Investigating consumer responses to online group buying service failures

Abstract

PurposeThe purpose of this paper is to explore the effects of consumer role (involved vs observing) on consumer responses in the context of online group buying (OGB) service failures.Design/methodology/approachA scenario simulation method with a 2×3 factorial design was used to investigate the impact of consumer role (i.e. involved consumers and observing consumers) on consumer responses (i.e. perceived quality, negative electronic word-of-mouth (eWOM), and switching intention). The moderating role of seller offering type (i.e. physical products, true services, and pseudo services) on the relationship between the consumer role and responses was also tested.FindingsThe differences in perceived quality, negative eWOM, and switching intention between involved consumers and observing consumers were significant. Further, seller offering type moderated the relationship between consumer role and consumer response.Practical implicationsThese findings provide several important theoretical and practical implications in regard to OGB service failure and recovery.Originality/valueThis study enriches OGB and service failure literature by a pioneering investigation of how consumer roles respond to OGB service failures and how different seller offering types influence the relationship between consumer role and consumer response. The results will help service providers of OGB benefit from enhancing their service recovery strategies to cope with OGB service failures.