Does service recovery really work? The multilevel effects of online service recovery based on brand perception

Abstract

This study explores how customer perception of online shopping brands plays a key role in moderating the relationship between service recovery and perceived justice. We incorporated brand equity at the organizational level and brand identity at the individual level into the relationship between online service recovery and customer-perceived justice. The findings are as follows: (a) online service recovery has a positive effect on customer-perceived justice; (b) brand equity at the organizational level has a negative influence on the relationships that courtesy and compensation have with perceived justice; (c) brand identity at the individual level has a negative influence on the relationships that courtesy and compensation have with perceived justice; and (d) hierarchical linear modeling can precisely measure the relationship between organizations and customers.