The Impact of Perceived Success on Consumer Forgiveness: The Mediating Role of Power Distance

Abstract

The purpose of this study is to examine the impact of perceived team success on consumer forgiveness and the mediating role of power distance. It also investigates whether the type of apologizer (individual vs. team) has an impact on the benefits of team success. Study 1 used one-factor (success contribution: individual or team) between-subjects design to investigate whether the different power distance of the apologizers will affect the consumer forgiveness. Participants in study 1 were set to see the apology on social media. Study2 used 2 (success contribution: individual or team) × 2 (apologizer: individual or team) between-subjects design to investigate whether success contribution and number of apologizer have an impact on consumer forgiveness. The study also found that the power distance between consumption and successful individuals or groups may be the underlying mechanism. Participants in study 2 were set to see the apology on social media app and in an email apology letter. The results of this study suggest that when companies are perceived by consumers to owe their success to the team, they receive less power distance than companies that are perceived to owe their success to individuals, which in turn leads to higher levels of forgiveness from consumers when service failures occur. In addition, when crisis communications require an apology letter to be sent, it is more effective to send it in the name of the successful team rather than the successful individual.