Abstract
Keywords
IntroductionLiterature review and hypothesis development
Study 1
Study 2
General discussion and implication
Limitations and future research
Appendix A.
Appendix B.
References
ABSTRACT
This research examines the influence of service recovery transparency on customer forgiveness to retain customers in the context of service recovery via social media. We propose that customer forgiveness mediates the effect of service recovery transparency on switchover intentions. We further posit that the effect of service recovery transparency on customer forgiveness is moderated by two additional recovery strategies, i.e., apology and explanation. The results of two studies, i.e., a survey and a scenario-based experiment, show that service recovery transparency acts to elicit customer forgiveness, which subsequently negatively affects switchover intentions. Furthermore, both apology and explanation moderate the effect of service recovery transparency on customer forgiveness. The positive effect of service recovery transparency on customer forgiveness is attenuated when an apology/explanation is absent.
Introduction
Service recovery is the effort that is made by service providers to manage or resolve service failures (Tax et al., 1998; Van Vaerenbergh et al., 2019). With the rapid development of technology and the emergence of social media, substantial customer complaint behaviors have shifted from offline to online contexts, particularly via social media. Accordingly, there is a demand for firms to be transparent and accountable when handling their customers’ complaints. A recent study surveying over 1000 social media users in the United States showed that 51% of consumers have complained via social media. Among these complainants, 52% of them intended to create awareness for other consumers (Moraes, 2019).