Typologies of e‐commerce retail failures and recovery strategies

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

Journal of Services Marketing · 2005 · 170 citations · 39 references

Concepts

TL;DR

The study proposes examining e‑commerce service failures and recovery by cataloguing the failure and recovery strategies used by e‑commerce firms. Using the critical incident technique on 377 customer responses, the authors identify ten e‑tail failures, eleven recovery strategies, and analyze post‑recovery satisfaction and switching propensity. The results show that e‑tail customers face distinct failure types and firms employ different recovery tactics than traditional retail, yet switching after recovery can remain high even when experiences are satisfactory, offering insights for firms transitioning to e‑commerce.

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.

References

39