An empirical investigation of the effects of empathy of apology and monetary compensation on customers’ revenge desires after double deviations

Silvestro, Lucia Lowri ORCID: 0009-0003-9632-4404 (2023). An empirical investigation of the effects of empathy of apology and monetary compensation on customers’ revenge desires after double deviations. University of Birmingham. Ph.D.

Preview

Silvestro2023PhD_Redacted.pdf
Text - Redacted Version
Available under License All rights reserved.
Download (3MB) | Preview

Abstract

This study examines the effect of empathy of the apology and monetary overcompensation on customers’ revenge desires following double deviations. Double deviations can be defined as situations in which firms fail to recover from service failure. Two research questions that guide the current research are (1) how does the level of empathy of the apology impact on consumers’ revenge desires after double deviation? and (2) how does the combination of the level of empathy of apology and the amount of monetary compensation impact on customers’ revenge desires after double deviation?

A logical empiricist philosophical perspective informed the research design, which comprised an explanatory, multi-study approach. The study includes two scenario-based experiments and one behavioural experiment to examine the relationship between the double deviation recovery strategy and customers’ revenge desires. Study 1 focuses on customer responses to different levels of empathy of apology and monetary overcompensation, by measuring customers’ self-reported anger and revenge desires. Study 2 focuses on customer responses to different levels of empathy of apology under different conditions of failure intentionality and assesses alternative mediators of different types of inferred intentions of the manager. Study 3 examines the extent to which empathy of apology and monetary overcompensation impact on customers’ revenge behaviours, as well as exploring the relationships in a different failure context.

Over the course of the project, four different types of motivational mediators were considered: the inferred selfish intentions of the manager, the inferred manipulative intentions of the manager, the inferred benevolent intentions of the manager and the inferred selfish intentions of the firm. The two scenario-based experiments were conducted online and in the context of a hotel booking failure. The behavioural experiment was again conducted online but in the context of an online wine retailer prize draw failure.

The findings provide empirical support for a conceptual model of service recovery from double deviation. The study shows that the effect of empathy of apology on revenge desires is mediated by the inferred selfish and manipulative intentions of the manager during service recovery from double deviation. In contrast, monetary overcompensation appears to be ineffective when the utilitarian needs of the customer are met following double deviation. Moreover, the intentionality of the failure does not appear to reduce the effect of empathy of apology on customers’ revenge desires. However, the empathy of the apology appears to be a less effective recovery tactic when the firm instigates a utilitarian failure.

The current research provides three contributions to the service recovery literature. First, the study extends the attribution-based theory of service recovery from double deviation by demonstrating that empathy of apology can be utilised to alleviate customers’ revenge desires. Second, customers’ inferences of managerial intent mediate the effects of empathetic apologies on revenge desires, thereby playing a pivotal role in double deviation recovery. Third, the current study advances conceptual understanding of the nature of the inferred intentions that drive revenge desires, by highlighting that the negative inferred intentions appear to mediate the model of the effects of empathetic apologies. The research presents implications for practitioners and policy makers concerning how to improve service recovery outcomes.

Data supporting the thesis is available on the University of Birmingham eData repository https://doi.org/10.25500/edata.bham.00001048

Type of Work:

Thesis (Doctorates > Ph.D.)

Award Type:

Doctorates > Ph.D.

Supervisor(s):