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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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    4. 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).
    5. Fu, Xiaorong & Pang, Jing & Gursoy, Dogan, 2022. "Effects of online commercial friendships on customer revenge following a service failure," Journal of Business Research, Elsevier, vol. 153(C), pages 102-114.
    6. Shahid Sameeni, Maleeha & Ahmad, Wasim & Filieri, Raffaele, 2022. "Brand betrayal, post-purchase regret, and consumer responses to hedonic versus utilitarian products: The moderating role of betrayal discovery mode," Journal of Business Research, Elsevier, vol. 141(C), pages 137-150.
    7. Gerrath, Maximilian H.E.E. & Brakus, J. Joško & Siamagka, Nikoletta Theofania & Christodoulides, George, 2023. "Avoiding the brand for me, us, or them? Consumer reactions to negative brand events," Journal of Business Research, Elsevier, vol. 156(C).
    8. 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).
    9. Tan, Teck Ming & Makkonen, Hannu & Kaur, Puneet & Salo, Jari, 2022. "How do ethical consumers utilize sharing economy platforms as part of their sustainable resale behavior? The role of consumers’ green consumption values," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
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