The rise of e-commerce poses new challenges for companies’ complaint management. As online trans-actions are characterized by a limited degree of interpersonal interaction, traditional recovery mech-anisms that take advantage of the employee-customer relationship become less important. Conse-quently, it needs to be understood how e-commerce companies can best compensate their customers after a complaint. Our research addresses this gap by assessing the impact of discounts versus vouch-ers on post-complaint consumer purchase behavior. Leveraging the advances in information systems, we base our analysis on an extensive data set that is provided by a leading fashion online retailer and includes more than 24,000 complaints and 450,000 orders. The results show that discounts are more effective in encouraging sales after a complaint. We further examine how customer characteristics moderate this relationship and find that the effect is stronger for price-conscious customers and less strong for frequent customers. Our research contributes to the service marketing literature by trans-ferring existing theoretical foundations to the online retailing environment. We further provide practi-cal guidance to managers how to utilize the extensive amount of data available to identify the most suitable compensation for individual customers.
von Aswege, Frederike and Kemper, Jan, "WHO GETS WHAT? HOW ONLINE COMPANIES CAN APPEASE THEIR COMPLAINING CUSTOMERS" (2018). Research Papers. 87.