Bad Shopping Leads to Trash Talking

PHILADELPHIA -- A new study reveals that consumers who have a negative shopping experience are likely to let their friends and family know about it at the expense of that retailer's reputation, reported NACS Online.

According to the Customer Dissatisfaction study by Verde Group and the Baker Retailing Initiative at University of Pennsylvania's Wharton School, more than 50 percent of Americans say hearing about a negative shopping experience by their peers will prevent them from setting foot in that store altogether.

"This study is unlike anything we've seen before," said Paula Courtney, Verde Group's president. "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 the store does to entice shoppers, these people will not set foot in their store."

Stephen J. Hoch, professor and marketing department chair at the Wharton School, added that the study reveals "another risk" for retailers: unhappy customers will spread their dissatisfaction by word of mouth but won't bother to contact the company.

"If businesses want to stop the bleeding from negative word of mouth, it's clear that they need to invest in ensuring that each customer experience is first rate -- from adequate parking, to trained front-line staff to the right product mix, both in stock and on the shelves," said Hoch.

The Customer Dissatisfaction study also revealed the following -- on average, shoppers tell four people about their negative shopping experience; as it passes by word of mouth the "experience" becomes embellished as it is repeated; the top three areas relating to negative shopping experiences are time (can't find parking, long lines); merchandising (store layout and information displays); and customer service (lack of courtesy and inadequate product knowledge); consumers encounter more problems in bigger stores; and men are less loyal than women.

"U.S. businesses should take note -- every instance of customer dissatisfaction has the potential to negatively impact loyalty and ultimately, the bottom line," Courtney said. "With this latest study, we now know that negative word of mouth is so powerful that it can deter potential customers from ever shopping at that store. But there is hope -- by taking steps to better understand the problems their customers experience, retailers can begin to immunize themselves against negative word of mouth.