Breach of Psychological Contract and Compensation in Cases of Failure of Online Shopping Service

Abstract

More and more researchers are now attracting and paying attention towards the notion of psychological contract in the relationship of marketing. This study suggests that the compensation of a psychological contract for online customers was associated to the class of individual value orientation of customers and breach of psychological contract. 139 respondents participated in the experiment that belongs to the Chinese university. Results of the study revealed that interaction effect of breach type on trust compensation and individual value orientation was highly significant. When breach is driven by ability, then, for cooperative individuals, compensation will be more useful for repairing trust, whereas more useful and effective in case of non-cooperative individuals when integrity is a sole reason of breach. Findings and results have great implications for improving service quality and making marketing strategies.

DOI: 10.5901/mjss.2015.v6n4p516