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© University of Pretoria Millennial Consumers' Complaint Behavioural Millennial consumers’ complaint behavioural intentions following service failure in the online clothing retail context Jonker, C (15006795) M Consumer Science: Clothing Retail Management Supervisor: Dr Suné Donoghue (University of Pretoria) Co-supervisor: Dr Lizette Diedericks (University of Pretoria) February 2021 © University of Pretoria Millennial consumers’ complaint behavioural intentions following service failure in the online clothing retail context by Chanel Jonker Dissertation submitted in partial fulfilment of the requirements for the degree Master’s in Consumer Science: Clothing Retail Management in the Faculty of Natural and Agricultural Science Department of Consumer and Food Sciences University of Pretoria Pretoria February 2021 © University of Pretoria Dedicated to My parents, Andre Jonker and Karen Jonker, and my Fiancé, Jason van der Meijden, for your unwavering support and love. ii Declaration I, Chanel Jonker, declare that the dissertation, which I hereby submit for the degree M Consumer Science: Clothing Retail Management, at the University of Pretoria, is my own work, and that it has not previously been submitted by me for a degree at this or any other tertiary institution. 2020-10-15 ……………………….. ….………………….. Chanel Jonker Date iii Acknowledgements I would like to thank the following persons for the role they have played, without whom the completion of this study would not have been possible: My supervisor, Dr Sune Donoghue, for all your guidance, long hours, patience, and dedication to my work. I will forever be grateful for all the hours you put in to make this a success. My co-supervisor, Dr Lizette Diedericks, for all your encouraging words, insight, motivation, and inspiration during this time. I cannot thank you enough for all the help you have given me. Ms Joyce Jordaan and Professor Francois Steffens, from the department of statistics, at the University of Pretoria, for helping me with my data analysis. To Jason Van Der Meijden, for all your support, motivation and love during the difficult times and for sitting with me during all the late nights. To my parents, Andre and Karen, thank you for all your support, motivation, patience, kindness, financial assistance and love. Thank you for all the phone calls and words of encouragements. My fellow students, especially Megan Grobler and Arabelle Treurnicht, who were always willing to listen and give assistance when needed. To my Supervisor, Dr Sune Donoghue, for the financial assistance through a student bursary. iv Abstract Millennial consumers’ complaint behavioural intentions following service failure in the online clothing retail context by Chanel Jonker Supervisor: Dr S Donoghue Co-Supervisor: Dr L Diedericks Department: Consumer and Food Sciences Degree: M Consumer Science: Clothing Retail Management Researchers in consumer complaint behaviour agree that consumers’ complaint intentions are influenced by online service failures. These online service failures include delivery problems, payment security problems, web-page navigational problems, product information problems, and customer service problems. Online service failures cause customer dissatisfaction that could trigger consumer complaint behaviour. Most consumer complaint behaviour researchers concur that the purchasing environment primarily influences consumers’ complaint behavioural intentions. Relevant literature on Millennial consumers and theory on service failures and consumer complaint behaviour was integrated to provide this study's theoretical grounding. This study aimed to determine the Millennial consumers' complaint behavioural intentions following a service failure in the online clothing retail context. This study also determined differences in Emerging, Young and Older Millennials complaint behavioural intentions. A survey research design was implemented, using a structured, self-administered online questionnaire to measure Millennial consumers’ (n = 193) complaint behavioural intentions following a service failure in the online clothing retail context. The self-administered questionnaire made use of existing scales and self-developed questions. Millennial consumers indicated that delivery problems would cause them the most dissatisfaction, followed by payment security problems, customer service problems, product information problems, and webpage navigational problems. The exploratory factor analysis revealed four complaint intention factors. The four factors were labelled as electronic communication, switching behaviour, complaints to the retailer, and negative word-of-mouth. v Negative word-of-mouth as private complaint action was the most relatively pertinent complaint intention, followed by switching intention and complaining to the retailer. Electronic WOM was the least pertinent complaint intention. More specifically, an ANOVA test was performed to determine the differences in emerging, young and older Millennials’ complaint behavioural intentions following a service failure in the online clothing retail context. The descriptive results indicated that the majority of the Millennial cohort would instead take action than no action. ANOVA’s were performed to determine the differences across Emerging, Young and Older Millennials’ complaint intentions following a service failure in the online clothing retail context. The ANOVA’s indicated that the three complaint intentions of electronic communication, switching, and complaining to retailers did not vary across the Millennials cohorts. This implies that the respective Millennial groups equally intended to take these individual complaint actions. Also, only word-of-mouth intention differed significantly across the Millennial groups. Older Millennials were less likely to contact family and/or friends in person or by text messaging on WhatsApp than Emerging and Young Millennials. The study makes a valuable contribution towards the consumer complaint behaviour literature and for consideration by online retailers, multi or omni-channel retailers, and marketers of clothing products. Keywords: consumer complaint behavioural intentions, online clothing retailing, online service failures, Millennial consumers, Millennial intra-cohorts. vi TABLE OF CONTENTS DECLARATION………………………………………………………………………..……………..iii ACKNOWLEDGEMENTS…………………………………………………..……………………….iv ABSTRACT..……………………………………………………………………………………...…..v LIST OF ADDENDA.…………………………………………………………………….....…….....xi LIST OF FIGURES..……………………………………………………………………….……..…xii LIST OF TABLES……………………………………………………………………………...…...xiii Chapter 1: ................................................................................................................................ 1 1.1. INTRODUCTION AND CONTEXT OF THE RESEARCH .............................................. 1 1.2. PROBLEM STATEMENT ............................................................................................... 4 1.3. JUSTIFICATION ............................................................................................................. 5 1.4. RESEARCH AIM ............................................................................................................ 6 1.5. RESEARCH OBJECTIVES ............................................................................................ 6 1.6. STUDY AREA ................................................................................................................ 6 1.7. RESEARCH DESIGN AND METHODOLOGY ............................................................... 7 1.8. DATA ANALYSIS ........................................................................................................... 7 1.9. PRESENTATION AND STRUCTURE OF THE DISSERTATION .................................. 8 1.10. ABBREVIATIONS .......................................................................................................... 9 Chapter 2 ............................................................................................................................... 10 2.1. INTRODUCTION ............................................................................................................ 10 2.2. MILLENNIAL CONSUMERS .......................................................................................... 10 2.3. ONLINE RETAILING ...................................................................................................... 14 2.4. ONLINE SERVICE FAILURES ....................................................................................... 16 2.4.1. Delivery problems ........................................................................................................ 18 2.4.2. Payment security ........................................................................................................ 19 vii 2.4.3. Web page navigation .................................................................................................. 20 2.4.4. Product information ...................................................................................................... 21 2.4.5. Customer service problems ......................................................................................... 21 2.4.6. Quality issues .............................................................................................................. 22 2.5. CONSUMER COMPLAINT BEHAVIOUR ....................................................................... 23 2.5.1. Consumer complaint behaviour explained ................................................................... 23 2.5.2. Typologies classifications for
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