Raving Fans or Silent Critics? Brand Service Recovery’s Impact on Positive eWOM

Abstract

Brand Service Recovery Strategies (BSRS) have garnered significant attention due to their transformative potential in traditional business practices. However, the precise influence of BSRS on fostering positive Electronic Word of Mouth (eWOM) remains inadequately elucidated within the academic literature. Most scholarly investigations have tended to adopt either a theoretical perspective or have overlooked intermediary factors, particularly the role of consumer attitudes toward the brand. Drawing upon the Social Exchange Theory, this study presents an empirical model that seeks to examine whether consumer attitude toward the brand mediates the relationship between BSRS and positive eWOM. Based on survey data from 292 Executive MBA students in a large Chinese university, our study confirms that BSRS strongly impact consumer attitudes, leading to increased positive eWOM. Additionally, we discover that consumer power plays a moderating role, highlighting its contextual importance in this relationship. This study provides vital practical insights for businesses, emphasizing the need for comprehensive strategies involving BSRS, fostering positive consumer attitudes, active eWOM engagement, tailored approaches for consumer power, and ongoing adaptation to customer feedback, all contributing to improved brand perception and customer satisfaction in today’s business environment.