University of Oulu

Teck Ming Tan, M.S. Balaji, Eeva-Liisa Oikarinen, Sari Alatalo, Jari Salo, Recover from a service failure: The differential effects of brand betrayal and brand disappointment on an exclusive brand offering, Journal of Business Research, Volume 123, 2021, Pages 126-139, ISSN 0148-2963,

Recover from a service failure : the differential effects of brand betrayal and brand disappointment on an exclusive brand offering

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Author: Tan, Teck Ming1; Balaji, M.S.2; Oikarinen, Eeva-Liisa1;
Organizations: 1Oulu Business School, University of Oulu, Pentti Kaiteran katu 1, 90014 Oulu, Finland
2Nottingham University Business School, University of Nottingham Ningbo, 199 Taikang East Road, Yinzhou, Ningbo 315100, Zhejiang, China
3English Business Communication, Oulu University of Applied Sciences, Kotkantie 1, 90250 Oulu, Finland
4Department of Economics and Management, University of Helsinki, P.O. Box 27 (Latokartanonkaari 5) 00014 University of Helsinki, Finland
Format: article
Version: accepted version
Access: embargoed
Persistent link:
Language: English
Published: Elsevier, 2021
Publish Date: 2023-10-06


Brand managers inevitably have to face service failures and respond to them. Undertaking brand recovery is essential as customers might desire to take revenge or spread negative word-of-mouth if they feel betrayed or disappointed by the brand following the service failure. Thus, it is necessary to understand customer responses to brand recovery, which depend on whether they feel betrayed or disappointed (while related, this paper distinguishes these feelings). This research challenges the conventional wisdom by demonstrating that, after presenting customers with an exclusive brand offering during the brand recovery, brand betrayal predicts a positive brand attitude and brand disappointment predicts a negative brand attitude with the service failure. Further, the brand attitude mediates the positive relationship between brand betrayal, positive word-of-mouth, and the likelihood of recommending the brand to others. Thus, the quick recovery that follows an exclusive brand offering positively impacts on the brand relationship among betrayed customers.

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Series: Journal of business research
ISSN: 0148-2963
ISSN-E: 1873-7978
ISSN-L: 0148-2963
Volume: 123
Pages: 126 - 139
DOI: 10.1016/j.jbusres.2020.09.056
Type of Publication: A1 Journal article – refereed
Field of Science: 511 Economics
512 Business and management
Funding: The first author gratefully acknowledges the financial support from the OP Group Research Foundation (Grant ID: 20190150) and the Dr.h.c Marcus Wallenberg Foundation (Grant ID: 10-2726-30).
Copyright information: © 2020 Elsevier Inc. This manuscript version is made available under the CC-BY-NC-ND 4.0 license