Gaining satisfaction: the role of brand equity orientation and failure type in service recovery
ISSN: 0309-0566
Article publication date: 24 August 2020
Issue publication date: 4 November 2020
Abstract
Purpose
This study aims to examine the role played by brand equity orientation and failure type in service recovery. Specifically, through the lens of forgiveness, the way brand equity orientation and failure type influence consumer response to recovery is revealed.
Design/methodology/approach
This research tests a novel model using data collected from 1,589 consumers in two scenario-based experimental studies. The statistical product and service solutions (SPSS) program with the PROCESS tool was used to test the mediation and moderated mediation effects.
Findings
The research findings suggest that forgiveness plays a mediation role in the relationship between recovery and satisfaction. Brand equity orientation moderates the mediation effect of forgiveness on the relationship between recovery and recovery satisfaction. In addition, failure type also plays an important role and there is a significant three-way interaction effect (service recovery × brand equity orientation × failure type) on recovery satisfaction under certain circumstances.
Research limitations/implications
Building on the extant literature which focuses on the cognitive process when investigating recovery and consumer reaction, this research advocates the significant role played by the psychological process, namely, the feeling of forgiveness, in explaining the effect of distinct recovery strategies on consumer satisfaction. This research also unveils the effects of brand equity orientation and failure type on recovery outcomes.
Practical implications
When addressing performance failure, brand equity orientation and failure type need to be identified. Businesses could develop recovery strategies to arouse consumer forgiveness, which would lead to increased recovery satisfaction. When designing recovery strategies, managers need to be mindful of the effects of brand equity orientation and failure type.
Originality/value
This research is one of the few which reveals the mediating role played by forgiveness on the effect of recovery. Taking brand equity orientation and failure type into consideration, the findings of this research provide new insights into the recovery literature.
Keywords
Acknowledgements
This research was funded by the China Postdoctoral Science Foundation (Grant No.2018M640088). However, neither this funding body nor the institutions to which any of the authors are affiliated has any financial interest or financial conflict with the subject matter of this manuscript.
Citation
Ma, K., Zhong, X. and Hou, G. (2020), "Gaining satisfaction: the role of brand equity orientation and failure type in service recovery", European Journal of Marketing, Vol. 54 No. 10, pp. 2317-2342. https://doi.org/10.1108/EJM-06-2019-0542
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited