Research on the Customers' Dissatisfaction Behavior Types After Product Purchase from the Internet Shopping Mall : Case Study for Korea Post Office Shopping

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  • ABSTRACT

    This study is to investigate dissatisfaction behavior of customers who purchase products on the Internet shopping mall and to find customers' dissatisfaction behavior types for effectively responding to that. Managing dissatisfaction behaviors are related to the customer satisfaction. To conduct this study, Call Center data was collected and analysed by qualitative method. The results showed that dissatisfaction of product quality and disappointment have different effects on post purchase behaviors. Customers who feel more dissatisfaction with product quality showed the aggressive response such as exchange, refund, while customers who feel disappointment are likely to switch the shopping mall or to cancel the order. These results of customers' dissatisfaction behaviors indicate that company has to manage both product quality and the customer's experience dimension.


  • KEYWORD

    Customer Satisfaction , Customer Dissatisfaction , Customer Loyalty , E-Loyalty , E-Business

  • 1. Introduction

    As the size of e-commerce is drastically increasing, internet shopping mall is growing in a fast phase and the product types and ranges are becoming diversified. In Korea, among the retail transactions in one year, online transactions are expected to be around 10 trillion won. Further, internet shopping mall is active that it ranks third after the large super markets and department stores(Sun 2007).

    As the online shopping mall market is so active that the strategy to increase loyalty on shopping mall will affect company's operating income, and can be a method to retain its competitive edge. On the other hand, since it is easy to reach online shopping mall, numerous online shopping companies are competing each other that the importance to increase brand loyalty and strengthen the relationship with the customers are becoming important for the companies.

    There have been many discussions regarding the importance to understand and develop various relationships between customers and brands (McAlexander 2002; Fournier 1998; Price 1999). As the e-commerce is growing, Reichheld & Phil said that through retaining e-loyalty, the company should develop relationship with the customers in a long term, and in order to do this, it is very important to construct trust relationship with the customers (Reichheld 2000). Since the e-commerce such as the internet transactions works differently with the offline transactions, it is important to construct the environment that the customers can trust, and this suggests the importance to find out customers' experience elements such as their feelings and emotions.

    Also, in the internet shopping mall shows opinions from the buyers in real time regarding the products they purchased, which has enormous spread out effects. When one considers all this, it makes clearer the necessity to find customers' dissatisfactions in advance and cope with them.

    Researches regarding the evaluation and reflection on purchase experiences have been processed based on customers' satisfaction/dissatisfaction researches and customers dissatisfaction activities (Bearden 1985). Companies are managing by finding out various dissatisfaction activities during the product purchase processes to satisfy ever complicated customers' wants, but these problems still are not easy to conceptualize and measure (Richins 1997). Therefore, this research investigates improvement cases regarding customers' dissatisfaction activities to find out their types to cope with the situations from Korea post office shopping (www.epost.go.kr). Korea post office shopping is the shopping mall run by the government affiliated organization with the purpose to revitalize farming and fishing in Korea.

    2. Theoretical Background

       2.1 Purchase activities from the shopping mall

    In cases of those who have very good knowledge of the internet and convenience oriented reference groups have the higher possibility for the online purchase. To understand these customers' disposition and the marketing element to pull out purchase activities, it says that when the online shopping mall can provide as much credible guaranties, then the possibility for the customers' purchase increase on the first hand. In other words, guarantees can relieve customers' uncertainties when they purchase and can differentiate one company's products from the competitors which can be used as a competitive advantage strategy(Innins 1991).

    Other marketing elements that can induce purchase activities are the sufficient information. What most interrupts in the internet shopping mall revitalizations are the limited information from the shopping mall. To clarify, customers purchasing from the online cannot directly see or touch that can not interact with the level of general shopping mall. Therefore, by providing sufficient information, customers can feel safe and do the purchasing activities(Jarvenspaa 1997).

       2.2 Activities after the purchase from the shopping mall

    After purchasing products, customers can feel satisfaction or dissatisfaction while using them. Also, from these experiences, products are revaluated and reflected to the future decision making. Further, their experiences of satisfaction or dissatisfaction from the products are informed to the surrounding people and to the company as a word of mouth. After the purchase, all these activities are included, and customers purchasing from online are composed of these elements. However, in case of online, not only the products that are purchased, but also these kinds of behaviors are taken in the online shopping malls as one of characteristics. Products purchased from online which customers evaluate and how they behave are not much different from offline. Important reasons why people give interests to their behaviors after online purchases are because they are related to the repurchase actions. Moreover, the characteristics of online customers can easily be transferred to other sites and also negative word of mouth regarding products and sites can be rapidly and widely spread than the offline. Therefore, managing customers' behaviors after purchases can be success elements for the internet shopping mall (Lee 2006).

       2.3 Concept and type of customers' dissatisfaction behaviors

    Customers' dissatisfaction behaviors can be defined as the actions to express customers' dissatisfaction situations after the purchase processes and reflecting from the perceived unsatisfactory situation( Fornell 1987; Oliver 1993; Singh 1996). Customers who were dissatisfied from the company's product present various behaviors such as refund, exchange, apology, and compensation. It is important to thoroughly analyze and research reasons for the customers' dissatisfactory behaviors, so that when managing customers, one can increase customers' loyalty and induce positive purchase behaviors(Gilly 1982; Blodgett 1997).

    Customers dissatisfaction behaviors can be expressed when they are satisfied as well, but according the research, customers' dissatisfaction behaviors are mainly related to the negative behaviors, and these unsatisfactory followed by its behaviors can cause such as the negative word of mouth or refusal of the product in the research(Lee 2005; Best 1977; Blodgett 1997).

    Customers' dissatisfaction behavior types are shown in various ways. Form the research of Son, YoungHwa(2006), through the preceding research result and preliminary investigation of Day (1984) and Day & Landon (1977), classified into 13 dissatisfaction behaviors, and they can be classified into five patterns(Day 1984; Day 1977). They are organized in

    below. These results are customers' compensation requests, negative word of mouth, boycotting, public enemy behaviors, which is similar to the preexisting research results(Blodgett 1997; Singh 1990).

    [

    ] Classification for the dissatisfaction behaviors

    label

    3. Research Problem

    Since the customers can purchase products by clicking from the desired time and place, shopping through the internet shopping mall can provide new value experiences, which preexisting offline stores can not provide. However, because of the easiness to reach and due to the numerous competitions among companies, and can provide a wide selection at the same time, the competition is fierce. Therefore, company's revenue and the creation of loyal customers all depend on how well one can manage customers. In other words, the company should not be careless when managing customers. It is necessary to manage customers' dissatisfaction well enough to induce them and make them to become loyal customers for the company.

    Hence, this research will 1) Find out present conditions regarding customers' dissatisfaction behaviors and types in online shopping mall, 2) Analyze how Korea post office shopping manages customers and cope with such situations to have a depth analysis on the experimental values. To do so, this research will collect information regarding the present situations on customers' dissatisfaction behaviors and types from the Post office shopping, and based on these facts will present success factors for the customers' management in the Internet shopping mall.

    4. Research Method

    In order to research to seek customers' dissatisfaction behaviors from the online shopping mall, real data from korea post office shopping were analyzed, and through the research results that were stated in preexisting scientific journal related to customers' dissatisfaction behaviors were reconstructed and organized. In case of post office shopping, call centers are constructed and operated

    within the company that customers' dissatisfaction behaviors are automatically saved, volume information are accumulated and analyzed. Analyzed information collected from the massive information which newly arranged, and through specification procedures, they were compared with previous analyzed results to develop content analysis as a selected method. Then extracted provisional subjects and meanings based on the analysis, which proceed by following the qualitative research method steps (Strauss 1998).

    For Korea post office shopping case, the majority of the companies sell well-known local products and covers large amount of revenues during the New Year and Chuseok (harvest festival). This research is the result of the analysis of the customers' dissatisfaction behaviors collected during the 2006's New Year (Jan. 28∼30th) comparing with 2005's

    5. Research Result

       5.1 Current situation and types on customers' dissatisfaction behaviors

    Characteristics of customers' dissatisfaction behaviors accepted in the New Year's holidays are focused on customers' changes of mind, inferior conditions related to the products themselves, and delivery. These three covers 91% of customers' dissatisfaction behaviors. Especially, among the customers' dissatisfaction behaviors on products, inferior products cover 78%, and wrong product deliveries cover 22%, which show the necessity to continuously manage and train suppliers of the online shopping mall. The reason why customers dissatisfaction on inferior products are so huge is because of the limitation of online shopping mall, which the real products cannot be seen by ones' own eyes until they are delivered. When customers expectations are not fulfilled, their frustrations appear to be big, which are expressed in the way of dissatisfaction behaviors. Possession ratio of types on customers' dissatisfaction behaviors is showed by

    .

    Number of collected dissatisfaction behaviors during the New Year holidays, are total of 783, which can be explained that one average day of customers' dissatisfaction behaviors collected are 26.1. Below

    shows the number of customers' dissatisfaction behaviors by cases, which suggests that in case of shopping mall, particular day or event that the advertisements are progressed, purchases are focused that there can be increases on types of customers dissatisfaction behaviors. Therefore, considering characteristics of internet, it is necessary to have a promotion by steps or construct a system.

    Comparison with the 2005's New Year's holiday season regarding customers' dissatisfaction behavior types on products

    Comparison with the 2005's New Year's holiday season regarding customers' dissatisfaction behavior types on products are shown in

    . Compared to the 2005's total number of customers dissatisfaction behavior types on products are 620 items, but in 2006 reduced to 335, which are the improvement of 46%(285 items) compared to 2005. This represent that the companies made efforts by thoroughly preparing to face the high-demand season to figure out the number of supply stocks in advance.

    Customers dissatisfaction behaviors are divided into customers' change of mind behaviors, products related behaviors, and delivery. When they are observed in detail, they are explained in

    ,
    , and
    .
    is the type of customers' dissatisfaction behaviors regarding their changes of minds, and they have close relationships with emotions(Kumar 1997). After a customer ordering the product from the internet and before receiving the product where there are time gap, customer can change one's mind by subjective opinions. Also, after receiving it, one can complain to the call center due to the disappointment received from the product's outer look or content. This is because consumption emotion made one to purchase the product, but the possession after the purchase, usage, and anticipated consumption are included which cause such an action(Richins 1997). In other words, customers form value expectations based on what product can provide, and purchase processing based on various information and emotion reflections. When before the purchase image and the actual received product's images are different, one feels disappointment and makes one to act in complaining behaviors(Oliver 1997).

    Classification of dissatisfied products and dissatisfied behaviors related to the dissatisfaction are mainly because products were inferior and due to the products' additional services (different from the product explanation, expiring date and dissatisfaction on the indication standard, weight and packaging, wrong delivery dissatisfactions). It is arranged in

    .

    Customers pursue various product selection choices and easiness of the purchase from the internet shopping mall, but it shows that they want to avoid risks compared to the offline. Since the portion of the delivery from the internet shopping mall is related to the perceived risk, it is considered to be an important problem. In relation to the delivery, delay, missed, lost/broken/damage, wrong delivery related dissatisfaction are shown in a large scale. It is arranged in

    .

       5.2 Handling and improvement operations on customers' dissatisfaction behaviors

    Customers' dissatisfaction behaviors have negative sides from the company's viewpoint. However, it is very important from the company's perspective when it can find out types of customers' dissatisfaction behaviors and successfully able to manage them, it will make improvements on the customers' satisfaction level based on the dissatisfying information. Especially, when dissatisfaction behaviors are smoothly solved, one can earn the relationship with the customers and effectiveness on customers ' loyalty. Considering all this, one can say that the positive effects to the company is greater(Day 1977).

    In case of the Korea post office shopping, through the system construction, it was actively coping with the customer management by systematically managing and gathering information on the consumers' dissatisfaction behaviors. As one can see from the result of

    , customers prefer for the refund and exchange the most. In case when the consumers' mind change, they preferred for the refund, and in case of there is dissatisfaction on the product itself or delivery, they preferred for the product exchange or additional delivery. In other words, based on the customers' dissatisfaction behavior, the company should be able to differentiate and manage according to the types of dissatisfaction. Customers does not stop just by complaining, but there are many cases where they ask for refunds as a compensation pursuit behaviors (45.8%), so from the view point of companies, it is necessary to develop manuals to induce customers to exchange products rather than the refunds and additional delivery procedures through representatives.
    summarizes the distribution of processed results per customers' dissatisfaction behaviors.

    Dissatisfied customers' management in the korea post office shopping and relationship strengthening behaviors with the customers are classified in five large scales.

    First, where there are suppliers that can degrade the image of the internet shopping mall, strict standard should be applied to provide quality and quantity products by managing suppliers. It is arranged in

    .

    Second, it is the management of customers' mind changes classified as a simple mind change and other mind changes to measure. For the simply mind changed customers, plans that customers should pay part of the shipping cost, but basically by finding out the reasons why the customers changed their minds and improving methods are utilized to cope with the problem. Summary is in

    .

    Third is the management of the production which it was taking appropriate improvement measures so that good quality products could be supplied.

    It is summarized in <Table 9>.

    Fourth is the management of the delivery. Through the delivery firm's service reinforcement and close cooperation, it could deliver products right on time. It is summarized in

    .

    Lastly, improve payment system and minimize occurrences in the system, so that perceived risks from the viewpoint of customers are reduced. Also, continuously pursue customers' satisfaction through the kind training. It is summarized in

    .

    6. Conclusion and Suggestion

       6.1 Summary for the types of customers' dissatisfaction behaviors from the internet shopping mall

    Internet shopping mall's growing speed is too rapid and it is another market that delivers profits for the companies. However, the competitions among companies are fierce to satisfy needs of customers. Especially, since the communication is easier than the offline, it has advantage to have feedbacks of customers' dissatisfaction behaviors and active management for the dissatisfaction behaviors are needed. This research can suggest for the next results where the depth understanding for the customers are insufficient from the internet shopping mall that is a new profit maker for the companies.

    First, regarding the customers' dissatisfaction behaviors, dissatisfaction due to the consumer's change of mind and to the production counted 84.8% which covers the majority. Further, there are differences of customers' behaviors depending in each type. Customers' change of mind appears to have high relationship with the customers' emotions which customers change their minds before receiving the product. Later, one decides to cancel the order, which signifies perceived risks provided by the internet. Perceived risks are related to the customers' mental safety from the product purchases, that if general customers' reason for selecting high brand recognition from the product, time barrier exists until one receives the product from the online, and one can expect that the perceived risks are higher than the offline. Within the subconscious, these uncertainties exist which occurs a simple change of mind(Kapferer 2004).

    Second, there are differences in customers' behaviors depending on customers' dissatisfaction behaviors and the company must find out the solution to meet dissatisfaction types. It is necessary to prevent by finding out reasons for the dissatisfaction reasons most importantly in advance. Post office shopping classified types of dissatisfaction behaviors, and actively coping with the key issues, we could experience the drastic improvement decreasing the dissatisfaction behavior compared to the previous year.

       6.2 Suggestions regarding customers' dissatisfaction behaviors from the internet shopping mall

    With the case analysis, this research classified types of customers' dissatisfaction behaviors from the internet shopping mall with the purpose to search the solution. Suggestions from this research are the following.

    First, internet shopping mall grew not only by the size, but also from the qualitative perspective, so managing customers' experiences are necessary and important. Especially, each companies constructed customers' relationship management system (CRM) which made easier to obtain information of customers and do the analysis. Therefore, by patterning dissatisfaction behaviors, then by differentiating customers' management by the customers' group patterns, it is expected to make it easy to induce customers' loyalty from the dissatisfaction customers.

    Second, since it is difficult to differentiate from the product, it appeared the importance of marketing activities to manage customers not to change mind, which can be correlated with moving customers' hearts where the attention economy talks about. In other words, since we are living in a modern world where things overflow, only the companies that can grab minds of customers will create profits(Kapferer 2004). At the beginning of the internet shopping mall, due to the fact that clothing, food could not be seen from one's own eyes or taste, they were turned away, but currently the sales of these products cover most of the part the revenue and due to the increase of the product, customers do not have refuse when purchasing. With this in regard, these marketing activities will become more important based on the current situation that can reduce the complaints or risks that are perceived by customers. Therefore, it is necessary to have activities to construct appropriate programs and develop manuals to manage customers' dissatisfaction behaviors which can be seen as the activities after customers receiving the product.

    Lastly, in order to manage customers' dissatisfaction behaviors, detailed grasp regarding emotional inductions are shown to be necessary in this research result. From the existing researches, there were studies on customers' satisfaction/ dissatisfaction and negative behaviors of repurchase intention, but in this study's experiment result, it showed the necessity to classify in detail regarding customers' changes in minds and emotional parts. Especially, in cases where the customers' minds changes showed high ratio of refund requests rather than dissatisfaction behaviors of the products, so from the viewpoint of the companies, it is necessary to find out what induced emotions were for asking for the refunds. Further, it is very important to train representatives to induce exchange to other products rather than the customers asking for the refund.

    7. Research Limitations and Future Research Direction

    In this research, there are limitations as stated next. First, this research is the result of experimental research based on the particular online companies, so when it is researched based on other internet shopping mall, there can be difference in dissatisfaction behaviors, types, degree Therefore, one should collect various information based on different shopping malls should be done to generalize the research result.

    Second, this research collected information based on the people who experienced dissatisfaction from the call center, so there is a limitation regarding the analysis on the repurchase and analysis on satisfaction effects. Therefore, the method collected by this research there are problems of not being able to compare before and after dissatisfaction behaviors of customers. Hence, in next research, it would be preferable to collect information for both who received and not received dissatisfaction behaviors and analyze effects for the satisfaction and repurchase intention.

    On the other hand, this research result suggests for the future research subjects. First, one should deeply analyze than the emotional experiences by customers. In this research, it showed that customers' frustration, regret and emotions tended to be important, but in the future research, optimal experience, emotional changes after the dissatisfaction process being done should be deeply collected and analyzed. Second, in the further research, it will be necessary to analyze influences into the research model and reasons for the participation on dissatisfaction behaviors. By classifying internal and external motivation on the dissatisfaction behaviors, it is expected to analyze.

    Third, it would be necessary to verify by finely developing research models on dissatisfaction and satisfaction behaviors. Through this process, it would be possible to concretely find the effects to increase the satisfaction from the online dissatisfaction behaviors.

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    • [<Table 1>] Classification for the dissatisfaction behaviors
      Classification for the dissatisfaction behaviors
    • [Figure 1] Possession ratio of types on customers’ dissatisfaction behaviors
      Possession ratio of types on customers’ dissatisfaction behaviors
    • [Figure 2] The number of daily customers’ dissatisfaction behaviors
      The number of daily customers’ dissatisfaction behaviors
    • [Table 2] Comparison with the 2005’s New Year’s holiday season regardingcustomers’ dissatisfaction behavior types on products
      Comparison with the 2005’s New Year’s holiday season regardingcustomers’ dissatisfaction behavior types on products
    • [Table 3] Types and classification of the customers dissatisfied behaviors regarding their mind changes
      Types and classification of the customers dissatisfied behaviors regarding their mind changes
    • [Table 4] Types and classification of customers dissatisfaction behaviors related to the product
      Types and classification of customers dissatisfaction behaviors related to the product
    • [Table 5] Types and classification of customers dissatisfaction behaviors related to the delivery
      Types and classification of customers dissatisfaction behaviors related to the delivery
    • [Table 6] The processed results for customers’ dissatisfaction behaviors
      The processed results for customers’ dissatisfaction behaviors
    • [Figure 3] The distribution of processed results per customers’ dissatisfaction behaviors.
      The distribution of processed results per customers’ dissatisfaction behaviors.
    • [Table 7] Improvement activities 1 regarding customers’ dissatisfaction behaviors
      Improvement activities 1 regarding customers’ dissatisfaction behaviors
    • [Table 8] Improvement activities 2 regarding customers’ dissatisfaction behaviors
      Improvement activities 2 regarding customers’ dissatisfaction behaviors
    • [Table 9] Improvement activities 3 regarding customers’ dissatisfaction behaviors
      Improvement activities 3 regarding customers’ dissatisfaction behaviors
    • [Table 10] Improvement activities 4 regarding customers’ dissatisfaction behaviors for thePost office shopping (delivery management)
      Improvement activities 4 regarding customers’ dissatisfaction behaviors for thePost office shopping (delivery management)
    • [Table 11] Improvement activities 5re garding customers’ dissatisfaction behaviors (the others)
      Improvement activities 5re garding customers’ dissatisfaction behaviors (the others)