Article Review: The Explanation Effects on Consumer Perceived Justice, Satisfaction and Loyalty Improvement: An Exploratory Study By Jen-Hung Huang and Chia-Yen Lin
The article The Explanation Effects on Consumer Perceived Justice, Satisfaction and Loyalty Improvement: An Exploratory Study was written by Jen-Hung Huang and Chia-Yen Lin of the National Chiao-Tung University, in Hain-Chu, Taiwan, Republic of China. It is published in the September 2005 issue (Volume 7, Number 2) of The Journal of American Academy of Business, Cambridge. Dr. Jen-Hung Huang is a professor of the Department of Management Science at the National Chiao-Tung University (Taiwan) and Chin-Yen Lin in a doctoral student of the Department of Management Science at the same institution.
The authorsÆ purpose in conducting this study was to attempt to build a conceptual model for managers to use as a guide when they decide to change price policy. In doing so, the authorsÆ recognize that previous research has shown that an explanation for an event affects reactions to that event. Therefore, the specific objectives of the study were ôto propose a conceptual model of the relationship between explanation effect and consumer perception; to present research propositions that explicate the relationships delineated in the proposed model; and to propose an agenda for further research in this areaö (Huang and Lin, 2005, p. 212).
In addressing the study objectives, the authorsÆ composed a set of research propositions that are key to the purpose of the article. Those propositions were: ôProviding explanation (whether excuse or justification) will result in more positive perceptions (i.e. fairness or justice) than no explanation. And providing explanations before event happened will result in more positive perceptions; Providing explanation as the justification type will have a more beneficial effect on justice and fairness than providing an excuse, whether b...