E-commerce has experienced huge growth in emerging countries, but analysis of service failure/recovery for online retailers has been limited in this context. Hence, this study aims to investigate customers’ reactions to service failures in e-commerce and the influence of cultural dimensions on complaint intentions.
A survey was conducted with 553 customers from Brazil, India and China. A model was proposed and tested using structural equation modeling.
Results indicate that satisfaction with service recovery (SSR) increases repurchase intentions and reduces third-party complaints and negative word-of-mouth. This study also shows that the reactions of consumers to service failures in online situations are influenced by their cultural orientation (i.e. individualism, uncertainty avoidance and power distance) and contingent factors (i.e. relationship level, switching costs and the severity of the failure).
This study shows that the extent to which consumers from emerging countries complain after a service failure in online purchases will depend on their cultural orientation, previous experiences with the retailer, switching costs and the severity of the failure.
