Service recovery types on customer forgiveness: a moderated moderation model of promotions and customer type

ABSTRACT This study examines the effect of three justice types' direct and three-way interactions on customer forgiveness, including the two moderators of sales promotions and customer type. Notably, the analysis revealed that procedural justice's impact on customer forgiveness is significant, but the direct effects of distributive and interactional justice are insignificant. Specifically, the more positive the non-complainers' evaluations of service recovery efforts, the more forgiving they are in response to price discounts. Meanwhile, although complainers respond positively to price discounts, their reactions to coupons and discounts are similar and increase somewhat in a positive nature.