A Bit(coin) of happiness after a failure: an empirical examination of the effectiveness of cryptocurrencies as an innovative recovery tool

Amin Nazifi; Samantha Murdy; Ben Marder; Jana  Gäthke; Bardia Shabani

doi:10.1016/j.jbusres.2020.11.012

A Bit(coin) of happiness after a failure: an empirical examination of the effectiveness of cryptocurrencies as an innovative recovery tool

Amin Nazifi
, Samantha Murdy
, Ben Marder
, Jana Gäthke
, Bardia Shabani

Marketing

Research output: Contribution to journal › Article › peer-review

32 Citations (Scopus)

24 Downloads (Pure)

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	https://doi.org/10.1016/j.jbusres.2020.11.012
Publication status	Published - 5 Jan 2021

Keywords

service recovery
compensation 2.0
cryptocurrency
customer satisfaction
prospect theory

Access to Document

10.1016/j.jbusres.2020.11.012

Nazifi-etal-JBR-2020-A-bit-coin-of-happinessAccepted author manuscript, 934 KBLicence: CC BY-NC-ND 4.0

Cite this

@article{48c2deaf64b342daa4a4f93fbded21fb,

title = "A Bit(coin) of happiness after a failure: an empirical examination of the effectiveness of cryptocurrencies as an innovative recovery tool",

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.",

keywords = "service recovery, compensation 2.0, cryptocurrency, customer satisfaction, prospect theory",

author = "Amin Nazifi and Samantha Murdy and Ben Marder and Jana G{\"a}thke and Bardia Shabani",

year = "2021",

month = jan,

day = "5",

doi = "10.1016/j.jbusres.2020.11.012",

language = "English",

volume = "124",

pages = "494--505",

journal = "Journal of Business Research",

issn = "0148-2963",

publisher = "Elsevier Inc.",

}

TY - JOUR

T1 - A Bit(coin) of happiness after a failure

T2 - an empirical examination of the effectiveness of cryptocurrencies as an innovative recovery tool

AU - Nazifi, Amin

AU - Murdy, Samantha

AU - Marder, Ben

AU - Gäthke, Jana

AU - Shabani, Bardia

PY - 2021/1/5

Y1 - 2021/1/5

N2 - 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.

AB - 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.

KW - service recovery

KW - compensation 2.0

KW - cryptocurrency

KW - customer satisfaction

KW - prospect theory

UR - https://www.sciencedirect.com/journal/journal-of-business-research

U2 - 10.1016/j.jbusres.2020.11.012

DO - 10.1016/j.jbusres.2020.11.012

M3 - Article

SN - 0148-2963

VL - 124

SP - 494

EP - 505

JO - Journal of Business Research

JF - Journal of Business Research

ER -

A Bit(coin) of happiness after a failure: an empirical examination of the effectiveness of cryptocurrencies as an innovative recovery tool

Abstract

Keywords

Access to Document

Other files and links

Fingerprint

Emerging Technologies in Service Research

Cite this

A Bit(coin) of happiness after a failure: an empirical examination of the effectiveness of cryptocurrencies as an innovative recovery tool

Abstract

Keywords

Access to Document

Other files and links

Fingerprint

Projects

Emerging Technologies in Service Research

Cite this