Findings from consumer studies clearly indicate financial compensation for the shortfall heads off ill feelings toward the business. Researchers at University of Alabama, Copenhagen Business School, and Friedrich-Schiller University of Jena had a question about the circumstance where a group has been impacted: Should you tell shoppers in the group that all are receiving the same compensation for the service failure? The alternative is to tell each individually only what they are receiving.
In answering this question, the researchers confirmed findings from previous studies concluding the relationship between the size of financial compensation and preservation of satisfaction follows a concave curve. At low levels of compensation, the more you give, the better the results. But at higher levels, the curve flattens out. You won’t get much better results by offering more.
Attentiveness to customer reactions can tell you the point where the curve flattens. The research findings show this point occurs earlier when everyone in the group knows that all are receiving the same amount. You’ll need to spend less on giving credits toward future purchases or providing a discount on the current purchase.
The explanation is that a sense of fairness itself enhances satisfaction. Knowing all have been compensated the same portrays fairness.
For your success: Retailer’s Edge: Boost Profits Using Shopper Psychology
Click below for more:
Knock Out Rage from the Old One-Two
Back Up Shoppers at the Front of the Line
Offer Exclusive Price Discounts Cautiously
No comments:
Post a Comment