Does it pay to be honest? The effect of retailer-provided negative feedback on consumers’ product choice and shopping experience

Abstract

This research aims at investigating the potential double-edged sword effect of a retailer’s negative feedback, which may not only lead consumers to alter their purchase decisions, but also provide a shopping experience that is more effortful and thus be of less utilitarian value. Three experiments were performed involving 678 participants. Overall, results suggest a double-edged sword effect of negative feedback in online and offline retail contexts. When compared to no feedback, neutral feedback, or positive feedback, negative feedback leads consumers to change their initial product choice whatever their choice uncertainty and whatever the feedback source (human advisor or algorithmic advisor). However, it also leads to the perception of more cognitive effort and reduced utilitarian value, resulting in lower purchase and word-of-mouth intentions. The only situation in which negative feedback does not degrade the utilitarian value of the shopping experience is when consumers are highly uncertain about their initial product choice.