Research studies on brand transgression (BT), service failure and recovery (SFR), and product-harm crisis (PHC) appear to have a common focus, yet the three streams developed surprisingly independently and with limited reference to one another. This situation is unfortunate because all three fields study a similar phenomenon by using complementary conceptualizations, theories, and methods; we argue that this development in silos represents an unnecessary obstacle to the development of a common discipline. In response, this review synthesizes the growing BT, SFR, and PHC literatures by systematically reviewing 236 articles across 21 years using an integrative conceptual framework. In doing so, we showcase how the mature field of SFR in concert with the younger but prolific BT and PHC fields can enrich one another while jointly advancing a broad and unified discipline of negative events in marketing. Through this process, we provide and explicate seven overarching insights across three major themes (theory, dynamic aspects, and method) to encourage researchers to contribute to the interface between these three important fields. The review concludes with academic contributions and practical implications.

A systematic review of brand transgression, service failure recovery and product-harm crisis: integration and guiding insights

Service failures represent temporary or permanent interruptions of the customer’s regular service experience. Although the literature identifies an extensive set of organizational alternatives for ...

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The Service Recovery Journey: Conceptualization, Integration, and Directions for Future Research:

This article examines how compensation type and failure type explain the recovery effect of compensation, using a meta-analysis (Study 1) and an experiment (Study 2). Drawing on resource exchange t...

Identifying Appropriate Compensation Types for Service Failures: A Meta-Analytic and Experimental Analysis

Robots are the next wave in service technology; however, this advanced technology is not perfect. This research examines how social perceptions regarding the warmth and competence of service robots...

To Err Is Human(-oid): How Do Consumers React to Robot Service Failure and Recovery?:

In this article we examine the interplay between the severity of a brand transgression, consumers’ prior awareness of the firm’s corporate social responsibility (CSR) initiatives, and the firm’s response (apology vs. apologia) on the rates of forgiveness among consumers. Results of two experiments show that consumers’ prior awareness of the firm’s CSR initiatives significantly differentiates apologia from apology, with the effect of apology on consumer forgiveness being more apparent when brand transgression severity is mild. Results also show that consumer forgiveness mediates the effect of brand transgression severity, firm response, and consumer awareness on repurchase intentions. In this way, the study enables managers to determine whether or not an apology or apologia will be sufficient to solicit consumer forgiveness, using information about the levels of awareness of CSR among consumers.

Consumers’ forgiveness after brand transgression: the effect of the firm’s corporate social responsibility and response

Extant service recovery research treats apology as a dichotomy, in that it is either present or absent, but how it is conveyed is neglected. Based upon social psychological research, this study argues that an apology comprises three different components: empathy, intensity, and timing, which make each apology unique. It is shown that how well an apology is delivered across failure types (outcome vs. process) drives service recovery satisfaction, not its mere presence. Empathy, intensity, and timing separately impact satisfaction. The more empathic and intense the apology is given, the more satisfied respondents are. A late apology decreases satisfaction ratings. Effect sizes indicate that empathy has the strongest impact on service recovery satisfaction followed by intensity and timing. The effect of empathy is stronger for process failures than for outcome failures. Interestingly, the apology’s overall effect size is comparable to that of compensation in case of a process failure.

Susanne Kaiser

Papers

The nature of an apology: An experimental study on how to apologize after a service failure