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Managing social media recovery: The important role of service recovery transparency in retaining customers

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  • Honora, Andreawan
  • Chih, Wen-Hai
  • Wang, Kai-Yu

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.

Suggested Citation

  • Honora, Andreawan & Chih, Wen-Hai & Wang, Kai-Yu, 2022. "Managing social media recovery: The important role of service recovery transparency in retaining customers," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).
    • Handle: RePEc:eee:joreco:v:64:y:2022:i:c:s0969698921003805
    DOI: 10.1016/j.jretconser.2021.102814
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    11. Koc, Erdogan & Hatipoglu, Sercan & Kivrak, Oguzhan & Celik, Cemal & Koc, Kaan, 2023. "Houston, we have a problem!: The use of ChatGPT in responding to customer complaints," Technology in Society, Elsevier, vol. 74(C).

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