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Recover from a service failure: The differential effects of brand betrayal and brand disappointment on an exclusive brand offering

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  • Tan, Teck Ming
  • Balaji, M.S.
  • Oikarinen, Eeva-Liisa
  • Alatalo, Sari
  • Salo, Jari

Abstract

Brand managers inevitably have to face service failures and respond to them. Undertaking brand recovery is essential as customers might desire to take revenge or spread negative word-of-mouth if they feel betrayed or disappointed by the brand following the service failure. Thus, it is necessary to understand customer responses to brand recovery, which depend on whether they feel betrayed or disappointed (while related, this paper distinguishes these feelings). This research challenges the conventional wisdom by demonstrating that, after presenting customers with an exclusive brand offering during the brand recovery, brand betrayal predicts a positive brand attitude and brand disappointment predicts a negative brand attitude with the service failure. Further, the brand attitude mediates the positive relationship between brand betrayal, positive word-of-mouth, and the likelihood of recommending the brand to others. Thus, the quick recovery that follows an exclusive brand offering positively impacts on the brand relationship among betrayed customers.

Suggested Citation

  • Tan, Teck Ming & Balaji, M.S. & Oikarinen, Eeva-Liisa & Alatalo, Sari & Salo, Jari, 2021. "Recover from a service failure: The differential effects of brand betrayal and brand disappointment on an exclusive brand offering," Journal of Business Research, Elsevier, vol. 123(C), pages 126-139.
    • Handle: RePEc:eee:jbrese:v:123:y:2021:i:c:p:126-139
    DOI: 10.1016/j.jbusres.2020.09.056
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    5. Ryoo, Yuhosua, 2022. "Moral credentials versus moral credits: Two paths to consumers’ licensing of brand transgressions," Journal of Business Research, Elsevier, vol. 146(C), pages 13-31.
    6. Robertson, Jeandri & Botha, Elsamari & Ferreira, Caitlin & Pitt, Leyland, 2022. "How deep is your love? The brand love-loyalty matrix in consumer-brand relationships," Journal of Business Research, Elsevier, vol. 149(C), pages 651-662.
    7. Reinikainen, Hanna & Tan, Teck Ming & Luoma-aho, Vilma & Salo, Jari, 2021. "Making and breaking relationships on social media: the impacts of brand and influencer betrayals," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    8. Nadeem, Waqar & Tan, Teck Ming & Tajvidi, Mina & Hajli, Nick, 2021. "How do experiences enhance brand relationship performance and value co-creation in social commerce? The role of consumer engagement and self brand-connection," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    9. Tan, Teck Ming & Salo, Jari & Aspara, Jaakko, 2024. "You fooled me, so I’ll tell you about myself! personnel-related brand betrayal experiences and disclosure of personal information," Journal of Business Research, Elsevier, vol. 171(C).
    10. Abílio Bragança Milheiro & Bruno Barbosa Sousa & Vasco Ribeiro Santos & Catarina Bragança Milheiro & Estela Vilhena, 2024. "Understanding the Role of Brand Attachment in the Automotive Luxury Brand Segment," Administrative Sciences, MDPI, vol. 14(6), pages 1-27, June.
    11. Katarzyna Sanak-Kosmowska, 2023. ".#isoverparty. The Consequences of Brand Boycotts for Brands in the Social Media Environment After Russia’s Invasion in Ukraine," Journal of Marketing and Consumer Behaviour in Emerging Markets, University of Warsaw, Faculty of Management, vol. 1(16), pages 22-38.
    12. Kumar, Sushant & Talwar, Shalini & Krishnan, Satish & Kaur, Puneet & Dhir, Amandeep, 2021. "Purchasing natural personal care products in the era of fake news? The moderation effect of brand trust," Journal of Retailing and Consumer Services, Elsevier, vol. 63(C).

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