to discounts as service recovery offered in context of an online store. It argues that customers prefer dollar-off discounts to percentage-off discounts. The present research also argues that for discounts on price of one item out of several items, customers evaluate dollar-off discounts more positively (i.e., higher satisfaction and lower anger), while for discounts on the total price, customers react similarly to percentage-off and dollar-off discounts. Two online experiments confirm these arguments. This research discusses the importance of discount reference in online service recovery and represents effective service recovery regarding discount reference and discount frame as its practical implications.

Keywords: Service recovery; Discount frame; Discount reference; Satisfaction; Anger (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:69:y:2016:i:10:p:4074-4080

DOI: 10.1016/j.jbusres.2016.03.044

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