An evaluation of explanation effects on consumer perceptions

Previous studies in organization theory have shown that advance notice for an event, such as job termination, is key in determining reactions to the event. Based on ANOVA, the authors demonstrate the positive effects for stores of providing advance explanations to customers, especially in situations with outcomes unfavorable to the customer. The analysis reveals that providing an explanation will result in higher justice perception, especially in the type of justification. Stores can adopt this low-cost idea of providing explanations to enhance the justice perception of their customers, and to maintain customer relationships, satisfaction, and loyalty. Implications and directions for future research are also discussed.