Abstract
ABSTRACT In lateral exchange markets, consumers can interact with one another to varying degrees (consociality) along different levels of platform management and involvement (platform intermediation). Applying agency theory and attribution of blame, two experimental studies investigate blame for service failures and remediating effects of service recovery strategies in the context of lateral exchange markets. The findings suggest that consumers are more likely to become upset and blame the platform when consociality is low; this is especially true when platform intermediation is high. Moreover, partial refunds are a more effective service recovery strategy than apologies when intermediation is low (i.e. enablers). However, when intermediation is high (i.e. hubs), partial refunds are no more effective than apologies. These findings carry important implications for managers of lateral exchange platforms when facing service failures in knowing when consumers attribute the most blame to platforms and how to best retain patrons without unduly compromising profitability.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
