Understanding psychological contract violation and its consequences on mobile shopping applications use in a developing country context

Abstract

Purpose The purpose of this research is to investigate the influence of psychological contract violation (PCV) on service quality and perceived value, and consequently on users positive word of mouth intention towards mobile shopping applications. The role of personalization as a moderator is further investigated. Design/methodology/approach A descriptive research approach was adopted, and responses were gathered from 252 mobile shopping application users in India, using an online survey. The variance-based partial least square structural equation modelling approach was opted for analysing the research model. Findings The results showed the deleterious effects of PCV on service quality and perceived value. The findings further confirm the significant positive impact of service quality and perceived value on the positive word of mouth intention of users. The role of personalization in mitigating the adverse effects of PCV on perceived value among users of mobile shopping application is highlighted in the study; however, its role in safeguarding service quality is found to be insignificant. Research limitations/implications A study with larger sample of respondents from varied nationalities will aid in generalizing the findings of this research. Originality/value This is the first time that PCV and its consequences have been studied in the context of mobile shopping applications.