Do Consumers Perceive Money-Back Guarantees as Believable? The Effects of Money-Back Guarantee Generosity, Store Name Familiarity, and Perceived Price

Shih-Ping Jeng (), Li-Shia Huang (), Yu-Jen Chou () and Ching-I Teng ()
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Shih-Ping Jeng: Department of Shipping and Transportation Management, National Taiwan Ocean University, Keelung 202, Taiwan
Li-Shia Huang: Department of Business Administration, Fu Jen Catholic University, New Taipei City 242, Taiwan
Yu-Jen Chou: Department of Business Administration, Ming Chuan University, Taipei 111, Taiwan
Ching-I Teng: Graduate Institute of Business and Management, Chang Gung University, Tao-Yuan 333, Taiwan

Service Science, 2014, vol. 6, issue 3, 179-189

Abstract: A money-back guarantee (MBG) is a service guarantee offered by a retailer. This research examined how MBG generosity, store name familiarity, and consumer perception of price interacted to influence MBG believability (the extent to which a consumer believes the MBG) and consumer store patronage. The results show that MBG generosity positively affected consumer patronage intentions by increasing MBG believability. When the perceived price was low, MBG generosity positively affected MBG believability for both well-known and lesser-known stores. When the perceived price was high, MBG generosity positively affected MBG believability only for well-known stores.

Keywords: money-back guarantee; money-back guarantee believability; store patronage; store name familiarity; perceived price (search for similar items in EconPapers)
Date: 2014
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Persistent link: https://EconPapers.repec.org/RePEc:inm:orserv:v:6:y:2014:i:3:p:179-189

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