The Impact of E-Services Failures and Customer Complaints on Electronic Commerce Customer Relationship Management

By Cho, Yooncheong; Im, Il et al. | Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior, January 1, 2003 | Go to article overview

The Impact of E-Services Failures and Customer Complaints on Electronic Commerce Customer Relationship Management


Cho, Yooncheong, Im, Il, Hiltz, Roxanne, Journal of Consumer Satisfaction, Dissatisfaction and Complaining Behavior


ABSTRACT

Handling customer complaints has become a strategic concern in electronic commerce Customer Relationship Management (e-CRM). The purposes of this study are to (a) explore the major causes of customer complaints, comparing online and in-store environments, and( b) examine how customer complaints are differently perceived based on the types of service failures. The Justice Dimensions with Complaint Handling framework proposed by Tax, Brown, and Chandrashekaran (1998) are applied in this study for the classification of e-service failure types. The data were collected from online customer feedback publicized on Internet websites and the shopping log data reported by selected consumer panels. The research identified that the impact of service failure with the justice dimension affects customers' propensity to complain in the online shopping environment. Further, the study emphasizes that successful service management is the core of e-commerce customer relationship management (e-CRM).

INTRODUCTION

Handling customer complaints and managing customer service have become crucial for Electronic Customer Relationship Management (e-CRM). Previous studies (Cho, Im, Hiltz, and Fjermstad 2002; Julta, Craig, and Bodorik, 2001; Levesque and McDougall 1996) have ascertained that successful e-CRM requires adherence to a stable and consistent strategy that focuses on the goals of maintaining customer loyalty and of using complaint handling data to solve problems and address issues raised by customers. The key e-CRM components proposed in the previous research (Cho et al. 2002) include: (a) maximizing customer satisfaction/minimizing customer dissatisfaction; (b) increasing customer loyalty; and increasing product/service quality; and (c) resolving customer complaints.

What are the major concerns of e-services? Hollowell (2002) stressed the necessity of understanding the different forms (e.g., virtual: either pure information or automated) service takes in organizations that conduct business through the Internet. With the Internet's technological advances, customers enjoy greater convenience, such as Web-based service centers where customers can ask questions regarding product information, payment issues, delivery, product returns, etc. before and after making a purchase. However, customer complaints due to faulty e-commerce transactions or service still exist. We can find such complaints on various customer feedback systems, such as www.epinions.com, www.thirdvoice.com, or www.complaints.com. Customer feedback systems not only provide a service to deliver customer complaints, but also become a source of spreading the reputation of the business, product, or service.

Based on the importance of e-CRM to improve customer satisfaction and resolve customer complaints in the online environment, the purpose of this study is to explore e-service failures that have been the major causes of customer complaints. In particular, we investigate the major causes of customer complaints in the online and in-store environments; explore different types of service failure; and measure the impact of service failure on the customer's propensity to complain. Previous studies (Cho et al. 2002) have researched major causes of customer complaints in the online and in-store environment. However, how the types of service failures that have been the major causes of customer complaints differ in the online and in the in-store environments has rarely been researched. This study used the framework by Blodgett, Hill and Tax (1997) and Tax, Brown, and Chandrashekaran (1998) to classify the types of e-service failure. This study investigates how the previous framework, called justice dimensions, will work in online environment. While past studies have collected data via surveys, this study used log data, which is collected from consumer panels, and customer feedback posted on "customer service centers," which are managed to resolve customer complaints (Cho, Im, Hiltz, and Fjermstad 2002). …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

The Impact of E-Services Failures and Customer Complaints on Electronic Commerce Customer Relationship Management
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.