Aftersales rating As predicted in the Data section we observe a positive effect (0.810) that is significant both statistically (at 10% and economically. However, given this relation one cannot declare that high or low rating by itself influences store prices. It is rather the cause of the rating that is positively affecting store prices. In other words higher prices are the effect of higher aftersales service levels. The rating itself is just a proxy that reflects customer’s perception of the service. We could say that a rating increase of one star leads to a certain increase of the price but this would not be correct because a star is something subjective, something hard to measure in absolute terms. Delivery rating Given that delivery rating is another proxy for service, but unlike aftersales rating it focuses on the product handling process, I expected to see a positive relationship between product handling quality and store price rating. However, this is not the situation. What we witness is a statistically significant (at 5% level) effect with a negative sign (-1.197). Such an unexpected result may be explained by several facts: The technological factors: More and more firms are moving to computerized and automated handling systems where less human time and effort is spent on logistical matters, meaning that in terms of order handling an additional order may produce little or no marginal cost at all. As the number of orders increases, a computerized of fully automated order handling system may start producing economies of scale. This way the handling investments are cancelled out by the resulting benefits. Online support
Aftersales rating As predicted in the Data section we observe a positive effect (0.810) that is significant both statistically (at 10% and economically. However, given this relation one cannot declare that high or low rating by itself influences store prices. It is rather the cause of the rating that is positively affecting store prices. In other words higher prices are the effect of higher aftersales service levels. The rating itself is just a proxy that reflects customer’s perception of the service. We could say that a rating increase of one star leads to a certain increase of the price but this would not be correct because a star is something subjective, something hard to measure in absolute terms. Delivery rating Given that delivery rating is another proxy for service, but unlike aftersales rating it focuses on the product handling process, I expected to see a positive relationship between product handling quality and store price rating. However, this is not the situation. What we witness is a statistically significant (at 5% level) effect with a negative sign (-1.197). Such an unexpected result may be explained by several facts: The technological factors: More and more firms are moving to computerized and automated handling systems where less human time and effort is spent on logistical matters, meaning that in terms of order handling an additional order may produce little or no marginal cost at all. As the number of orders increases, a computerized of fully automated order handling system may start producing economies of scale. This way the handling investments are cancelled out by the resulting benefits. Online support
Didenco,%20P.%20%28303557%29.docx