Mitigating the Effect of Negative Word-of-Mouth in E-Commerce

This paper is one of the rare efforts to assess service and product qualities. The objective of this paper, therefore, is to analyse customers’ evaluation of product and service quality in Malaysia. The service quality instrument underpins the theoretical framework for this paper. The analysis was based on 219 valid responses. Analysis indicates that product quality and service quality variables influence customers’ evaluation. The findings will be critical in firms’ choices and decisions related to customers’ needs and preferences. Firms need to maintain or upgrade their product and service quality measures to be able to attract and retain customers as changes in the business environment and the influence of new technology become more pervasive in this 21st century. We also highlighted the theoretical implications of this paper.

Online Customer Reviews (OCR) have become a key determinant in shaping consumers’ buying behavior on e-commerce platforms. However, few studies have empirically analyzed their direct influence in emerging markets in Southeast Asia. This research seeks to examine how OCR affects purchase decisions on Shopee. A quantitative methodology was applied, collecting data from 90 active Shopee users who referred to customer reviews before making a purchase, using structured online questionnaires. Descriptive statistics indicate that respondents generally perceive OCR positively, reflecting a moderate to high influence on their purchase intentions. Simple linear regression analysis demonstrates that OCR has a positive and significant effect on purchase decisions (β = 0.655, t = 5.175, p < 0.001), with a coefficient of determination (R² = 0.233), indicating that 23.3% of the variance in purchase decisions can be explained by OCR. The results indicate that customer reviews act as a vital information source, helping to lower perceived risks and boost consumers’ confidence when making online purchases. Practically, the study suggests that e-commerce sellers and platform managers should actively encourage and manage customer reviews to increase purchase likelihood, while future research may explore additional factors affecting consumer behavior in digital marketplaces.

As service failures are inevitable, firms must be prepared to recover and learn from service failures. Yet, the majority of customers are still dissatisfied with the way firms resolve their complaints. Can learning to reduce service failures reduce customer dissatisfaction, and to what extent are such reductions sustainable? Previous research showed that organizational learning curves for customer dissatisfaction (i) follow a U‐shaped function of operating experience and (ii) are heterogeneous across firms. In this paper, I tease out where the U‐shaped learning‐curve effect and learning‐curve heterogeneity originate: service failure or customers' propensity to complain with a third party given the occurrence of a service failure. Using quarterly data for nine major US airlines over 11 years, I find that the U‐shaped learning‐curve effect and the learning‐curve heterogeneity originate in the propensity to complain. In the long term, reductions in service failure did not translate in sustainable reductions in customer dissatisfaction. Customers' propensity to complain eventually went up. Managing the propensity to complain provides more opportunity for a firm to distinguish itself from competitors.

As service failures are inevitable, firms must be prepared to recover and learn from service failures. Yet, the majority of customers are still dissatisfied with the way firms resolve their complaints. Can learning to reduce service failures reduce customer dissatisfaction, and to what extent are such reductions sustainable? Previous research showed that organizational learning curves for customer dissatisfaction (i) follow a U-shaped function of operating experience and (ii) are heterogeneous across firms. In this paper, I tease out where the U-shaped learning-curve effect and learning-curve heterogeneity originate: service failure or customers' propensity to complain given the occurrence of a service failure. Using quarterly data for nine major U.S. airlines over 11 years, I find that the U-shaped learning-curve effect as well as the learning-curve heterogeneity originates in the propensity to complain. In the long term, reductions in service failure did not translate in sustainable reductions in customer dissatisfaction. Customers' propensity to complain eventually went up. Managing the propensity to complain provides more opportunity for a firm to distinguish itself from competitors.

The aim of this study is to descriptively determine the service failures that cause customer dissatisfaction in food and beverage businesses and the applied service recovery strategies. Within the scope of the study, data were collected from employees working in various positions in restaurants located in tourism centers in different regions of Turkey, with a semi-structured interview form consisting of 15 questions between the 19th August and 24th August 2022. As a result of the research, it was determined that service failures were mostly experienced in food taste, service speed and price. In response to service failures, employees have implemented service recovery strategies such as apologizing, voiding the check or invoice, offering free food or drinks, and offering to make a new order. This study contributes to the identification and understanding of service failures encountered in food and beverage businesses and the service recovery strategies applied. Additionally, in the study, employees emphasized the importance of issues such as effective communication and training in reducing or completely eliminating customer dissatisfaction.

ABSTRACTObjective: This study aims to analyze the effect of product quality on customers' decisions to switch brands, considering the mediating role of customer dissatisfaction.Methodology: This research employs a quantitative approach involving a population of 110 employees from the city of Ternate. The survey was conducted by distributing questionnaires directly using a 5-point Likert scale. Data analysis techniques utilized include Partial Least Square (PLS) with SmartPLS 4.0 software.Findings: The results indicate that the effect of product quality on customer dissatisfaction has a T-statistic value of 2.026 and a P-value of 0.043, indicating a positive and significant influence. Additionally, customer dissatisfaction positively and significantly affects the decision to switch brands. However, the direct effect of product quality on the decision to switch brands is negative and not significant.Conclusion: The results of this research show that: (1) product quality has a negative and insignificant influence on brand switching; (2) product quality has a significant effect on customer dissatisfaction; (3) customer dissatisfaction has a significant effect on brand switching; (4) product quality has a significant effect on brand switching through customer dissatisfaction.

This paper takes Pinduoduo, a famous e-commerce platform in China, as an example, analyzes the typical product quality problems of the platform, and obtains the method to improve the product quality of the e-commerce platform. The research method adopted in this paper is case analysis and hypothesis demonstration, using existing papers and financial information disclosed by enterprises to locate, analyze and solve the possible product quality problems of Pinduoduo. At present, the main problems of Pinduoduo are frequent quality management mistakes between the platform and suppliers, easy enterprise marketing methods to cause customer dissatisfaction, and improper internal management of enterprises. The above problems are common in China's e-commerce platforms. The main theory used in this paper is Deming's 14-point management principles. The conclusion is that the e-commerce platforms represented by Pinduoduo should stop taking the price as the only channel to choose suppliers, change their marketing strategies, and improve the internal management level of enterprises.

Hyperspectral imaging technology for quality and safety evaluation of horticultural products: A review and celebration of the past 20-year progress

Consumer satisfaction is an important aspect that needs to be considered by e-commerce sellers. Good product quality and supported by proper internal control will increase e-commerce customer satisfaction. This study aims to examine the effect of product quality and internal control partially on e-commerce consumer satisfaction. The sample of this research is active undergraduate students at various universities spread across various regions who use e-commerce by using a sampling technique in the form of purposive sampling. Data was collected by means of a survey in the form of a questionnaire. The sample obtained was 100 respondents. The data analysis technique used is multiple linear regression. The results of the t-test indicate that product quality has a positive effect on e-commerce consumer satisfaction, meaning that consumers perceive the product received has good quality because the product received is in accordance with the order without any damaged products. In addition, internal control also has a positive effect on e-commerce consumer satisfaction, meaning that e-commerce sellers have provided protection for products purchased by consumers so that consumer satisfaction increases. Keywords: Product Quality, Internal Control, Consumer Satisfaction, and E-commerce

Small and Medium Enterprises (SMEs) play a critical role in Ghana’s economic growth, employment generation, and poverty reduction, yet they encounter significant hurdles in enhancing their marketing performance. With pricing strategies and product quality recognized as pivotal factors in gaining a competitive edge, this study investigates the relationships among price, product quality, and marketing performance in Ghanaian SMEs. The study targeted 100 owner-managers selected through convenience and purposive sampling, and data were analyzed using SMART PLS version 3.0 and SPSS version 25, applying the partial least squares structural equation modeling (PLS-SEM) technique to test the proposed model and hypotheses. Findings reveal a notable positive association between price and marketing performance, underscoring the strategic importance of effective pricing. Additionally, a strong relationship between pricing and product quality was found, emphasizing the need for competitive pricing to support superior product quality. This study also identifies the significant role of product quality in enhancing marketing performance. Importantly, the analysis reveals that product quality mediates the relationship between price and marketing performance, providing new insights into SME dynamics. Based on these results, it is recommended that Ghana’s SMEs pursue a coordinated approach to pricing and quality management. By aligning competitive pricing with a commitment to high-quality product delivery, SMEs can drive customer satisfaction, foster loyalty, and achieve sustainable profitability, thereby improving their overall marketing performance in a competitive landscape.

At the end of 2019, the sudden outbreak of the pandemic brought a significant impact on the sales of agricultural products in China and all over the world. To reduce the unmarketable problem caused by the pandemic in the agricultural industry, operators who used to focus on offline sales changed their marketing strategy and began to build online sales channels through e-commerce platforms and adopt various online marketing strategies to improve their marketing performance. Furthermore, the performance of online marketing of agricultural products is affected by the interaction of multiple factors in the complex environment. This study aims to distinguish between the performance of different online marketing strategies by using necessary comparative analysis (NCA) and qualitative comparative analysis (QCA) method, to help operators to grasp the critical elements of the online marketing of agricultural products, and how configuration effective impact the online marketing performance. The results show that: (1) NCA’s results show that a single online marketing dimension cannot constitute the necessary conditions for producing high marketing performance of agricultural products, but e-commerce broadcasting, visual effects and government cooperation play an obvious role in improving marketing performance. (2) online marketing performance is influenced by the interaction of various strategies, and no single factor has a significant effect on it. (3) a good online marketing performance configuration path is divided into four, namely “the government cooperation—e-commerce broadcasting” domination; “the government cooperation—visual effects—e-commerce broadcasting” leading; “customer relationship—the government cooperation—visual effects—e-commerce broadcasting” leading; “platform number—visual effects—e-commerce broadcasting” leading. (4) There are four driving paths with no-good online marketing performance, and there is a causal asymmetric relationship of the driving paths with good online marketing performance. This study provides management enlightenment for agricultural operators on how to effectively improve the performance of online marketing, help operators to solve practical problems, and facilitate the development of agricultural e-commerce.

Purpose: This study identifies preventive measures for VOC management by analyzing the causes and effects of factors that contribute to high risk service failure using FMEA on KORAIL VOC data. Methods: Two research methods were used. First, a Risk Priority Number (RPN) was assigned to each KORAIL VOC based on Failure Mode and Effect Analysis (FMEA). Second, multiple regression analysis was run with RPN factors that include severity, occurrence, and detection as the independent variables and customer dissatisfaction as the dependent variable. Results: Multiple regression analysis showed that RPN factors including severity, occurrence, and detection had significantly positive relationship with customer dissatisfaction. Based on these results, an FMEA was performed on VOC categories with high RPN for railroad stations including platform, ticketing, ticket verification, parking, and escalator, and VOC categories with high RPN for trains including entrance doors, cafes, air quality, announcement, and ticket verification. Conclusion: This study has practical implications to service failure management. A priority order using FMEA was established for the list of customer dissatisfactions that should be addressed to actively manage service failure, and strategies for tackling this priority list are offered.

PurposeThe purpose of this paper is to examine the effect of country of origin (COO) sub‐components (i.e. design, assembly and parts), as well as the extent to which consumer ethnocentrism tendencies interact with these COO sub‐components for young Chinese consumers with regards to product quality assessments and purchase intentions.Design/methodology/approachA 2 × 2 × 2 factorial experimental design was used to examine the effects of the three sub‐components of COO with two levels of sourcing location – Home (China) and Foreign (Germany), for two high involvement products (an automobile and a digital camera). Chinese students in China represented the sample of 272 respondents. MANOVA was used to examine the direct effects and interactions of the three COO components, as well as ethnocentrism, measured using the CETSCALE.FindingsIt was found that the three COO sub‐components did not influence young Chinese consumers’ evaluation of product quality or purchase intentions. In addition, consumers’ level of ethnocentrism also did not have a direct effect on perceived product quality or purchase intentions. There was only one statistically significant interaction effect between ethnocentrism and country of parts for one of the two products. As such, COO dimensions and young Chinese consumers’ ethnocentrism appears to have limited influence on their assessments of product quality or purchase intentions. This may occur because young Chinese consumers perceive that hybrid products are the norm for high involvement products in China as these products are all these consumers have experienced.Originality/valueThe findings of this research dispute the commonly held belief and evidence that sub‐components of COO have an impact on the perceptions of product quality and purchase intentions. Young Chinese consumers may be different to consumers from western countries because they have been extensively exposed to hybrid products. Given the size and growth potential of China, young Chinese are an important, under‐researched segment within the Chinese market.

Purpose The purpose of this paper is to examine the psychological influence that the presence of music has on consumers’ evaluations of the service environment. Specifically, it investigates how emotion regulation processes and the impact of emotions/mood are linked to consumers’ evaluation of service and product quality. Design/methodology/approach An exploratory study was conducted using industry professionals in order to garner insight about the value of music and its benefits in the service environment. A field experiment was then conducted to test hypotheses. Findings Industry professionals offer implicit theories about the value of music. Specifically, they propose that music can be used to help customers regulate emotions and improve mood, enhance the customer experience and help in attracting new consumer segments. Results from the field experiment found that those exposed to music were likely to improve mood, express more favorable evaluations of the service and product quality of the establishment, as well as exhibit stronger intentions to continue to patronize the establishment. Practical implications Using live music in the service environment can be beneficial to organizations by improving customers’ emotional/psychological status as well as their evaluation of the consumption experience. Originality/value This research contributes to the existing literature by demonstrating how emotion regulation processes and the impact of emotions/mood are linked to consumers’ evaluation of service and product quality. Also, support for mood congruency judgment is found. Participants in the field study who had been exposed to music indicated that they made efforts to improve their mood and subsequently had more favorable judgments of service and product quality.

In e-commerce, sellers can disclose product information (such as quality, size information, function, and so on) to make consumers understand the products. However, in the process of information disclosure, consumers often fall into information distortion or information loss. Because of its immutability and traceability, blockchain can help e-commerce sellers improve information disclosure and ensure the efficiency of information transmission. We study a duopoly competitive e-commerce market in which two e-commerce sellers compete in information disclosure. According to whether to apply blockchain, we divide the sellers’ decision-making into four research scenarios (NN, BN, NB, BB). Based on the above four scenarios, we get the market demand of different products depending on the consumer utility, and further establish the game model in the competitive environment. This paper explores the impact of blockchain on information disclosure and consumer surplus, and achieves the Nash equilibrium of blockchain application for both sides. In the expansion model, we study e-commerce sellers’ risk aversion and capital constraints, and further explore their impact on blockchain in practice. Finally, combining with blockchain’s characteristics, we also analyze the impact of the application of blockchain at other aspects on the supply chain. We find that when consumers' trust in information is low or the cost of blockchain applications is low, all e-commerce sellers in competition will adopt blockchain. In addition, when consumers have low trust in information, it will be difficult to achieve complete equilibrium in the application of blockchain as their risk aversion increases. For capital constrained sellers, when the cost of blockchain application is low, it will be difficult to achieve full equilibrium for blockchain applicants as the bank financing rate increases.