The Dark Side of Good Reputation and Loyalty in Online Retailing: When Trust Leads to Retaliation through Price Unfairness

Journal of Interactive Marketing, 47, 35-52 (2019)

48 Pages Posted: 29 Jul 2019

See all articles by Isabel Riquelme

Isabel Riquelme

Jorge Tadeo Lozano University

Sergio Roman

University of Murcia

Pedro J. Cuestas-Diaz

University of Murcia

Dawn Iacobucci

Vanderbilt University - Marketing; Vanderbilt University - Marketing

Date Written: July 24, 2019

Abstract

This research examines price variations that are perceived to be unfair which then induce consumers to retaliate online. These phenomena are growing in online retailing given the data-based means for companies to set differential pricing, and the social media venues for consumer complaints. In this research, data from 997 respondents are used to test moderated mediation relationships integrating: (1) the influence of trust (i.e., competence and benevolence) on perceived price unfairness, and its mediating role on subsequent online revenge intentions; (2) the moderating role of (a) retailer reputation and (b) customer loyalty. We find that pricing practices seen as unfair can lead to a “dark side” or a “love becomes hate” effect for loyal customers of retailers with good reputations. Implications for theory and practice are discussed.

Keywords: Online retailing; Perceived price unfairness; Trust; Reputation; Customer loyalty; Online revenge intentions

Suggested Citation

Riquelme, Isabel and Roman, Sergio and Cuestas-Diaz, Pedro J. and Iacobucci, Dawn and Iacobucci, Dawn, The Dark Side of Good Reputation and Loyalty in Online Retailing: When Trust Leads to Retaliation through Price Unfairness (July 24, 2019). Journal of Interactive Marketing, 47, 35-52 (2019), Available at SSRN: https://ssrn.com/abstract=3425986 or http://dx.doi.org/10.2139/ssrn.3425986

Isabel Riquelme

Jorge Tadeo Lozano University ( email )

Carrera 4 # 22 - 61
Bogota, DC Cund 57
Colombia

Sergio Roman

University of Murcia ( email )

Facultad de Economía y Empresa
Departamento de Economía Financiera y Contabilidad
Murcia, Murcia 30100
Spain

Pedro J. Cuestas-Diaz

University of Murcia ( email )

Avda Teniente Flomesta, 5
Murcia, Murcia 30100
Spain

Dawn Iacobucci (Contact Author)

Vanderbilt University - Marketing ( email )

Nashville, TN 37203
United States

Vanderbilt University - Marketing ( email )

Nashville, TN 37203
United States

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