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When E-Shoppers Aren't Happy

Posted on 3.21.2006
The Customer Dissatisfaction Study released today by the Verde Group and Baker Retailing Initiative at Wharton finds that as shopping problems get repeated, they often get embellished and actually become up to five times more damaging to customer retention than the initial negative shopping experience itself.

"This study is unlike anything we've seen before because it shows that for every 100 American shoppers, 64 people will be told about a store's poor products or services and no matter what that store does to entice shoppers - sales, promotions, advertising, marketing - those people will not set foot in their store," says Paula Courtney, President, The Verde Group. Nearly one-third of all U.S. retail customers who have a bad shopping experience will tell four people in such a way that those four people will be more negatively impacted than the person who initially had the problem.

More than 50 per cent of Americans report that a negative shopping experience of a friend or colleague will prevent them from setting foot in a store altogether. Learn more about the Jay H. Baker Retailing Initiative.

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