The Antecedents and Consequences of Brand Forgiveness Leigh
The Antecedents and Consequences of Brand Forgiveness Leigh Anne Novak Donovan Joseph Priester C. Whan Park University of Southern California
Forgiveness Repurchase versus Abandon
3 Basic Questions 1. Antecedents 2. Consequences 3. Conceptual Model
Methodology 4 Studies o Manipulated Scenario o Starbucks and i. Pod o Measured Hypothetical Responses o Nike o Real World Failure o i. Phone o Autobiographical Actual Product Failures
Relationships Consumer –Brand Relationships Brand-Self Connection
+ Relationship Forgiveness -
Starbucks Scenario Results + Relationship Forgiveness x Upset
Forgiveness Satisfaction Relationship Forgiveness
Nike Survey Study + Relationship Forgiveness Why?
Attribution Forgiveness Relationship Trust
“Apple’s i. Phone Price Cut Unleashes Complaints” Sept 6 th, 2007 Relationship Solution to the Problem Compassion Forgiveness
Attribution Relationship Trust Emotions Forgiveness
Forgiveness Future Behaviors
i. Pod Study 2 Scenarios Positive or Negative Scenario 1 Brand Failure Measure Relationship Scenario 2 Brand Success You have compiled a playlist for your vacation i. Pod fails on vacation Your i. Pod performs as expected
Repurchase: By Attachment and Scenario 10 9 8 7 6 5 4 3 2 1 0 LOW MID POSITIVE OUTCOME HIGH NEGATIVE OUTCOME
Forgiveness to Future Behaviors Willing to defend the brand Less likely to seek revenge Forgiveness Willing to consume the product in the future Willing to repurchase the brand
Autobiographical Failures Relationship Forgiveness Purchased Since Failure
The End! Thank you very much for your attention!
Overall Model Attributions Brand Relationship Trust Emotions Forgiveness Behaviors
2 Hypotheses How does the relationship influence forgiveness 1) Marketing Literature Predict that those with a relationship would be less likely to forgive. Expectation Disconfirmation (Oliver) Relationship leads to increased expectations Expectations Strong Relationship Weak Relationship 7. 47 5. 98 (55. 09, p <. 0001) 2) Psychology Literature Relationship would lead to forgiveness Relationships increase relationship maintenance behaviors
• Customer betrayal and retaliation: when your best customers become your worst enemies • Yany Grégoire and Robert J. Fisher 2 • The transgression become more hurtful when you are in a relationship • Oliver’s expectation disconfirmation – Satisfaction = ƒ(expectations, disconfirmation) • ACSI – Customer Expectations (disconfirmation) Satisfaction, along with other factors: perceived quality and perceived value • Service failure and recovery: The impact of relationship factors on customer satisfaction • Hess, R. L. , Ganesan, S. , & Klein, N. M. (2003) • In this literature, it is suggested that relationships may be able to buffer failures
Starbucks Study • We manipulated a brand failure scenario • Starbucks – Failure – Given the wrong drink and it is cold • Will consumers be willing to forgive? • Who will be more likely to forgive – those with or without a relationship?
Starbucks Results • Relationship positively predicts forgiveness (F(1, 169) 55. 02, p <. 0001) • Interestingly, the relationship does not predict how upset participants were with Starbucks following the failure (p>. 05)
Nike Study Results • Willingness to forgive is predicted by all of our relationship measures Attach (p <. 0001), RCI (p <. 0001), Escalas BSC (p <. 0001) • We now know that the relationship influences forgiveness • Why? • We are able to show 2 independent mediators
Mediated by Attribution • To what extent do you think that when something goes wrong with Nike shoes, it does not reflect its true quality? Attribution (F(1, 190) 47. 65, p <. 0001) (F(1, 190) 52. 17, p <. 0001) Relationship Forgiveness (F(2, 190) 3. 64, p =. 06) Sobel Test = 4. 26, p <. 0001
Mediated by Trust • Trust Nike (F(1, 190) 73. 91, p <. 0001) Trust Relationship (F(1, 190) 58. 68, p <. 0001) Forgiveness (F(2, 190) 1. 22, p =. 27) Sobel Test = 4. 87, p <. 0001
i. Phone Results • Again, we replicate that the relationship leads to forgiveness (F(1, 211) 10. 43, p =. 0014) • The relationship leads to an emotional response towards the brand the price cut (F(1, 211) 13. 06, p =. 0003)
Mediated by Emotion Compassion (F(1, 211) 13. 06, p =. 0003) (F(1, 211) 153. 95, p <. 0001) Relationship Forgiveness (F(2, 211) 1. 27, p =. 26) Sobel Test = 3. 52, p =. 0004 Response a Solution to the Problem (F(1, 211) 4. 2, p =. 0418)
Does Forgiveness lead to Future Behaviors? • Starbucks Study – Forgiveness predicts willing to defend the brand in the future (F(1, 169) 53. 11, p <. 0001) – Forgiveness makes people less likely to seek revenge on the company (F(1, 169) 9. 53, p =. 0024) – Forgiveness predicts willingness to drink Starbucks in the future (F(1, 169) 44. 05, p <. 0001) – Forgiveness makes people more willing to purchase the brand again (F(1, 169) 164. 1, p <. 0001) • Autobiographical Actual Failures Study – Forgiveness predicts if participants have actually purchased the brand following the failure (F(1, 127) 5. 82, p =. 017).
Autobiographical Failures (F(1, 127), 14, 73, p =. 0002) Forgiveness (F(1, 127) 5. 82, p =. 017) Purchased Since Failure Relationship (F(2, 127). 90, p =. 35) Sobel Test = 3. 91, p =. 002
Brand Relationship (RCI, Attachment, Escalas, Commitment) Separation Distress Trust Forgiveness Future Behaviors Willingness s to Repurchase Buy Again Satisfaction After Loyalty Happen Again
Brand Relationship Measures – To what extent: • do you feel that you are personally connected to Starbucks? • is Starbucks a part of you and who you are? – To what extent are (do) your thoughts and feelings towards Starbucks: • often automatic, coming to mind seemingly on their own? • come to you naturally and easily? – Not at All = 0 Completely = 10 • • Brand Self-Connection (Escalas) • • To what extent does Nike reflect the values you personally cherish? To what extent do you feel that Nike reflects who you are? To what extent do you identify with Nike? To what extent do you use the Nike image to communicate who you are to other people? To what extent do you think Nike (could) help(s) you become the type of person you want to be? To what extent do you consider Nike to be “you”? To what extent do you think Nike suits you well?
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