The Effect of Win-Back Investment on Lost Consumers’ Intention of Reinitiating Relationship

Abstract

This research studies the effect of win-back strategy on reinitiating brand-consumer relationship (BCR) by examining three commonly adopted strategies, namely apology, tangible reward, and privilege. Empirical findings demonstrate that these strategies have different effects on consumers’ intention of reinitiating relationship (CIRR). More specifically, whereas consumers will show positive CIRR if a transgression brand employs the strategies of apology, tangible reward and privilege, consumers’ perception of apology has the most significant effect. In addition, this study also tests the moderating role of brand relationship quality on CIRR. Results show that if the brand-relationship quality prior to brand transgression is high, win-back strategies will have more positive effects on CIRR, and vice versa.

Keywords

transgression brand / win-back investment / reinitiating relationship / brand relationship quality

RIGHTS & PERMISSIONS

2014 Higher Education Press and Brill