The Antecedents and Consequences of Brand Forgiveness

The Antecedents and Consequences of Brand Forgiveness

Leigh Anne Novak DonovanJoseph PriesterC. 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 Scenarioo Starbucks and iPod

o Measured Hypothetical Responseso Nike

o Real World Failureo iPhone

o Autobiographical Actual Product Failures

RelationshipsConsumer –Brand Relationships

Brand-Self Connection

Relationship Forgiveness

-

+

Relationship Forgiveness

+

Starbucks Scenario Results

Relationship Upsetx

Forgiveness

Satisfaction Relationship Forgiveness

Nike Survey Study

Relationship Forgiveness

+

Why?

Relationship Forgiveness

Attribution

Trust

“Apple’s iPhone Price Cut Unleashes Complaints”

Sept 6th, 2007

Relationship Compassion Forgiveness

Solution to the

Problem

Relationship Forgiveness

Attribution

Trust

Emotions

ForgivenessFuture

Behaviors

iPod Study

2 Scenarios Measure RelationshipPositive or Negative

Scenario 1 Brand Failure

You have compiled a playlist for your vacation.

iPod fails on vacation

Scenario 2 Brand Success

You have compiled a playlist for your vacation

Your iPod performs as

expected

Repurchase: By Attachment and Scenario

0

1

2

3

4

5

6

7

8

9

10

LOW MID HIGH

POSITIVE OUTCOME NEGATIVE OUTCOME

Forgiveness to Future Behaviors

Forgiveness

Willing to defend the brand

Less likely to seek revenge

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

Brand Relationship

Forgiveness Behaviors

Attributions

Trust

Emotions

2 Hypotheses

How does the relationship influence forgiveness

1) Marketing LiteraturePredict that those with a relationship would be less likely to forgive. Expectation Disconfirmation (Oliver)Relationship leads to increased expectations

Expectations

Strong Relationship 7.47Weak Relationship 5.98 (55.09, p < .0001)

2) Psychology LiteratureRelationship would lead to forgivenessRelationships increase relationship maintenance behaviors

• Customer betrayal and retaliation: when your best customers become your worst enemies

• Yany Grégoire and Robert J. Fisher2

• 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?

(F(1, 190) 47.65, p <.0001)

(F(1, 190) 52.17, p <.0001)

(F(2, 190) 3.64, p =.06)

Sobel Test = 4.26, p < .0001

Relationship

Attribution

Forgiveness

Mediated by Trust

• Trust Nike

(F(1, 190) 73.91, p < .0001) (F(1, 190) 58.68, p < .0001)

(F(2, 190) 1.22, p = .27)

Sobel Test = 4.87, p < .0001

Relationship

Trust

Forgiveness

iPhone 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 and the price cut (F(1, 211) 13.06, p = .0003)

Mediated by Emotion

(F(1, 211) 13.06, p = .0003) (F(1, 211) 153.95, p < .0001)

(F(2, 211) 1.27, p = .26)

Sobel Test = 3.52, p = .0004

(F(1, 211) 4.2, p = .0418)

Relationship

Compassion

Forgiveness

Response a Solution to

the Problem

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)

(F(1, 127) 5.82, p = .017)

(F(2, 127) .90, p = .35)

Sobel Test = 3.91, p = .002

Relationship

Forgiveness

Purchased Since Failure

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?