Encounter Satisfaction in E‐tailing: Are the Relationships of Order Fulfillment Service Quality with its Antecedents and Consequences Moderated by Historical Satisfaction?

Abstract

This study focuses on whether historical satisfaction with an e‐tailer (HSat) moderates baseline relationships in order fulfillment service quality models. HSat is defined as satisfaction with the e‐tailer spanning all transactions except the current encounter. Encounter satisfaction (ESat) is defined as the consumer's satisfaction with the current transaction. In the baseline model, four order fulfillment service quality (OFSQ) dimensions managerially relevant to consumer e‐tailing are examined: timeliness, availability, condition, and billing accuracy. The baseline structural model results support that OFSQ dimensions impact ESat, which in turn predicts two key consequences—repurchase intention and word‐of‐mouth. Adaptation theory is used to model the role of HSat, while controlling for transaction recency, vendor familiarity, and competitive pricing. HSat is shown to have pervasive main and interaction effects upon all baseline model relationships. These moderation effects have great managerial relevance. For example, the results illustrate a phenomenon similar to the service recovery paradox, wherein when a negative service encounter is followed by a highly positive service recovery event, previously dissatisfied consumers, as compared to previously satisfied consumers, respond with higher levels of current satisfaction. For managers, this finding is encouraging because policies that create highly positive events for consumers can thus supersede past negative experiences. Our results show however that HSat cannot be completely superseded by current OFSQ or current ESat.

Consumer Behaviour and Order Fulfilment in Online Retailing: A Systematic Review

“…Based on a similar framework of order‐fulfilment service quality (OFSQ), Koufteros et al . () investigated the role of encounter satisfaction (i.e. consumer satisfaction with the current transaction) on the relationship between order‐fulfilment elements and repurchase intentions in online retailing.…”

“…Adaption Theory (Koufteros et al . ), Discrepancy‐Evaluation Theory of Emotion (Kim and Lennon ) and Transaction Costs Economics Theory (Griffis et al . ).…”

Hurry! Sale Ends Soon: The Impact of Limited Inventory Availability Disclosure on Consumer Responses to Online Stockouts

“…; Koufteros et al. ). In sum, this body of work suggests that stockouts and inventory availability levels should be communicated in a strategic fashion, also considering that consumers’ perception and response behavior may differ depending on how they were informed about inventory availability (e.g., Allon and Bassamboo ).…”

“…The underlying logic of this research stream is that website information can serve as a "cue" that frames consumer expectations and assessments of their shopping experience. Previous research has established that different approaches to communicating inventory availability (e.g., whether inventory availability is represented numerically [such as "3 left in stock"] or in a partial fashion [such as "in stock"]) can impact the likelihood of product returns (Rao et al 2014), online retailer profits (Yin et al 2009;Aydinliyim et al 2015), and how consumers feel about both their shopping experience and the physical distribution capabilities of the online retailer (Heim and Field 2007;Xing et al 2010;Koufteros et al 2014). In sum, this body of work suggests that stockouts and inventory availability levels should be communicated in a strategic fashion, also considering that consumers' perception and response behavior may differ depending on how they were informed about inventory availability (e.g., Allon and Bassamboo 2011).…”

Antecedents of Consumer-Based Electronic Retail Brand Equity: An Integrated Model

“…Past research defined fulfilment as a multidimensional construct reflected by timeliness, availability, conditions, and billing accuracy (Koufteros, Droge, Heim, Massad, & Vickery, 2014;Mentzer, Gomes, & Krapfel, 1989). The fulfilment and reliability aspect of e-retail quality deals with firms' ability to provide accurate product and process specific information followed by delivery of purchased items within the promised time frame (Wolfinbarger & Gilly, 2003).…”