Reputation in E-commerce: The dynamics of online retail platforms and the impact of product failure on reputation
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2024-07-03
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en
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Given the growing popularity of online shopping, especially online retail platforms like Amazon and Bol.com, it is beneficial for parties involved to gain more knowledge about potential spill-over effects from product failures. This study examines the impact of product failure on the reputations of online retail platforms and third-party sellers. Furthermore, the moderating effect of the brand strength of the third-party seller and complaint handling from the online retail platform is taken into account. Most research focuses on product failure, but they do not take dynamics of online retail platforms with multiple parties into account.
An online experiment was conducted among 200 Dutch respondents. The results show that product failure has a negative impact on the reputation of third-party sellers. However, this impact does not spill over to the online retail platform. In addition, brand strength from the third party and complaint handling from the online retail platform do not affect the relationship between product failure and reputation. The results of this study are valuable for managers of third-party sellers, as the results show that third party sellers must have quality products; otherwise, their reputation is directly impacted. Moreover, the results are also valuable for managers of online retail platforms, as the effects of product failure do not affect the online retail platform, ensuring the platform's stability and reputation.
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Faculteit der Managementwetenschappen