Abstract
This research provides the first examination of the effectiveness of cryptocurrencies as an innovative recovery tool. Through four experiments, we assess the effects of crypto-compensation against traditional compensation types (voucher/cash) on customer recovery satisfaction. Study 1 findings indicate that crypto-compensation is more effective than voucher and cash in improving customer recovery satisfaction. Further, it shows that consumer innovativeness moderates the effectiveness of crypto-compensation. After establishing the effectiveness of crypto-compensation, Study 2 finds a moderating effect of consumer choice in influencing crypto-compensation effectiveness. Study 3 reveals the differential effect of communicating different crypto-compensation benefits on customer recovery satisfaction. Finally, Study 4 concludes that familiar cryptocurrencies (e.g., Bitcoin vs. EOS) best restore satisfaction after a failure and that compensation message framing (i.e., cryptocurrency monetary value vs. real nominal value) moderates this relationship. Theoretical and practical implications are discussed.
| Original language | English |
|---|---|
| Pages (from-to) | 494-505 |
| Number of pages | 12 |
| Journal | Journal of Business Research |
| Volume | 124 |
| Early online date | 16 Nov 2020 |
| DOIs | |
| Publication status | Published - Jan 2021 |
Bibliographical note
Publisher Copyright:© 2020 Elsevier Inc.
Keywords
- Compensation 2.0
- Cryptocurrency
- Customer satisfaction
- Prospect theory
- Service recovery
ASJC Scopus subject areas
- Marketing