The Formation of Consumer Forgiveness－An Application of Structural Equation Model
Date Issued
2014
Date
2014
Author(s)
Lin, Pei-Chen
Abstract
With the increasing competition in the current marketplace, considerable attention has been paid to the concept of customer relationships orientation, especially in the service industry. Because service failures are unavoidable, when service failures happen, the relationships between customers and their service providers are susceptible to disruption and problems. A service provider will take the actions, known as service recovery, in response to a service failure. Some customers still remain lingering grievance, though encountering excellent service recoveries. Facing the competition, service providers must realize that the factors to elicit customer forgiveness are more crucial to restore the relationships than implementing recoveries. The study develops a model that addresses the following: (a) What factors may affect customer’s attitude to forgive? (b) Can a highly attitudes to forgive and empathy enhance customer forgiveness? (c) Do customer forgiveness and relationship quality influence brand trust after service failure? (d) To what extent do service recoveries moderate the relationship between customer forgiveness and its triggers? The model is operationized with data from online questionnaire asking customers to recall an actual service failure listed in the questionnaire they had recently experienced at a restaurant. Research methodology consists of LISREL and SPSS analysis with 259 valid samples. The results suggest that social influence and switching costs can enhance customer’s attitude to forgive. Also, highly attitudes to forgive and empathy would elicit customer forgiveness. Moreover, relationship quality enhances brand trust. However, customer forgiveness has no significant influence on brand trust and service recoveries have no moderation effect on customer forgiveness and its triggers.
Subjects
Consumer forgiveness
Attitudes to forgive
Empathy
Brand trust
Type
thesis
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