KOREASCHOLAR

This research was conducted in order to examine the effect of brand status and brand crisis types on consumers’ forgiveness intention. In this research, we proposed and found that the favorable attitude toward the underdog referred as underdog effect (Paharia, Keinan, Avery, & Schor, 2011) would be diluted especially in relational-related failure. When relationship efforts and perceived warmth of the brand are particularly critical, service failure caused by highly identified underdog brand can be perceived to be more serious (Vandello, Goldschmied, & Richards, 2007). Four of the studies consistently demonstrated our assumption in that people expressed less forgiveness intention on underdog brands when the crisis is in a service failure (vs. product failure): study1 and 2, service process failure (vs. service outcome failure): study 3, and human service process failure (vs. non-human service process failure): 4. Further, the mechanism underlying this negative effect toward the underdog was revealed as perceived anger. These findings can give insights to marketers that the types of crisis and the way of brand positioning are very critical to influence customer’s forgiveness intention.

• Kiwan Park(Seoul National University, Republic of Korea)
• Yaeri Kim(Seoul National University, Republic of Korea)
• Seojin Stacey Lee(Seoul National University, Republic of Korea)