Rethinking Picky Shoppers and Store Reputation: Effective Online Service Recovery Strategies for Products with Minor Defects

Abstract

This study examines how the initiation of monetary compensation and the sincerity of apologies influence customers’ repurchase intentions after receiving products with minor defects, and how these effects are moderated by consumer pickiness and the e-store’s reputation. Two scenario-based, between-subjects online experiments were conducted in China via the Wenjuanxing online survey platform, with participants voluntarily taking part in exchange for monetary compensation. We propose that consumers have a higher repurchase intention when online customer service initiatively offers monetary compensation (vs. passive vs. no compensation) and that the effect of monetary compensation modes can be enhanced by a serious apology from customer service. Building on these findings, Study 1 (n = 330) reveals that picky consumers are more sensitive to the enhanced effect of initiative monetary compensation on repurchase intentions under serious apologies. Moreover, Study 2 (n = 537) confirms that consumers are more stringent in their expectations of high-reputation stores, whereas low-reputation stores can achieve similar positive effects with casual apologies that high-reputation stores only obtain through serious apologies. This study provides theoretical support for the importance of the initiation of actions and sincerity in service recovery and offers guidance for businesses dealing with picky consumers.